Abstract:
Environmental changes and ever-increasing competition among corporations have
compelled businesses to innovate incessantly. Over the few decades, the concept
‘corporate entrepreneurship’ has gained notable attention among researchers and
practitioners as a salient competitive strategy that evokes a firm’s performance. Ad ditionally, the resource-based view of the firm claims that human resources are the
prominent enablers of competitive advantage. Notably, a limited but rising body of
research has empirically examined the relationship between human resource man agement practices and corporate entrepreneurship. However, researchers wanting
to draw conclusions confront a significant obstacle, as corporate entrepreneurship
is not a one-dimensional concept. The overriding purpose of the study is to inves tigate the relationship between human resource management practices and corpo rate entrepreneurship. This paper uses a quantitative design; a questionnaire survey
method was used to assess human resource management practices and corporate
entrepreneurship. Data have been collected through a purposively chosen sample
of 169 employees from various SMEs in Sri Lanka. Hypotheses were tested using a
partial least squares structural equation modelling (PLS-SEM). The findings show
that out of four HRM practices, three practices, viz., employee acquisition, techni cal training, compensation and incentives system, positively impact corporate entre preneurship. Ironically, no significant association was found between performance
appraisal and corporate entrepreneurship. Practical implications for managers are
discussed at the end of the paper.
