The Development of Corporate Entrepreneurship among Emerging Economy SMEs: Insights from Both Institutional and Contingency Theory

Abstract How do emerging economy SMEs develop Corporate Entrepreneurship (CE)? Emerging economies represent different institutional contexts to those found in developed economies. Currently our understanding of CE and its emergence is rooted in Western-based assumptions. Consequently, our understanding of the inter-relationship between the emerging economy institutional environments and the SME environment and how they shape corporate entrepreneurial process remains lacking. In response to such gaps in our understanding, this study draws on both Institutional and Contingency theories to explore how CE is developed among African SMEs. Drawing on evidence from four indepth case studies of Kenyan SMEs, our findings reveal a complex process wherein elements of the Kenyan institutional environment shape the internal organization and CE related activities of Kenyan SMEs. Our study extends and enriches previous models of CE and deepen our understanding of how and why context matters for CE.