Abstract

The new competitive milieu force not only start-ups, young, and small companies but also big and established organizations to focus on entrepreneurial activities (Hitt, 2000). Indeed the literature has shown the positive association between entrepreneurial orientation and financial performance (Rauch, Wiklund, Lumpkin, and Frese, 2009). However, in spite of the positive outcome on the shareholder side, we do not know much about the effects of this challenging and demanding job of creating an entrepreneurial mood in an established organization designed to administer and maintain the status quo, on employee side.

Along the internal antecedents, management support (Pinchot, 1985; Fry, 1987; Antoncic and Hisrich, 2001), tolerance for risk taking (Kanter, 1985; Hornsby, Kuratko, and Zahra, 2002), and autonomy (Lumpkin and Dess, 1996; Sundbo, 1999) have come forward as the three fundamental factors of creating an effective “intrapreneurial” mood. Specifically in this study, we aim to reveal the effects of these three factors on the affective commitment and psychological contracts of employees.

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