The Influence of Corporate Entrepreneurship on Firm Performance in the Supply Chain Sector in Saudi Arabia: The Mediating Role of Dynamic Capabilities
Abstract
Corporate entrepreneurship has increasingly been recognized as a critical strategic mechanism for enhancing organizational competitiveness and performance. However, the processes through which entrepreneurial initiatives translate into measurable firm outcomes remain insufficiently understood, particularly within the supply chain sector in emerging economies. This study investigates the influence of corporate entrepreneurship on firm performance in the Saudi Arabian supply chain sector, with particular emphasis on the mediating role of dynamic capabilities. A quantitative research design was adopted, and data were collected through a structured questionnaire distributed to professionals working in the supply chain sector in Saudi Arabia. Out of 320 distributed questionnaires, 253 valid responses were obtained and analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that corporate entrepreneurship has a significant positive effect on dynamic capabilities and firm performance. Furthermore, dynamic capabilities significantly influence firm performance and partially mediate the relationship between corporate entrepreneurship and firm performance. These findings highlight the importance of organizational adaptability in transforming entrepreneurial initiatives into improved performance outcomes. The study contributes to the literature by integrating corporate entrepreneurship and dynamic capabilities within a unified framework and by providing empirical evidence from the Saudi supply chain context. Practically, the results suggest that managers should not only encourage entrepreneurial behavior but also strengthen internal capabilities that enable organizations to respond effectively to environmental changes. Overall, the study provides insights into how supply chain firms can enhance competitiveness and achieve sustainable performance in an increasingly dynamic business environment.
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