AFT3093

CORPORATE ENTREPRENEURSHIP

Tittle Journal: Presenting a Model of Corporate

Entrepreneurship with Corporate Governance
Approach

NAME OF LECTURER : DR. NORZALIZAH BINTI

BAHARI
LECTURE/TUTORIAL GROUP : L5/L5T1
DATE OF SUBMISSION : 8 NOVEMBER 2020

GROUP MEMBERS MATRIC NO

LIM MEI QI A18A0232
LIM CHEW YUN A18A0230
NG WAI YEE A18A0415
LIM SHI YEN A18A0234
ABDUL HAYYU AIMAN BIN MOHD ARIFF A18A0004
 Table of Content

NO. CONTENTS PAGE NUMBER

1. Introduction 1
2. Objective 1
3. Issues/problem 2
4. Theory/Model 3
5. Discussions and Recommendations 4-5
6. Conclusion 5
7. Reference 6
Introduction

The journals we found are related to corporate entrepreneurship is presenting a model

of corporate entrepreneurship with corporate governance approach from faculty of
entrepreneurship, University of Tehran, Tehran, Iran. The journal show that corporate
entrepreneurship (CE) is mean providing for harmonization with the environment. CE allows
the internal and external ideas to be utilized for solving the problem faced by businesses. CE
establishes formal and informal channels enhancing the capabilities and capacities of an
organisation.

Besides, CE approaches which are inbound for utilizing he external innovative

resources and outbound for utilizing the external resources to develop and commercialize a
products and combined approach with involves the partnership of organizations and their
closer cooperation to create new knowledge. CE consider the various concept, approaches,
method and function of innovation suggest to solve the problem of corporate governance.
However as environment changing, CE presents modern and advanced methods to direct the
organizations relative to goals of corporate governance which include accountability,
transparency, justice, compliance with the stakeholders’ interests and risk management.

This study established that corporate governance in the Iranian brokerage firms is
weak, venturing, financial corruptions and discriminative behaviours and investors have been
left disenfranchised. So, these problem let CE might improve the corporate governance in the
brokerage industry and as a result, the resulting model.

Objective

Objective from the journal is to design a model of corporate entrepreneurship (CE)

considering corporate governance in the brokerage industry. Besides that. CE showed at
inbound, outbound and composition is defined as a practice and strategies that enhance
corporate governance. This is because corporate governance in the Iranian brokerage firms
is weak. Through the research findings and recommend that by using CE strategies corporate
governance will be enhanced in the brokerage industry. So, recommend Iranian brokerage
firms should strengthen their governance structure and risk mitigation mechanisms. Finally,
CE practice facilitates the development of appropriate strategic actions for brokerage
corporate success.

1
Identify Issues and Problems

There are several issues and problems to design a model of corporate

entrepreneurship (CE) with corporate governance approach in the brokerage industry.

The issue that related is corporate governance in the Iranian brokerage firms is weak.
The firms do not have particular units to deal with stock market risks. This is due to lack of
theoretical literature in CE deal with the ultimate goal of corporate governance in the brokerage
industry.

Changes in the organization's operating environment become increasingly

unpredictable. This includes venturing. Venturing is the main component in the process of
pushing larger companies to take greater risks to enhance the overall competitiveness of the
market. For instance, the risks involved in large organizations are redefining business
concepts, restructuring and introducing system-wide innovative changes.

One of the problem is financial corruptions and discriminative behaviors in the

organizations. This problem has attracted the attention of both scholars and policymakers in
recent years. Consequently, it leads to maintain strict monitoring and control of organizations
in order to protect the interests of shareholders and stakeholders.

The investors have been left disenfranchised after some stock brokerage firms
collapsed. As a result, it brings to huge loses for many investors. In spite of growth and
development in the market, the big questions arise to Iranian brokerage firms whether Iranian
brokerage firms have a strong CE and governance structure and whether they practice good
governance and CE practices.

2
Theory and Practice
Theory that used in this journal article is grounded theory. Grounded theory is
developed by two sociologists which are Barney Glaser and Anselm Strauss. Grounded
Theory is a qualitative research approach. Its main purpose is to establish theories based on
empirical data. Researchers generally do not have theoretical assumptions before starting the
research but directly from the actual observation, from the original data to summarize the
experience. According findings from journal, the experts participating in the research included
18 CEO with an average service life of 14 years and a high degree of education.

The findings indicate identifying six major levels which are causal, context,
phenomenon, strategies and consequences. Causal of problem brokerage firm that can find
in journal is legal behaviours such as most focus on board regulation including education of
board members and mandatory retirement age. Brokerage should focus on strengthen their
governance structure and risk mitigation mechanisms.

Besides, context in this journal is ownership structure. Brokerage firm should

concentrated ownership, combination and proper size of board. It will strengthen its
governance structure. Next is phenomenon that can found in journal is corporate governance.
Example of problem in terms of corporate governance found in brokerage firm in journal is
financial corruptions and discriminative behaviours in the organizations. Good corporate
governance ensures that the business environment is fair and transparent and the
organizations are accountable.

Moreover, strategies in this journal is corporate entrepreneurship strategies. The

findings of the study showed that CE at inbound, outbound and composition is defined as
strategies that enhance corporate governance. Research findings also recommend that by
using CE strategies corporate governance will be enhanced in the brokerage industry.
Therefore, CE practice facilitates the development of appropriate strategic actions for
brokerage corporate success.

Lastly, consequences refer to results of strategies. In research, the consequential

category is divided into organizational and trans-organizational. Brokerage firm should
improving financial and managerial performance as well as controlling, monitoring and
promoting brokerage industry through confidence of governmental agencies and stakeholders
can be considered as the end results for designing the CE model with corporate governance
approach.

3
Discussions & Recommendations

From the selected journals, there are two main things that can be applied or related to
Malaysian corporate entities which are financial corruption and discriminative behaviours in
the organizations and weak corporate governance. Governance is a series of processes,
habits, policies, rules, and institutions that influence direction, management because it
facilitates the development of entrepreneurship. There is a strong and development-oriented
governance need in corporate entrepreneurship. Governance is a type of leadership in which
leaders promote, inspire and motivate employees to develop and make changes that will help
grow and influence the potential success of a company. For fast-paced business industries,
creativity and agility can determine the key to business success. It is suitable for the Malaysian
business industry as it ensures company profitability in the future.

Besides, Malaysia should avoid financial corruptions and discrimination behaviour in

the organizations. For example, organization can carried out performance evaluation at the
individual and organizational levels. Organizational efficiency is usually evaluated through
financial indicators such as profitability, financial structure, company productivity and stock
exchanges. The key way to measure a company’s financial performance is to use subjective
scale by comparing the financial performance of competitors.

Weaknesses of the Journal

According to the journal, the weakness of the journal is that researchers do not use
demographics or graphics to explain or prove the results of questionnaires that have been
answered by their respondents. Readers of the article do not fully understand and feel bored
because the article is full of writing. The author does not use evidence to further strengthen
the facts and arguments by using research methodologies such as through qualitative and
quantitative research by conducting field studies to obtain the evidence of the arguments
stated.

Suggestion for Journal

First of all, the suggestion is about prioritize risk management. For instance,
organization can do an analysis on financial risk. This is because organization is taking bigger
risks in order to enhance overall competitiveness in the marketplace. Thus, effective risk
management can help organization in decision making process.

Furthermore, one of the suggestion is utilize strict monitoring and control of

organization. It is crucial to solve the problem of financial corruptions and discriminative
behaviours in the organization. For example, organization can make a regular schedule for
auditors to examine all financial records.

4
Conclusion
According to the journal, it can be concluded that the corporate governance of Iranian
brokerage company are weak and facing various problems. From the journal we knew that the
company does not have a dedicated department to deal with stock market risks, having
financial problem and venturing.

Therefore, it is suggested that Iranian brokerage companies should strengthen their

governance structure and risk mitigation mechanism. As an entrepreneur who driving in chaos
should have high internal locus of control as well as understand the risk and uncertainty
brought by the company. They need to establish a system without any idealistic and
discriminative behaviours which will improve the internal and external actors and use the
information in relationships to mitigate risks.

Additionally, by establishing an infrastructure that attracts the participation of

stakeholders and obtaining their feedback from these institutions, their interests and rights can
be protected and realized. CE introduces modern and advanced methods to guide the
organization's goals relative to corporate governance. So, CE practice is needed to help
develop appropriate strategies to lead the success of brokerage companies. Lastly, future
research should study topics in other service industries through more detailed interviews.

5
Reference
1. Babak Ziyae, (2018), “Presenting a model of corporate entrepreneurship with corporate
governance approach”, World Journal of Entrepreneurship, Management and
Sustainable Development, Vol. 14 No.4, pp. 342-352.
https://doi.org/10.1108/WJEMSD-09-2017-0064.