How the Managerial Environment Effects on Corporate Entrepreneurship: Evidence from Turkey

Abstract

This paper aims to investigate the mediating role of organizational citizenship behaviors (OCB) between charismatic leadership (CL) and corporate entrepreneurship (CE), as well as to examine the moderator effect of ethical climate on the relationships between charismatic leadership (CL) and corporate entrepreneurship (CE). Structural equation modeling is performed to test the proposed relations using data collected from 425 white-collar workers in Istanbul. The analysis results show charismatic leadership, organizational citizenship behaviors, and ethical climate to positively and significantly correlate with corporate entrepreneurship. Meanwhile, principled local ethical climate has a moderator effect between charismatic leadership and organizational citizenship as it strengthens the positive relationship between them. This means that better ethical environmental conditions strengthen the positive effect of charismatic leadership on corporate entrepreneurship. This study contributes to the literature by attempting some novelties such as: (a) testing the impact and importance level of ethical climate in the work environment of an emerging country such as Turkey, (b) investigating the moderating role of ethical climate on the relationship between charismatic leadership and corporate entrepreneurship, and (c) analyzing the mediating relationship among charismatic leadership, organizational citizenship behavior and corporate entrepreneurship and checking the mediating role of organizational citizenship behavior over them.