Relationship between Entrepreneurial orientation and corporate governance (Case: Tehran Stock Exchange)

Corporate governance systems (CGS) have been observed as one of the most important structures and mechanisms that regulate the relationships between executives and shareholders. Not only are organizations seeking to re-orientate themselves to become strategically innovative, but previous literature and empirical findings point to entrepreneurial orientation (EO) as an important element in organizational and economic development. Entrepreneurship within organizations is a fundamental posture, instrumentally important to strategic innovation, particularly under shifting external environmental conditions. Despite the importance of EO to firms, literature on corporate governance has tended to focus on issues relating to the board and executives’ demographics, ownership structure, board size, board composition and organization performance, without assessing any potential relationships or linkages between entrepreneurship initiatives and different corporate governance mechanisms. The aim of this study is investigate the relation between entrepreneurial orientation and corporate governance in Tehran stock exchange. The finding of this research shows that firms with high levels of Entrepreneurial orientation tend to be innovative and encourage creative initiatives in new products and technology developments.

Keywords:

entrepreneurship , entrepreneurial orientation , corporate governance , TSE