The effects of capital types through corporate entrepreneurship on firm performance in emerging markets: A research study on Istanbul Stock Exchange firms

This study, conducted on the firms traded in Istanbul Stock Exchange (ISE) in Turkey by using survey method and quantitative analysis, investigates the effects of capital types, namely non-market forms of capital and intellectual capital components, on firm performance through corporate entrepreneurship which performs as a resource capital configuration mechanism in emerging markets. In this research, it is alleged that the positive effects of non-market capital forms, namely political capital, social capital and reputational capital, gained by the building network based managerial ties with dominant institutions and business community based on relationship-based firm strategies as a result of the lack of both formal legal and regulatory frameworks and poor development of market-supporting institutions in emerging economies and intellectual capital forms, derived from organizational dynamics, namely human capital, organizational capital and customer capital, on firm performance through corporate entrepreneurship. Moreover, in this study, it is essentially stated that firms in emerging markets should take into account to not only the industry and resource based view but also institution based view to formulate and implement their strategies since institutions have great impact on firm strategies. Results from this survey of ISE firms indicate that political capital and reputational capital as a non-market capital forms and organizational capital as a intellectual capital component are positively associated with firm performance through corporate entrepreneurship. The research findings also reveal that there is no significant relationship between social capital (non-market capital form), human capital and customer capital (intellectual capital types) and firm performance via corporate entrepreneurship. In this regard, the findings derived from this study are evaluated from the corporate entrepreneurship, emerging markets and economies, institutional relatedness, network based strategies, relationship based strategies, market- centered strategies, institutional theory, institution-based view, industry based view, resource based view, managerial ties, dynamic capabilities, non-market capital forms, intellectual capital, Turkish business environment and system, strategic management point of view and it is proposed to some suggestions. The implications of the research findings for both theory and practice are discussed.Keywords: Corporate Entrepreneurship, Non-market capital forms, intellectual capital types, Turkish Business Environment and System, Firm Performance.