Corporate Entrepreneurship: How does a Change of Structure induced by new Ownership impact Employees’ Perception of Entrepreneurial Agency within SMEs?

Abstract: Entrepreneurial agency theory has been designated as an important field of research within the corporate entrepreneurial context. When ownership structures in well-established corporations change, certain agitation can result. These ownership changes can subsequently influence entrepreneurial agency in such ventures. As a change of ownership in small to medium-sized enterprises (SMEs) has an even bigger influence on individuals working in the company, it is of particular interest to conduct further research in this field. Consequently, this thesis aims to answer the question of how a change of ownership in an SME influences employees’ perception of entrepreneurial agency. We chose a qualitative research approach, where we conducted a single-case study at a Swedish aviation company. As the big group ownership changed towards private investor ownership structures, employees expressed an overall improvement in the perception regarding entrepreneurial agency. Our three main findings concern the change in company structure, the reduction of company size and scale, as well as the impact new owners with a more entrepreneurial mindset can have on the individuals’ perception of corporate entrepreneurial behaviour. Our study shows, from a practical point of view, that a decrease in company size or a change from big to small ownership can offer possibilities for improved perceived corporate entrepreneurial agency. Our findings further stress out on the importance of communication within SMEs, especially in the corporate entrepreneurial context. Presented outcomes further lay a great foundation for research on how corporate entrepreneurial behaviour can be put into practice after a change of ownership.