Unveiling Patterns in the Internal Environment for Corporate Entrepreneurship Development: A Comparative SEM Analysis of Public and Private Sectors

Abstract

This paper examines how the organizational environment for Corporate Entrepreneurship (CE) differs across organizational forms in the public and private sectors. The Corporate Entrepreneurship Assessment Instrument (CEAI) was administered to 682 respondents in the Republic of Serbia, which is institutionally and economically considered a valid representative of Southeastern European economies. The partial least squares structural equation modeling (PLS-SEM) was employed to assess how five dimensions—Management support, Rewards/Reinforcement, Work discretion/Autonomy, Time availability, and Organizational boundaries—affect the CE environment. Further, using a multi-group analysis algorithm, differences between models in the public and private sectors were explored. The results reveal significant differences in both the impact and values of the CEAI dimensions across organization types. These findings offer valuable insights for developing CE support strategies tailored to different organizations. The presented approach provides guidance to decision-makers seeking to avoid reliance on generic strategies largely shaped by private-sector experiences in developed countries.