The purpose of this paper is to design a model of corporate entrepreneurship (CE) considering corporate governance in the brokerage industry.
The research method is qualitative using grounded theory as the method for research operation. The qualitative data were collected using an in-depth interview technique. Using snowball sampling method, 18 chief executive officers of Iranian brokerage listed in Iran’s Securities and Exchange organization were selected for the current study.
The findings of the study showed that CE at inbound, outbound and composition is defined as strategies that enhance corporate governance. Research findings also recommend that by using CE strategies corporate governance will be enhanced in the brokerage industry.
Possibility of proper applying, deploying and implementing CE and its various methods will require the necessary fields and infrastructures in the considered organization. On the other hand, according to the research results, at inbound, outbound and composition levels, CE is defined as a practice or strategy that enhances corporate governance.
This study established that corporate governance in the Iranian brokerage firms is weak. The aforementioned firms do not have particular units to deal with stock market risks. The findings explain why some Iranian brokerage firms either collapsed or were facing financial distress. The research therefore recommends that Iranian brokerage firms should strengthen their governance structure and risk mitigation mechanisms. Therefore, CE practice facilitates the development of appropriate strategic actions for brokerage corporate success.
This study has been conducted due to the lack of theoretical literature in CE to deal with the ultimate goals of corporate governance in the brokerage industry.
