Corporate entrepreneurship can enhance the firm value. The firm that embraces the entrepreneurial behavior is posited to be more responsive to the changes in the marketplace. Responsiveness to opportunities is the prerequisite for success and growth. This paper presents the findings related to the practice of corporate entrepreneurship among Indonesian medium-sized firms. The findings show that there is a moderately high level of entrepreneurship among the participating firms. The analysis reveals that corporate entrepreneurship is positively associated with firm performance. With regard to the moderating effect of the external environment, it is established that government policies and economy do moderate the relationship between corporate entrepreneurship and firm performance. Implications of the study and directions for future research are offered.

The entrepreneurial spirit is the engine for economic growth. It must be promoted not only at the individual level but at the firm level as well. Firms that are proactive, innovative and willing to take risk in introducing and adopting new process are vital in creating a dynamic business climate. This paper aims to assess the level of entrepreneurship within medium-sized manufacturing companies in Indonesia. The relationship between corporate entrepreneurship and business performance is also investigated. Moreover, this study also examines the role of business environment as the moderator in the relationship between corporate entrepreneurship and firms’ performance.

Management Research Journal, Multinational Companies, Indian Pharmaceutical Sector, Financial Management, Working Capital Management, Public Sector Enterprises, Inventory Management, Credit Management, Multinational Private Sector Companies, Multiple Regression Techniques, Pharmaceutical Companies.