Exploring the Role of Corporate Entrepreneurship in Shaping the Performance and Long-term Sustainability of SMMEs in Vhembe District, Limpopo Province

Abstract

This study explores the role of corporate entrepreneurship (CE) in influencing firm performance and long-term sustainability among Small, Medium, and Micro Enterprises (SMMEs) in the Vhembe District of Limpopo Province, South Africa. Corporate entrepreneurship, characterised by innovation, proactiveness, and risktaking, has become essential for firms seeking to remain competitive and resilient within dynamic and resource-constrained environments. Limited empirical evidence, however, exists on how CE manifests itself and contributes to performance and sustainability in rural South African contexts. This research addresses that gap by investigating how CE affects short-term performance, supports long-term sustainability, shaped by organisational, contextual, and institutional factors. Guided by an interpretivist paradigm, the study adopted a qualitative exploratory design. Data was collected through semi-structured interviews with 15 SMME owners and managers across the agriculture, tourism, and service sectors. Participants were selected through purposive sampling to ensure diverse representation of industries and experiences. Data was analysed thematically, using ATLAS.ti software to identify patterns and relationships among themes. Ethical considerations, such as informed consent, confidentiality, and voluntary participation were strictly upheld throughout the research process. The findings revealed five major themes. First, firms’ short-term performance improved through enhanced innovation, adaptability, customer satisfaction, and employee motivation. Second, entrepreneurial leadership and a supportive organisational culture were found to be critical enablers of CE. Third, long-term sustainability was strengthened by ecoinnovation, diversification, and community engagement, thereby, enabling firms to align profitability with social and environmental goals. Fourth, barriers, such as limited access to finance, inadequate infrastructure, skill shortages, and bureaucratic red tape, constrained the implementation of CE initiatives. Fifth, contextual moderators, including leadership style, financial capacity, institutional support, and government policies, significantly influenced the relationship between CE and performance. Some government initiatives, such as the Small Enterprise Finance Agency (SEFA) and regional entrepreneurship programmes, provided support, however, their limited reach in rural areas weakened their overall impact. The study concludes that CE serves as a catalyst for both competitive performance and sustainable regional development. Firms that embed entrepreneurial leadership and cultivate innovation-driven cultures are more adaptable and resilient. The study recommends that policymakers strengthen institutional frameworks, improve access to finance, and invest in capacity-building initiatives, tailored to rural enterprises. Theoretically, the findings integrate the Resource-Based View (RBV), Institutional Theory, Theory of Planned Behaviour (TPB), and Innovation Diffusion Theory (IDT), to explain how CE can drive innovation and sustainability in developing economies. Ultimately, corporate entrepreneurship emerges not only as a mechanism for firms’ renewal but also as a possible pathway for inclusive and sustainable economic growth, in the Vhembe District and similar rural contexts.