9 th International Entrepreneurship Forum, Istanbul, Turkey, 16 -18 September 2009 Page 1 of 12 The Missing Link between Firm-level Entrepreneurship and Performance Ahmet Murat Fis Sabanci University School of Management, Orhanli Tuzla 34956 Istanbul, Turkey Tel: +90 (532) 417 3557 E-mail: murat.fis@sabanciuniv.edu Dilek Cetindamar Sabanci University School of Management, Orhanli Tuzla 34956 Istanbul, Turkey Tel: +90 (216) 483 9661 E-mail: dilek@sabanciuniv.edu Sub Theme: Technology, Innovation and Entrepreneurship: A Policy Perspective. Objectives: The research aims to highlight the misinterpretation of the corporate entrepreneurship concept in the firm-level entrepreneurship literature and how this affects the measurement of the impact on performance. Prior Practices: Most of the studies attempting to understand the relationship between corporate entrepreneurship and performance, use the construct of “entrepreneurial orientation” rather than actual entrepreneurial action in measuring corporate entrepreneurship. By doing so, these studies fall short in observing the real impact by limiting their measurement construct to a mental orientation of the top managers which is not necessarily put into action. Approach/Methods: Based on a survey of 347 firms in the context of an emerging economy, namely Turkey, the hypotheses have been tested using hierarchical regression and path analysis. Results/Insights: Empirical findings strongly confirm the mediating role of corporate entrepreneurship in between entrepreneurial orientation and performance, completing “the missing” link between firm-level entrepreneurship and performance. It is claimed that under this formulation of roles and meanings attached to both terms, it is possible to find a solid, conclusive, and systematic direct positive relationship between firm level entrepreneurship and performance. Implications to Community/Industry: By clarifying the complex CE process and observing its determinants in such a manner, it has been possible to demonstrate and explore the genuine impact of CE on performance. Value to the Theme: It has been demonstrated that innovation was far more effective on performance than the other types of CE activities. This finding strengthened the scholars’ view of innovation as the most important, vital constituent of CE common to all definitions and/or academicians. Keywords: Entrepreneurial orientation, corporate entrepreneurship, firm performance