The mediating role of innovativeness in the relationship between internal antecedents of corporate entrepreneurship and business performance of Dessie district commercial banks in Ethiopia

To remain successful in today's ever-changing business environment, innovation is a key driver of market competitiveness . This study employs resource-based theory (RBT) and social exchange theory (SET) to investigate the relationships among the internal antecedents of corporate entrepreneurship (CE), innovativeness, and the business performance of commercial banks. Although these elements have been studied separately in the past, there is limited understanding of how innovativeness acts as a mediator within the banking industry in Ethiopia. The study adopted a quantitative research design and used standardized questionnaires to collect data from 251 commercial bank employees. The proposed model was assessed using partial least squares structural equation modelling (PLS-SEM) . Results revealed strong positive correlations between innovativeness and three factors: flexible organizational boundaries, managerial support (MS), and reward systems. Furthermore, the findings show that innovativeness partially mediates the link between reward practices, organizational boundaries, and overall business performance in commercial banks, while it fully mediates the relationship between management support and business performance. Management support, flexible organizational boundaries, and competitive remuneration schemes are essential to stimulate internal innovation and enhance the business performance of commercial banks in developing countries, specifically within the Dessie district of Ethiopia. By investing in these supportive frameworks, banks actively promote employee creativity and foster an entrepreneurial culture. This focus on continuous innovation not only improves the long-term competitive position and health of these institutions, but also transforms them into dynamic drivers of economic growth. Ultimately, this cultivates a sustainable business environment that directly contributes to the advancement of SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).