Corporate Entrepreneurship/ Intrapreneurship

Prof. Sunil Shukla

Corporate Entrepreneurship (CE) is the process by which individuals inside organizations pursue opportunities without regard to the resources they currently control.

(Stevenson,Roberts, and Grousbeck, 1999)

An entrepreneurial manager links up discrete pieces of new technical knowledge that would provide a solution to a customer problem and matches this technical capability with the satisfaction of a market and garners resources and skills needed to take the venture to the next stage. This process leads to the birth of new businesses and to the transformation of companies through a renewal of their key ideas

(Guth and Ginsberg, 1990)

Corporate Entrepreneurship

Objectives– Cultivate innovation and creativity within

enterprise– Creating an entrepreneurial organisation– Organising around teams– Assessing enterprises as “intelligent

organisations”

Corporate Entrepreneurship

Characteristics of Corporate Entrepreneurship

•New business venturing

•Innovativeness

•Self renewal

•Proactiveness

Components of Corporate Entrepreneurship

•Strategic Direction

•Initiative from below

•Autonomous Business Creation

Forms of Corporate Entrepreneurship

•An established organization that enters a new business

•An individual or individuals who champion new product ideas within a corporate context

•A situation, where entrepreneurial philosophy permeates an entire organization’s outlook and operation

Organizational Activities Associated with Corporate Entrepreneurship

•Participative decision making

•Involvement of specialized personal

•Participative development of performance objectives

•Risk taking by Managers

INTERNAL FACTORS INFLUENCING CORPORATE

ENTREPRENEURSHIP

•Compensation and Incentive System

•Organization Culture

•Top Management Support

•Organizational Structure

•Resource Availability

•Organization Policies

•Risk Taking and Failure Tolerance

LIMITATIONS TO CORPORATE ENTREPRENEURSHIP

• Entrepreneurs comfort: Entrepreneurs who have created the company must let go so that entrepreneurial managers can operate.

(It is about breaking rules which entrepreneurs have created (Young, 1999)

• Decision-making control:Balance needed between freedom for the entrepreneurial managers and maintaining the business on a constant strategic path.

CONT… (LIMITATIONS TO ….)

• Internal politics: Entrepreneurial managers must be able to predict and understand internal resistance to change. “Thrive on chaos” (Tom Peters, 1989)

• Rewards: Can the organisation offer the same rewards as those expected by entrepreneurs? (economic, social and developmental). Moves to start own venture?

BARRIERS TO CORPORATE ENTREPRENEURSHIP

•Resistance to change

•The Inherent nature of large organizations

•Lack of Entrepreneurial talent

•Inappropriate compensation methods