Corporate Entrepreneurship/ Intrapreneurship Prof. Sunil Shukla
Corporate EntrepreneurshipCorporate Entrepreneurship (CE) is the process by which individuals insideorganizations pursue opportunities without regard to the resources they currentlycontrol. (Stevenson,Roberts, and Grousbeck, 1999)An entrepreneurial manager links up discrete pieces of new technical knowledgethat would provide a solution to a customer problem and matches this technicalcapability with the satisfaction of a market and garners resources and skillsneeded to take the venture to the next stage. This process leads to the birth of newbusinesses and to the transformation of companies through a renewal of their keyideas (Guth and Ginsberg, 1990)
Corporate EntrepreneurshipObjectives – Cultivate innovation and creativity within enterprise – Creating an entrepreneurial organisation – Organising around teams – Assessing enterprises as “intelligent organisations”
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 productideas within a corporate context•A situation, where entrepreneurial philosophy permeates anentire 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