Mod001093 intrapreneurship 290315

MOD001093MOD001093
ENTREPRENEURSHIP ANDENTREPRENEURSHIP AND
INNOVATION:INNOVATION:
INTRAPRENEURSHIP ININTRAPRENEURSHIP IN
LARGE ORGANISATIONSLARGE ORGANISATIONS
Prof.Stephen OngProf.Stephen Ong
BSc(Hons)Econs (LSE), MBA (Bradford)BSc(Hons)Econs (LSE), MBA (Bradford)
Visiting Professor, Shenzhen UniversityVisiting Professor, Shenzhen University
Academic Fellow, Entrepreneurship & Innovation,Academic Fellow, Entrepreneurship & Innovation,
The Lord Ashcroft International Business School, AngliaThe Lord Ashcroft International Business School, Anglia
Ruskin University Cambridge UKRuskin University Cambridge UK
MBA ANGLIA RUSKIN UNIVERSITYMBA ANGLIA RUSKIN UNIVERSITY

Today’s OverviewToday’s Overview

LEARNING OBJECTIVESLEARNING OBJECTIVES
1.1. To examine Pinchot’sTo examine Pinchot’s
“intrapreneur” type“intrapreneur” type
2.2. To compare and contrastTo compare and contrast
classical “manager” andclassical “manager” and
“entrepreneur” attributes“entrepreneur” attributes
3.3. To discuss corporateTo discuss corporate
entrepreneurship;entrepreneurship;

INTRAPRENEURSHIPINTRAPRENEURSHIP

Intrapreneurship (Pinchot)Intrapreneurship (Pinchot)
 Entrepreneurial typesEntrepreneurial types are found inside largeare found inside large
organisations, not only in start-up andorganisations, not only in start-up and growinggrowing
SMEs.SMEs.
 Pinchot (between 1978 and 1985) coined the termPinchot (between 1978 and 1985) coined the term
“intrapreneur”.“intrapreneur”.
 These individuals show many entrepreneurialThese individuals show many entrepreneurial
traits, yet are able to operate inside largetraits, yet are able to operate inside large
organisations.organisations.
 They are often the source of creativity and newThey are often the source of creativity and new
ideas and innovation.ideas and innovation.
 Some large companies make room for them inSome large companies make room for them in
special teams.special teams.

IntrapreneurshipIntrapreneurship
(Pinchot)(Pinchot)

THE ROLE OFTHE ROLE OF
ENTREPRENEURSENTREPRENEURS
HIP IN LARGEHIP IN LARGE
ORGANISATIONSORGANISATIONS

Comparison of Managers, EntrepreneursComparison of Managers, Entrepreneurs
& Intrapreneurs (Hisrich & Peters)& Intrapreneurs (Hisrich & Peters)

Growth in OrganisationsGrowth in Organisations
(Greiner, 1972, 1999)(Greiner, 1972, 1999)
1. CREATIVITY
PHASE
2. DIRECTION
PHASE
3. DELEGATION
PHASE
4. COORDINATION
PHASE
5. COLLABORATIO
N PHASE
1.Disrupted by a
leadership crisis
2.Disrupted by a crisis of
autonomy
3.Disrupted by a crisis of
control
4.Disrupted by red tape
5.Disrupted by ?

CORPORATECORPORATE
ENTREPRENEURSHIPENTREPRENEURSHIP

How Entrepreneurial is theHow Entrepreneurial is the
Management of your Firm?Management of your Firm?
Brown,T., Davidson,P. & Wiklund,J. (2001) “AnBrown,T., Davidson,P. & Wiklund,J. (2001) “An
Operationalization of Stevenson’s Conceptualisation ofOperationalization of Stevenson’s Conceptualisation of
Entrepreneurship as Opportunity-Based Firm Behaviour”Entrepreneurship as Opportunity-Based Firm Behaviour”
Strategic Management Journal 22Strategic Management Journal 22

QUIZ : STRATEGICQUIZ : STRATEGIC
ORIENTATIONORIENTATION

QUIZ : RESOURCE ORIENTATIONQUIZ : RESOURCE ORIENTATION

QUIZ : MANAGEMENT STRUCTUREQUIZ : MANAGEMENT STRUCTURE

QUIZ : REWARD PHILOSOPHYQUIZ : REWARD PHILOSOPHY

QUIZ : GROWTHQUIZ : GROWTH
ORIENTATIONORIENTATION

QUIZ : ENTREPRENEURIALQUIZ : ENTREPRENEURIAL
CULTURECULTURE

Dimensions of EntrepreneurshipDimensions of Entrepreneurship
in Firms(H.Stephenson)in Firms(H.Stephenson)
1.1.Strategic orientationStrategic orientation
2.2.Commitment to opportunityCommitment to opportunity
3.3.Commitment of resourcesCommitment of resources
4.4.Control of resourcesControl of resources
5.5.Management structureManagement structure
6.6.Reward philosophyReward philosophy
7.7.Growth orientationGrowth orientation
8.8.Entrepreneurial CultureEntrepreneurial Culture

1. CORPORATE DIMENSION :1. CORPORATE DIMENSION :
STRATEGIC ORIENTATIONSTRATEGIC ORIENTATION
ENTREPRENEURIALENTREPRENEURIAL
FOCUSFOCUS
ADMINISTRATIVEADMINISTRATIVE
FOCUSFOCUS
 Driven byDriven by
perception ofperception of
OpportunityOpportunity
 Driven byDriven by
controlledcontrolled
ResourcesResources
A focus on those factors that areA focus on those factors that are
inputs into the formulation ofinputs into the formulation of
the firm’s strategythe firm’s strategy

COMMITMENT TO OPPORTUNITYCOMMITMENT TO OPPORTUNITY
FOCUSFOCUS
FOCUSFOCUS
 RevolutionaryRevolutionary
with shortwith short
durationduration
 EvolutionaryEvolutionary
with longwith long
durationduration
A commitment to taking actionA commitment to taking action
on potential opportunitieson potential opportunities

COMMITMENT TO RESOURCESCOMMITMENT TO RESOURCES
FOCUSFOCUS
FOCUSFOCUS
 Many stagesMany stages
with minimalwith minimal
exposureexposure
 A single stageA single stage
with completewith complete
commitmentcommitment
out of decisionout of decision
A focus on how to minimise theA focus on how to minimise the
resources that would be required inresources that would be required in
the pursuit of a particularthe pursuit of a particular

CONTROL OF RESOURCESCONTROL OF RESOURCES
FOCUSFOCUS
FOCUSFOCUS
 Episodic use orEpisodic use or
rent of requiredrent of required
resourcesresources
 Ownership orOwnership or
employment ofemployment of
requiredrequired
resourcesresources
A focus on how to accessA focus on how to access
others’ resourcesothers’ resources

MANAGEMENT STRUCTUREMANAGEMENT STRUCTURE
FOCUSFOCUS
FOCUSFOCUS
 Flat withFlat with
multiplemultiple
informalinformal
networksnetworks
 HierarchyHierarchy
More organic focus – has few layers ofMore organic focus – has few layers of
bureaucracy between top management and thebureaucracy between top management and the
customer and typically has multiple informalcustomer and typically has multiple informal
networksnetworks

REWARD PHILOSOPHYREWARD PHILOSOPHY
FOCUSFOCUS
FOCUSFOCUS
 Based on valueBased on value
creationcreation
 Based onBased on
responsibilityresponsibility
and seniorityand seniority
One that compensates employeesOne that compensates employees
based on their contributionbased on their contribution
toward the discovery/generationtoward the discovery/generation
and exploitation of opportunityand exploitation of opportunity

GROWTH ORIENTATIONGROWTH ORIENTATION
FOCUSFOCUS
FOCUSFOCUS
 Rapid growth isRapid growth is
top priority;top priority;
risk accepted torisk accepted to
achieve growthachieve growth
 Safe, slow andSafe, slow and
steadysteady
A focus on rapid growthA focus on rapid growth

ENTREPRENEURIAL CULTUREENTREPRENEURIAL CULTURE
FOCUSFOCUS
FOCUSFOCUS
 Promoting broadPromoting broad
search forsearch for
opportunitiesopportunities
 OpportunityOpportunity
search restrictedsearch restricted
by controlledby controlled
resources;resources;
failure punishedfailure punished
A focus on encouragingA focus on encouraging
employees to generateemployees to generate
ideas, experiment, andideas, experiment, and
engage in other tasksengage in other tasks
that might producethat might produce
opportunitiesopportunities

Spectrum of ManagerialSpectrum of Managerial
BehaviourBehaviour

Characteristics ofCharacteristics of
Entrepreneurship EnvironmentEntrepreneurship Environment
1.1.Organisation operates onOrganisation operates on
frontiers of technologyfrontiers of technology
2.2.New ideas encouragedNew ideas encouraged
3.3.Trial and error encouragedTrial and error encouraged
4.4.Failures allowedFailures allowed
5.5.No opportunity parametersNo opportunity parameters
6.6.Resources available andResources available and
accessibleaccessible

Characteristics ofCharacteristics of
Entrepreneurship EnvironmentEntrepreneurship Environment
7.7. Multidiscipline teamworkMultidiscipline teamwork
approachapproach
8.8. Long time horizonLong time horizon
9.9. Volunteer programmeVolunteer programme
10.10.Appropriate reward systemAppropriate reward system
11.11.Sponsors and championsSponsors and champions
availableavailable
12.12.Support of top managementSupport of top management

Leadership CharacteristicsLeadership Characteristics
of a Corporateof a Corporate
EntrepreneurEntrepreneur
 Understands theUnderstands the
environmentenvironment
 Is visionary and flexibleIs visionary and flexible
 Creates managementCreates management
optionsoptions
 Encourages teamworkEncourages teamwork
 Encourages open discussionEncourages open discussion
 Builds a coalition ofBuilds a coalition of
supporterssupporters

STAGES OF ORGANISATIONSTAGES OF ORGANISATION
MODEL (Sibbet/Le Saget,MODEL (Sibbet/Le Saget,
2003)2003)

STAGES OF ORGANISATIONSTAGES OF ORGANISATION
MODELMODEL

34
ConclusionConclusion
““Entrepreneurship is an approachEntrepreneurship is an approach
to management …to management …
the pursuit of opportunitythe pursuit of opportunity
without regard to resourceswithout regard to resources
currently controlled.”currently controlled.” HowardHoward
StephensonStephenson

Further ReadingFurther Reading
 Hisrich, R. ,Peters, M. & Shepherd, D. (2013)Hisrich, R. ,Peters, M. & Shepherd, D. (2013)
“Entrepreneurship”, 9“Entrepreneurship”, 9thth
edition, McGraw Hilledition, McGraw Hill
 Deakins, D and Freel, M. (2012)Deakins, D and Freel, M. (2012)
“Entrepreneurship and Small Firms” 6th ed.“Entrepreneurship and Small Firms” 6th ed.
McGraw Hill, LondonMcGraw Hill, London
 Birley, S. & Musyka, D. (2000) MasteringBirley, S. & Musyka, D. (2000) Mastering
Entrepreneurship, FT Prentice HallEntrepreneurship, FT Prentice Hall

Mod001093 intrapreneurship 290315

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