Corporate Entrepreneurship/

Intrapreneurship
 Corporate Entrepreneurship

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)
 DIFFERENT TYPES OF
ENTREPRENEURSHIP?

Entrepreneurial initiatives may emerge &

grow from different sources on the basis of
which there may be five types of
entrepreneurship.
1.Administrative Entrepreneurship:
This is in fact the traditional R& D management approach. It
is the joint efforts of both the general management and
scientific technical personnel to identify areas for R&D and
the development of new products, techniques or the
improvement of the existing one.
2. Opportunistic Entrepreneurship:
Ability to catch at the right time the fruits of the internal as
well as external technological developments. Detecting at
the very first time the promising innovative achievements
and taking opportunity to adopt the same for raising the
quality reducing the cost and thus marching ahead of
many of the competitors.
 3-Incubative Entrepreneurship: This is nothing but the
ability to initiate and nurture new venture developments
within the original company with special care. These
venture development units are intended as incubators for
innovative, high risk business endeavors and for providing
an environment that is supportive of entrepreneurial efforts.
4- Imitative Entrepreneurship: This stresses the
replication or creative imitation of innovative technical
achievements made by another farm done with
appropriate modifications and refinements in case
protected property rights are involved. An executive
characterized this particular approach to internal
entrepreneurship as learning from the innovators
heartaches and prospering by refinements. In essence, it
is innovative imitation and the internalization of externally
made technological developments.
 5. Acquisitive Entrepreneurship: This is the
ability of the internal management
/entrepreneurs to acquire competitors technical
capacities. Acquisitive entrepreneurs make
accelerated growth, diversification through
horizontal or vertical integration by gaining
access to others technological developments.
Corporative New Venture Units
 Stage1: Stage2: Stage3: Stage4:
Solo phase Network phase Bootleg phase Formal team phase

Working informally Corporate support

Individual nurtures idea Innovator seeks advice Team proposes idea Provides budget
To establish feasible And support form To organization And mandate for team
Innovation to Colleagues to For formal To pursue formal
develop Develop the idea Development Development
And support Of innovation

Spontaneous Team
 stage1:
Stage2:
initiation
Feasibility
development
Idea generation by
innovator

Development team initiates

Stage2 with budget
Ad hoc team develops And company
Preliminary model support

Initial proposal
Feasibility
written
Plan
developed

Corporate review by
Committee on
product innovation
Corporate review by
Committee on
Product
innovation
Project approve
For stage2
Project With team assigned
denied Project
And budget denied Approved for stage3
implement
 Corporate Entrepreneurship

Objectives
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
 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