A SUPPLIMENTARY ADDITION ON CORPORATE ENTREPERNEURSHIP

Independent entrepreneurship is the process where an individual or groups of

individuals act independently to create a new organization. Whereas CE =
Entrepreneurial behavior occurs inside established organizations.
CE = are entrepreneurial efforts that require organizational resources for the
purpose of carrying out innovative activities in the form of product, process, and
organizational innovations. Source: Morris & Kuratko (2002); Sathe (2003)
CE entails strategic renewal or re-invention of the organization through innovation
means that result in external corporate venturing to produce joint ventures, spin
offs which are partial or fully autonomous organizations, and internal corporate
venturing resulting in new divisions, new departments, acquisitions and mergers,
new cross-functional teams, new business structures, new business models, new
services, new product categories and enhanced quality and revamped business
system.
Are you a Corporate Entrepreneur?
1. Does your desire to make things work better occupy as much of your time as
fulfilling your duty to maintain them the way they are?
2. Do you get excited about what you are doing at work? Pinchot (1985), a quick
test, answer yes or no to each question
3. Do you think about new business ideas while driving to work or taking a shower?
4. Can you visualize concrete steps for action when you consider ways to make a
new idea happen?
5. Do you get in trouble from time to time for doing things that exceed your
authority?
6. Are you able to keep your ideas under cover, suppressing your urge to tell
everyone about them until you have tested them and developed a plan for
implementation?
7. Have you successfully pushed through bleak times when something you were
working on looked as if it might fail?
8. Do you have a network of friends at work that you can count on for help?
9. Do you get easily annoyed by others incompetent attempts to execute parts of
your ideas?
10. Can you consider trying to overcome a natural perfectionist tendency to do all
the work yourself and share the responsibility for your ideas with a team?
11. Would you be willing to give up some salary in exchange for the chance to try
out your business idea if the rewards for success were adequate?

THE INTRAPRENEURIAL FRAMEWORK

Strength of Vision
Dreamer - visionary
Artist - craft
rength of Vision

Inventor new ideas, innovation

Planner
 Entrepreneur
Manager
Technician

Depth of
action

If you answered more time yes than no, you are probably already behaving as a corporate
entrepreneur.

Barriers of CE
Strategic
System
Political
Behavioral

1 Strategic Barriers
Caused by
Missing or unclear vision, in which direction the company should go in the future,
Missing strategy focusing on entrepreneurial activity inside organization,
The absence of innovation goals,
Missing effective support from top-management

2. System barriers
Bureaucratic routine reporting in tall structures death by a thousand cuts
Wrong Remuneration Systems
Inflexible Budgeting
Large Documentation Required..

2. Political barriers Power relations control and authority issues

Managers will not want to support somebody else project in order not to loose
their own influence, i.e. they can withdraw resources or or not provide complete
information.
Who will stay at the head? Top-management may want rewards for nothing.
In case of concerns about own career people may leave the project
Focus on cost reduction.
Not enough resources for new projects.
Departments may defend their traditional areas.
3. Behavioral barriers - Resistance to accept challenge
Perception of risk that my career growth will stop in case of participation in an
unsuccessful project.
Tendency to be consumed by present issues.
Perception of time and own skills limits.
No motivation for going beyond my ordinary tasks and goals.

Innovation Dilemmas
Deciding the merits of innovation ideas.
Some innovation projects require considerable level of investment before merit can be
determined and crafting mechanisms of selecting right innovation projects can be a
headache.
 Experience vs. Initiative
Who will lead the new project? Rank or enthusiasm

Senior managers Midlevel

employees
-Have experience and credibility - May be the innovators
themselves
-Tend to be more risk averse - May have more enthusiasm

INTERNAL VS. EXTERNAL STAFFING