Entrepreneurial Intentions

and Corporate
Entrepreneurship
Corporate Entrepreneurship
The spirit of entrepreneurship within an existing
corporation is called Corporate Entrepreneurship
Corporate Entrepreneurship
Companies have been forced to have an increased
interest in areas such as:

New product development

Diversification

Increased Productivity

Decreasing cost
 Entrepreneurial Endeavors
Four key elements:

New Business venturing

Innovativeness

Self-renewal

Pro activeness
Managerial vs Entrepreneurial
decision making
Entrepreneurial management is distinct from
traditional management in terms of eight dimensions

(1) Strategic Orientation

(2) Commitment to opportunity

(3) Commitment of resources

(4) Control of resources

 Managerial vs.
Entrepreneurial decision
making
(5) Management structure

(6) Reward Philosophy

(7) Growth orientation

(8) Entrepreneurial culture

 Strategic orientation and
Commitment to Opportunity
Strategic orientation: A focus on those factors that are
inputs into the formulation of the firm’s strategy

The resources in an entrepreneurial management

come in secondary. The focus is opportunities for new
entry

Traditionally managed firms look to use the current

resources efficiently
Commitment of resources and
Control of resources
Commitment of resources- A focus on how to
minimize the resources that would be required in the
pursuit of a particular opportunity

Control of resources- A focus on how to access others’

resources
Management Structure and
Reward Philosophy
Entrepreneurial management structure is organic. It
has very few levels of beau racy between the top
management and the customer.

It has informal channels

Traditionally managed firms focus more on inward

efficiency rather than adapting to change
Management Structure and
Reward Philosophy
Entrepreneurial firms reward employees for
contribution towards discovery or invention

Traditionally managed firms reward employees on

successfully completing their duties
 Growth orientation and
Entrepreneurial culture
Firms expand at a rapid race as opposed to growing at
a slow and steady pace

Culture: The environment of a particular organization

Entrepreneurial orientation towards culture

encourages employees to generate ideas, experiment
that could be deemed as creative
Establishing the culture for
corporate entrepreneurship
Firms operates on the frontiers of technology

Invest on R&D for cutting edge technology

Support new ideas, encourage trial and error

 Characteristics of an
Entrepreneurial Environment
Organization operates on frontiers of technology

New ideas encouraged

Trial and error encouraged

Failures allowed

No opportunity parameters

Resources available and accessible

Multidiscipline teamwork approach

 Characteristics of an
Entrepreneurial Environment
Long time horizon

Volunteer program

Appropriate reward system

Sponsors and champions available

Support of top management

Leadership characteristics of a
corporate entrepreneur
Understands the environment

Is visionary and flexible

Creates management options

Encourages teamwork

Encourages open discussion

Builds a coalition of supporters

Persists
 Establishing corporate
entrepreneurship in the organization
The top, upper and middle management should believe
in it

Secondly, these entrepreneurial ideas should flow from

the top management to the rest of the employees

Use of technology to make firms more responsive and

flexible

Training sessions and mentorship programs should be

established in order for corporate entrepreneurship to be
a part of the culture
 Establishing corporate
entrepreneurship in the organization
The organization should be closer to the customers by
maintaining database of the customer

Learn to be more productive with fewer resources

Have patience in terms of the ROI

Reward entrepreneurial initiatives

Finally have a evaluation system

 Learning from Failure
Learn from the mistakes and make sure to do a better
job managerially the next time

Recover quickly from negative emotions of failure

Loss orientation: seek outs fnfs to recover from

depression

Restoration orientation: Distract your self from

current failures