Intrapreneurship and corporate entrepreneurship
Attractive concepts for Generation Y?
Written by J. Ingelstedt, M. Jönsson & H. Sundman
Bachelor Thesis: To achieve this in corporate entrepreneurship and internal entrepreneurship, employees should have the opportunity to follow their entrepreneurial motivation within the safety of the company (Chennai, 2007). In turn, companies should focus on re-hiring innovative and creative employees. In addition, by incorporating the concept called corporate entrepreneurship (denoted as CE from now on) into their overall strategy and letting it influence the company’s structure, rules, and culture, creativity and internal innovation capabilities are improved to ensure corporate success ( Pinchot, 1985; Kuratko & Montagno, 1989. Integrating CE is a daunting task, described as “managing the conflicts between the old and the new and overcoming the inevitable tensions created by such conflicts for management” (Dess et al. , Cited in Elfring 2005 pg. 2 in 2003) However, the creative process triggered by the correct implementation of CE leads to entrepreneurial activities within the organization, which in turn helps to obtain and maintain a competitive advantage (Antoncic & Hisrich, 2003). A similar concept It is internal entrepreneurship. In short, “in the context of an existing company, a person or a group of people actively create a process of innovative resource combinations” (Elfring, 2005pg.5). Although the benefits of CE and internal entrepreneurship are still controversial, However, most academic studies agree that this concept is beneficial when implemented correctly, and will play a greater role in the future (Sathe, 2003). Many factors have led to increasing interest in internal entrepreneurship, which has increased due to internalization. Market competitiveness, faster elimination of products and markets, and technological breakthroughs. From a personal perspective, increased workplace expectations, changes in entrepreneurial attitudes, and changes in labor market security and mobility are all influencing factors. This makes innovation Creativity is extremely important to today’s enterprises (D'Aveni, 1994; Kanter, 1989). Many experts and researchers are committed to exploratory research on CE and intrapreneurship. In the 1980s and early 1990s, through, for example, Burgelman (1983) And Pinchot (1985), Guth & Ginsberg (1990), Covin & Slevin (1991), Brazeal (1993) and Hornsby, Naffziger, Kuratko, and Montagno (1993). Since then, there has been slight progress as additional discoveries have decreased. Stagnation. Organizations can be more or less involved in CE and intrapreneurship. Their dedication to intrapreneurship can be seen as a range (Figure 1, page 3). 2.2 Corporate Entrepreneurship and Internal Entrepreneurship Successful and enduring companies like this have adopted and perfected methods of incremental updating through innovation. Both methods refer to the process of employees gradually renewing the organization through innovative ideas is internal entrepreneurship and corporate entrepreneurship (CE) (Floyd & Wooldrigde, 1999; Pinchot & Pellman, 1999). Intrapreneurship was first created by Macrae (1976) and later by Pinshaw (1985). Together with CE, it is considered an important aspect of the organization 1) gaining and maintaining a competitive advantage and 2) enduring. In order to simplify CE and internal entrepreneurship, and thus their impact on the workplace, the model of Åmo & Kolvereid (2005) (Figure 2) is useful. 2.2.1 Enterprise Entrepreneurship As shown in the model, CE originates from "answer to request". This requirement refers to the task derived from the strategy formulated by the organization, requiring the participation of enterprise entrepreneurs within the company, or answering as described in the model. Therefore, CE is driven by a strong strategic focus on using core competencies to create innovative entrepreneurial activities. It deals with how organizations influence internal innovation and creativity (Åmo & Kolvereid, 2005). CE is a deliberate corporate strategy aimed at developing and implementing new ideas (Homsby, Kuratko, Zahra, 2002). Its main purpose is to gradually transform the organization to maintain and gain a competitive advantage (Desset al., 2003). In practice, CE mainly revolves around 1) how the organization stimulates, promotes and utilizes employees’ entrepreneurial activities and initiatives, and 2) how these subsequent results contribute to the company’s success (Kant, 1984). Sharma & Chrisman (1999) proposed that three phenomena constitute the focus of understanding CE: risk taking, innovation and renewal. Companies that actively use CE have made it clear to employees that innovation is essential to them through a clear strategic intent, and to a certain extent encouraged them to become entrepreneurs in the company. However, through CE, this is arguably the most significant difference between it and intrapreneurship. The company acts as an innovation initiator to a greater extent by formulating plans, rules and guidelines for individual entrepreneurs (Kanter, 1984) . Compared with intrapreneurship, the classic CE is more like a top-down approach. Enterprise entrepreneurs usually innovate in a fairly narrow field defined in advance by the company. However, CE can also give employees greater freedom of innovation; this depends to a large extent on the nature of innovation and the ability of corporate entrepreneurs. Read Less