Corporate Entrepreneurship/

Intrapreneurship

Prof. Sunil Shukla
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)
Corporate Entrepreneurship
Objectives
Cultivate innovation and creativity within
enterprise
Creating an entrepreneurial organisation
Organising around teams
Assessing enterprises as intelligent
organisations
Corporate Entrepreneurship
Characteristics of Corporate
Entrepreneurship
New business venturing
Innovativeness
Self renewal
Proactiveness
Components of Corporate
Entrepreneurship
Strategic Direction
Initiative from below
Autonomous Business Creation
Forms of Corporate
Entrepreneurship
An established organization that enters a new business
An individual or individuals who champion new product
ideas within a corporate context
A situation, where entrepreneurial philosophy permeates an
entire organizations outlook and operation
Organizational Activities Associated
with Corporate Entrepreneurship
Participative decision making
Involvement of specialized personal
Participative development of performance objectives
Risk taking by Managers
INTERNAL FACTORS
INFLUENCING CORPORATE
ENTREPRENEURSHIP
Compensation and Incentive System
Organization Culture
Top Management Support
Organizational Structure
Resource Availability
Organization Policies
Risk Taking and Failure Tolerance
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