The competitive landscape in many industries today is marked by intense competition among existing players and the emergence of many focused competitors targeting specific segments of the market. In addition, the macro environment is characterized by rapid technological progress in many fields rendering current solutions to customer problems obsolete, explosive industrial growth in some sectors, and recession-like conditions in others leading to industry-wide restructuring. In this scenario, any company that is not continually developing, acquiring, and adapting to new technological advances and to the changing business environment, unintentional strategic decision to be out of business within a few years.
These changes have highlighted the need for companies to become more entrepreneurial and companies around the globe are indeed attempting to foster entrepreneurship so that business opportunities are perceived and exploited. Many companies have succeeded in their endeavor to foster entrepreneurship and have developed new approaches to innovate and to create new businesses and achieve profitable growth.
What is Corporate Entrepreneurship/ Intrapreneurship?
In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation". Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques that are more traditionally thought of as being the province of entrepreneurship.
Burgelman (1983) defines corporate entrepreneurship as, "the process whereby the firms engage in diversification through internal development. Such diversification requires new resource combinations to extend the firm's activities in areas unrelated, or marginally related, to its current domainof competence".
Covin & Slevin (1991)- Corporate entrepreneurship involves extending the firm's domain of competence and corresponding opportunity set through internally generated new resource combinations
Sharma and Chrisman (1999), defines corporate entrepreneurship as the process whereby an individual or a group of individuals, in association with an existing organization, create a new organization or instigate renewal or innovation within that organization.
These changes have highlighted the need for companies to become more entrepreneurial and companies around the globe are indeed attempting to foster entrepreneurship so that business opportunities are perceived and exploited. Many companies have succeeded in their endeavor to foster entrepreneurship and have developed new approaches to innovate and to create new businesses and achieve profitable growth.
What is Corporate Entrepreneurship/ Intrapreneurship?
In 1992, The American Heritage Dictionary acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation". Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques that are more traditionally thought of as being the province of entrepreneurship.
Burgelman (1983) defines corporate entrepreneurship as, "the process whereby the firms engage in diversification through internal development. Such diversification requires new resource combinations to extend the firm's activities in areas unrelated, or marginally related, to its current domainof competence".
Covin & Slevin (1991)- Corporate entrepreneurship involves extending the firm's domain of competence and corresponding opportunity set through internally generated new resource combinations
Sharma and Chrisman (1999), defines corporate entrepreneurship as the process whereby an individual or a group of individuals, in association with an existing organization, create a new organization or instigate renewal or innovation within that organization.
Corporate Entrepreneurship / Intrapreneurship
In general, Corporate entrepreneurship is a combination of formal and informal activities aimed at creating new business ventures, but also at other innovative activities such as development of new products, services, technologies, administrative techniques within established firms based on new resource combinations, acquisition of skills and capabilities and individual initiative to
extend firm’s activities in areas unrelated or marginally related to the current domain of competence.
Within the realm of existing firms, CE encompasses three types of phenomena that may or may not be interrelated (Sharma and Chrisman, 1999). These are:
i) The birth of new businesses within an existing firm (corporate venturing)
ii) The transformation of existing firms through the renewal or reshaping of the key
ideas on which they are built (Strategic Renewal)
iii) Innovation
Corporate entrepreneurial efforts that lead to the creation of new business organizations within the corporate organization are called corporate venturing. They may follow from or lead to innovations that exploit new markets, or new product offerings, or both. These venturing efforts may or may not lead to the formation of new organizational units that are distinct from existing organizational units in a structural sense (e. g., a new division). External corporate venturing refers to corporate venturing activities that result in the creation of semi-autonomous or autonomous organizational entities that reside outside the existing organizational domain. Internal corporate venturing refers to the corporate venturing activities that result in the creation of organizational entities that reside within an existing organizational domain.
extend firm’s activities in areas unrelated or marginally related to the current domain of competence.
Within the realm of existing firms, CE encompasses three types of phenomena that may or may not be interrelated (Sharma and Chrisman, 1999). These are:
i) The birth of new businesses within an existing firm (corporate venturing)
ii) The transformation of existing firms through the renewal or reshaping of the key
ideas on which they are built (Strategic Renewal)
iii) Innovation
Corporate entrepreneurial efforts that lead to the creation of new business organizations within the corporate organization are called corporate venturing. They may follow from or lead to innovations that exploit new markets, or new product offerings, or both. These venturing efforts may or may not lead to the formation of new organizational units that are distinct from existing organizational units in a structural sense (e. g., a new division). External corporate venturing refers to corporate venturing activities that result in the creation of semi-autonomous or autonomous organizational entities that reside outside the existing organizational domain. Internal corporate venturing refers to the corporate venturing activities that result in the creation of organizational entities that reside within an existing organizational domain.
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