2. Corporate Entrepreneurship
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)
3. Corporate Entrepreneurship
Objectives
– Cultivate innovation and creativity within
enterprise
– Creating an entrepreneurial organisation
– Organising around teams
– Assessing enterprises as “intelligent
organisations”
4. Characteristics of Corporate
Entrepreneurship
•New business venturing
•Innovativeness
•Self renewal
•Proactiveness
5. Components of Corporate
Entrepreneurship
•Strategic Direction
•Initiative from below
•Autonomous Business Creation
6. 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 organization’s outlook and operation
7. Organizational Activities Associated
with Corporate Entrepreneurship
•Participative decision making
•Involvement of specialized personal
•Participative development of performance objectives
•Risk taking by Managers
8. 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
9. 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.
10. 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?
11. BARRIERS TO CORPORATE
ENTREPRENEURSHIP
•Resistance to change
•The Inherent nature of large organizations
•Lack of Entrepreneurial talent
•Inappropriate compensation methods
