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Entrep Chapter 2

This document discusses corporate entrepreneurship (CE) and its importance for established corporations facing environmental turbulence. It defines CE as developing new business ideas and opportunities within large corporations. CE can take various forms, including corporate venturing where corporations invest in smaller firms, intrapreneurship where individuals act entrepreneurially within corporations, bringing market approaches internally, and entrepreneurial transformation of corporate systems and culture. The key to successful corporate venturing is strategic fit with the corporation's competencies. Intrapreneurs tend to be ambitious and questioning but need sponsorship and protection to pursue new ideas. CE aims to generate various outcomes including new strategies, ventures, markets and products to help corporations adapt to changing environments.

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FRANCYN SIGRID MACALALAD
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15 views

Entrep Chapter 2

This document discusses corporate entrepreneurship (CE) and its importance for established corporations facing environmental turbulence. It defines CE as developing new business ideas and opportunities within large corporations. CE can take various forms, including corporate venturing where corporations invest in smaller firms, intrapreneurship where individuals act entrepreneurially within corporations, bringing market approaches internally, and entrepreneurial transformation of corporate systems and culture. The key to successful corporate venturing is strategic fit with the corporation's competencies. Intrapreneurs tend to be ambitious and questioning but need sponsorship and protection to pursue new ideas. CE aims to generate various outcomes including new strategies, ventures, markets and products to help corporations adapt to changing environments.

Uploaded by

FRANCYN SIGRID MACALALAD
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter II -

CORPORATE ENTREPRENEURSHIP
(CE)
THE ‘EMBATTLED CORPORATION
Corporations are facing dramatic changes in the way they
do business. Four dimensions have been recognized
through which environmental turbulence has created a
need for new management practices:
• Through Customers
• Through Competitors
• Through Technology
• Through legal, regulatory and ethical standards
What is Corporate Entrepreneurship?

Corporate entrepreneurship is the term used to describe


entrepreneurial behavior in an established, larger organization.
It can be defined as: “the development of new business ideas
and opportunities within large and established corporations”
What’s the Difference?
Independent entrepreneurship Corporate entrepreneurship
• is the process whereby • is the process whereby an
an individual or group individual or a group of
individuals, in association with
of individuals acting
an existing organization, create
independently, create a a new organization or instigate
new organization. renewal or innovation within
that organization.
Characteristics of Corporate Entrepreneurship

• The creation of new business units by an established firm

• The development and implementation of entrepreneurial


strategic thrusts

• The emergence of new ideas from various levels in the


organization
Schools of Thought
Four schools of thought in trying to pull together the corporate entrepreneurship literature:

•Corporate Venturing
•Intrapreneurship
•Bringing the market inside
•Entrepreneurial transformation
Corporate Venturing
Concerned with:

• The need for larger firms to manage new, entrepreneurial


businesses separately from mainstream activity
• Investment by larger firms in strategically important smaller
firms
• Organisation structures needed to encourage new businesses
The Key to success is good ‘strategic fit’

• Strong relationship with core competencies of the venturing company -


effective synergy

or

• Acquiring skills, technologies, or customers that complement the strategic


direction of the venturing company - effective knowledge transfer
Corporate Venturing
Advantages Disadvantages
•Facilitates innovation and knowledge import
•
•External sources of finance may be easier to Requires investment, normally equity,
access which can be risky.
•Facilitates creation of semi-autonomous units • Requires investment in venture
with their own cultures, incentives and business
models mechanisms that set up venture
•Often involves highly motivated staff management and networks that search
out, evaluate and generate deal flows.
•Investing company will not be in
complete control of innovation.
Intrapreneurship
Concerned with:
• How individuals may be encouraged to act
more entrepreneurially in a large organization
• Systems and structures that inhibit initiative
• Challenge those systems and act in
entrepreneurial ways
Who are the INTRAPRENEURS

• Result orientated • Dislike bureaucracy


• Ambitious • Adept at politics
• Competitive • Clarity of direction
• Questioning • Good at resolving conflict
• Self-motivated • Able to work with others
• Comfortable w/change
Needs of Intrapreneurs
• Buffer to break rules
• High-level sponsor
• Protection during difficult times
• Motivation to pursue the project
• A culture that ‘tolerates’ intrapreneurship
• Sponsor-intrapreneur mutual trust and respect
Bringing the Market Inside
Concerned with:
• Structural changes needed to encourage
entrepreneurial behaviour
• Market approach to resource allocation
and people management
• Spin-offs and venture capital operations
Entrepreneurial Transformation
Concerned with :
• The need for large firms to adapt to an ever-changing
environment
• Changes in systems, structures, and cultures that
encourage entrepreneurship – entrepreneurial architecture
• Leadership and strategies that encourage entrepreneurship
Types of CE Outcomes
• New corporate strategies
• New ventures
• New business models
• New markets
• New product or services
• New internal processes
Corporate Entrepreneurial Work Environment
Thank You

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