chapter 20 corporate entrepreneurship. learning outcomes on completion of this chapter you will be...

Chapter 20 Corporate

Entrepreneurship

Learning Outcomes

On completion of this chapter you will be able to:• Define the term Corporate Entrepreneurship• Discuss the different forms of Corporate Entrepreneurships• Discuss the corporate entrepreneurial life cycle• Understand the concept entrepreneurial intensity• Understand the role of a Corporate Entrepreneurship Culture• Explain the individual characteristic of the Corporate

Entrepreneur• Explain the constraints placed on Corporate

Entrepreneurship• Explain how Corporate Entrepreneurship can be promoted in

a company• Know how to measure a firm’s Corporate Entrepreneurship

Intensity

Corporate Entrepreneurship

Corporate Entrepreneurship is a term that is used to describe

entrepreneurial activity within an existing business.

Manager versus Corporate Entrepreneur

Manager Corporate Entrepreneur

• Vision• Calculated Risks

• Organising• Planning• Coordination• Control• Strong sense to report• Apply managerial principles • Strong sense of accountability

Forms of Corporate Entrepreneurship

• Internal Venturing – New business in existing firm

• New Venturing – New business added on existing business

• Strategic Venturing – redefine firm relationship with

internal and external environment

Corporate entrepreneurial cycle The different stages a company goes through

from being very creative to becoming very formal.

Corporate Entrepreneurial Intensity (CEI)

• The degree and frequency of entrepreneurial activity in an

existing business.

A company’s CEI will vary according to :

• Internal (type of management structure in place; decision

making routes, policies, rules and regulations in place); and

• External factors (competition, government legislation,

customer base) that they need to deal with.

Corporate Entrepreneurship Culture

Basic beliefs and assumptions about what the company is

Elements required to create an entrepreneurial

culture• Pay attention to the basics (for example regular feedback, recognition)

• Doing the right things (provide promised resources)• Know what is going on in your company• Encourage commitment and take responsibility• Create value through innovation and change• Empower staff (teaching, training and learning)• Forgive failures and provide freedom to employees to grow• Place a sense of urgency on all matters and guide

employees to focus on the future

Individual characteristics of the corporate entrepreneur

• Middleclass person

• Highly educated

• Some technical background

• Requires freedom

• Access to company resources

• Self-motivated

• Wants corporate recognition and rewards

Constraints on corporate entrepreneur

• Strategic Direction

• Systems

• Structures

• Policies and Procedures.

Ways to promote corporate entrepreneurship

• Allow employees to experiment with low risk opportunities.

• Listen to new employees and young people.

• Provide recognition

• Budged for new innovative ideas

Measuring Instruments

• Corporate Entrepreneurial Intensity

• Corporate Culture

Glossary

• Entrepreneurial Culture• Corporate entrepreneurship• Corporate entrepreneurial life cycle• Corporate culture• Corporate strategy• Corporate Venturing• Entrepreneurial Intensity• External corporate venturing• Internal corporate venturing• ‘Intrapreneurship’• ‘Intrapreneurial’ Characteristics• Policies and Procedures• Strategic Entrepreneurship• Structures• Systems