Implementation of Corporate Entrepreneurship, what can go wrong?
Corporate entrepreneurship is becoming an increasingly crucial aspect of companies’ strategy. This boom can be attributed to maturing technologies and aging product portfolios due to which “companies must create, develop, and sustain innovative new businesses” (Garvin and Levesque, 2006). The implementation of corporate entrepreneurship albeit important, remains to be a risky undertaking. The success of it relies very heavily on its integration within an organisation (Garvin and Levesque, 2006) and the ability of the company structure to support this new activity. In accordance to that statement we will delve into understanding and discussing what advantages does the integration …show more content…
There is an air of ambiguity around what precisely corporate entrepreneurship means and what having intrapreneurial practices within an organisation is. Although, an elusive concept to theorise, May (2016) states that corporate entrepreneurship refers to the development of new ideas and opportunities within large or established businesses that directly improve organizational profitability, contribute to strategic renewal and enhance the competitive position.
In addition to the broad definition of CE, we must also consider the various embodiments of corporate entrepreneurship to understand the general challenges that may arise from their implementation and identify any nuances. Covin and Miles (1999) have identified 4 forms of CE– sustained regeneration, organisational rejuvenation, strategical renewal and domain redefinition. These forms of CE are not universal throughout industries; however, it serves as an effective guideline to shed light upon the most prevalent manifestations of intrapreneurship.
Forms of Corporate Entrepreneurship
Sustained Regeneration
This has been deemed the most widely accepted form of corporate entrepreneurship (Covin and Miles, 1999) and rightfully so. The practice of sustained regeneration …show more content…
However, there prevails widespread debate regarding the reward system that yields the most effective results. It has been stated in literature that effective reward systems need to “consider goals, feedback, emphasis on individual responsibility, and results-based incentives” (Hornsby, Kuratko, and Zahra, 2002). However, Ahmed (1998) believes that rewards need to be reengineered to be integrated with an entrepreneurial ecosystem. Performance appraisals and task efficiency of routine operations should not be the primary focus when innovation is being encouraged. Thornberry (2003) observed that many companies who wanted to develop intrapreneurship failed to change their pay structures to support the practice. He asserted that pay schemes in large organisations are geared towards standardisation and equity which may not necessarily aid the development of intrapreneurs. He proposes that internal entrepreneurs must be given “current payment on the promise of future success” and some equity stake in the future
Corporate entrepreneurship is becoming an increasingly crucial aspect of companies’ strategy. This boom can be attributed to maturing technologies and aging product portfolios due to which “companies must create, develop, and sustain innovative new businesses” (Garvin and Levesque, 2006). The implementation of corporate entrepreneurship albeit important, remains to be a risky undertaking. The success of it relies very heavily on its integration within an organisation (Garvin and Levesque, 2006) and the ability of the company structure to support this new activity. In accordance to that statement we will delve into understanding and discussing what advantages does the integration …show more content…
There is an air of ambiguity around what precisely corporate entrepreneurship means and what having intrapreneurial practices within an organisation is. Although, an elusive concept to theorise, May (2016) states that corporate entrepreneurship refers to the development of new ideas and opportunities within large or established businesses that directly improve organizational profitability, contribute to strategic renewal and enhance the competitive position.
In addition to the broad definition of CE, we must also consider the various embodiments of corporate entrepreneurship to understand the general challenges that may arise from their implementation and identify any nuances. Covin and Miles (1999) have identified 4 forms of CE– sustained regeneration, organisational rejuvenation, strategical renewal and domain redefinition. These forms of CE are not universal throughout industries; however, it serves as an effective guideline to shed light upon the most prevalent manifestations of intrapreneurship.
Forms of Corporate Entrepreneurship
Sustained Regeneration
This has been deemed the most widely accepted form of corporate entrepreneurship (Covin and Miles, 1999) and rightfully so. The practice of sustained regeneration …show more content…
However, there prevails widespread debate regarding the reward system that yields the most effective results. It has been stated in literature that effective reward systems need to “consider goals, feedback, emphasis on individual responsibility, and results-based incentives” (Hornsby, Kuratko, and Zahra, 2002). However, Ahmed (1998) believes that rewards need to be reengineered to be integrated with an entrepreneurial ecosystem. Performance appraisals and task efficiency of routine operations should not be the primary focus when innovation is being encouraged. Thornberry (2003) observed that many companies who wanted to develop intrapreneurship failed to change their pay structures to support the practice. He asserted that pay schemes in large organisations are geared towards standardisation and equity which may not necessarily aid the development of intrapreneurs. He proposes that internal entrepreneurs must be given “current payment on the promise of future success” and some equity stake in the future