Essay Corporate Entrepreneurship

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Corporate Entrepreneurship

Corporate Entrepreneurship can be seen as the process whereby an individual or a group creates a new venture within an existing organization, revitalizes and renews an organization ,or innovates. Zahra’s(1986) definition of corporate entrepreneurship suggests a formal or informal activity aimed at creating new businesses in established firms through product and process innovations and market developments,whereas sathe(1985) defines corporate entrepreneurship as a process of organizational renewal. Corporate Entrepreneurship has emerged as a much needed ingredient contributing towards the growth of any organization under a changing business environment.
Corporate entrepreneurship (CE) is widely considered as
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innovations). Schumpeter distinguishes four roles in the process of innovation: the inventor, who invents a new idea; the entrepreneur who commercializes this new idea; the capitalist, who provides the financial resources to the entrepreneur (and bears the risk of the innovation project); the manager, who takes care of the routine day-to-day corporate management. These roles are most often executed by different persons (see for example Kenney 1986). The literature on entrepreneurship recognizes a variety of entrepreneurial roles in economic change, such as:
1. The person who bears uncertainty (Knight 1921);
2. An innovator (Schumpeter 1934);
3. A decision maker (Casson 2003);
4. An industrial leader (Schumpeter 1934);
5. An organizer and coordinator of economic resources (Marshall 1890);
6. An arbitrageur, alert to opportunities (Kirzner 1973; 1997);
7. An allocator of resources among alternative uses (Schultz 1975).

These roles all implicitly carry an economically positive connotation with them. However, if entrepreneurs are defined to be persons who are ingenious and creative in finding ways that add to their own wealth, power, and prestige (Baumol 1990), then it is to be expected that not all of their activities will deliver a productive contribution to society (cf. Murphy et al. 1991). For other reasons, many entrepreneurs do not directly

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