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Corporate Entrepreneurship

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Corporate Entrepreneurship

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  • April 2008
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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 aformal 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 a vital means to stimulate and sustain the overall competitiveness of an organization. Both practitioners and researchers have recognized the challenges of pursuing entrepreneurship within a corporation. CE is the result of the joint activities of an organization’s members, activities that pursue strategic objectives and constitute strategic roles. Thus, to face the challenges that CE poses for both theory and practice we need to advance our understanding of the activities and strategic roles involved in the CE process and their implications for performance. While strategic roles have been extensively studied, most studies analyze the strategic role of top managers and ignore the contribution of middle managers. Moreover, while there is a growing body of empirical evidence of a positive relationship between CE initiatives and performance, little research emphasizes the contribution of middle managers’ strategic roles to superior performance. Innovation and entrepreneurship are often regarded as overlapping concepts. This can be traced back to probably the most well known definition of entrepreneurship, by Schumpeter (1934: 74), who defines entrepreneurs as individuals that carry out new combinations (i.e. innovations). Schumpeter...