Corporate Entrepreneurship

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Corporate Entrepreneurship|
Group Research Paper|
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Table of Contents

Introduction3
Entrepreneurial Orientation5
Corporate Entrepreneurship……………………………………………………………………7 Entrepreneurial Strategy………………………………………………………………………15 Antecedents of Entrepreneurial Strategy16
Types of Entrepreneurial Strategies20
Linking Entrepreneurial Strategy to Performance22
Entrepreneurial Behavior23
Conclusion……………………………………………………………………………………....31 Appendixes……………………………………………………………………………………...33 References……………………………………………………………………………………….37

Corporate Entrepreneurship

Introduction

Corporate Entrepreneurship; what is it and why should we be interested in it? For almost four decades now, both practitioners and scholars have shown a marked interest in corporate entrepreneurship. In a changing world, companies have to innovate and react quickly just to maintain their competitiveness (Ireland et al. 2001). They have to continually identify new opportunities and turn these opportunities into revenue streams; they have to behave entrepreneurially. Entrepreneurial activities and behaviors in larger, established organizations have been termed corporate entrepreneurship which could be defined as “the process by which teams within an established company conceive, foster, launch and manage a new business that is distinct from the parent company but leverages the parent’s assets, market position, capabilities or other resources” (Wolcott and Lippitz, 2007). The literature on CE has identified the two main sets of corporate entrepreneurship antecedents; organizational factors and environmental conditions, which can have important influence on performance. And the most significant consequence of corporate entrepreneurship is organizational performance. What drives CE towards this consequence? The answer is entrepreneurial behavior of the firm that is to some extent the product of its individual members’ behavior and orientations, the organizational context and the process used to encourage CE (Holt et al, 2007). The diffusion and adoption of corporate entrepreneurship by the individuals within the corporate structures has positive effects on organizations’ performance.

The most exciting aspect of the phenomenon mentioned above is that process seems to be an important predecessor to CE after controlling for the characteristics of the individuals and the important cultural dimensions of the organization. This suggests that how CE behavior is encouraged organization wide is key. Managers can, through deliberate actions, affect the level of CE within an organization. It gives the managers a little bit of control in an otherwise chaotic setting. This control is important to the facilitation of CE where leaders are likely to get the most return by expressing their management support, providing organizational members some discretion and autonomy, and rewarding and reinforcing innovative, proactive and prudent risk taking behaviors (Holt et al, 2007).

To better understand the fostering of corporate entrepreneurship in organizations, we look at a hypothetical system model for cultivating corporate entrepreneurship developed by Chen, Zhu and Anquan (2005). The model identifies three factors that are found to influence the cultivation of CE in organizations (See Appendix 1). They are the system of the director board and management, the quality of the entrepreneur, and the corporate strategic entrepreneurial management and the whole corporate circumstances (Chen, Zhu and Anquan, 2005).

Top management and shareholders’ support is necessary to carry on CE cultivation. Innovation, domestic and international venture require constant and patient investment provided by the shareholders and top management to promote the long-term and potentially risky projects. The staff possessing the entrepreneurial quality is also the foundation to cultivate CE. Without the entrepreneurial insight of the organizational members, any innovation for...
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