Entrepreneurship versus Intrapreneurship1
Cristiana POP ZENOVIA
Abstract This paper provides a review of theoretical studies on the concepts of entrepreneurship and intrapreneurship, pinpointing the similarities and differences between them. Entrepreneurship continues to thrive in almost all corners of the world. Entrepreneurs are reshaping the business environment, creating a world in which their companies play an important role in the vitality of the global economy. But there is not always necessary to establish a company in order to implement new ideas. A great potential lies in applying business principles within existing organizations. Keywords: entrepreneurship, intrapreneurship, human capital, business, leadership JEL classification: L26
Introduction Why are entrepreneurs and intrapreneurs suddenly more important today than before? An explanation to this question would be that the world is changing nowadays more rapidly under the influence of new technologies. The increasing competition hinders our work. It does not suffice anymore to stand before our competitors simply driven by our will of competing; we have to bring something new to the market. Entrepreneurs and intrapreneurs play a decisive role as they help the company (newly established or existing) to engage in new business and enter new markets. The concept of entrepreneurship is seen as the process of uncovering and developing an opportunity to create value through innovation and seizing that opportunity without regard to either resources (human and capital) or the location of the entrepreneur – in a new or existing company (Churchill, 1992). 1
Investing in people! Ph.D. scholarship, Project co-financed by the SECTORAL OPERATIONAL PROGRAM FOR HUMAN RESOURCES DEVELOPMENT 2007 – 2013, Priority Axis 1. "Education and training in support for growth and development of a knowledge based society", Key area of intervention 1.5: Doctoral and post-doctoral programs in support of research. Contract nr.: POSDRU/88/1.5/S/60185 – “INNOVATIVE DOCTORAL STUDIES IN A KNOWLEDGE BASED SOCIETY” Babeş-Bolyai University, Cluj-Napoca, Romania Veronica MAIER, Babeş-Bolyai University, Romania E-mail:email@example.com Cristiana POP ZENOVIA, Babeş-Bolyai University, Romania E-mail:firstname.lastname@example.org Volume 12, Issue 5, December 2011 971
Review of International Comparative Management
Intrapreneurship represent the initiation and implementation of innovative systems and practices within an organization, by some of its staff under the supervision of a manager who takes the role of an intrapreneur, in order to improve the economical performance of the organization, by using a part of its resources, namely those that previously have not been used in an appropriate manner. Intrapreneurship improves the economical and financial performance of the company, by applying a more efficient use of the resources and by using a suitable motivational system for its employees (Istocescu, 2003). Similarities and differences between entrepreneurship and intrapreneurship Unlike the entrepreneur, the intrapreneur acts within an existing organization. The intrapreneur is the revolutionary inside the organization, who fights for change and renewal from within the system. This may give rise to conflicts within the organization, so respect is the necessary key in order to channel these conflicts and transform them into positive aspects for the organization. Even though intrapreneurs benefit from using the resources of the organization for the implementation of the emerging opportunities, there are several motives why innovation is more difficult to implement in an existing organization, such as (Malek & Ilbach, 2004): • The size: the bigger the organization the more difficult it is to have an overview of the actions of every employee • Lack of communication: Specialization and separation, help in concentrating on the areas of interest, but hinder communication....
Please join StudyMode to read the full document