Ch8 intrapreneurship and coporate venturing
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Transcript of Ch8 intrapreneurship and coporate venturing
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
CHAPTER 8
Intrapreneurship and
Corportate Venturing
PART 2
LEADING AND MANAGING
THE ENTREPRENEURIAL
ORGANISATION
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Influences on Organisational Architecture
Architecture Strategy
Leadership
Environment
Culture
Structure
and size
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Structures to Encourage
Entrepreneurship
• Intrapreneurship
• Corporate Venturing
• Bring the market inside – spin offs etc.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Intrapreneurs
• Goal orientated
• Ambitious
• Competitive
• Questioning
• Self motivated
• Dislike bureaucracy
• Comfortable with change
• Adept at politics
• Good at resolving conflict
• Able to work with others
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Needs of Intrapreneurs
• High level sponsor
• Space to break the rules
• Slack to pursue project
• Motivation to pursue project
• A culture that ‘tolerates’ intrapreneurship
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
10 Commandments of Intrapreneurship
1. Come to work prepared to be fired
2. Get round orders that stop your dream
3. Do anything, regardless of your job description, to make your project work
4. Build a network of people to help
5. Build the best team – motivated & flexible
6. Work ‘underground’ as long vas possible
7. Be loyal & truthful to your sponsor
8. Its better to ask forgiveness than permission
9. Be true to your goals, but be realistic
10. Own the project & always persevere
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Encouraging Intrapreneurship
BASIC FACTORS
Commitment
Knowledge resources
Corporate venturing, cross
functional teams, external
networks, internationalisation
Finance &
materials
Hierarchy
Tolerance of lower
risksNo penalisation
Sponsors
INTRAPRENEURIAL FACTORS
REWARD
MANAGEMENT
SUPPORT
RESOURCES
ORGANISATIONAL
STRUCTURE
RISK
Regular pay,
job security
Promotion, autonomy, ‘slack’,
responsibility, recognition, bonus
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Organising New Venture
Developments
Special
Business
Unit
New Product
Business
Department
Direct
Integration
Complete
Spin-off
Independent
Business
Unit
New Venture
DivisionContracting
Micro New
Business
Department
Nurturing
and
Contracting
Strategic Importance
Very important Uncertain Not importantOp
era
tio
nal
Rela
ted
nes
s
Unrelated
Partly
related
Very
related
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Corporate Venturing
Key to success is good ‘strategic fit’:
• Strong relationship with core competencies
of venturing company - effective synergy
or
• Acquiring skills, technologies or customers
that compliment the strategic direction of
venturing company - effective knowledge
transfer
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Advantages of Corporate Venturing
• Facilitates innovation and knowledge import
• External sources of finance may be easier to
access
• Facilitates creation of semi-autonomous
units with their own cultures, incentives and
business models
• Often involves highly motivated staff
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Disadvantages of Corporate Venturing
• Requires investment, normally equity, which
can be risky
• Requires investment in venture mechanisms
that set up venture management and
networks that search out, evaluate and
generate deal flows
• Investing company will not be in complete
control of innovation