MOD001093 MOD001093 ENTREPRENEURSHIP AND ENTREPRENEURSHIP AND

INNOVATION: INNOVATION: INTRAPRENEURSHIP IN INTRAPRENEURSHIP IN LARGE ORGANISATIONSLARGE ORGANISATIONS

Prof.Stephen OngProf.Stephen OngBSc(Hons)Econs (LSE), MBA (Bradford)BSc(Hons)Econs (LSE), MBA (Bradford)

Visiting Professor, Shenzhen UniversityVisiting Professor, Shenzhen UniversityAcademic Fellow, Entrepreneurship & Innovation,Academic Fellow, Entrepreneurship & Innovation,

The Lord Ashcroft International Business School, Anglia The Lord Ashcroft International Business School, Anglia Ruskin University Cambridge UKRuskin University Cambridge UK

MBA ANGLIA RUSKIN UNIVERSITY MBA ANGLIA RUSKIN UNIVERSITY

Today’s Overview Today’s Overview

LEARNING OBJECTIVESLEARNING OBJECTIVES1.1. To examine Pinchot’s To examine Pinchot’s

“intrapreneur” type“intrapreneur” type2.2. To compare and contrast To compare and contrast

classical “manager” and classical “manager” and “entrepreneur” attributes“entrepreneur” attributes

3.3. To discuss corporate To discuss corporate entrepreneurship;entrepreneurship;

INTRAPRENEURSHIPINTRAPRENEURSHIP

Intrapreneurship (Pinchot)Intrapreneurship (Pinchot) Entrepreneurial types Entrepreneurial types are found inside large are found inside large

organisations, not only in start-up and organisations, not only in start-up and growing growing SMEs. SMEs.

Pinchot (between 1978 and 1985) coined the term Pinchot (between 1978 and 1985) coined the term “intrapreneur”. “intrapreneur”.

These individuals show many entrepreneurial These individuals show many entrepreneurial traits, yet are able to operate inside large traits, yet are able to operate inside large organisations. organisations.

They are often the source of creativity and new They are often the source of creativity and new ideas and innovation.ideas and innovation.

Some large companies make room for them in Some large companies make room for them in special teams.special teams.

Intrapreneurship Intrapreneurship (Pinchot)(Pinchot)

THE ROLE OF THE ROLE OF ENTREPRENEURSENTREPRENEURSHIP IN LARGE HIP IN LARGE ORGANISATIONSORGANISATIONS

Comparison of Managers, Entrepreneurs Comparison of Managers, Entrepreneurs & Intrapreneurs (Hisrich & Peters)& Intrapreneurs (Hisrich & Peters)

Growth in Organisations Growth in Organisations (Greiner, 1972, 1999)(Greiner, 1972, 1999)

1. CREATIVITY PHASE

2. DIRECTION PHASE

3. DELEGATION PHASE

4. COORDINATION PHASE

5. COLLABORATION PHASE

1.Disrupted by a leadership crisis

2.Disrupted by a crisis of autonomy

3.Disrupted by a crisis of control

4.Disrupted by red tape5.Disrupted by ?

CORPORATE CORPORATE ENTREPRENEURSHIPENTREPRENEURSHIP

How Entrepreneurial is the How Entrepreneurial is the Management of your Firm?Management of your Firm?

Brown,T., Davidson,P. & Wiklund,J. (2001) “An Brown,T., Davidson,P. & Wiklund,J. (2001) “An Operationalization of Stevenson’s Conceptualisation of Operationalization of Stevenson’s Conceptualisation of

Entrepreneurship as Opportunity-Based Firm Behaviour” Entrepreneurship as Opportunity-Based Firm Behaviour” Strategic Management Journal 22Strategic Management Journal 22

QUIZ : STRATEGIC QUIZ : STRATEGIC ORIENTATIONORIENTATION

QUIZ : RESOURCE ORIENTATIONQUIZ : RESOURCE ORIENTATION

QUIZ : MANAGEMENT STRUCTUREQUIZ : MANAGEMENT STRUCTURE

QUIZ : REWARD PHILOSOPHYQUIZ : REWARD PHILOSOPHY

QUIZ : GROWTH QUIZ : GROWTH ORIENTATIONORIENTATION

QUIZ : ENTREPRENEURIAL QUIZ : ENTREPRENEURIAL CULTURECULTURE

Dimensions of Entrepreneurship Dimensions of Entrepreneurship in Firms(H.Stephenson)in Firms(H.Stephenson)

1.1.Strategic orientationStrategic orientation2.2.Commitment to opportunityCommitment to opportunity3.3.Commitment of resourcesCommitment of resources4.4.Control of resourcesControl of resources5.5.Management structureManagement structure6.6.Reward philosophyReward philosophy7.7.Growth orientationGrowth orientation8.8.Entrepreneurial CultureEntrepreneurial Culture

1. CORPORATE DIMENSION : 1. CORPORATE DIMENSION : STRATEGIC ORIENTATIONSTRATEGIC ORIENTATION

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Driven by Driven by perception of perception of OpportunityOpportunity

Driven by Driven by controlled controlled ResourcesResources

A focus on those factors that are A focus on those factors that are inputs into the formulation of inputs into the formulation of

the firm’s strategythe firm’s strategy

2. CORPORATE DIMENSION : 2. CORPORATE DIMENSION : COMMITMENT TO OPPORTUNITYCOMMITMENT TO OPPORTUNITY

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Revolutionary Revolutionary with short with short durationduration

Evolutionary Evolutionary with long with long durationduration

A commitment to taking action A commitment to taking action on potential opportunitieson potential opportunities

3. CORPORATE DIMENSION : 3. CORPORATE DIMENSION : COMMITMENT TO RESOURCESCOMMITMENT TO RESOURCES

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Many stages Many stages with minimal with minimal exposureexposure

A single stage A single stage with complete with complete commitment commitment out of decisionout of decision

A focus on how to minimise the A focus on how to minimise the resources that would be required in resources that would be required in

the pursuit of a particular the pursuit of a particular opportunityopportunity

4. CORPORATE DIMENSION : 4. CORPORATE DIMENSION : CONTROL OF RESOURCESCONTROL OF RESOURCES

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Episodic use or Episodic use or rent of required rent of required resourcesresources

Ownership or Ownership or employment of employment of required required resourcesresources

A focus on how to access A focus on how to access others’ resourcesothers’ resources

5. CORPORATE DIMENSION : 5. CORPORATE DIMENSION : MANAGEMENT STRUCTUREMANAGEMENT STRUCTURE

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Flat with Flat with multiple multiple informal informal networksnetworks

HierarchyHierarchy

More organic focus – has few layers of More organic focus – has few layers of bureaucracy between top management and the bureaucracy between top management and the

customer and typically has multiple informal customer and typically has multiple informal networksnetworks

6. CORPORATE DIMENSION : 6. CORPORATE DIMENSION : REWARD PHILOSOPHYREWARD PHILOSOPHY

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Based on value Based on value creationcreation

Based on Based on responsibility responsibility and seniorityand seniority

One that compensates employees One that compensates employees based on their contribution based on their contribution

toward the discovery/generation toward the discovery/generation and exploitation of opportunityand exploitation of opportunity

7. CORPORATE DIMENSION : 7. CORPORATE DIMENSION : GROWTH ORIENTATIONGROWTH ORIENTATION

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Rapid growth is Rapid growth is top priority; top priority; risk accepted to risk accepted to achieve growthachieve growth

Safe, slow and Safe, slow and steadysteady

A focus on rapid growthA focus on rapid growth

8. CORPORATE DIMENSION : 8. CORPORATE DIMENSION : ENTREPRENEURIAL CULTUREENTREPRENEURIAL CULTURE

ENTREPRENEURIAL ENTREPRENEURIAL FOCUSFOCUS

ADMINISTRATIVE ADMINISTRATIVE FOCUSFOCUS

Promoting broad Promoting broad search for search for opportunitiesopportunities

Opportunity Opportunity search restricted search restricted by controlled by controlled resources; resources; failure punishedfailure punished

A focus on encouraging A focus on encouraging employees to generate employees to generate ideas, experiment, and ideas, experiment, and engage in other tasks engage in other tasks that might produce that might produce

opportunitiesopportunities

Spectrum of Managerial Spectrum of Managerial BehaviourBehaviour

Characteristics of Characteristics of Entrepreneurship EnvironmentEntrepreneurship Environment1.1.Organisation operates on Organisation operates on

frontiers of technologyfrontiers of technology2.2.New ideas encouragedNew ideas encouraged3.3.Trial and error encouragedTrial and error encouraged4.4.Failures allowedFailures allowed5.5.No opportunity parametersNo opportunity parameters6.6.Resources available and Resources available and

accessibleaccessible

Characteristics of Characteristics of Entrepreneurship EnvironmentEntrepreneurship Environment7.7. Multidiscipline teamwork Multidiscipline teamwork

approachapproach8.8. Long time horizonLong time horizon9.9. Volunteer programmeVolunteer programme10.10.Appropriate reward systemAppropriate reward system11.11.Sponsors and champions Sponsors and champions

availableavailable12.12.Support of top managementSupport of top management

Leadership Characteristics Leadership Characteristics of a Corporate of a Corporate EntrepreneurEntrepreneur Understands the Understands the

environmentenvironment Is visionary and flexibleIs visionary and flexible Creates management Creates management

optionsoptions Encourages teamworkEncourages teamwork Encourages open discussionEncourages open discussion Builds a coalition of Builds a coalition of

supporterssupporters PersistsPersists

STAGES OF ORGANISATION STAGES OF ORGANISATION MODEL (Sibbet/Le Saget, MODEL (Sibbet/Le Saget, 2003)2003)

STAGES OF ORGANISATION STAGES OF ORGANISATION MODELMODEL

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ConclusionConclusion

““Entrepreneurship is an approach Entrepreneurship is an approach to management … to management …

the pursuit of opportunity the pursuit of opportunity without regard to resources without regard to resources currently controlled.” currently controlled.” Howard Howard

StephensonStephenson

Further ReadingFurther Reading Hisrich, R. ,Peters, M. & Shepherd, D. (2013) Hisrich, R. ,Peters, M. & Shepherd, D. (2013)

“Entrepreneurship”, 9“Entrepreneurship”, 9 thth edition, McGraw Hill edition, McGraw Hill Deakins, D and Freel, M. (2012) Deakins, D and Freel, M. (2012)

“Entrepreneurship and Small Firms” 6th ed. “Entrepreneurship and Small Firms” 6th ed. McGraw Hill, London McGraw Hill, London

Birley, S. & Musyka, D. (2000) Mastering Birley, S. & Musyka, D. (2000) Mastering Entrepreneurship, FT Prentice HallEntrepreneurship, FT Prentice Hall

QUESTIONS?