4 Models of Corporate Entrepreneurship

1383 WordsAug 23, 20136 Pages
Background In current socio-economic times, innovation is more important than ever, whether in new start-ups or within a corporation. For a corporation to stay ahead of times and sustain a competitive advantage in a fast-changing global consumer market, the challenge is for the management to instill the right corporate entrepreneurship strategy across the organization. One definition of corporate entrepreneurship (CE) is “...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.”1 CE encompasses innovative products and services creation, new products…show more content…
The company has a deliberate strategy to encourage entrepreneurial skills and development in the organization. It does not designate a focused group to own the creation of new businesses. The diffused group ownership, in essence, will facilitate entrepreneurial employees and teams to pursue their innovativeness independently but must fall within the company’s strategic framework. It is done under the premises that there are individuals and teams who are willing to share out their ideas and there would be a fair amount of ideas that would be available. All ideas also go through selection criteria and funding guidelines which are clearly communicated to the employees. As such, recruitment and retention of entrepreneurial spirited staff play an important role to sustain this model. Involvement of senior management and executives to build trust among the employees and confidence on the management commitment to corporate entrepreneurship is important. Without which ideas may not materialize due to lack of support. In contrast to the opportunist model where there is no dedicated funds, the pitfall of the enabler model is the danger of funds misused or wasted for non-value added projects when they could be allocated to others teams. The Advocate Model The Advocate Model (ad hoc resource authority, focused organizational ownership) represents a path which a company can evolve away from being partial-opportunistic and fully enabler-centric. In this
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