Corporate entrepreneurship

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Corporate entrepreneurship refers to the attempt to anchor the fundamental ideas and dynamics of entrepreneurship not only in the start-up phase of a company, but also permanently in the company. Closely related to this is the term corporate venturing , which describes the investment of mature companies in start-ups.

Miller & Friesen (1982) and Guth & Ginsberg (1990) are considered classics of corporate entrepreneurship.

aims

Management strategies are often geared towards optimizing day-to-day operations. Optimizations of this kind on the basis of established core competencies are indeed suitable for securing the basis of the business, but do not necessarily lead to new successes in new business areas. The idea of ​​corporate entrepreneurship, on the other hand, expressly includes breaking out of a narrowed observation area, which also includes involvement in non-traditional business and a strategic renewal that is intended to ensure the survival of the company in the long term. Grown “mature” companies such as start-ups should also orientate themselves in this regard.

In contrast to the term entrepreneurship , corporate entrepreneurship provides for the existence of an already existing organization. Corporate entrepreneurship strategies pursue two possible goals:

  • the creation of new companies or business areas within existing companies or
  • the permanent strategic renewal of the organization taking into account changed market and environmental conditions, e.g. B. through new resource combinations.

Action

In practice, corporate entrepreneurship is often pursued as a strategy of diversification . It is also used to promote the employees' business ideas that have emerged from intrapreneurship concepts through spin-offs without completely giving up control of the spin-off (e.g. by allocating risk capital and maintaining a minority stake). This strategy - also known as corporate venturing - can prevent innovation risks that could arise when an entire company simultaneously transforms its strategic basis and core competencies . Business areas that do not fit strategically into the concept can also be outsourced in a promising manner.

Conversely, corporate entrepreneurship should prevent innovations from getting stuck in the thicket of everyday routines and encourage motivation and initiative of entrepreneurially minded employees. In contrast to corporate entrepreneurship, corporate venturing also includes the allocation of venture capital to external start-ups. B. come into question as strategic business and innovation partners.

Individual evidence

  1. A. Kuckertz, D. Hajizadeh-Alamdary: Corporate Entrepreneurship as New Entrepreneurship? Why large companies are looking for external innovation impulses and network with small startups. In: Entrepreneurship Today. January 2015, pp. 2–25. (researchgate.net)
  2. Florian Philippi: Corporate Entrepreneurship - a strategic consideration -. October 2003, p. 2 f. ( vend-consulting.de ( Memento from June 22, 2006 in the Internet Archive ))

literature

  • M. Bitzer: Intrapreneurship: Entrepreneurship in the company. Stuttgart 1991, ISBN 3-8202-0615-9 .
  • SW Floyd, PJ Lane: Strategizing throughout the organization: Managing role conflict in strategic renewal. In: Academy of Management Review. Vol. 25, No. 1, 2000, pp. 154-177.
  • WD Guth, A. Ginsberg: Guest Editor's Introduction: Corporate Entrepreneurship. In: Strategic Management Journal. Vol. 11, Special Issue, 1990, pp. 5-15.
  • D. Miller, P. Friesen: Structural change and performance: Quantum versus piecemeal incremental approaches. In: Academy of Management Journal. [AMJ], Vol. 25, 1982, pp. 867-892.
  • H. Schollhammer: Internal Corporate Entrepreneurship. In: CA Kent, DL Sexton, KH Vesper (eds.): Encyclopedia of Entrepreneurship. Englewood Cliffs, NJ 1982, pp. 209-229.
  • N. Thornberry: Corporate Entrepreneurship: Antidote or Oxymoron. In: European Management Journal. Vol. 19, Special Issue, 2001, pp. 526-553.