Description
Corporate entrepreneurship (C,E.) has become a popular and widely studied phenomenon in the last few years as evidenced by the special issue of Strategic Management Journal (Summer 1990).
28
CHOICE OF TYPE OF CORPORATE
ENTREPRENEURSHIP: A PROCESS MODEL
K. Praveen Parboteeah, University of Wisconsin-Whitewater
ABSTRACT
Most research on corporate entrepreneurship has disproportionately emphasized external
or organizaJional determinants, Although it is necessary to understand Ihese exlernal de1erminants,
Ihe premise ojlhe presenl paper is thai internal behavioraljaclors can also be equally helpfid in
understanding cOlporale entrepreneurship, internal behavioral.fc,c/ors rejer /0 the roles played by
managers and employees in determining corporate entrepreneurship. Hence, two types ojinternal
behavioral jaclors are identified and discussed: top managers' perception oj the need for
entrepreneurship and employees' desire to exploit entrepreneurial opportunities, By crossing high
and low levels of the fwofactors, it is shown that the combination of high and low levels of these
jactor,I' actually result in different types of corporate entrepreneurship,
INTRODUCTION
Corporate entrepreneurship (C,E.) has become a popular and widely studied phenomenon in
the last few years as evidenced by the special issue of Strategic Management Journal (Summer 1990)
and tbe appearance of new academic journals (e,g" Academy of Entrepreneurship Journal,
Entrepreneurship Theory and Practice, Journal of Business Venturing), The importance ofC,E, call
be primarily attributed to its impact on tbe renewed success of some declining firms that successfully
transfonned themselves through entrepreneurial activities (Miller & Friesen, 1985) and its critical role
in the survival of under performing flons (Gimeno, Folta, Cooper, & Woo, 1997), In addition, there
has been a growing interest in C.E, because of its use by companies to enhance the innovativeness
of their employees and to enjoy corporate success through the creation of new ventures (Kuratko,
Montagno, & Hornsby, 1990), C.E. bas been linked with superior firm performance (Zahra & Covin,
1995) and pursuit of competitive advantage (Covin & Miles, 1999), °Ine interest in C,E, has even
been extended to its study in multinational corporations (Birkinshaw, 1997),
A review of the recent literature and classical articles (see Table I for a list of some of the
classical articles) on C,E. reveals a disproportionate emphasis on external factors (i,e" organizational
and environmental factors). Generally, C.E, is considered more of an organizational property
resulting from organizational and environmental factors, In addition, the few studies that examined
internal aspects of the organization generally tied the success or lack thereof of entrepreneurial
ventures to the entrepreneurs' background/attributes (e,g" Cooper & Bnmo, 1975). Although it is
necessary to understand the exiernal determinants of C.E., the premise of the present paper is that
Academy of Entrepreneurship Journal, Volume 6, Number 1, 2000
29
internal behavioral factors can also be equally helpful in understanding C.E. lIlternal behavioral
factors simply refer to the critical roles played by managers and employees in determining the types
of C.E. exhibited by any .firm. Hence, while not denying the impact of external factors and
organizational factors, this paper contrihutes to the literature hy showing how levels of individual
factors can have a significant impact on the type of C.E., an organizational property. The theory
developed here broadens our understanding of corporate entrepreneurship by illuminating an area of
importance that has not been fully developed before.
Table 1: Review Of Some Classic Articles On C.E.
1. Environmental influences on C.E.
Cooper (i 979) The effects of industry structure on opportunities for successful new 'Product
Development
Miller (1983) Effects of dynamic
Corporate entrepreneurship (C,E.) has become a popular and widely studied phenomenon in the last few years as evidenced by the special issue of Strategic Management Journal (Summer 1990).
28
CHOICE OF TYPE OF CORPORATE
ENTREPRENEURSHIP: A PROCESS MODEL
K. Praveen Parboteeah, University of Wisconsin-Whitewater
ABSTRACT
Most research on corporate entrepreneurship has disproportionately emphasized external
or organizaJional determinants, Although it is necessary to understand Ihese exlernal de1erminants,
Ihe premise ojlhe presenl paper is thai internal behavioraljaclors can also be equally helpfid in
understanding cOlporale entrepreneurship, internal behavioral.fc,c/ors rejer /0 the roles played by
managers and employees in determining corporate entrepreneurship. Hence, two types ojinternal
behavioral jaclors are identified and discussed: top managers' perception oj the need for
entrepreneurship and employees' desire to exploit entrepreneurial opportunities, By crossing high
and low levels of the fwofactors, it is shown that the combination of high and low levels of these
jactor,I' actually result in different types of corporate entrepreneurship,
INTRODUCTION
Corporate entrepreneurship (C,E.) has become a popular and widely studied phenomenon in
the last few years as evidenced by the special issue of Strategic Management Journal (Summer 1990)
and tbe appearance of new academic journals (e,g" Academy of Entrepreneurship Journal,
Entrepreneurship Theory and Practice, Journal of Business Venturing), The importance ofC,E, call
be primarily attributed to its impact on tbe renewed success of some declining firms that successfully
transfonned themselves through entrepreneurial activities (Miller & Friesen, 1985) and its critical role
in the survival of under performing flons (Gimeno, Folta, Cooper, & Woo, 1997), In addition, there
has been a growing interest in C.E, because of its use by companies to enhance the innovativeness
of their employees and to enjoy corporate success through the creation of new ventures (Kuratko,
Montagno, & Hornsby, 1990), C.E. bas been linked with superior firm performance (Zahra & Covin,
1995) and pursuit of competitive advantage (Covin & Miles, 1999), °Ine interest in C,E, has even
been extended to its study in multinational corporations (Birkinshaw, 1997),
A review of the recent literature and classical articles (see Table I for a list of some of the
classical articles) on C,E. reveals a disproportionate emphasis on external factors (i,e" organizational
and environmental factors). Generally, C.E, is considered more of an organizational property
resulting from organizational and environmental factors, In addition, the few studies that examined
internal aspects of the organization generally tied the success or lack thereof of entrepreneurial
ventures to the entrepreneurs' background/attributes (e,g" Cooper & Bnmo, 1975). Although it is
necessary to understand the exiernal determinants of C.E., the premise of the present paper is that
Academy of Entrepreneurship Journal, Volume 6, Number 1, 2000
29
internal behavioral factors can also be equally helpful in understanding C.E. lIlternal behavioral
factors simply refer to the critical roles played by managers and employees in determining the types
of C.E. exhibited by any .firm. Hence, while not denying the impact of external factors and
organizational factors, this paper contrihutes to the literature hy showing how levels of individual
factors can have a significant impact on the type of C.E., an organizational property. The theory
developed here broadens our understanding of corporate entrepreneurship by illuminating an area of
importance that has not been fully developed before.
Table 1: Review Of Some Classic Articles On C.E.
1. Environmental influences on C.E.
Cooper (i 979) The effects of industry structure on opportunities for successful new 'Product
Development
Miller (1983) Effects of dynamic