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An interactive model of the corporate entrepreneurship process.

By Kuratko, Donald F.

Friday, January 1 1993
Published on AllBusiness.com

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Recently there has been a growing interest in the use of corporate entrepreneurship as a means for corporations to enhance the innovative abilities of their employees and, at the same time, increase corporate success through the creation of new corporate ventures (Miller & Friesen, 1985; Pinchott, 1985; Kuratko & Montagno, 1989).

However, the creation of corporate entrepreneurship activity is difficult since it creates a newer and potentially more complex set of challenges on both a practical and theoretical level. On a practical level, organizations need guidelines to direct or redirect resources toward establishing effective intrapreneuring strategies. On a theoretical level, researchers need to continually reassess the components or dimensions that predict, explain, and shape the environment in which corporate entrepreneuring flourishes. While there have been a number of studies focusing on various factors contributing to or enhancing the establishment of corporate venturing, this paper develops an interactive model that both researchers and practitioners can utilize.

Gartner (1988) suggested that in entrepreneurship research, the research questions should focus on the process of entrepreneurship instead of who is the entrepreneur. His implication is that entrepreneurship is a multidimensional process and that entrepreneurial traits constitute just one component of that process. Gartner (1989) called for studies that build on the previous literature and develop theories for the study of the entrepreneurship process.

A direct parallel can be drawn from Gartner's (1989) conclusions to research concerning the corporate entrepreneurial process. To date, few theories or models exist that provide a framework for intrapreneurship research. This paper will introduce an interactive model that describes the process of intrapreneurship from the precursors of the decision to act intrapreneurially to actual idea implementation. It is critical to understand that intrapreneurship is a multidimensional process with many forces acting in concert that lead to the implementation of an innovative idea.

PARALLELS BETWEEN ENTREPRENEURSHIP AND INTRAPRENEURSHIP

The term "venture" has been applied in both entrepreneurship and intrapreneurship literature. Greenberger and Sexton (1988), Bird (1988), and Gartner (1985) each used the term "venture" in their articles and models. Gartner defined new venture creation as "the organizing of new organizations" and referred to Weick's (1979) definition "To organize is to assemble ongoing interdependent actions into sensible sequences that generate sensible outcomes" (Weick, 1979, p. 3). Gartner also quotes the Strategic Planning Institute as including in its definition of a new business venture a situation that could be defined as intrapreneurial: "... a new profit center within a company which has other established businesses" (Gartner, 1985, p. 698).

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