4. Work Book: Entrepreneurship and Innovation in Large Firms

This chapter provides an overview of the concept of intrapreneurship or internal corporate venturing which suggests that managers within large organisations can behave like entrepreneurs. The ability of large organisations to generate innovations is contingent on their ability to encourage entrepreneurial behaviour among their employees. Intrapreneuring is contingent upon an alignment between the individual’s ability to undertake entrepreneurial activities, and also the organisation’s characteristics. Innovative organisations need a strong market orientation, innovative leadership, non-linear strategic planning, flexible structures and a supportive culture. The structure and culture should be aligned to ensure that innovation can be fostered through freedom and creativity, but also implemented through efficient production and distribution. Intrapreneurship can be risky for managers who need to behave as if they are risking their own money. Encouraging entrepreneurial behaviour within large organisations requires attention to be given to human resource management (HRM) systems with appropriate rewards, resources, management support, organisational structure and a risk tolerant culture.