The document discusses entrepreneurship, intrapreneurship, and corporate entrepreneurship. It defines intrapreneurship as a process by which individuals inside organizations pursue opportunities independent of the resources they currently control. Intrapreneurs take initiative, are innovative, and take risks. Successful corporate entrepreneurship requires an organizational culture that supports learning, transformational leadership, and an environment where intrapreneurship can thrive. The document provides examples of successful intrapreneurs and outlines models for incentivizing and supporting intrapreneurship within companies.

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INTRAPRENEURSHIP
DEVELOPMENT
Contents
 Entrepreneurship
 Intrapreneurship
 Corporate Entrepreneurship
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Entrepreneurship
The pursuit process of opportunities beyond
the resources you currently control
Stevenson, 1983, 1985;
Stevenson and Jarillo, 1991
 Entrepreneurship is a process
 Entrepreneur is an individu doing entrepreneurship
 Entrepreneurial is attitudes, skills, and behaviors of
the entrepreneur
World Economic Forum
Executive Summary, 2009
Entrepreneurship is
a process...
Opportunity
Recognition for
Value Creation
(Innovation)
Willingness &
initiative to seize
opportunities
Strategies to
manage limited
resources
Willingness to take
calculated risks
New Venture Creation, Timmons, 2003,
from research at Boston College
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Entrepreneurial
Process Model
Exogenous
forces
Ambiguity
Capital market
context
Uncertainty
Timmons’ model of the
Entrepreneurial Process, 2003
Why Entrepreneurship?
Entrepreneur
population
0.2%
7,2%
11,5%
Indonesia
Singapore
USA
Global Entrepreneurship
Monitoring (GEM) Report, 2007
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Who should be
Entrepreneurial?
As Individual:
As Organization:
 Business owner
 Private Corporation
 Private employee
 State Corporation
 State officer
 Government
 Educator
 School/University
INTRAPRENEUR
CORPORATE ENTREPRENEURSHIP
Intrapreneurship
A process by which individuals inside
organizations pursue opportunities independent
of the resources they currently control
Stevenson and Jarillo
(1990: 23)
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Intrapreneur - Corporate
Relationship Model
Resources:
Financial, Market Penetration,
Research facility
Innitiative, Innovation
Modified from Intrapreneuring,
Pinchot, 1985
Example: The Intrapreneur
who become Entrepreneur
Steve Jobs & Steve Wozniac
They joined and create
Apple Computer after their
PC concept rejected by HP
and Atari
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The Intrapreneur
Intrapreneurs are … ‘dreamers who do’
Those who take hands-on responsibility for creating
innovation of any kind within an organization
They may be the creators or inventors but are always
the dreamers who figure out how to turn an idea into
a profitable reality
Pinchot (1985, p. ix, in:
Sharma & Chrisman, 1999)
Intrapreneurial Grid
High
Artist
Inventor
Idea Generator
INTRAPRENEUR
Manager
Supervisor
Low
Worker
Valuable
Worker
Low
High
Intrapreneuring,
Pinchot, 1985
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Example: The Intrapreneur
Example: The Intrapreneur
Cheryl Pohlman
Worldwide Product and
Marketing Communications
Director for inkjet systems,
Inkjet printer division,
KODAK
http://www.bnet.com/article/how-they-did-it-sevenintrapreneur-success-stories/196890
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Example: The Intrapreneur
Jeri Yoshizu
Scion Sales and Promotion
Manager
Scion17
TOYOTA
http://www.bnet.com/article/how-they-did-it-sevenintrapreneur-success-stories/196890
Example: The Intrapreneur
Scott Gatz
Former Senior Director of
Advanced Products
Sponsored search engine
YAHOO
http://www.bnet.com/article/how-they-did-it-sevenintrapreneur-success-stories/196890
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Example: The Intrapreneur
Alicia Ledlie
Senior Director for health
business development
In-store health clinics
WALL MART
http://www.bnet.com/article/how-they-did-it-sevenintrapreneur-success-stories/196890
Example: The Intrapreneur
Andy Noya
Wartawan, Presenter, Host
‘Kick Andy’
Waklil Pemimpin Umum
Media Indonesia
Pemimpin Redaksi Metro TV
http://id.wikipedia.org/wiki/Andy_F._Noya
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Example: The Intrapreneur
Prof. Yohanes Surya, PhD
Wartawan, Presenter, Host
‘Kick Andy’
Waklil Pemimpin Umum
Media Indonesia
Pemimpin Redaksi Metro TV
http://id.wikipedia.org/wiki/Yohanes_Surya
Example: The Intrapreneur
Joko Widodo
Walikota Solo
http://id.wikipedia.org/wiki/Joko_Widodo
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Example: The Intrapreneur
Dahlan Iskan
Former President Director of
PT. Perusahaan Listrik Negara
Minister of State-owned
Corporations
Intrapreneurial
Process Model
de Jong and Wennekers (2008), Mair
(2002), Antoncic and Hisrich (2001)
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Intrapreneurial is an
attitudes, skills, behaviors
 Taking Initiative: self starting, proactive, persistence
 Innovative: implement vision to increase benefit/cost
 Voicing
 Championing
 Taking Charge
 Some Degree of Risk Taking
Modified from Intrapreneurship,
de Jong & Wennekers, 2008
Intrapreneurship is
a process...
Recombination of
Resources
Resource Acquisition
Opportunity
perception
Idea generation
Planning and
Organizing
Internal coalition Building
Persuading the
Management
Modified from Intrapreneurship,
de Jong & Wennekers, 2008
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Corporate Entrepreneurship
The process by which teams within a
established firm conceive, foster, launch, and
manage a new business that is distinct from
but leverages the company’s current assests,
markets, and capabilities
Grow from Within,
Wolcott & Lippitz, 2010
Innovation Radar
A business system innovation
Brand
Networking
Platform
Solutions
Supply chain
Organization
Customer
experience
Value
capture
Grow from Within,
Wolcott & Lippitz, 2010
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The 4 Model of
Corporate Entrepreneurship
Enabler
Producer
Company provide funding &
attention to prospective
projects (ex: Google)
Company supports a fullservice group with special
mandate (ex: IBM, Cargill)
Opportunist
Advocat
Internal & external networks
drive concept selection &
resource allocation (ex:
Zimmer)
Company evangelizes for
corporate entrepreneurship,
funded by business unit (ex:
DuPont)
Dedicated
Ad Hoc
Diffused
Focused
Grow from Within,
Wolcott & Lippitz, 2010
Incentive Design for
Corporate Entrepreneurship
1. Prime Factor
 Human Element; Critical Success Factor; Autonomy, Structure,
Processes
2. Incentive System Parameters
 Short-Term vs Long-Term; Performance Relatedness; Attracting
and retaining
3. Incentive System Components
 Financial, Non-Financial, Risk
The 4E Model,
Viswanathan, Nagarajan, 2004
ESADE MBA Business Review
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1. Prime Factor:
Critical Success Factors
Success Factor
Incentive Features


Financial and symbolic significance
Rapidity of Feedback
Individualization
Team-wide Incentives

Fairness of Distribution

Recognizing and
Adapting to Reality


Organizational
Support
Competitiveness

Effective Teamwork
Direct relationship between incentives and performance


Enthusiasm and
Continuing
Commitment
Significant Earning Potencial
Team Recognition

Perception of Fairness

Balance between potential risks and rewards

Payment for results, not for strict adherence to plan

Significant personal financial risk for venture managers
3. Incentive System Components:
Financial
Success Factor
Incentive Features

Shares/ Options in parent firm/ venture

Phantom shares: If venture doesn’t exist as a separate entity

Encourages collaborative behavior

Purchased equity in new venture links risk to potencial reward

Relatively long term incentive

Three popular types Fixed amounts known in advance: Variable,
per formance linked, Discretionary bonus after major
contribution

Can be both long term as well as short term
Salary increases

Salary increase is related to Changing role in the venture
Fringe benefits

Holiday trips, Scholarships to Children Sabbaticals ,etc
Equity and EquityRelated
Bonuses
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3. Incentive System Components:
Non-Financial
Success Factor
Incentive Features
Recognition
Authority
Responsibility
Power
Presence of a management champion for th

Increased resources: money or personnel

Basic motivation of intrapreneur is to realize his vision in his own
way: Autonomy

Intrapreneur does not have to take management permission for
every move: Freedom & Independence in operation
Recognition is not just a gesture, it is an empowerment tool

Manifested through recognition ceremonies, awards and
corporate publications

Autonomy
Freedom
Independece


Top management
support for
venture
Subtle incentives

Only explicit way of awarding these incentives is through
promotions

Promotion to broadened responsibilities is the fundamental
corporate reward
3. Incentive System Components:
Risk
Success Factor
Incentive Features

Career Risks
Job Security and
benefits related
risk
Effort & Stress

Possibility of missing out on incentives due to the inherent risk of
the new venture

Working for the new venture may become a Stumbling block in
the employee’s career. He may miss out on promotions, etc

Financial Risk
Opportunity cost of leaving some other division and working for
new venture
Firms sometimes don’t guarantee jobs in case of venture failure.
This creates job security risk.

While joining new venture employees often have to give up
standard benefits package

A new venture, by its inherent nature, is often more stressful and
difficult than an established venture
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Lifecycle Incentive Approach
Success Factor
Pre-Launch
Product
Development
Stage
Incentive Features
 Small discretionary bonus could be provided on
completions of feasibility and concept study
 Medium to significant bonus on ontime, within estimated
budget, product development
 Needs built in quality protection provisions
Startup
 Bonus could be calculated as a % of the difference
between planned and actual startup expenses
Ongoing Sales
and Production
 Percentage of dollar amount improvement over planned
profit or loss to be shared by venture team
Post Venture
Maturity stages
 Payout mechanism for venture personnel who voluntarily
leave or are transferred or discharged
Intrapreneuring Phase
No
Phase
Description
1
Solo phase self vision, no-ego barrier, write down your idea &
concept
2
Network
phase
share your idea, getting feedback to elaborate
strength & weakness and suggestion
3
Bootleg/
Informal
phase
Start getting supporter without company back-up, fine
tuning style of early team
4
Formal
phase
Getting management support, Recruiting formal
team, legitimacy & leadership, maintain expectation
5
Execution
Resource recombining & acquisition, Implementation
Modified from
Intrapreneuring, Pinchot, 1985
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Entrepreneurship vs
Intrapreneurship
Intrapreneurship is part of entrepreneurship, but differ in
term of:
 Resource: existing network, corporate reputation, market
penetration, technology base, competence human resource, financial
 Risk
 Autonomy
 Share
Intrapreneurship
Development
Desentralized
Organization
Learning
Orientation
Learning
Culture
Transformational
Leadership
Organizational
Learning
INTRAPRENEURSHIP
Organizational Performance
Learning Environment
Framework for Successful
Corporate Entrepreneur,
Rupcic, Zekic, Kutnjak,
2010
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The Intrapreneur’s
10 Commandments
1.
It’s easier to ask for forgiveness than for permission
2.
Do any job needed to make your project work, regardless of your job
description
3.
Ask for advice before resources
4.
Recruit strong team
5.
Honor your sponsors
6.
Underpromise and overdeliver
7.
Be true to your goals, but realistic about ways to achieve them
8.
Forget pride authorship, spread credit widely
9.
When you bend the rules, keep the best interests of the company
and its customer in mind
10. Prepare to be fired
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