An Exploratory Study on Corporate Entrepreneurship in an Established Firm
Date Issued
2005
Date
2005
Author(s)
Yueh, Tzu-Tsen
DOI
zh-TW
Abstract
Managing business growth has been a central task of corporate mangers and a crucial issue of research in the field of strategic management. Among various issues of growth strategy, corporate entrepreneurship becomes a critical challenge to corporate managers within the context of established firms. Facing hypercompetitive markets and changing technologies, a firm has to ensure that the existing organization can create new elements of growth and hence sustain its competitive advantages. The purpose of this research is to undertake an exploratory study to identify elements underlying corporate entrepreneurship and how these elements can be converted into entrepreneurial activities and hence corporate growth.
Base on a qualitative research approach on two business development projects of a leading industrial PC company, Advantech, we are able to inductively conclude managerial lessons to the research question. As corporate entrepreneurship is a multifacet phenomenon, we identify four critical elements of corporate entrepreneurship: they are the relatedness of business, ownership and control, resource allocation, social relationship. With these four elements in mind, we then identify four major purposes leading toward new business building; they are pursuing future profit, reducing risk of technological competition, enhancing vertical control and sustaining core competence.
Based on this matrix of venturing goals and elements of management, the parent company could undertake contingent approach to different corporate venturing cases. In other words, different venturing goal shall determine the management relationship between the parent firm and the venturing units. More specifically, when the venturing unit is a new startup, parent firm would be better to reduce the extent of its ownership and control, support with non-financial resources and enhance social linkage. It is recommendable to help the venturing unit to build competitive advantage in the market and eventually merge with the parent firm.
Subjects
興業精
神
企業成長
內部創業
Corporate Entrepreneurship
Growth Strategy
Corporate Venturing
Type
thesis