Corporate Entrepreneurship and the Pursuit of Competitive Advantage

Abstract

This paper presents a theoretical exploration of the construct of corporate entrepreneurship. Of the various dimensions of firm-level entrepreneurial orientation identified in the literature, it is argued that innovation, broadly defined, is the single common theme underlying all forms of corporate entrepreneurship. However, the presence of innovation per se is insufficient to label a firm entrepreneurial. Rather, it is suggested that this label be reserved for firms that use innovation as a mechanism to redefine or rejuvenate themselves, their positions within markets and industries, or the competitive arenas in which they compete. A typology is presented of the forms in which corporate entrepreneurship is often mani• fested, and the robustness of this typology is assessed using criteria that have been proposed for evaluating classificational schemata. Theoretical linkages are then drawn demonstrating how each of the generic forms of corporate entrepreneurship may be a path to competitive advantage.

Researching at the Intersection of Innovation, Operations Management, and Entrepreneurship

“…The corporate entrepreneurship literature has also found that innovation outcomes are associated with growth (Burgelman, 1984), higher profitability (Zahra & Covin, 1995), and competitive advantage (Covin & Miles, 1999). (We note this latter point to reinforce our earlier point that while innovation and corporate entrepreneurship cover much of the same ground, one makes little reference to the other and vice versa [for an exception, see Morris, Kuratko, & Covin, 2010].…”

The Effect of Pro-Entrepreneurship Architecture on Organisational Outcomes

“…The effect of pro-entrepreneurship architecture on organisational outcomes corporate intrapreneurship (Dess et al 2003), strategic entrepreneurial posture (Covin, Slevin 1989), and internal corporate venturing (Hornsby et al 2002); these not being merely differences in nomenclature, but each having specific meaning and focus. CE which includes strategic renewal (organizational renewal involving major strategic and / or structural changes), innovation (the introduction of something new to the marketplace), and corporate venturing (corporate entrepreneurial efforts that lead to the creation of new companies within the corporate company), are all important and legitimate parts of the CE process (refer to Covin, Miles 1999;Kuratko, Welsch 2001;Morris, Kuratko 2002). Sharma and Chrisman (1999) and Geisler (1993) view CE as the process whereby an individual or group of individuals, in association with an existing company, create a new company or instigate renewal or innovation within that company, or in a family business (Kellermanns, Eddleston 2006).…”

Incumbent's advantage through exploiting complementary assets via interfirm cooperation

“…I focus on incumbent firms exposed to radical technological change and analyze how they have used interfirm cooperation with new entrants as a strategy not only to adapt but also to innovate successfully. In particular, I attempt to show how corporate entrepreneurship (Zahra, 1993;Covin and Miles, 1999) pursued by large pharmaceutical firms has led to the successful adaptation to a radical innovation-in this case, the emergence of biotechnology as the new framework of drug discovery and development.…”