Intrapreneurship in teams/groups: self-determination theory and compensation

Abstract

PurposeThe literature on intrapreneurship recognizes the notion that regular employees can be expected to be entrepreneurial. Using self-determination theory as a basis, the purpose of this conceptual paper is to focus on the role of compensation systems in incentivizing entrepreneurial action by regular employees who constitute the bulk of the organizational workforce.Design/methodology/approachThis conceptual paper suggests that greater clarity on the role of compensation systems in entrepreneurial action by regular employees would require an understanding of how entrepreneurial action happens through relationships among employees. An exploration of both compensation systems and the relationships among employees undertaking entrepreneurial action as part of team/group settings can deepen our understanding of intrapreneurship. Self-determination theory and relationship-focused theory allow for such an exploration.FindingsThe literature on self-determination theory, has identified the needs of autonomy and relatedness among employees. This conceptual paper will propose that the interaction between compensation systems and the needs for autonomy versus relatedness among employees determines the type of relationships chosen for entrepreneurial action. After the chosen type of relationships are formed and entrepreneurial action begins, challenges in the implementation of compensation systems are likely to emerge – distributive justice issues under individual based compensation and free-riding issues under team-based compensation. The entrepreneurial performance of the team/group will likely be influenced by the interaction between the challenges in the implementation of compensation systems and the type of relationships chosen for entrepreneurial action.Originality/valueThis conceptual paper gives a new direction to how collective entrepreneurial processes and outcomes can be understood. Self-determination theory and relationship-focused theory, in unison, can be useful in analyzing the role of intrinsic motivators, extrinsic motivators, and relationships during entrepreneurial action.

Origins and consequences of intrapreneurship with behaviour-based approach among employees in the hospitality industry

“…The paper provides empirical evidence that social norms, employee attitude towards intrapreneurship, perceived characteristics and ability and firm strategy incidental to entrepreneurial orientation play as crucial antecedents of employee intrapreneurial behaviour, which lead to their strategic renewal behaviour and venture behaviour. Organisational architecture, leadership and job design might play as subjective norms or institutional factors, are found to influence intrapreneurial behaviour (Chakrabarty, 2020; Fisher et al , 2020; Karatepe et al , 2020; Moghaddas et al , 2020; Turro et al , 2020). Employee attitude related to intrapreneurship such as job satisfaction, career goals at the company and motivations (income and independence) influences intrapreneurial behaviour (Antoncic and Antoncic, 2011; de Correia et al , 2019; Douglas and Fitzsimmons, 2013; Farrukh et al , 2017; Valsania et al , 2016; ul Haq et al , 2018).…”

Cultivation of Intrapreneurship: A Framework and Challenges

“…Research indicates that employees’ involvement and relationships have significant effects on their intrapreneurial engagement ( Falola et al, 2018 ). Specifically, based on self-determination theory (SDT) and relationship-focused theory (RFT), to facilitate the formation of relationships, Chakrabarty (2021) suggests that the interaction between compensation systems (i.e., based on individual or team goal) and the needs for autonomy vs. relatedness among employees corresponds to the type of relationships selected for an entrepreneurial action. Furthermore, Chakrabarty (2021) identify four types of relationships, namely, civil, inspiring, integrating, and synergizing relationships.…”

“…Specifically, based on self-determination theory (SDT) and relationship-focused theory (RFT), to facilitate the formation of relationships, Chakrabarty (2021) suggests that the interaction between compensation systems (i.e., based on individual or team goal) and the needs for autonomy vs. relatedness among employees corresponds to the type of relationships selected for an entrepreneurial action. Furthermore, Chakrabarty (2021) identify four types of relationships, namely, civil, inspiring, integrating, and synergizing relationships. Accordingly, firms may promote intrapreneurial actions via solitude, solitude with inspiration, integration and with solitude, and synergy approach, respectively.…”

How HR managers of incubators can be more effective: consider the relationships among entrepreneurs

“…Further, HR managers should monitor the incubator climate during entrepreneurial work because it might alter the entrepreneurial performance of the outcomes. HR managers can also consider other aspects such as resource management (Bass and Chakrabarty, 2014;Chakrabarty, 2009Chakrabarty, , 2015Chakrabarty and Wang, 2012, 2020Chiaburu et al, 2015;He et al, 2016;Zardkoohi et al, 2011) and stakeholder management (Chakrabarty, 2020b(Chakrabarty, , 2020cChakrabarty and Bass, 2013, 2014a, 2014b, 2015Chakrabarty and Whitten, 2011;Chakrabarty et al, 2008;Green et al, 2007;Whitten et al, 2010). In conclusion, the application of RFT (Chakrabarty, 2020a) can offer a holistic lens for understanding entrepreneurial action within incubators.…”