CHAPTER 19

Intrapreneurship

Van Schaik PublishersF.W. Struwig

• Define intrapreneurship• Differentiate between entrepreneurs and intrapreneurs• Explain how creativity and innovation are related• List the characteristics of creative people• List the characteristics of a creative climate in a business• Distinguish among innovation, creativity and

entrepreneurship• Mention the actions that are necessary to create the

ability to innovate in a business

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LEARNING OUTCOMES

Chapter 19 3

LEARNING OUTCOMES

• Outline the sources of innovation in a business• Discuss the intrapreneurial process• Identify the factors that hamper intrapreneurship • Discuss the intrapreneurial way of leadership• Briefly outline how to manage intrapreneurship in a

business• Discuss how intrapreneurship is implemented in the

South African business

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DEFINITION OF INTRAPRENEURSHIP

“...Any of the dreamers who do. Those who take hands-on responsibility for creating innovation of any kind, within a business. The intrapreneur may be the creator or inventor but is always the dreamer who figures out how to turn an idea into a profitable reality.”

• Intrapreneurs are therefore people who put new ideas into action within established businesses.

• Although employed in a corporate position intrapreneurs are nevertheless given freedom and incentives to create and market their own ideas.

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Chapter 19 5

THE DIFFERENCES BETWEEN ENTREPRENEURS AND

INTRAPRENEURS

• Forms taken by intrapreneurship: Traditional research and development The ad hoc venture team New venture divisions Champions and sponsors Acquisitions Outsourcing Hybrid forms

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Chapter 19 6

ROLES IN INTRAPRENEURSHIP

• Initiator• Sponsor/facilitator• Champion/manager• Team supporter• Reactor

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Chapter 19 7

FIFTEEN MORE SPECIFIC JOBS

• Researcher/analyser• Interpreter/strategist• Visionary/inventory• Catalyst or leader• Endorser• Team player• Resource provider• Problem solver

• Co-ordinator• Negotiator• Politician• Change manager• Missionary• Opportunist• Critic/judge

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Chapter 19 8

CREATIVITY AND INNOVATION

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Chapter 19 9

THE CHARACTERISTICS OF CREATIVE PEOPLE

• Bright

• Good at generating many ideas quickly

• Positive self-image

• Sensitive to the world and others

• Motivated by challenges

• Can withhold a decision until facts have been collected

• Value independence

• Rich fantasy life

• Flexible

• Concerned with meanings and implications of a problem not small details

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Chapter 19 10

THE CREATIVE CLIMATE• Trusting management

• Open channels of communication

• Contact and communication with outsiders

• Large variety of personality types among employees

• Willingness to accept change

• Experimentation with new ideas

• No fear of negative consequences of making a mistake

• Merit-based selection/promotion of employees

• Techniques that encourage ideas

• Financial, managerial, human and time resources to accomplish goals

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Chapter 19 12

STIMULATING INNOVATION IN THE BUSINESS

• Focus employee intelligence on the product and customer

• Enhance subject matter expertise• Encourage unconventional ideas• Encourage employees not to fear ambiguity or

uncertainty• Avoid forcing employees to explain or justify

themselves• Motivate employees in a suitable manner

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Chapter 19 14

THE INTRAPRENEURIAL PROCESS

Stage 1: Choosing an idea

Stage 2: Planning the business

Stage 3: Identifying sponsors - the protectors of new ideas

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Chapter 19 15

FACTORS HAMPERING INTRAPRENEURSHIP

• Costs and rewards• Inertia• Hierarchy

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Chapter 19 17

THE INTRAPRENEURIAL WAY OF LEADERSHIP

Important components:• Freedom, democracy and trade-offs

• Making others feel good

• No need for power

• Avoiding conflict

• Sharing the visionary task

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Chapter 19 18

IMPLEMENTATION OF INTRAPRENEURSHIP IN THE SOUTH AFRICAN BUSINESS

• The individual intrapreneur

• The intrapreneurial team

• The intrapreneurial organisation

• Intrepreneurial outposts

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