DessLumpkin2005AME

Corporate entrepreneurship (CE) has two primary aims: the creation and pursuit of new venture opportunities and strategic renewal. Although firms may grow via mergers and acquisitions as well as through joint ventures and strategic alliances, corporate entrepreneurship is typically focused on internal venture development. Corporate new venture creation was labeled “intrapreneuring” by Gifford Pinchot because it refers to building entrepreneurial businesses within existing firms. However, to engage in corporate entrepreneurship that yields above-average returns and contributes to sustainable advantages, it must be done effectively.

Whatever form CE efforts take, the key to successfully creating value is viewing every value chain activity as a source of competitive advantage.  In the same way, the effect of corporate entrepreneurship on a firm’s strategic success is strongest when it animates all parts of an organization. It is found in companies where the strategic leaders and the culture together generate a strong impetus to innovate, take risks, and aggressively pursue new venture opportunities. These ideas are captured by the concept known as “entrepreneurial orientation.”

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