Success Factors for Intrapreneurial Environment

Large companies rely on innovation to survive long-term and stay competitive in demanding markets. Implementing intrapreneurship is an effective and successful way to increase business innovation. What are the success factors of an intrapreneurial environment?

Success Factors for Intrapreneurial Environment

Topic

The average duration of a company's presence on the Standard & Poor's 500 index has declined from 61 years to 18 years. This indicates that companies must constantly adapt to changes. As highlighted by the literature research, the implementation of intrapreneurship proves to be an effective method for companies to promote business innovation. Moreover, previous studies emphasize that intrapreneurship outcomes are not always productive. It depends on the rules governing intrapreneurs' activities. Hence, this study aims to investigate what are the success factors for intrapreneurship and the potential gaps between theoretical constructs and practical application.

Relevance

The dynamic nature of the business environment necessitates continuous adaptation by organizations to maintain their competitiveness. Intrapreneurship programs serve as valuable tools for fostering innovation within companies. However, companies must understand that establishing successful intrapreneurship depends on the rules governing intrapreneurs' activities, which involve environmental, organizational, and individual factors. This study aims to investigate what are the success factors for intrapreneurship.

Results

The findings indicate that organizations are indeed aware of the success factors outlined in the existing literature. However, they differentiate it from the theoretical perspectives. Moreover, this study highlighted that intrapreneurship programs serve dual purposes: (i) driving business innovation and (ii) transforming organizational culture and developing employees. Consequently, the approach to identifying and recognizing the right employees for these programs depends on their specific purpose. For instance, if the aim is to transform the culture, selecting employees based on their individual characteristics and/or abilities becomes less crucial as the focus shifts towards involving as many employees as possible.

Implications for practitioners

  • A general intrapreneur profile is more suitable for intrapreneurship programs aimed at culture transformation and employee development. Therefore, the passive approach to employee selection is sufficient. For example, automatic enrollment for all employees (allowing them to opt-out if they wish)
  • When the primary objective is to drive new business innovation, organizations should aim to get the match for intrapreneurs as good as possible. Therefore, they should define the intrapreneur profile using individual motivation, characteristics, and abilities. Additionally, they can take an active approach to employee selection for intrapreneurship programs. Collaborating with the HR department and managers can facilitate identifying and recruiting talented individuals within the organization.
  • Introducing an "intrapreneur path" as a third career option, alongside the manager and expert paths, could attract more intrapreneurs into the organization. This, in turn, has the potential to boost business innovation, leading to the development of new products, services, and ventures within the company.

Methods

This qualitative study follows a methodological approach comprising three main parts: (i) sampling, (ii) data collection, and (iii) data analysis. Initially, a sample of innovation experts was selected for semi-structured interviews based on the "purpose sampling" method. The data was then collected through video calls using "MS Teams" as the communication tool. Subsequently, a deductive approach was employed to analyze the data. The analytical framework for this study was derived from existing literature.