13th Annual International Management Conference Proceeding

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and Proactiveness but also attitude towards strategic planning processes that reflects the extent to which a firm practices business venturing. 2.3 A Theoretical Model of Intrapreneurship Theoretically this paper is based on intrapreneurship research. Intrapreneurship is a concept closely related to entrepreneurship emphasizing the entrepreneurial process and innovativeness (Guth and Ginsberg, 1990). Intrapreneurship, however, takes place within the organisation (in this paper in small businesses). The intrapreneur acts like an entrepreneur in that he/she realizes his/her own ideas without necessarily being the owner of the enterprise. Intrapreneurship is here defined as an entrepreneurial way of action in an existing organisation. The basis of intrapreneurship is recognizing an opportunity, exploiting it and trusting that exploiting an opportunity in a new way that deviates from previous practice will succeed and support the realization of the organization’s aims and profitability. Research into the nature, prerequisites and effects of firm-level entrepreneurial activities has grown over the past 25 years. The seminal paper of Peterson and Berger on entrepreneurship in organisations (1972) sought to identify organizational and environmental factors affecting small business entrepreneurial activities. Miller’s (1983) paper was a key turning point in the research on firm-level entrepreneurship. After that researchers have used Miller’s theory (illustrated in figure 1) and research instruments to examine the linkages between environmental, strategic, and organizational variables, and a company’s entrepreneurial activities. In this paper the researcher explains Miller’s (1983) model, organized the prerequisites and outcomes of intrapreneurship, as well as the phenomenon of intrapreneurship into the following variables: 1. The phenomenon of intrapreneurship a) A-type: venture creation and innovation b) B-type: strategic renewal 2. The prerequisites of intrapreneurship a) <strong>Management</strong> activities b) Organisation culture c) Organisation setting d) Skills and attitudes of employees 3. The organisational outcomes of intrapreneurship a) Customer satisfaction b) Job satisfaction c) Financial performance The model that displays the interrelationships and the hypothesis is displayed in figure 1 47
Figure 1 The Model of Intrapreneurship 2. PREREQUISITES: Potential Elements Organisational characteristics � Organisational culture � Organisational setting Skills and attitudes of managers and employee Source: Adapted from Miller (1983) Key Variables Direction of dependence of variables 2.3.1 The phenomenon of intrapreneurship 1. PHENOMENON Intrapreneurship A. Venture creation and innovation Miller (1983) stresses that the phenomenon of intrapreneurship is displayed in a firm’s commitment to innovation. There are three related components of innovation: product innovation, proactiveness, and risk taking. Product innovation refers to the ability of a small business to create new products or to modify existing ones to meet the demands of current or future markets. Proactiveness refers to a small business’s capacity to compete in the markets by introducing new products, services, or technologies. Risk taking refers to small business’s willingness to engage in business ventures or strategies in which the outcome may be highly uncertain (Zahra and Covin, 1995). Together these components form – as referred to here – an A-type manifestation of intrapreneurship, emphasising the creation of innovations and ventures as well as conducting research and development activities aiming to improve organisation’s competitive position and performance. Another dimension of the phenomenon of intrapreneurship is strategic renewal of the existing business – Btype manifestation of intrapreneurship, as referred to here. This strategic renewal of an existing organisation entails areas such as mission reformation, reorganisation as well as system-wide changes within the 48 B. Strategic renewal 3. OUTCOMES: Firm performance Customer satisfaction Job satisfaction Financial performance
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Page 15 and 16: PRACTICAL ANALYSIS TO RESOLVING KEY
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Page 35 and 36: REFERENCES 1. Balunywa Waswa, (2004
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Conclusions From the findings, ther
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References 1. Baldwin, T. T., & For
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