Why Is Intrapreneurship Important?

Robinson (2001) expresses that, management’s willingness to maintain new ventures and creating structure and an organizational culture that will motivate intrapreneurship is very important. When the commitment from management is reached, a three year period is essential for the concept to be introduced within the organization through seminars and workshops. Intrapreneurial leaders have to be identified, selected and trained.

Ideas and general support of top management identified

The overall program expectations, targets and time frames must be established for performance impact to the organization. Sponsors those who believe in intrapreneurial vision will accept and approve new intrapreneurial and innovative initiations (Nieuwenhuizen et

Intrapreneurial with fewer resources

Hierarchical organization is a bad practice for intrapreneurial success. Some organizations downsize to stay in the hyper competitiveness to remain in this environment.

Supporting structures

As per Hisrich et al., (2005) organizations have to set up a strong structure to motivate intrapreneurship. Because intrapreneurship is secondary, and the structures must be kept in a place to support the initiative. Robinson (2001) explains that innovation will invariably help the innovation process.

Manager – leader must therefore make an environment that supports creative ideas and encouraging change (Baron and Shane, 2005).

Typing rewards with performance

Team members are motivated to work sincerely and they compete when there are more rewards available for their efforts in the business. Performance has to be directly related to the reaching of goal set. That an outcome has to be positive if the performance is to be increased (Coetsee, 2002).

Evaluations systems for

For the individual employees, the outcome is directly related to the higher job satisfaction and their commitment at workplace (Holt, Rutherford and Clohessy, 2007) and in the organizational level, the positive result come in terms of profitability and better performance (Zahra and Covin and Garvins, 2000). Lumpkin and Dess (2005) proposed a framework for analyzing the link between firm performance and corporate entrepreneurship. Further they argue that, both financial and non financial measures are important in the study of entrepreneurial outcomes.

Both job satisfaction and effective commitment denotes favourable emotion which is derived from the evaluation of job experience and workers’ emotional connection to their organization. Satisfaction and commitment are related to levels of motivation which can be translated into maximum job performance among the organisation’s employees. Greater performance in the individual level will lead to greater organizational effectiveness.