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THE IMPACT
OF INTRAPRENEURAL ORGANIZATION ON ORGANIZATIONAL PERFORMANCE
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The
intrapreneur is that individual under
the employment of an entrepreneur who takes an initiative into a new project of
developing a new product or service within the larger organization of the
entrepreneur. The intrapreneur possesses the characteristics of an entrepreneur
but operates within the firm of the entrepreneur using entrepreneurial capabilities without
bearing the associated risks of those activities. Intrapreneurs are typically
assigned special projects to work on within the entrepreneurial firm. The
difference between Entrepreneurs and intrapreneurs are that while the
entrepreneur takes responsibility from the start of the firm to finish, the intrapreneur takes
responsibility for projects within the already established firm of the
entrepreneur. The similarity is that just as the entrepreneur is focused on
starting the firm to produce goods or services, intrapreneurs seek the
resources, policies and technologies that will help in the achievement of the
initiated project towards the production of a new product or service and
increase the company’s productivity. The intrapreneur developes the skill for recognizing and solving important
problems within the firm and the
independence to analyze and understand trends necessary for planning the
company’s future thereby improving organizational performance. They strategize
and determine methods for staying ahead of competition. Some Intrapreneurs
often take executive leadership of the firm over time. It is important that
entrepreneurial firm motivate the efforts of intraprenuers for successful
ventures.
1.2 STATEMENT OF THE PROBLEM
The
intrapreneur possesses the characteristics of an entrepreneur but operates
within the firm of the entrepreneur
using entrepreneurial capabilities without bearing the associated risks
of those activities. Intrapreneurs are typically assigned special projects to
work on within the entrepreneurial firm. The difference between Entrepreneurs
and intrapreneurs are that while the entrepreneur takes responsibility from the
start of the firm to finish, the
intrapreneur takes responsibility for projects within the already established
firm of the entrepreneur.
However the
challenges still remains that the concept of intrapreneurship is still not
understood by many therefore implementing it if not well understood could lead
to a colossal failure and waste of resources. Many of the challenges faced in
the process of intraprenuership include Strategy Conflicts; many new ideas of
intraprenuers do not finally make it to the market due to improper strategic alignment
as many owners of firms do not approve of strategies that contradict the
initial organizational strategy. Leadership Conflicts; Often leadership
conflict emerges as a result of the new initiative by the intraprenuer
.Resource Conflicts; The issue of funding also constitute a fundamental problem
confronting the intraprenuer as the needed funds may not be readily approved by
the entrepreneur to implement the project fully to completion. CULTURE CONFLICT
; Implementing a new project within an existing organization may require a
whole new cultural value which may not be easily welcomed .Some staff in the
existing firm who are not part of the project may develop resentment thereby
causing conflict in the process. Young
Entrepreneur Council (2017).
1.3
OBJECTIVES OF THE STUDY
The
intrapreneur is that individual under
the employment of an entrepreneur who takes an initiative into a new project of
developing a new product or service within the larger organization of the
entrepreneur. The intrapreneur possesses the characteristics of an entrepreneur
but operates within the firm of the entrepreneur using entrepreneurial
capabilities without bearing the associated risks of those activities.
Intrapreneurs are typically assigned special projects to work on within the
entrepreneurial firm. The difference between Entrepreneurs and intrapreneurs
are that while the entrepreneur takes responsibility from the start of the firm
to finish, the intrapreneur takes responsibility for projects within the
already established firm of the entrepreneur. The research objective therefore
seek
To determine
the impact of intrapreneural organization on organizational performance.
1.4 RESEARCH
QUESTIONS
What is
intraprenuership?
What is the
impact of intrapreneural organization on organizational performance?
1.5
SIGNIFICANCE OF THE STUDY
The study
shall elucidate of the prospect of intraprenuership and the challenges inherent
with a view to proffer recommendations for a successful intraprenuership.
The
intrapreneur developes the skill for
recognizing and solving important problems within the firm and the independence to analyze and
understand trends necessary for planning the company’s future thereby improving
organizational performance. They strategize and determine methods for staying
ahead of competition. Some Intrapreneurs often take executive leadership of the
firm over time. It is important that entrepreneurial firm motivate the efforts
of intraprenuers for successful ventures.
1.6 RESEARCH HYPOTHESIS
Ho The
impact of intrapreneural organization on organizational performance is low
Hi The
impact of entrepreneurial organization on organizational performance is high
1.7 SCOPE OF
THE STUDY
The study
focuses on the appraisal of the impact of intrapreneural organization on
organizational performance.
1.8
LIMITATIONS OF THE STUDY
The study
was confronted by some constraints such as logistics and geographical factors.
1.9 DEFINITION OF TERMS
Entrepreneur
DEFINED
An
entrepreneur is a person who takes a considerable amount of risk to own and
operate the business, with an aim of earning returns and rewards, from that
business. He is the most important person who envisions new opportunities,
products, techniques and business lines and coordinates all the activities to
make them real.
INTRAPRENUER
EDFINED
An intrapreneur is an employee of the
organization who is paid remuneration according to the success of the business
unit, for which he/she is hired or responsible. The primary difference between
an entrepreneur and intrapreneur is that the former refers to a person who
starts his own business with a new idea or concept, the latter represents an
employee who promotes innovation within the limits of the organization.
ORGANISATIONAL
PERFORMANCE DEFINED
Organizational
performance relates to the effectiveness and efficiency with which the
organization is being managed .The firm must produce the right product at
maximum output with minimum cost and input. Organizational performance must
reflect in maximum profit or financial returns, market value, minimum cost and
high shareholder value.
REFERENCES
Investopedia
(2017) Intrapreneurship
Susan Foley
(2013 ) Business Growth, Intrapreneurs, Intrapreneurship
Young
Entrepreneur Council(2017) 5 Intrapreneurship Issues to Consider Before Taking
the Plunge
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