The Benefits of Corporate Entrepreneurship
Write an essay on corporate entrepreneurship.
In order to promote and sustain organization performance, corporate entrepreneurship has been recognized as a potentially practical means. The entrepreneurial behavior help corporation to build up new businesses that generate revenue streams. The success of a company is also enhanced with the help of corporate entrepreneurship that helps in promoting its product. It is considered as the significant component in the process of financial growth and expansion. It is a mechanism by which the world converts technical information into goods and services. Entrepreneurship is also viewed as the synonym in order to establish new firms as an appropriate vehicle for entrepreneurial enterprise (Glackin 2013).
Innovation is the spirit of corporate entrepreneurship which leads to the creation of wealth. It also leads to the constant growth in the industries. The three major criteria of entrepreneurship are the assurance to opportunity, the search of opportunity as well as de-commitment. The processes by which the individuals within the association pursue prospects without any consideration to the reserves are termed as corporate entrepreneurship. Corporate entrepreneurship helps in making a noteworthy difference to the ability of the company in order to compete (Turro et al. 2014).
The characteristics that have inspired the materialization of corporate entrepreneurship as a field of research and practice are connected to professed weaknesses of the conventional methods of corporate organization. The corporate entrepreneurship is largely critical for big companies that facilitate these companies that are conventionally reluctant to risk-taking to innovate, energetic leaders and groups toward an augmented level of corporate enterprising. The corporate entrepreneurship is also considered as a means to managerial renewal (Kuratko et al. 2014).
The concept and practice of leadership are explained with the help of various theories and approaches. The various theories of leadership are as follows:
- Trait Theory – this theory assumes that the individuals are either born or not bon with the qualities that incline them to success in the role of leadership. The qualities such as that of individuality as well as cognitive capability are what emphasize the effective leadership (Colbert et al. 2012).
- Skills theory – it indicates that in the practice of efficient leadership, the erudite knowledge and the obtained skills are required. Skills theory by no means disowns the link between hereditary traits and the capability to be an efficient leader. It merely states that in order to perform as an effective leader, the erudite skills and the developed style is what needed (Riggio and Tan 2013).
- Situational theory – according to this theory, different situations require diverse methods of leadership. In other words, in order to become an effective leader it is required to adapt the style of an individual to the conditions of the state of affairs (Chemers 2014).
- Contingency theory – according to this theory an effectiveness of a leader is dependent on how well the style of the leader matches a precise setting or circumstances.
- Path-goal theory – this theory states that how the followers are motivated by the leaders in order to achieve the identified aims. It assumes that effectual leaders have the capability to progress the incentive of followers by clarifying the course and eliminating impediments to elevated performance and preferred objectives. The path-goal theory believes that the individuals will be more alert and aggravated if they believe that they are competent of elevated performance (Phillips and Phillips 2016).
- Transformational theory – as per this theory, leadership is the process by which an individual connects with others and is proficient to generate a link that results in augmented inspiration and ethics in both supporters and leaders. The theory of charismatic leadership is mostly associated with this theory. The theory of charismatic leadership deals with the fact that the leaders with the qualities such as self-assurance, sociability and clearly stated values which helps in motivating the supporters (Dvir et al. 2015).
- Transactional theory – this theory deals with the exchange that occurs between the leaders and the supporters. It is based in the view that the job of a leader is to generate structures that make it profusely clear what is expected from the supporters (Antonakis and House 2014).
The contingency theory stems from a disapproval of the so called worldwide approach that had subjugated the management knowledge. The contingency theory has a long and continuing tradition in corporate entrepreneurship. As reported the new firms need to line up with suitable structural composition of the firm in reaction to the kind of customer determined complexities. The scholars of entrepreneurship have compared the consequences of stabilizer models with contingency models (D 2013).
The contingency theory in the entrepreneurship field has the primary idea that entrepreneurial act needs to be associated with the circumstance for top results. Contingency fit can be viewed as an effortless perception a match involving structure and circumstance directs to managerial performance (Burgers and Covin 2014).
The theory of contingency has been established in the theory of entrepreneurship. The contingency theory has a long continuing custom in entrepreneurship study and is believed by many researchers as a significant strand. A main difference between the contingency theory researches is that of the configuration viewpoint and the Cartesian viewpoint.
As per the configuration view point, each association falls into an inadequate number of schemes states and that adjust between states of fit is fundamental and rapid to evade central ground positions. On the other hand, the Cartesian viewpoint maintains that contingency fit can be attained via incremental and recurrent actions along continuous fit lines between structure and perspective variables.
The Role of Innovation in Corporate Entrepreneurship
In a corporate entrepreneurship, the model of trait leads to a successful entrepreneurship. The trait model is generally based on the features of both successful and unsuccessful leaders. This in turn helps to predict the efficiency of a leader. The resultant lists of traits are compared to those of possible leaders to evaluate the probability of success or failure in a corporate entrepreneurship. The core traits that are used to lead to a successful entrepreneurship include the attainment drive. The attainment drive leads to an elevated level of endeavor and elevated levels of goal and energy.
The trait theory also involves the leadership motivation which leads to a successful entrepreneurship. It is a passionate aim to lead others to reach collective goals. Sincerity and honesty are also the part of the trait theory. An entrepreneurship also requires cognitive aptitude that is the capability to implement good decision and strong diagnostic skills (Van Wart 2014).
The path-goal theory of leadership leads to successful Corporate Entrepreneurship. It deals with four styles that are adopted by a leader for a successful entrepreneurship. The first one is the directive leader who provides a precise direction to the workers working in the entrepreneurship. The workers are lead by illuminating role prospect, setting timetables, and creation of surety that workers recognize what to do on a specified workday (Hall 2013).
In an entrepreneurship an emotional support is required to be provided to the workers. In that case the supportive leaders are required. They are the part of the path goal theory. The supportive leaders treat the workers well and also concern about them and this in turn give confidence to them (Northouse 2015).
In a corporate entrepreneurship, there needs to be an individual who has to state and manage all the decisions of the team members. The team member needs to be controlled by a leader who has the power to maintain discipline in the organization. Such discipline can be maintained by a leader and such leaders are the autocratic leaders.
In many situations, the corporate entrepreneur needs to do unexpected things against the odd. It may include the foundation of a successful company as well as accomplishment of immense military success against the implausible odds.
The comparison of four theories of leadership is shown in the following table:
The Leadership Theory
Implication on Team
1. This theory integrates the principle of motivation related to the expectancy theory.
2. This theory is trouble-free to use as well as it is practical.
1. The diverse roles of the leaders are not explained properly with the help of this theory.
The team members are strong enough as they know about their goal and are also have the idea of how to achieve this goal.
1. This theory provides a clear-cut approach.
2. This theory also teaches the leaders about elasticity.
1. It lacks the consistency evidence.
2. The interaction of the team and the individuals are not fully dealt in this theory.
The team members contribute equivalently to the allocated mission which leads to team inspiration.
1. A wider view of leadership is provided by this theory.
2. A strong importance is placed on the needs as well as the ethics of the followers.
1. The leadership is treated as an attribute and not a behavior.
2. It also cannot state leadership as imaginative.
The communication between team members, employees are open.
1. The qualities of the leaders such as willpower as well self-assurance are well described with the help of this theory.
2. This theory focuses more on the leadership approach.
1. The research is not accomplished properly on the approach.
If the individuals have the traits they can become a successful leader.
The Pros of Leadership are as follows:
- 1. A business can work efficiently and earn profit if the leaders are able to entrust the work appropriately as well as increase the productivity of the workers. An appropriate leader will be able to conclude employees and determine their strengths and hence will be able to assign the work accordingly. If the workers are divided provided it will result in higher productivity. As a result the profit of the company will increase and so the sales of the company will also increase.
- 2. The morale of a worker can also be increased if the leaders are perfect in the sense that if the leaders can handle their work appropriately in that case the workers will be faithful towards the company (Aaker and Joachimsthaler 2012).
- 3. Under the autocratic leadership, if an urgent situation arises then in that case the autocratic leaders will be the best option to look for. The autocratic style is mainly adopted in the situation when there is pressure or emergency.
The Cons of Leadership are as Follows:
- 1. One of the most important disadvantages of leadership is that sometimes due to the attitude of the leaders the workers are not able to relate to the leaders. As a result it leads to argument and it leads to loss of output (Johnson 2013).
- Leaders do not contribute anything to productivity while they are acting as leaders.
Conclusion and Recommendation
The three key criteria of entrepreneurship are the declaration to opportunity, the investigation of opportunity as well as de-commitment. The contingency theory has a long and continuing tradition in corporate entrepreneurship. The corporate entrepreneurship is mainly critical for large companies that assist these companies that are conservatively unenthusiastic to risk-taking to innovate. It has been recommended that the corporate entrepreneurship helps in generating wealth. It has also been recommended that the contingency theory in the entrepreneurship field has the main idea that industrial act needs to be linked with the situation that leads to top results.
The trait theory is highly recommended in the corporate organization. The reason is that it is adaptable to the situations as well as it also deals with decisiveness. The individual who have the leadership power from birth are known to have the characteristics of trait theory and are highly recommended.
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