Corporate entrepreneurship is incorporated within every contemporary business (Acs & Szerb, 2009). It provides businesses with processes that are in turn used in developing of services, products processes that can create value for businesses, for generation of revenues by means of entrepreneurial actions and though processes. The current scope of analysis deal with an Australian high-tech medical equipment manufacturer, MedPro Pty Ltd. It develops and exports varied range of products since the past 15 years. The company has 250 employees in a single location in Melbourne. Hilary Trump is the CEO, supported by five general managers comprising of R&D, Operations, Sales & Marketing, Finance and HRM in a functional-type organisational structure. The current scope of analysis deals with interpreting the EI and CECI datasets that were recently obtained (Phan, Wright, Ucbasaran & Tan, 2009). Post analysis and interpretation, brief recommendations for what the HRM department can do in response to the findings has been developed. A detailed entrepreneurial health audit is able to reflect the entrepreneur intensity scores along with Corporate Entrepreneurship Climate. The scope of entrepreneurial health audit is conducted by way of determining various scores of factors calculated along with recommendations to be able to enhance the same. Appendix 1 depicts a figure of entrepreneurial health audit factors.
Entrepreneurial innovations are a concept adopted around organizations globally. Contemporary organizations attaches’ immense importance to the term entrepreneurial, as entrepreneurial orientation (EO) reflects extent to which an organization is risk-taking, innovative and proactive in nature (Kuratko, Hornsby & Covin, 2014). The term entrepreneurial intensity is brought about to reflect upon degree of entrepreneurship adopted by the organization. It produces frequency with which a company participates in entrepreneurial events. The intensity or degree of participation in any entrepreneurial intensity depends upon market condition along with the industry. There is suggestion of a positive relation between performance and EI (Antoncic & Prodan, 2008). When a company performs better in frequency of performance and EI then the company is bound to emerge as a better performer.
Entrepreneurial intensity (EI) is measured through degree of entrepreneurship evident along with the amount to which it is evident. EI is measured as it has been seen considerably linked to a company’s performance. While measuring of EI, the extent of three attributes such as risk taking, innovativeness and reactiveness is considered (Zahra, Filatotchev & Wright, 2009). Measure of these attributes is calculated by CEOs, investment companies, managers and other relevant stakeholders when contemplating with the organization. Through Entrepreneurial Health Audit, it is possible to assess entrepreneurial activity within a company. It is used to assess corporate environment support for employees to work in an entrepreneurial behaviour (González-Benito, González-Benito & Muñoz-Gallego, 2009). Corporate entrepreneurship strategy allows attainment of competitive advantage for the company, along with establishment of a process with which individuals in an established firm take advantage of entrepreneurial opportunities. It focuses on continuous rejuvenation of the organization by shaping of its operations to orient it to entrepreneurial opportunities.
Measuring EI can emerge to be highly valuable for any organization within any industry. It allows measurement of a firm’s capability to innovate, take risks and determine its proactiveness. EI demonstrates higher levels of company’s performances by means of non-financial as well financial performances. In cases of turbulent industries, this measure can allow determining a firm’s competitive aspects. In highly competitive industry, risk takers are generally benefitted. Similarly innovations are highly rewarded across highly competitive and turbulent industries. Proactiveness of a firm can be determined from its ability to react to the market and industry. It is also rewarded and consumer prefers products from companies, which can easily react in a proactive manner (Scarborough, 2016). In this current era of globalization and competitiveness through technological advancements, companies have to determine their EI score in order to make strategies and allocate resources as well. The usefulness of this parameter is a measure and assessment of the capability of the Company to be able to establish itself in the industry and marketplace. In the current scope of analysis for the health company, analysis of this score will reflect capability of the Company to be able to take risks, deal with situations and also on its innovation capabilities.
EI is calculated on various parameters to determine capability of a company to be able to establish itself within the industry. Factors that impact on EI comprises of risk, innovations and proactiveness of the company (Ács, Szerb & Autio, 2017). It is a measure of amount of entrepreneurship against degree of entrepreneurship undertaken. Therefore, a measure of attributes which contributes to these aspects has to be measured to arrive at a conclusive score related to the same. Along with various factors that goes in calculating of EI, an ambience or climate of entrepreneurial cultural is conducive towards the promotion of EI within an organization. Within the current company such factors are considered through an interview undertaken of employees to reflect upon those factors.
Calculating EI is aimed at assimilating and calculating various factors that are deemed appropriate for its measure. In the current scope of discussion for the health company, all these parameters are taken into consideration for calculation of EI (Yiu & Lau, 2008). The entrepreneur intensity (EI) dataset consists of six responses, those of the CEO and the five general managers, while the 15 responses in the CECI dataset are anonymous. They originate from people at various management levels and functional areas in the company. An example includes, a company which introduces a number of innovative products, but takes a lot of risk and acts reactively to the action of other companies in the market cannot be considered as having a high degree of entrepreneurship (Uy, Foo & Ilies, 2015). Analyzing and measuring degree of entrepreneurial activity can lead to understanding ways in which a company progresses.
A questionnaire is developed and then individual responses to the same are arrived at, such that to calculate scores related to EI. Factors that is undertaken for calculating EI for the health company includes assessing, its capability of new product introduction. The questionnaire has been developed taking into consideration positive aspects or scores related to the organization in order to arrive at conclusive scores related to the same. The response to questionnaire designed is provided in the Appendix below. The questionnaire calculates average and SD (standard deviation) for 12 responses. The responses are then segregated in order to arrive at scores for innovation, proactiveness and risk taking attribute. Then a total score for calculating EI is determined. Innovation is determined through Question numbers 1, 2, 5 and 9. Risk is calculated through Question numbers 3, 6, 7 and 12. Proactiveness is determined from question number 4, 8, 10 and 11. The formula for calculating the aggregate scores is as follows;
I = (Q1 + Q2 + Q5 + Q9) /4
R = (Q3 + Q6 + Q7 + Q12)/4
P = (Q4 + Q8 + Q10 + Q11)/4
Degree of Entrepreneurship= (I + R + P)/3
In the current analysis Degree of Entrepreneurship attached reflects a score of 2.325. Calculations are attached in Appendix 2.
The degree of entrepreneurship is depicted along the x-axis whereas frequency of entrepreneurship is determined along the y-axis. The formula for degree of entrepreneurship is as below;
EI = (0.7 X DoE) + (0.3 X FoE)
The frequency of entrepreneurship undertaken is depicted to be at 1.775. Calculations in Appendix 2, along with graphical representations for the same.
The Australian Company MedPro providing high-tech medical equipment operating since past 15 years with over 250 people being employed across Melbourne. The Company has a functional type of organizational structure headed by a CEO. Analysis of degree of entrepreneurship undertaken in the current company reflects that it undertakes medium entrepreneurial ventures. Though the company’s entrepreneurial environment can be regarded as Dynamic in nature yet there needs to steps undertaken to improve the same. Considering highest possible score to be 5 and lowest to be 0. It can be understood that a score of 2.325 is rather midway. Meaning the Company follows entrepreneurial activities however not rapidly in manner. It can still accommodate steps in order to increase its entrepreneurial activities. Moreover a score of 1.775 in frequency of entrepreneurial activities undertaken reflects that the company seldom undertakes such activities. The Company is assumed to have products and services hence accommodating in high entrepreneurial intensity will expand capacity of the organization. It will be able to expand in other areas of Australia as well. Through innovativeness and risk attitude, the Company will be able to expand beyond its core competencies and such can be only being undertaken through assistance of its employees. Though there are present resources for such activities however, the company barely undertakes such activities. Therefore, there needs to be more initiatives accommodated within the company to enhance frequency and degree of entrepreneurship within an organization. Recommendations such that entrepreneurial activities can be enhanced include;
In order to determine the current levels of entrepreneurial intensity present within a firm, a second step of determining Corporate Entrepreneurship Climate Instrument is undertaken. In the current organization analysis, scope of Corporate Entrepreneurship Climate is undertaken.
In the present worldwide condition, organizations are centered on entrepreneurial conduct so senior managers attempt to make fitting entrepreneurial atmosphere. Researcher have been examining entrepreneurial introduction (EO) – execution connection or illuminating the key inward hierarchical variables. Be that as it may, there are insufficient examinations that explore connection between entrepreneurial introductions with inside hierarchical variables. The target of this examination is to experimentally look at inner association factors that start entrepreneurial atmosphere which impact entrepreneurial introduction that influences business execution. All associations more likely than not occupied with some type of business, generally they would not exist. The incongruity is that as new pursuits advance from arrangement to wind up bigger substances, they frequently actualize arrangements, methodology, and principles that outcome in bureaucratic structures that, while expected to control and oversee development, regularly hinder the advancement and inventiveness indispensable to keep up the upper hand at first made by entrepreneurial action. Employee progress propels from little, restricted gatherings to more mind boggling social orders, standards and structure are unexpectedly made to encourage the complexities related with this development. This procedure closely resembles the development it can be seen in a few organizations.
For any association to support achievement it must take part in some type of entrepreneurial movement keeping in mind the end goal to keep on effectively contend in the commercial center and keep on increasing partner esteem. In that lies the problem of Corporate Entrepreneurship (CE), in what manner can developing associations support a domain for entrepreneurial movement, given that such associations must have a specific level of strategies, systems, and forms keeping in mind the end goal to oversee and control their exercises.
An entrepreneurial entrepreneurship tool designed to evaluate, evaluate and manage the company’s internal work environment. This analysis allows us to conclude that it can support entrepreneurial behavior through a business strategy. The concept of corporate entrepreneurship focuses on five individual factors, such as support management, autonomy, autonomy, housing, time availability and organizational boundaries (Ireland, Quinn Courtavo, 2009). The readiness of senior executives to facilitate and promote entrepreneurial behaviors that can protect innovative ideas while providing resources for employees to promote entrepreneurship is understandable. Authority at work or level of autonomy can be understood when assessing the delivery of managers at the highest level to tolerate failure or help in decision making. It provides freedom of control and authority.
There are multiple usefulness of corporate entrepreneurship climate (Iakovleva & Kickul, 2011). Analyzing the usefulness of determining this parameter can be understood through the effectiveness of success of CES. It allows understanding the levels of effective entrepreneurship within an organization. Understanding presence of corporate entrepreneurship climate can allow realization of entrepreneurial breakthrough. It enhances the process of creative thinking, as consumers prefer those organizations which have capability to innovate. This concept allows instilling in a spirit of idea innovation along with development processes. In today’s competitive global scenario companies are continuously expanding on their products and processes along with services. So instilling in entrepreneurial climate would enhance the overall brand name and brand identity of the company. Analysis of such an environment would allow arriving at a conclusive decision regarding various factors especially entrepreneurial climate will allow ascertaining factors that are motivating or demotivating within the Company.
Analysis of relevant scores of EI and CECI reflects that the existing corporate entrepreneurial climate can easily be enhanced. There were 15 responses related to CECI dataset that have been analysed from various levels of the management of the company’s functional areas. The CECI is 2.26, which means that the Company deploys minimum steps for accommodating entrepreneurial activities. The Company currently has presence of culture of entrepreneurship, which can increase creative thinking amongst employees. Training and facilitation for idea development process can allow strategic fit for employees to undertake innovative processes. Now senior members of the organization have to undertake steps to analyze potential barriers, facilitators and triggers to entrepreneurial thinking. In cases of venture planning such ideas can become highly effective.
Every organization aims at enhancing levels of EI such that they are able to improve EI altogether. Improving EI and CECI calculations for employees can be undertaken through various procedures (Bosma, Acs, Autio, Coduras & Levie, 2008). While an organization might be able to arrive at an EI score, in case it is low then it has to undertake efforts such that it can be heightened. Some factors that might contribute towards increasing of EI are as follows;
Analysis of relevant information and procedures related to EI and CECI reflects the importance of these measures in today’s organizations. The usefulness of EI and CECI cannot be overemphasized through discussions or measurements alone, which leads to the question of relevancy or validity of its methodology. The methodology provided to arrive at a score and graphical depiction of EI and CECI is a straight forward procedure. However, there is not substantial proof for establishing the same (Kazanjian, Drazin & Glynn, 2017). Most literature hints at three prominent indicators of EI scores namely risks, innovativeness and proactiveness. Drawing from such literatures all calculations related to EI and CECI is made. It can be said that validity of such measures is dependent entirely on the empirical findings from such literatures. The usefulness of the methodology of E I and C E C I E.G encompasses relevant weights of each factor within the calculations of EI and CECIEG. Calculations of weights of these factors leads to arriving at an appropriate score related to the parameters indicated here. Past researches all indicates that entrepreneurial intensity is calculated by means of measuring risks, innovativeness and proactiveness. Weightage of these each score when taken together allows to arrive at conclusive score related to the same (De Clercq, Castañer & Belausteguigoitia, 2011). The questionnaire that has been undertaken for analysis to arrive at the score related to each determinant is sufficient. The questionnaire conducts an analysis of in-depth research to arrive at a conclusive score related to arriving at answers related to the factors. Interpretation of answers to these questions helps arrive at a scores related to each factor that is encompassed while calculating EI. In case of malicious answers then such scores can be taken to be zero and then subsequent calculations made. At various instances employees provide malicious replies to questions asked to them. Such answers can be best interpreted to be 0 as I n the Likert scale answers are plotted from 0 till further values am obtained.
Conclusion
Discussing the climate for corporate entrepreneurship and entrepreneurial innovation leads to various findings. The Company had initiated various steps for enhancing entrepreneurial spirit within employees. Measuring various activities of the business to reflect on EI capability has led to arrive at success of application of entrepreneurial activity. A factor which promotes entrepreneurial activity within an organization has been understood to be corporate climate. Analysis of the above scenario reflects that the company can adopt a number of strategic processes and steps such as to enable and promote adoption of entrepreneurial climate. The organization is not able to effectively accommodate a spirit of entrepreneurial culture and climate. Therefore, it needs to allocate resources effectively to its employees and also provide possible types of support such that they are able to innovate. Moreover, employees at the operational levels need to be allowed to take certain decisions such that they can take risks and react in a proactive manner. A supportive environment and climate can allow employees within the company, strive to work for the company to extend its competitive advantages. Employees of a company have capability to extend core competency of a company or establish its competitive advantages in the industry. Hence, Human resource department has to devise policies and strategies which allow employees to work with full motivation and expand competencies of the organization.
References
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Ács, Z.J., Szerb, L. and Autio, E., 2017. Global entrepreneurship index 2016. Washington, DC: The Global Entrepreneurship and Development Institute.
Antoncic, B. and Prodan, I., 2008. Alliances, corporate technological entrepreneurship and firm performance: Testing a model on manufacturing firms. Technovation, 28(5), pp.257-265.
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