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THE IMPACT OF INTRAPRENEURAL ORGANIZATION ON ORGANIZATIONAL PERFORMANCE

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THE IMPACT OF INTRAPRENEURAL ORGANIZATION ON ORGANIZATIONAL PERFORMANCE

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO 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 Forey (2013) Business Growth, Intrapreneurs, Intrapreneurship

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