Corporate Entrepreneurship As a Strategic Option for Firms

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This research will begin with the statement that survival of companies remains largely reliant on its ability to react to market forces immediately or have the resources, reach and net to capture markets that were not primarily considered at the onset of its existence. In any industry, correct timing in reacting to market forces has always been a source of debate. It is a variable that is almost impossible to predict even with empirical data on hand. Thus the next best thing is to make sure that the company’s market presence has a wider reach and has an inventory that can satisfy the demand of the market at any time. However, this proposition is expensive without any value added opportunity opening for the company. On the other hand, competition will most likely remain as a factor or a constant reminder to drive quality and excellence in customer service. However, competition also has the ability to expand its market reach and compete head to head with any branch of the company. Market leadership can only be gained if the following are implemented in sequence: operational streamlining and implementation of control to have a strong corporate governance structure. But, these too can be implemented by any competitor. Ergo, all else being equal, the only remaining factor that will enable companies to gain a competitive edge over their rivals are its employees. Promoting a culture of corporate entrepreneurship is a formula that has been percolating in the minds of Covin and Miles as a strategic option for companies to gain competitive advantage over their rivals. This paper, in essence, will show how corporate entrepreneurship as a strategy will capitalize on the untapped natural innovation and creativity of its employees as they perform their daily functions. However, once the gates are open the flow of ideas from employees will be unrestricted. This paper shall propose strategies on how to reign in the creativity and direct them to directions that are juxtaposed to the company’s goal.