The role of Intrapreneurship in fostering a culture of innovation

The first recorded use of the terms ‘intrapreneur’, ‘intrapreneuring’ and ‘intrapreneurship’ dates from a paper written by Gifford and Elizabeth Pinchot (Pinchot and Pinchot 1978). Later the term was credited to Gifford Pinchot by Norman Macrae in The Economist (1982). Intrapreneurship, especially social intrapreneurship is the need of the hour, in the context of rising global issues. In this blog, we’ll share some of the key differences between entrepreneurship and intrapreneurship. What are the main benefits of fostering the culture of innovation and what are the ways in which the company can promote intrapreneur behaviour?

Benefits and Importance of Intrapreneurship?

Incorporating an intrapreneurship mindset into the company culture has increasingly become critical for corporates. This idea decentralises the power of innovation and allows a ubiquitous flow of ideas. Moreover, cultivating an intrapreneurship culture brings a competitive advantage to the company. Entrepreneurial leadership within the firm strengthens company’s operational mindset and enterprise thinking capability. Ultimately this leads to more ideas and more complete ideas. The post-pandemic marketplace exemplifies the role of intrapreneurship during uncertainty.?

For instance, AXA’s Emerging Customers tests and implements new insurance schemes for low-income populations, often accessing insurance for the first time, focusing on underserved customers such as women, farmers or migrant workers.? These ideas come from within the business and are driven by self-selected intrapreneurs.?

Benefits and Limitations of Intrapreneurship?

Understandably, people have tried to compare the notion of intrapreneurship with corporate social responsibility.? While it’s certainly possible to leverage intrapreneurship to drive internal social enterprise experiments, intrapreneurship, like entrepreneurship can be leveraged to develop ventures for either business or social benefit.? In addition, intrapreneurship benefits an organisation at multiple levels. It tends to increase the motivation, commitment, and engagement of the employees. At the corporate level, it ensures higher revenue and better brand value. Most importantly, engaging employees in these activities provides the potential to develop long term solutions for global challenges through the organization's resources and influence.?

Qualities that differentiate Intrapreneurs from Entrepreneurs?

While similar, entrepreneurs and intrapreneurs often have different characteristics. There are four attributes that tend to differentiate intrapreneurs from entrepreneurs. These include:

• Risk/reward appetite:? while entrepreneurs are practical risk-takers, typical large corporate employees are more averse to risk.?
• Desire to play big team ball:? intrapreneurs prefer to work within the corporate culture and closely resonate with the values of the organisation, as compared to entrepreneurs who like to set their own trends.?
• Need for Autonomy: entrepreneurs tend to prefer a higher level of autonomy.?
• Importance of Resource Support: Intrapreneurs depend on the organization's resources while entrepreneurs are good at wearing many hats and bartering/trading capabilities to fill gaps.

Intrapreneurship and Internal Innovation Culture?

Impact of entrepreneurial leaders within the firm:

The most important benefit is the fostering of the internal innovation culture and the business leadership development that this can enable. Leaders are known to improve the overall structure of the company– as they strengthen the company’s vision, mission, and productivity. By opening the stage to your employees, the organization is essentially creating and looking for multiple leaders from within the company, transcending hierarchies. Such self-initiated practices lead to higher innovation and more success for the company.

How Intrapreneurship gains a competitive edge:

Over the mid-to-long term, intrapreneurship programs provide the organization with a competitive advantage.? This is realized in the form of more specialized and appropriate product and service offerings, as well as in stronger succession planning and business leadership talent pool. Intrapreneurs tend to go out of their comfort zone and explore the market for profitable opportunities, rather than simply operating on the established projects of the company. They can identify blind spots and stay ready for any opportunities or threats that come their way.?

Key Points to foster an Open Intrapreneurial Work Culture?

Recognition, Honing, and Incentives

While intrapreneurial work is largely dependent on intrapersonal tendencies, employees also need a conducive environmen t to foster their creative mindsets. More importantly, the organization needs to be on the lookout for such individuals. We need the help of our HRBP’s to systematically identify individuals with the ability to disrupt, help us find and leverage creativity appropriately, and create the right opportunities for self-selection and participation.? The firm needs to provide these self-selected individuals with the opportunity further develop their abilities and provide recognition and incentives for those who do.

Role of self-management in fostering an Open Intrapreneurial Work Culture??

While it is true that employees are limited to the company’s structure and rules, a certain level of self-management provided to employees could cultivate innovative leaders within the firm. Providing autonomy allows individuals to exercise control over their ideas and planning.?

While Entrepreneurial is a term that refers to people setting up their own business in the market, Intrapreneurship is a term that describes internal leadership within the firm to strengthen operations and maximize profitability. In this highly competitive post-pandemic environment, an intrapreneurial mindset can help catalyse the stream of innovation. Organization should proactively seek out individuals exhibiting the right balance of the four attributes listed above.?