THE IMPACT OF INTRAPRENEURAL ORGANIZATION ON ORGANIZATIONAL PERFORMANCE

THE IMPACT OF INTRAPRENEURAL ORGANIZATION ON ORGANIZATIONAL PERFORMANCE

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The intrapreneur is an employee of an entrepreneur who takes the initiative to start a new project of developing a new product or service within the entrepreneur’s larger organization. The intrapreneur has the characteristics of an entrepreneur but works within the entrepreneur’s firm using entrepreneurial capabilities without bearing the risks associated with those activities. Within the entrepreneurial firm, intrapreneurs are typically assigned special projects to work on. The difference between entrepreneurs and intrapreneurs is that while the entrepreneur is responsible for the firm from start to finish, the intrapreneur is responsible for projects within the entrepreneur’s already established firm. The parallel is that the entrepreneur is focused on starting a business to produce goods. Intrapreneurs seek resources, policies, and technologies that will aid in the completion of the initiated project to produce a new product or service and increase the company’s productivity. The intrapreneur gains the ability to recognize and solve important problems within the organization, as well as the independence to analyze and understand trends required for future planning, thereby improving organizational performance. They devise strategies and methods for staying ahead of the competition. Over time, some intrapreneurs may assume executive leadership of the company. It is critical that entrepreneurial firms motivate the efforts of intrapreneurs in order to launch successful ventures.

 1.2 STATEMENT OF THE PROBLEM

The intrapreneur has the characteristics of an entrepreneur but works within the entrepreneur’s firm using entrepreneurial capabilities without bearing the risks associated with those activities. Within the entrepreneurial firm, intrapreneurs are typically assigned special projects to work on. The difference between entrepreneurs and intrapreneurs is that while the entrepreneur is responsible for the firm from start to finish, the intrapreneur is responsible for projects within the entrepreneur’s already established firm.

However, the concept of intrapreneurship is still not well understood by many, and implementing it if not well understood could result in colossal failure and waste of resources. Many of the challenges encountered during the intrapreneurship process include Strategy Conflicts; many new ideas of

Because many business owners do not approve of strategies that contradict the initial organizational strategy, many intrapreneurs do not make it to the market. Leadership Conflicts; Leadership conflicts frequently arise as a result of the intrapreneur’s new initiative. Resource Conflicts; A fundamental problem confronting the intrapreneur is the issue of funding, which may not be readily approved by the entrepreneur in order to fully implement the project.

CULTURE CONFLICT; Implementing a new project within an existing organization may necessitate the adoption of a completely new cultural value, which may not be well received.

Some employees in the existing firm who are not involved in the project may develop resentment, resulting in conflict in the process. Young Council of Entrepreneurs (2017).

1.3 OBJECTIVES OF THE STUDY

The intrapreneur is an employee of an entrepreneur who takes the initiative to start a new project of developing a new product or service within the entrepreneur’s larger organization. The intrapreneur has the characteristics of an entrepreneur but works within the entrepreneur’s firm using entrepreneurial capabilities without bearing the risks associated with those activities. Within the entrepreneurial firm, intrapreneurs are typically assigned special projects to work on. The difference between entrepreneurs and intrapreneurs is that while the entrepreneur is responsible for the firm from start to finish, the intrapreneur is responsible for projects within the entrepreneur’s already established firm. As a result, the research goal is to

To ascertain the impact of intrapreneuron on organizational performance.

1.4 RESEARCH QUESTIONS

What exactly is intrapreneurship?

What effect does intrapreneural organization have on organizational performance?

 1.5 SIGNIFICANCE OF THE STUDY

The study will elucidate the prospect of intrapreneurship as well as the challenges involved in order to provide recommendations for successful intrapreneurship.

The intrapreneur gains the ability to recognize and solve important problems within the organization, as well as the independence to analyze and understand trends required for future planning, thereby improving organizational performance. They devise strategies and methods for staying ahead of the competition. Over time, some intrapreneurs may assume executive leadership of the company. It is critical that entrepreneurial firms motivate the efforts of intrapreneurs in order to launch successful ventures.

 1.6 RESEARCH HYPOTHESIS

Ho The impact of intrapreneurship on organizational performance is minimal.

Hi Entrepreneurial organizations have a significant impact on organizational performance.

Ho The impact of intrapreneurship on organizational performance is minimal.

Hi Entrepreneurial organizations have a significant impact on organizational performance.

1.7 SCOPE OF THE STUDY

The research examines the impact of intrapreneural organization on organizational performance.

1.8 LIMITATIONS OF THE STUDY

Some constraints, such as logistics and geographical factors, hampered the study.

1.9  DEFINITION OF TERMS

DEFINITION OF AN ENTREPRENEUR

An entrepreneur is someone who takes a significant amount of risk to own and operate a business in order to earn returns and rewards from that business. He is the most important person in the organization because he envisions new opportunities, products, techniques, and business lines and coordinates all activities to make them a reality.

DEFINITION OF INTRAPRENUER

An intrapreneur is a company employee who is paid based on the success of the business unit for which he or she is hired or responsible. The primary distinction between an entrepreneur and an intrapreneur is that the former is a person who starts his or her own business based on a new idea or concept, whereas the latter is an employee who promotes innovation within the confines of the organization.

DEFINITION OF ORGANISATIONAL PERFORMANCE

The effectiveness and efficiency with which an organization is managed is referred to as its performance.

The company must produce the best product at the lowest possible cost and input. Maximum profit or financial returns, market value, lowest cost, and high shareholder value must all be reflected in organizational performance.

 REFERENCES

Intrapreneurship, according to Investopedia (2017) Susan Forey (2013) Business Development, Intrapreneurship