As you said, CE refers more to activities, strategic matters, like entry the market. On the other side, EO refers to what is needed to accomplish that. I strongly recommend you to read this paper. They make a distinction between EO and entrepreneurship.
Hi Shaima. Corporate entrepreneurship could be categorised as new entrepreneurial ventures or activities that occur within the confines of an existing company. In essence an entrepreneurial opportunity that the firm pursues, for example to create a new product or service. Entrepreneurial Orientation is about the objectives or aspirations of the entrepreneur. For example, an entrepreneur may have an aspiration to grow their business. Hope this helps? Cheers, Marc
Corporate Entrepreneurship is about starting new ventures or products or services within a corporate firms. The teams within organizations are given freedom to come up with ideas about the products or services or even start a new venture if possible. The process through which organizations formulate a culture and inculcate the innovativeness , proactiveness, risk taking, autonomy and competitiveness into the teams is basically entrepreneurial orientation. As (Lumpkin, G. T., & Dess,1996) define entrepreneurial orientation as “Propensity to act autonomously, a willingness to innovate and take risks, and a tendency to be aggressive toward competitors and proactive relative to marketplace opportunities”.
Now entrepreneurial orientation is important for both the entrepreneurs whether fresh startups or working in corporate firm. The importance is due to the five dimensions of entrepreneurial orientation. (Dess, G. G., & Lumpkin, 2005) describe the importance of these five dimensions for corporate entrepreneurship and have suggested that these five dimensions can be used for corporate entrepreneurship.
I am pasting some links below. They will help you in understanding entrepreneurial orientation, corporate entrepreneurship and importance of entrepreneurial orientation in corporate entrepreneurship.
Represent entrepreneurship pilot projects and strategic business to a group of companies or departments, units or entrepreneurial teams that react jointly to carry out pilot projects in which institutions practices embodied to face the competitive capabilities reflected in making strategy according to a set of management philosophies, and behaviors Nbarsenthaijha actually competitive
The pioneering approach is to guide business strategy towards leadership directed to competitive challenges
Corporate entrepreneurship (CE) is about entrepreneurial activity within organizations. A CE instrument measures the kind of management support, structures created, culture, processes and measures of reward and recognition that incentivise entrepreneurial behaviour within organizations.
Ref: Kuratko, D. F., Montagno, R. V. & Hornsby, J. S. (1990). Developing an intrapreneurial assessment instrument for an effective corporate entrepreneurial environment. Strategic Management Journal, 11, 49-58.
Entrepreneurial orientation (EO) is about the behaviours of an entrepreneurial organization, or the driving forces behind the organisation's CE activities. The concept of EO has been defined along five dimensions: innovativeness, pro-activeness, competitive aggressiveness, risk-taking and autonomy.
Ref: Covin, J. G. & Wales, W. J. (2011). The measurement of entrepreneurial orientation. Entrepreneurship, Theory & Practice, July issue, 677-702.
If you are interested in finding out about new directions on the corporate entrepreneurship, you may be interested in reading the new book of John Kotter "XLR8" Accelerate.
Sharing a number of papers below. The best grounding on entrepreneurship is from Austrian thinker Josef Schumpeter who wrote on the topic over the period from the early 1930's to about the 1940's.
In Schumpeterian terms, entrepreneurship is at the core of business enterprises. In its most practiced form, entrepreneurship drives continuous innovation (also termed incremental innovation) and hence improving productivity and competitiveness in the firm. More rarely, entrepreneurship also drives disruptive or radical innovations. The entrepreneur therefore develops:
a. new and improved services
b. new and/or improved products
c. new and/or improved processes
d. new and/or improved markets
e. new and/or improved business models
Entrepreneurial firms are generally the minority of firms in the universe of businesses.
The majority of business firms are really replicative firms ie they are NOT engaged in either continuous improvement nor, worse, radical innovations. These replicative firms as the name implies, repeat business technologies, models, processes and systems of the past, without change, in their business operations. So think of the vast army of supermarkets, restaurants, barber shops, general medical practitioners, internet cafes, hotels, etc etc.
The term entrepreneurship therefore has a strict meaning. A recent conflation is between "entrepreneurship"p and "business-ship" (to coin a term). In this conflation phrases such as "opportunity entrepreneurship" are contrasted with "necessity entrepreneurship" and is often identified as one dichotomy where short-term, subsistence-type businesses are put in the latter category. Of a truth, entrepreneurs operate in the opportunity entrepreneurship space. A necessity "entrepreneurship" business is really a replicative business and has no "entrepreneurship" factored into it.
Entrepreneurial orientation (EO), in Schumpeterian terms, would therefore mean the propensity to be an entrepreneur; in other words it speaks to the mindset or world view of an entrepreneur including skills in opportunity discovery by an ability to mentally reframe. Persistence in opportunity discovery and implementation is another capability. One may have the orientation and mindset of an entrepreneur and consequently has successfully leveraged and operationalised that orientation into a dynamic entrepreneurial firm. However it mal also be that one may have the entrepreneurial orientation but has never, or not yet, expressed nor exhibited truly entrepreneurship behaviour within the settings of, or through the instrumentality of, a business firm. And so an understanding of what facilitates EO and what deflates, retards and inhibits EO is worth study and understanding.
Corporate entrepreneurship would, on the other hand, refer to the Schumpeterian entrepreneur operating within the confines and context of a Corporale entity; typically taken to mean a large business corporation. This is in contrast to her own business or a SME for example
I kind of agree to some of the previous comments. Perhaps, in a simple way, corporate entrepreneurship takes place in corporate world whereby the manager/CEO acts entrepreneurially such as proactive, risk-taking and innovative to exploit lucrative opportunity and achieve rapid growth. Whereas entrepreneurship orientation is about organization or individual orientation toward entrepreneurship.
I would say that Corporate Entrepreneurship and Entrepreneurial Orientation within corporations are pretty much related to company's innovativeness and capabilities of companies to generate innovations. I recommend you this article - it is for Company innovative leadership. Hope you find it useful.
Corporate entrepreneurship is reflected in corporate strategic decisions, which include mergers, acquisitions, expansion etc. Entrepreneurial orientation is of individual managers, who are driven by achievement motivation, and are innovative & risk takers. Eventually they become entrepreneurial managers and drive the corporate entrepreneurship.
This is an interesting question and I was quite pleased to read the variety of answers in this thread. Corporate entrepreneurship usually refers to the development of new ideas and opportunities within large or established businesses. Corporate entrepreneurship is an umbrella term that can house a wide variety of entrepreneurship concepts, including entrepreneurial orientation.
Entrepreneurial orientation (EO) on the other hand is the degree to which a firm is entrepreneurial and has been studied for a vast array of firms (e.g. startups and large corporations).
Many Thanks for your contributions, I agree with Mr. Xaver about the Corporate entrepreneurship , it's an umbrella, but I had some ambiguous concepts on EO , some papers talk about EO as a type of Strategic Orientation in public organizations, and other papers said the EO is a type of Strategic Orientation (SO) focus on market , the 2nd one seem like the SO in SME's ... Is my opinion are correct or NO ?
EO has been studied in many different firm contexts, but it also depends on the journal of publication. As each journal has a different focus, entrepreneurial orientation has been tweaked to fit in with the different journal preferences. Here are a couple of different papers on EO that had been published in different management journals.
Article Clarifying the Entrepreneurial Orientation Construct and Lin...
Article Knowledge-Based Resources, Entrepreneurial Orientation, and ...
Article Understanding the Relationship Between Entrepreneurial Orien...
Corporate Entrepreneurship or Intrapreneurship is an entrepreneurial activities making use of corporate resources (unused portion of the building, expertise of the people, equipment, and any facilities that can be a source of income) in order to generate additional income for the enterprise. Anyone from the enterprise can be able to identify the said resources. On the other hand, Entrepreneurial Orientation is one's mentality to be always on the look for an opportunities for entrepreneurial undertakings..
I tried to measure Corporate Entrepreneurship and Entrepreneurial Orientation using the Company Innovative Leadership in concrete sector. Look at the paper
Article Measuring the Bulgarian IT Sector Innovations Capabilities T...
When we talk about corporate entrepreneurship, it is at the level of organization. In organizational context. While entrepreneurial orientation can be mentioned and analyzed at individual level too. Parameters can be similar or different.
There is a big confusion in this regard in the current literature. A number of researchers have used entrepreneurial orientation and corporate entrepreneurship as interchangeable concepts. From my point of view, EO is a construct that only measures the orientation toward entrepreneurship rather than actual entrepreneurial activities while CE has focused on the actual entrepreneurial behavior of companies. I think it is better to call the whole construct “firm-level entrepreneurship” and defined EO and CE as distinctive dimensions of that. I have created a profile-measurement model of firm-level entrepreneurship using EO and CE as its distinctive dimensions in my Ph.D. thesis. You can reach the thesis through the following link if you want to read more about the differences between EO and CE and the way that I combined them in a profile-measurement model to measure the whole construct.