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What’s so entrepreneurial about intrapreneurs?

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  • Aloña Martiarena

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Abstract

This paper discusses the determinants of becoming an intrapreneur. Individuals maximise their utility while deciding among three occupations: independent entrepreneurship, paid employment and intrapreneurship. I show that intrapreneurs resemble employees rather than entrepreneurs. Specifically, comparing the decision-making of intrapreneurs to that of entrepreneurs, the former are significantly more risk averse, expect lower but less uncertain reward and are broadly endowed with a poorer set of entrepreneurial abilities; despite having higher levels of human capital they fail to recognise business opportunities and have lower confidence in their entrepreneurial skills. A distinction within the category of intrapreneurship, based on the level of engagement and therefore the level of personal risks they bear, adds to our understanding of intrapreneurship. Engaged intrapreneurs, i.e., intrapreneurs that expect to acquire an ownership stake in the business, unlike the rest of intrapreneurs, share the attributes usually assumed to characterise entrepreneurs. Copyright Springer Science+Business Media, LLC. 2013

Suggested Citation

  • Aloña Martiarena, 2013. "What’s so entrepreneurial about intrapreneurs?," Small Business Economics, Springer, vol. 40(1), pages 27-39, January.
  • Handle: RePEc:kap:sbusec:v:40:y:2013:i:1:p:27-39
    DOI: 10.1007/s11187-011-9348-1
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    References listed on IDEAS

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    Cited by:

    1. repec:kap:sbusec:v:48:y:2017:i:3:d:10.1007_s11187-016-9793-y is not listed on IDEAS
    2. Vera Rocha & Anabela Carneiro & Celeste Amorim Varum, 2013. "Entrepreneurship Dynamics: Entry Routes, Business-Owner's Persistence and Exit Modes," CEF.UP Working Papers 1310, Universidade do Porto, Faculdade de Economia do Porto.
    3. Vera Rocha & Anabela Carneiro & Celeste Varum, 2015. "Entry and exit dynamics of nascent business owners," Small Business Economics, Springer, vol. 45(1), pages 63-84, June.
    4. Erik Stam, 2013. "Knowledge and entrepreneurial employees: a country-level analysis," Small Business Economics, Springer, vol. 41(4), pages 887-898, December.
    5. Claudia Álvarez & David Urbano & José Amorós, 2014. "GEM research: achievements and challenges," Small Business Economics, Springer, vol. 42(3), pages 445-465, March.

    More about this item

    Keywords

    Intrapreneurship; Entrepreneurship; Occupational choice theory; GEM; J62; J31; J24; L26;

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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