Rethinking intrapreneurship in the established MNE

Abstract

Research Summary

We show significant variation in the ways mainstream international business strategy (IBS) theories have addressed the discovery and pursuit of entrepreneurial opportunities in the established multinational enterprise (MNE). We adopt an extended “individual—opportunity nexus” perspective and suggest a fourfold repositioning of IBS research on MNE intrapreneurship. First, by acknowledging opportunities in activity types not historically considered as the subject of intrapreneurship, such as imposed resource reconfigurations as well as acquisitions and divestitures. Second, by paying more attention to how bundles of opportunities emerge over time, and to their sequence. Third, by recognizing more systematically different opportunity types, ranging from incremental to radical. Fourth, by analyzing more thoroughly the origins of opportunities, including those that arise from MNE weaknesses.

Managerial Summary

International business strategy (IBS) theories can help managers in multinational enterprises (MNEs) to better understand the unfolding of intrapreneurship. First, business decisions typically considered as merely cost-driven, including resource reconfigurations, acquisitions, and divestitures, can involve major intrapreneurial opportunities. Second, opportunities do not just appear randomly and in isolation: it is typically bundles of opportunities that emerge over time and in a particular sequence, and these bundles are closely intertwined with the MNE's own strategy that may unearth these opportunities. Third, MNE executives need to recognize more systematically different opportunity types, ranging from incremental to radical because each will require different managerial practices. Fourth, it is not only an MNE's strengths but also its weaknesses that can drive intrapreneurial action.