Intrapreneurship in Large Firms and SMEs: A Comparative Study

Abstract

Intrapreneurship research has moved to focusing on small and medium-sized enterprises (SMEs), looking at the differences between large companies and SMEs, considering factors such as the emergence and development of intrapreneurship, the structural and relationship-related contexts, managerial relationships, co-workers, incentives and rewards, job satisfaction, and strategic processes. This analysis is drawn from the author's 1992 French doctoral dissertation. A major challenge of large firms is the detection of potential intrapreneurs, in SMEs they are easily identified; managerial inhibition or cooperation is the issue. In big firms, the intrapreneur-manager dyad may create problems, though the level of anonymity can be an advantage; the success of the intrapreneur-entrepreneur dyad in SMEs depends on a shared confidence and business philosophy. The friendlier and personal environment of the SME tends to preclude anonymity and creates a process concerned with matching and convergence. In both firm types, attractive rewards for intrapreneurs are symbolic or financial recognition, freedom to explore new projects, and availability of capital. In large firms, offering a promotion may be a mistake; a promotion is more appreciated in SMEs, where defining rewards is easier. Large firms draw up strategies to develop intrapreneurs; in SMEs, the intrapreneurs often take the lead and the strategy is reactive. Many current entrepreneurs were once dissatisfied intrapreneurs; the loss of frustrated or misunderstood intrapreneurs is more serious for SMEs, who may start their own firms or join a competitor. Further differences between intrapreneurs in SMEs and large firms are summarized. (TNM)