Promoting entrepreneurship and innovation in a large company: Creating a virtual portfolio

Abstract

This paper presents a logic and rationale for the professionalisation of entrepreneurship within large and established corporations. It draws on insight and experience of innovation in practice in a multinational consumers goods corporation to highlight the major leverage points by which management can most effectively influence the innovative output of their firm.From the 1970s to the present day interest and attention in the inter-related notions of entrepreneurship, enterprise and innovation have been significant. Several models have been put forward to demonstrate the key mechanisms and links that are pertinent for entrepreneurship and innovation in established and large organisations. Very often the focus has been on creativity and the behaviour of individuals. While this is clearly of importance, we believe more can be gained from concentrating on the entrepreneurial event and considering the managerial infrastructure and systems necessary to professionally manage the chain of entrepreneurial activity required to develop new initiatives and generate income.We argue that any innovative firm needs to parallel its existing product portfolio with a virtual product portfolio. Effective virtual portfolio management is the essence of strategic flexibility in the ‘new world’ and critically depends on the infrastructure of systems, commitment and motivation that define any one organisation. In this paper we highlight the key elements of a virtual portfolio and the management practices most likely to ensure its success.