The Role of Intrapreneurship in Growing SMEs: A Narrative Review

Abstract

Nowadays, innovation is of the utmost importance for organizations because it facilitates the path towards competitive advantage and economic growth. This is particularly true for small and medium enterprises, meaning companies that have limited financial support and resources. Entrepreneurship is a concept frequently associated with innovation as it involves ambitious individuals willing to outpace their comfort zone and take risks. However, intrapreneurship is another concept that, although similar to entrepreneurship, embodies several differences, which are important while considering the connection with innovation. Intrapreneurship or corporate entrepreneurship is a term that is progressively associated with innovation. It refers to individuals who are motivated to drive transformation and are willing to change the status quo. The purpose of this paper is to depict the current level of knowledge regarding the impact of intrapreneurship on innovation and to understand the major trends with reference to the existing theory. Therefore, we have conducted a narrative literature review to obtain an in-depth understanding of the research topic and provide recommendations for managers and practitioners who activate in small and medium enterprises. The findings show that intrapreneurship has a positive effect on innovation and individual traits, and the organizational environment has an extensive influence on intrapreneurial behavior.