Corporate entrepreneurship: The case of Naturis

Résumé du document

The study of Corporate Entrepreneurship (CE) is gaining increasing interest within the field of Entrepreneurship. Much research has been carried out, mainly focusing on identifying determinants and outcomes of CE. Scholars suggest that the term "corporate entrepreneurship" encompasses two types of phenomena: corporate venturing (CV) and strategic renewal. CV is seen as a way in which firm-level entrepreneurship is expressed. Nevertheless, a combination of empirical observation and theoretical reflections has led us to reconsider the phenomenon of CV. We carried out a case study analysis of a well known Italian company operating in the food industry: Riso Gallo. Past research on the organizational determinants of firm-level entrepreneurship investigated only those factors strictly related to the internal environment of the company, overlooking those organizational aspects that go beyond the current firm boundaries. The case study suggests that CV can be seen not only as an effect of CE but also as an organizational arrangement that enhances entrepreneurship in companies.

Extraits

[...] It is the flexibility of Naturis rice that makes the majority of its customers' products that use it innovative. This is the case with filled rice, rice-based food in cans, rice-based desserts and rice-based dry mixes: all products whose launch on the consumer market was made possible thanks to the properties of Naturis rice. Moreover, in many cases Naturis rice made the production process of its customers innovative; this is the case with rice-based biscuits and frozen food, pasteurized and sterilized food. [...]

[...] Moreover, frequent and apparently redundant meetings are organized by Cesare Preve. These meetings aim at creating commitment towards new initiatives among all the employees. Communication systems In order to facilitate integration, Naturis has also developed a strong communication system. Frequent meetings are the occasions for knowledge exchange. Furthermore Cesare Preve imposed a system of regular information reporting, so that everyone in the company can be informed about the activities taking place in other functions. Value based rewarding systems The compensation system is anchored to the capacity of the company to create value through the development of new products. [...]

[...] Scholars suggest that the term “corporate entrepreneurship” encompasses two types of phenomena: corporate venturing and strategic renewal. The phenomena of corporate entrepreneurship (adapted from Sharma and Chrisman, 1999) CV is seen as a way in which firm-level entrepreneurship is expressed. Nevertheless, a combination of empirical observation and theoretical reflections has led us to reconsider the phenomenon of CV. We carried out a case study analysis of a well known Italian company operating in the food industry: Riso Gallo. Past research on the organizational determinants of firm-level entrepreneurship investigated only those factors strictly related to the internal environment of the company, overlooking those organizational aspects that go beyond the current firm boundaries. [...]

[...] Entrepreneurship is a resource based process. Through the continuous recombination of existing resources, companies can promote innovation to build their competitive advantage. Naturis is an innovative firm, whose growth is based on the exploitation of the potential of all its resources. The teaching aim of this case study is to explore how resources are managed to promote corporate entrepreneurship and to discuss the contribution of different kinds of resources to the company's competitive advantage. Innovation in the food industry may sound like a difficult feat. [...]

[...] In other words, the tension between entrepreneurial and administrative management can be overcome (Stevenson and Jarillo, 1990). On the basis of the above-mentioned reflections, combining theoretical reflections and empirical observation, we propose that: Corporate venturing can be an effective organizational antecedent of corporate entrepreneurship Such a way of re-thinking CE and CV can be graphically expressed like that: CE expresses itself in two alternative phenomena: CV and strategic renewal. CE can be sustained by an organizational structure based on low level of formalization, organicity, decentralization, well developed integration and communication systems and a value-based rewarding system. [...]