Ireland, R. D., Covin, J. G., & Kuratko, D. F. (2009). Conceptualizing Corporate Entrepreneurship Strategy. Entrepreneurship Theory and Practice, 33(1), 19–46. https://doi.org/10.1111/j.1540-6520.2008.00279.x
Summary
Corporate Entrepreneurship (CE) has long been discussed as a critical source of innovation and renewal within established companies. However, much of the literature has been fragmented, with little agreement on what constitutes a Corporate Entrepreneurship Strategy (CE Strategy) or how to implement one in a structured, repeatable way.
This article presents a clear, integrative model of CE strategy that helps unify prior research and provides a blueprint for organizations to embed entrepreneurship into their corporate DNA. The authors argue that CE is not just a set of activities (like launching a new product or internal venture) but can be a full-fledged strategy—one that is intentionally pursued, supported structurally and culturally, and sustained over time.
They define CE Strategy as:
“A vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity.”
In this sense, a CE strategy is a deliberate and coherent approach to achieving strategic renewal, innovation, and growth through entrepreneurial behavior embedded across all levels of the organization.
Understanding the Foundation: Antecedents of a Corporate Entrepreneurship Strategy
Before a firm can implement a coherent and effective Corporate Entrepreneurship (CE) strategy, certain foundational conditions must be present. Ireland and his co-authors begin by identifying two primary categories of antecedents—internal and external—that together create the fertile ground for entrepreneurial strategy to take root.
Internally, the most important antecedent is the presence of entrepreneurial cognitions among key individuals within the firm. These refer to the knowledge structures, beliefs, and mental models that predispose managers to recognize, evaluate, and act upon entrepreneurial opportunities. In simpler terms, the leadership team must think entrepreneurially—seeing opportunities where others see obstacles, framing uncertainty as manageable rather than paralyzing, and believing that entrepreneurial behavior is not only possible within a corporate context but essential to long-term survival and growth.
This mindset doesn’t appear overnight. It is shaped by the professional experiences of leaders, the culture of the firm, and the messages reinforced by senior executives. For corporate entrepreneurship to move beyond isolated pockets of innovation and become a firm-wide strategy, these entrepreneurial cognitions must be shared across leadership and embedded into the organizational psyche.
Externally, CE strategy is often triggered by environmental forces. Firms operating in highly competitive, dynamic, or technologically turbulent environments are more likely to see the need for entrepreneurial responses. For instance, a company facing rapid market disruption, shrinking product lifecycles, or aggressive new entrants may recognize that incremental improvements and efficiency gains are no longer sufficient. In these conditions, the firm must actively seek out new growth domains, experiment with novel business models, and pursue strategic renewal.
When these internal mindsets and external pressures converge, firms become “primed” for CE strategy—they possess both the internal disposition and the contextual need to act entrepreneurially.
Building the Core: Elements That Define a CE Strategy
Once a firm reaches this state of readiness, it must deliberately build the core architecture of a CE strategy. Ireland et al. argue that a CE strategy is more than a label for a set of innovative activities; it is a systemic, organization-wide commitment structured around three interdependent elements: entrepreneurial strategic vision, pro-entrepreneurship organizational architecture, and entrepreneurial processes and behavior.
The entrepreneurial strategic vision is the philosophical core of a CE strategy. It is a top-level expression of the firm’s commitment to pursuing growth through innovation, opportunity-seeking, and renewal. But this vision must go beyond vague aspirations. It needs to be clearly communicated, deeply understood, and widely embraced across all levels of the organization. When properly established, the entrepreneurial vision acts as a strategic compass—guiding decisions, shaping resource allocation, and legitimizing entrepreneurial behavior within the firm.
Next comes the organizational architecture—the structures, processes, incentives, and culture that support entrepreneurial behavior. This component ensures that the strategy isn’t just rhetorical but is backed by systems that make entrepreneurial action feasible. For instance, a pro-entrepreneurship architecture might include decentralized decision-making authority, flexible budgeting mechanisms for experimental initiatives, innovation-focused performance metrics, and a culture that tolerates risk and rewards initiative. Without these enabling systems, even the strongest entrepreneurial vision risks becoming symbolic rather than actionable.
Finally, the CE strategy must manifest through entrepreneurial processes and behaviors. This refers to the actual routines and actions through which opportunities are recognized, evaluated, and exploited. These behaviors may include internal venturing, new product development, process innovation, strategic renewal initiatives, or alliances aimed at entering new markets. Importantly, these behaviors are not confined to a single department or innovation team—they are distributed across the organization and embedded in daily operations.
Together, these three components form the operational core of a CE strategy. They must be aligned and mutually reinforcing. A disconnect between vision and systems, or between systems and behavior, will undermine execution and lead to inconsistency or resistance.
Realizing the Payoff: Strategic Outcomes of CE Strategy
When successfully implemented, a Corporate Entrepreneurship Strategy delivers more than a string of innovative products or isolated corporate ventures. Ireland et al. emphasize that the true value of CE strategy lies in its ability to produce two enduring strategic outcomes: enhanced competitive capability and strategic repositioning.
First, CE strategy strengthens a firm’s competitive capability—its ability to sense, respond to, and shape the environment in which it operates. In volatile and complex markets, this capability becomes a powerful differentiator. Organizations with a mature CE strategy are better positioned to identify emerging trends, experiment with new technologies, test market hypotheses, and pivot quickly when circumstances demand it. In effect, they become more adaptive and agile—not by accident, but by design.
Second, CE strategy enables strategic repositioning. This involves more than just defending current market positions—it means actively reshaping the firm’s business model, product-market scope, or customer value proposition. Through sustained entrepreneurial efforts, firms can move into adjacent industries, redefine their offerings, or transform themselves in response to disruption. For example, an industrial manufacturing firm might use its CE strategy to evolve into a digital solutions provider, thereby repositioning itself for a new era of growth.
Both outcomes reflect the long-term impact of embedding entrepreneurship into the firm’s strategy. While individual innovation initiatives may succeed or fail, a well-executed CE strategy builds systemic capacity for opportunity pursuit, which ultimately leads to more durable competitive advantage and organizational renewal.
10 Practical Insights for Business Owners and Managers
- Corporate entrepreneurship can be a strategy, not just an activity.
Treat innovation and renewal as an integrated, long-term strategic approach—not just as isolated projects. - It all starts with leadership mindset.
Leaders must believe in and model entrepreneurial thinking. Without entrepreneurial cognition at the top, CE strategy won’t take hold. - Vision is the anchor.
An entrepreneurial strategic vision gives direction, meaning, and legitimacy to innovation. It’s the “why” that keeps teams aligned. - Organizational structure matters.
Entrepreneurial firms tend to have flatter hierarchies, flexible processes, and decentralized decision-making. Rigid structures kill CE momentum. - Culture is a powerful enabler (or blocker).
Cultures that reward initiative, tolerate risk, and celebrate learning from failure are more likely to sustain entrepreneurial behavior. - Opportunity recognition must be systematized.
Successful CE strategies institutionalize the process of scanning for and acting on new opportunities—not leaving it to chance. - Entrepreneurship is everyone’s job.
The model emphasizes broad-based involvement—not just a skunkworks team or innovation lab. Middle managers and front-line employees are essential. - Alignment is critical.
The three pillars—vision, architecture, and behavior—must reinforce one another. Gaps between them undermine execution. - CE strategy is a continuous process.
It’s not a one-off initiative. For firms to remain innovative over time, CE strategy must be reinforced and updated regularly. - Results go beyond new products.
CE strategies deliver deeper outcomes: stronger capabilities, new strategic positions, and long-term organizational agility.
Closing Thought
Ireland, Covin, and Kuratko provide a compelling framework for thinking about corporate entrepreneurship as a comprehensive and strategic commitment, not a series of ad-hoc efforts. Their work moves us past vague ideas about “being innovative” and offers a rigorous, actionable model.
For leaders navigating disruptive markets, embedding entrepreneurship into strategy isn’t optional—it’s essential. With the right mindset, supportive architecture, and consistent behaviors, organizations can turn opportunity into a repeatable engine for growth and renewal.