Biniari, M. G. (2012). The Emotional Embeddedness of Corporate Entrepreneurship: The Case of Envy. Entrepreneurship Theory and Practice, 36(1), 141–170. https://doi.org/10.1111/j.1540-6520.2010.00437.x
Summary
Corporate entrepreneurship (CE) has long been studied through structural, strategic, and procedural lenses. But Marina Biniari introduces a fresh, crucial angle: the emotional dimension of CE—specifically, how emotional responses like envy affect the social acceptance and internal legitimacy of entrepreneurial initiatives within established firms. Her study emphasizes that rational planning and resource alignment alone are not sufficient. Emotional dynamics—often invisible in formal strategy documents—can either support or derail CE efforts.
Drawing on two in-depth case studies of venturing programs within large multinational corporations, Biniari demonstrates that emotions, particularly envy from non-entrepreneurial employees, play a powerful role in shaping whether internal ventures succeed or fail. Ventures seen as elite, privileged, or disconnected from the broader organization can trigger envy, resulting in resistance, reduced collaboration, and even active undermining. Conversely, when entrepreneurial teams are emotionally embedded—viewed positively, aligned with organizational norms, and emotionally accepted by others—they are more likely to integrate successfully and institutionalize their innovations.
This research shifts our understanding of CE from a purely technical process to one of emotional navigation. Managers must not only consider strategic alignment and resource support, but also proactively address emotional cues, social comparisons, and perceptions of fairness if they hope to foster entrepreneurship inside large organizations.
Emotional Embeddedness: A Critical, Overlooked Layer of Corporate Entrepreneurship
Biniari’s central concept, emotional embeddedness, refers to the extent to which entrepreneurial efforts are positively perceived, emotionally accepted, and supported by others in the organization. It goes beyond formal integration and includes how people feel about the venture team’s existence, purpose, and legitimacy. This emotional layer becomes especially important in corporate settings where internal venturing units often operate with more autonomy, visibility, or rewards than the rest of the organization.
When emotional embeddedness is high, non-venture employees are more likely to show pride, admiration, or solidarity with entrepreneurial teams. When it’s low, emotional distance and resentment emerge. In such cases, even strategically promising ventures may face silent opposition or lack of internal traction simply because they evoke negative emotions in others.
Biniari’s findings suggest that emotional embeddedness serves as a precondition for social embeddedness—the broader organizational acceptance of the venture as a legitimate and integrated part of the company’s future.
Envy as a Strategic Risk: How Emotional Comparisons Undermine Internal Ventures
A key finding of the study is that envy emerges as a dominant, negative emotional response to CE initiatives perceived as overly privileged or exclusive. Envy, Biniari explains, is not just about wanting what others have—it’s about perceiving an unjust gap between what one has and what another undeservedly receives. Within corporate settings, when venturing teams receive special attention, bonuses, or independence, they can become targets of envy, even if these benefits are well-earned.
This was particularly evident in one of the case studies (the “Verde” program), where venture team members operated in a high-autonomy unit with substantial rewards. Other employees, particularly those in support functions or traditional business units, perceived this as unfair and responded with subtle forms of resistance—refusing to share information, blocking access to resources, or questioning the legitimacy of the initiative. In contrast, the “Aster” case avoided these problems by involving broader teams and sharing credit more openly.
Biniari’s insight here is strategic: envy is not just a human emotion—it is a risk factor that undermines collaboration, knowledge flow, and institutional support for innovation.
Organizational Design and Leadership Communication as Emotional Triggers
The way CE programs are structured and communicated significantly influences whether they trigger envy or admiration. Isolated programs, operated behind closed doors or celebrated as elite units, are more likely to draw comparisons that fuel envy. If venturing units are portrayed as “the future of the company” while others are framed as legacy functions, resentment grows.
Leadership plays a major role here. Publicly praising entrepreneurial units without acknowledging the contributions of others unintentionally sends signals of inequality. Even the act of spotlighting venture teams in executive meetings or internal communications can reinforce perceptions that the organization values one group over another.
Conversely, CE programs that involve existing departments, invite cross-functional participation, and transparently communicate their goals and benefits are better received. This is not merely a structural issue—it is about how teams are emotionally positioned in the social fabric of the firm.
Self-Reinforcing Emotional Cycles and the Role of Third-Party Observers
Another subtle but powerful insight is that emotions are not confined to individuals—they ripple through the organization, shaping how third parties perceive the legitimacy of a CE initiative. Employees who are not directly envious may still sense the tension and choose to distance themselves from the venture. This creates a reinforcing cycle where entrepreneurial teams feel isolated, become more insular, and pull back from collaboration—further reinforcing the perception of exclusivity and widening the emotional gap.
Over time, this can threaten the institutionalization of the venture, regardless of its performance. In Biniari’s study, some venturing teams responded to envy not by building bridges but by withdrawing, further isolating themselves and losing organizational support. Thus, managing emotional perceptions becomes a strategic task, not just an HR concern.
10 Practical Insights for Business Owners and Managers
- Recognize that CE initiatives generate emotional responses—not just strategic ones.
Innovation teams can trigger envy, even unintentionally, by their visibility or privileges. - Design ventures with emotional inclusiveness in mind.
Involve other departments in venture processes early to build buy-in and avoid exclusivity. - Communicate CE efforts carefully.
Avoid language that creates “us vs. them” dynamics; frame ventures as serving the whole company. - Be aware of social comparison dynamics.
Public praise, special rewards, or perceived shortcuts for venturing teams can trigger envy. - Monitor emotional cues from the broader organization.
Silence may mask discontent—watch for subtle signals of resistance or disengagement. - Align rewards and recognition systems.
Ensure fair and transparent compensation structures that don’t alienate others. - Train entrepreneurial teams to build emotional bridges.
Encourage humility, transparency, and collaboration across units. - Avoid over-isolation of CE units.
Physical and social separation can exacerbate perceptions of elitism and deepen emotional divides. - Use empathetic leadership to validate others’ contributions.
Regularly acknowledge the role of core teams in supporting innovation. - Institutionalize emotional intelligence into CE governance.
Make emotional legitimacy a formal consideration in venture design and rollout.
Closing Thoughts
Biniari’s work adds a crucial layer to our understanding of corporate entrepreneurship: strategy and structure are only half the story—emotion is the other half. Ventures fail not only because of flawed business models but because of emotional resistance inside the firm. Envy, resentment, and emotional disconnect can derail even the most well-resourced CE initiatives.
Organizations that seek to embed innovation must go beyond funding and slogans. They must cultivate emotional embeddedness—fostering a culture where entrepreneurial success is celebrated without triggering division, and where venturing teams are seen not as elites, but as catalysts for collective progress.
Ultimately, emotional awareness is not a “soft” skill—it’s a strategic advantage. Those who ignore it do so at the peril of their innovation agenda.