The strategic entrepreneurial growth model

Abstract

Purpose

The purpose of this paper is to present the development of the model of the strategic entrepreneurial unit (SEU) as an alternative means for large firms to harness the entrepreneurial spirit and creation of intellectual property.

Design/methodology/approach

Several competing organizational models are critiqued based on factors that will impact the growth and return performance of the unit. The organizational units examined include corporate intrapreneurship, corporate spinout, corporate venturing, corporate venturing with venture capitalist participation, and the SEU.

Findings

Theoretically, by design, the SEU is a superior growth model to incubate newly created intellectual property. The achievement of greater growth and return with the SEU is shown because of equity compensation incentives, facilitator as liaison between the parent and new SEU with no control over harvest timing, lifeline back to parent for employees, intellectual property settlement prior to unit formation, and the financing provided by the internal capital market of the parent.

Research limitations/implications

The general review paper is conceptual in nature and would benefit from empirical evidence research. The case study method is proposed as a means to discern the efficacy of the SEU relative to other organizational forms.

Originality/value

The paper advances a business unit form to foster higher performance from new ideas within the confines of a large corporation.

Citation

Shulman, J.M., Cox, R.A.K. and Stallkamp, T.T. (2011), "The strategic entrepreneurial growth model", Competitiveness Review, Vol. 21 No. 1, pp. 29-46. https://doi.org/10.1108/10595421111106210