Intrapreneurship and Innovation in MNCs Intrapreneurship and Innovation in the United Nations
Organizational Characteristics
Structure Matrix or network-like Centralized bureaucracy
HQ-subsidiary relationships HQ owns and controls subsidiaries; usually mixed-motive dyads with coordination challenges HQ perceived as relatively powerless by field offices and bottleneck for innovation; control by member states who govern and fund the organization
Peer-unit relationships Often inter-unit competition Usually collaborative due to mandatory staff rotation
Decision making processes Top down with some bottom-up elements Consensus based, political processes; slow moving and hierarchical
Innovation Characteristics
Innovation objectives Commercial: Competitive advantage, economic gain Social improvement; ability to serve organization’s mission
Nature of innovation Private good Public good character
Environment
Pressures for Global Scaling Global standardization, economies of scale Globally intertwined grand challenges
Pressures for Contextualization Adapt to differences in customer needs, institutional differences) Strong field presence and understanding of beneficiaries needs; include local players in project for greater impact and sustainability
Entrepreneurial Processes
Resourcing of innovation Corporate funds Donor funds, partnerships – often not available for innovative projects; need for different funding mechanisms
Incentives for intrapreneurs Mandate extension, fiefdom-building, seeking recognition from peers Absence of organizational rewards
Role of intrapreneurs Boundary breakers ; seek organizational recognition Socially-driven and entrepreneurial champions; seek community recognition
Role of innovation unit/team Do innovation Facilitate and support innovation
Success metrics Profitability, competitive advantage, growth Social impact and policy changes, transparency