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Intrapreneurship

Washington and Lee Law Review, Vol. 73, (2016)

William & Mary Law School Research Paper No. 09-334

54 Pages Posted: 20 Jan 2016 Last revised: 14 Feb 2017

Darian M. Ibrahim

William & Mary Law School

Date Written: February 13, 2017

Abstract

This Article on “intrapreneurship” has several goals. First, it points out that while much of the legal literature on innovation is concerned with startups (entrepreneurship), the innovation that takes place inside our largest corporations (intrapreneurship) is substantial, important, and understudied. Second, the piece observes that while large technology corporations that used to be startups may remain intrapreneurial in culture, intrapreneurship is less common in the aggregate than we might expect. Reasons include organizational bureaucracy, laws favoring entrepreneurship, and what Clayton Christensen (Harvard Business School) calls “the innovator’s dilemma.” The innovator’s dilemma is, put simply, that good management causes large corporations to please existing customers with new and improved products at the expense of cultivating disruptive innovations that could replace those products altogether. Third, the Article detours to corporate law, which might, as a descriptive matter, play at the margins of the innovator’s dilemma and the entrepreneurial/intrapreneurial balance. Finally, the Article explores a hybrid approach — corporate venture capital — that combines entrepreneurial and intrapreneurial advantages. In corporate venture capital, a large corporation’s venture arm can invest in promising startups, and thus share in disruptive gains, without having to overcome obstacles to developing those projects internally.

Keywords: intrapreneurship, entrepreneurship, corporate law, startup, innovation, duty to monitor, business judgment rule, corporate venture capital, disruption, innovator's dilemma, Clayton Christensen

Suggested Citation

Ibrahim, Darian M., Intrapreneurship (February 13, 2017). Washington and Lee Law Review, Vol. 73, (2016). Available at SSRN: https://ssrn.com/abstract=2718496 or http://dx.doi.org/10.2139/ssrn.2718496

Darian Ibrahim (Contact Author)

William & Mary Law School ( email )

South Henry Street
P.O. Box 8795
Williamsburg, VA 23187-8795
United States

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