Managing Internal Corporate Entrepreneurship: An Agency Theory Perspective

Abstract

Entrepreneurship is the process by which firms notice opportunities and act (by creatively organizing transactions between factors of production) to create surplus value. Using concepts from information and agency theory, this article examines how agency problems affect the dynamics of internal corporate entrepreneurship and the level of entrepreneurial behavior The relationship between internal corporate and external entrepreneurship is explored, and the organizationalfactors that cause agency problems are examined. Finally, solutions to agency problems are suggested that also promote internal corporate entrepreneurship.