Competitive Advantage of Intrapreneurs in Start-up Business: A Dynamic Model

Abstract

Intrapreneurs, defined as the active and creative force in the entrepreneurs, starts new business as projects, groups, or departments within an existing firm. They represent the frontier of innovation in a current standing firm and explore new growth points for the hosting organization. On the other side, entrepreneurs that start new business compete with intrapreneurs in the same pool of potential clients in the broad market. This paper attempts to explore the competitive advantages of intrapreneurs relative to entrepreneurs when starting a new area of business. The paper employs a dynamic model to identify the necessary conditions that intrapreneurs ought to be endowed to dominate entrepreneurs. This study also identifies the conditions of providing innovation-friendly environment for intrapreneurs to dominate entrepreneurs.