Corporate entrepreneurship and innovation part 2: a role‐ and process‐based approach

Purpose To extend the discussion held in part 1, and develop a two‐tier fifth‐generation model of corporate entrepreneurship and innovation. Design/methodology/approach The components that have been synthesized from a review of the literature in Part 1 are extended using evidence from the literature. These components are used to construct a two‐tier model of corporate entrepreneurship and innovation; a macro model which presents the high‐level environmental drivers of innovation and a micro model that discusses the contextual factors that underpin the corporate entrepreneurship and innovation process. Findings From the analysis conducted in part 1 it is evident that there is a strong relationship between the role of the corporate entrepreneur and the innovation process. It is suggested that by separating the corporate entrepreneur from the innovation process previous models have been overly reductionist in their construction, and their utility has, as a consequence, been severely constrained. The study therefore combines the role and activities of the entrepreneur with the innovation process into a unified framework. In doing so the paper develops a two‐tier fifth‐generation model of corporate entrepreneurship and innovation. The final sections of the paper present the model's implications for management and suggestions for further research. Originality/value This paper fulfils an identified gap in the literature, namely the development of a new holistic model of corporate entrepreneurship and innovation, which illustrates the environmental and contextual relationships between the corporate entrepreneur and the innovation process.