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A culture of intrapreneurship: 3 practices for organizational innovation

In business, reinvention does not happen overnight. It is the result of scaled innovation – years of experimentation to identify and implement solutions to evolving challenges.

However, some senior leaders see innovation only as a one-off like a new product, service upgrade or go-to-market strategy. The misconception can stall a company’s progress toward significant goals and lasting industry impact. Expert faculty from the Cornell SC Johnson College of Business and ILR School recently shared three tactics organizations can use to integrate innovation throughout their operations.

1. Create a culture of intrapreneurship.

Rather than limiting out-of-the-box thinking to specific projects, executives and managers can guide employees to operate like entrepreneurs within their businesses. Through this approach, known as intrapreneurship, leaders help team members function with the autonomy and accountability to contribute new creative ideas on a continuous basis.

“As I work with companies globally, the primary reason I see innovation ‘getting stuck’ is that organizations approach it as a singular task,” said Neil Tarallo, senior lecturer of management and organizations at the Cornell Nolan School of Hotel Administration. “Innovation is an ongoing process, and it requires commitment, adaptability and a willingness to embrace change.”

Great innovation, according to Tarallo, begins with the C-suite and moves downward throughout an organization. Executives can foster creativity from the top by dismantling rigid hierarchies and empowering employees at all levels to share ideas. Additionally, managers can encourage cross-functional collaboration among teams.

“The companies best positioned to innovate when it is most necessary are those that innovate in small ways every day,” said Tarallo. “These organizations operate in teams that bring a range of specialties and perspectives to each challenge they face. This approach leads to a more forward-thinking culture than can sustain a business in the long term.”

2. Support risk-taking and long-term thinking.

Innovation often requires risk. To help employees adopt a positive risk mindset, leaders can encourage – and reward – experimentation, set realistic expectations for results and make it clear that failures are opportunities to learn and not stairsteps to punitive consequences.

Yuan Shi, assistant professor of management and organizations at the Nolan School, offers additional guidance for executives and managers discussing innovation with backers and shareholders.

“External investors might not immediately grasp the value of ideas that bridge different fields, despite the eventual significant impact of these cross-domain concepts,” Shi said. “Breakthrough innovation demands considerable patience from investors and may face threats from short-term thinking in the market. Firms should embrace longer time horizons and prioritize longer-term returns.”

Shi advises leaders to communicate with transparency, detail the competitive advantages and financial value of innovation and provide regular progress updates with evidence of impact.

3. Earmark resources for innovation.

A lack of resources can be a barrier to success for innovation, but oftentimes the greatest obstacle can be the tendency not to view innovation as an initiative that requires tangible support. According to Brian Lucas, assistant professor of organizational behavior at the Cornell ILR School, leaders may want big ideas but they are unlikely to receive them unless they make provisions for creativity.

“People believe a breakthrough idea is something that just pops into someone’s head, maybe while taking a shower, riding the bus, talking with a colleague or just by thinking hard enough,” said Lucas. “Leaders think that they just need to put out a call for innovation, and eventually one of their workers will have a good idea. Sometimes this happens. But more often breakthrough ideas are the result of deliberate creative work that requires resources.”

Lucas encourages executives to consider the four categories of people, time, space and funding in their efforts to support innovation: “Ask yourself how many people do you have working on new ideas and can these people bring in other people if needed. Do the people have dedicated time for innovation, or are they expected to multitask? Is there dedicated space for creativity and conversation? Do they have money to buy data and research, materials for prototyping, consulting services, travel and more?”

As the use of artificial intelligence (AI) increases, companies can also take steps to ensure that human knowledge and the latest technology can coexist successfully. Businesses can use tech as a tool for employee innovation and provide upskilling resources necessary for new job opportunities.

“Historically, tech advancements lead to employment and economic growth,” Lucas said. “Companies and leaders who view innovation as ongoing work are best equipped to use AI as a resource for creativity and to benefit from its potential.”


Gain expertise in cutting-edge innovation practices in one of Cornell’s more than 30 online leadership certificate programs, including Intrapreneurship, Innovation Strategy and Leadership Agility.

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