Abstract
Purpose
Corporate entrepreneurship (CE) is widely advocated as a mechanism for organisational renewal and sustained competitiveness. However, the literature largely assumes the continued availability of organisational knowledge necessary to support entrepreneurial activity. This study examines how demographic change constrains corporate entrepreneurship through the erosion of institutional memory.
Design/methodology/approach
The article adopts a mixed-methods case study of a UK stainless-steel manufacturer. Data were collected through a semi-structured interview with senior management and two workforce surveys examining entrepreneurial climate, generational differences, and knowledge transfer practices.
Findings
The findings indicate that demographic change is primarily framed by management as a staffing risk rather than a knowledge risk. While the organisation exhibits moderate entrepreneurial orientation, generational turnover and limited mechanisms for tacit knowledge transfer undermine the conditions required for sustained CE. Generational differences in work practices, supervision preferences, and technology use further complicate knowledge continuity.
Originality/value
The article contributes to CE literature by conceptualising demographic change as a latent constraint on entrepreneurial capability rather than a neutral contextual factor. It highlights institutional memory as a fragile but critical precondition for CE, particularly in knowledge-intensive manufacturing environments.
Keywords: Corporate entrepreneurship; demographic change; institutional memory; tacit knowledge; manufacturing
1. Introduction
Corporate entrepreneurship (CE) has emerged as a central construct in management research, offering established firms a means of renewal, innovation, and strategic adaptation in increasingly competitive environments (Guth and Ginsberg, 1990; Kuratko, 2007). Through intrapreneurship, strategic renewal, and internal venturing, CE enables organisations to exploit opportunities beyond their existing routines and capabilities (Ireland, Kuratko and Morris, 2006).
Despite extensive scholarly attention, CE research tends to assume the availability and continuity of organisational knowledge necessary to support entrepreneurial activity. Knowledge is often treated as a stable resource embedded within the firm, rather than as a dynamic capability subject to erosion. This assumption is increasingly problematic in the context of demographic change, where ageing workforces, delayed retirement, and high turnover among younger employees are reshaping organisational composition across advanced economies (CIPD, 2015).
Demographic change has been examined extensively in human resource management and labour economics, typically in relation to skills shortages, workforce planning, or generational differences in values (Parry and Urwin, 2011; Deal, Altman and Rogelberg, 2010). However, its implications for entrepreneurial capability within organisations remain underexplored. In particular, limited attention has been paid to how demographic turnover affects institutional memory and the tacit knowledge required for opportunity recognition, process innovation, and organisational learning.
This article argues that demographic change represents a latent but significant constraint on corporate entrepreneurship. Specifically, it proposes that CE initiatives are vulnerable to failure when demographic turnover disrupts the transmission of institutional knowledge, particularly in industries where operational expertise is accumulated over long periods. The study addresses the following research question:
How does demographic change affect corporate entrepreneurship through its impact on institutional memory in manufacturing organisations?
To address this question, the article presents a mixed-methods case study of a UK stainless-steel manufacturer. Manufacturing provides a theoretically valuable context due to its reliance on tacit, process-embedded knowledge and historically ageing workforce (Thun, Größler and Miczka, 2007). The findings demonstrate that while demographic change is acknowledged at managerial level, it is primarily framed as a staffing issue rather than a knowledge risk, limiting the organisation’s capacity to sustain entrepreneurial activity.
The article contributes to CE literature in three ways. First, it foregrounds institutional memory as a critical but under-theorised enabler of corporate entrepreneurship. Second, it reframes demographic change as an organisational capability problem rather than a generational one. Third, it provides empirical insight into how demographic dynamics constrain CE in a manufacturing context.
2. Literature Review and Theoretical Framing
2.1 Corporate Entrepreneurship and Knowledge Dependence
Corporate entrepreneurship refers to entrepreneurial behaviour within established organisations, encompassing innovation, strategic renewal, and internal venturing (Burgelman, 1983; Guth and Ginsberg, 1990). Research has emphasised the importance of entrepreneurial orientation, organisational culture, and managerial support in fostering CE (Covin and Slevin, 1991; Kuratko, Hornsby and Bishop, 2005).
Underlying these perspectives is an implicit reliance on organisational knowledge. Entrepreneurial activity depends on employees’ ability to recognise inefficiencies, recombine resources, and generate novel solutions (Ireland, Hitt and Sirmon, 2003). Such capabilities are rooted not only in codified knowledge but also in tacit knowledge accumulated through experience and embedded in organisational routines (Nonaka, 1994).
Tacit knowledge is particularly critical for process innovation and continuous improvement, which are central to CE in manufacturing contexts (Nijkamp, 2003). However, CE scholarship has paid limited attention to how such knowledge is preserved over time, often treating it as a static organisational asset rather than a fragile, socially embedded capability.
2.2 Institutional Memory and Knowledge Loss
Institutional memory refers to the collective knowledge held within an organisation regarding its processes, histories, and problem-solving practices (Walsh and Ungson, 1991). It is sustained through social interaction, mentoring, and shared practice rather than formal documentation alone. When experienced employees exit the organisation, institutional memory is vulnerable to erosion, particularly where knowledge is tacit and context-specific (Nonaka and Takeuchi, 1995).
Knowledge loss has been linked to reduced organisational learning, diminished innovation capability, and declining performance (Argote, 2013). In CE contexts, such loss undermines opportunity recognition and the ability to exploit entrepreneurial initiatives effectively. Despite this, institutional memory remains under-integrated into CE theory.
2.3 Demographic Change as a Knowledge Risk
Demographic change is reshaping organisational workforces through ageing populations, extended working lives, and generational turnover (CIPD, 2015). While these trends are often discussed in terms of labour supply or generational values, they also pose significant risks to knowledge continuity. The simultaneous exit of experienced employees and high mobility among younger cohorts accelerates the erosion of institutional memory (Tulgan, 2016).
Generational research suggests differences in work practices, supervision preferences, and attitudes toward learning (Parry and Urwin, 2011). While such differences are sometimes overstated, they can disrupt mentoring relationships and informal knowledge transfer, particularly in environments lacking structured mechanisms for intergenerational learning (Md Sabri et al., 2014).
From this perspective, demographic change should be understood not merely as a workforce composition issue but as a structural constraint on entrepreneurial capability.
3. Methodology
3.1 Research Design
The study adopts a mixed-methods case study design (Yin, 2014). This approach enables in-depth examination of organisational dynamics within their real-world context and is well suited to exploring under-theorised relationships between demographic change and CE.
3.2 Case Selection and Data Collection
The case organisation is a UK-based stainless-steel manufacturer employing over 500 staff. The industry is characterised by capital-intensive processes, reliance on tacit operational knowledge, and an ageing workforce.
Primary data were collected through:
- A semi-structured interview with a senior HR executive
- A management survey examining entrepreneurial climate
- A workforce survey examining generational differences and knowledge transfer
Secondary data included organisational documents and publicly available materials.
3.3 Data Analysis
Interview data were analysed using thematic analysis (Braun and Clarke, 2006). Survey data were analysed using descriptive statistics and comparative analysis across generational cohorts. The analysis focused on identifying patterns relevant to knowledge continuity and entrepreneurial capability rather than establishing causality.
4. Findings
4.1 Managerial Framing of Demographic Change
Senior management recognised demographic change primarily in terms of workforce ageing and retirement risk. The dominant response focused on recruitment and apprenticeship schemes aimed at maintaining staffing levels. However, demographic change was not explicitly linked to knowledge loss or entrepreneurial capability.
4.2 Generational Differences and Knowledge Transfer
Survey results revealed generational differences in supervision preferences, technology use, and attitudes toward process improvement. Younger employees expressed greater desire for structured feedback and technological integration, while older employees favoured established routines. Despite positive intergenerational relations, these differences suggest latent barriers to tacit knowledge transfer.
4.3 Implications for Corporate Entrepreneurship
While the organisation displayed moderate entrepreneurial orientation, the erosion of institutional memory threatened the sustainability of CE initiatives. Without deliberate mechanisms to preserve and transfer tacit knowledge, entrepreneurial activity risked becoming decoupled from operational expertise.
5. Discussion
The findings support the argument that demographic change constrains corporate entrepreneurship through its impact on institutional memory. CE frameworks typically emphasise strategy, culture, and leadership while overlooking demographic conditions that shape knowledge continuity. By framing demographic change as a staffing issue, managers underestimate its strategic implications for entrepreneurial capability.
This study extends CE theory by positioning institutional memory as a precondition for entrepreneurial action and demographic change as a latent constraint on CE effectiveness.
6. Conclusion
Corporate entrepreneurship does not occur in a demographic vacuum. In manufacturing environments where tacit knowledge is central to innovation, demographic turnover poses a significant threat to entrepreneurial capability. Recognising demographic change as a knowledge risk rather than a generational problem is essential for sustaining CE in ageing organisations.
References
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