Empowerment of employees in small and medium‐sized service firms

The article deals with creation of corporate entrepreneurship as an induced empowerment process. It investigates two issues: how well firms succeed in developing entrepreneurship competences; and the conditions for success. The investigation is based on a case study of a small Danish bank. The theoretical framework consists of three categories: innovation theory; organization theory (competence building and organizational learning); and HRM theory (extended barter). It is possible to develop an innovative, learning organization based on corporate entrepreneurship. The condition is primarily that the extended barter between the firm and the employees is satisfactory for both parties.