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Purpose

This paper aims to examine the integration of entrepreneurship and strategy to develop a conceptual framework of strategic entrepreneurship. The framework is developed through an analysis of theory and refined through an examination of practice.

Design/methodology/approach

This framework is considered in the context of potentially entrepreneurial and strategic activity undertaken by 12 of the 17 state‐owned enterprises (SOEs) operating in New Zealand in 2006‐2007. Based on a review of documents, observation, and interviews with SOE executives, cases of 12 SOE activities were analysed to compare and contrast strategic entrepreneurship in practice.

Findings

The findings reveal distinct elements within the four activities classified as strategic entrepreneurship, activities, such as leveraging from core skills and resources from a strategic perspective, and innovation from an entrepreneurial perspective.

Originality/value

This study is one of the first to examine the nature of strategic entrepreneurship in practice and the associated financial returns.

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