CSGB 6305Entrepreneurship

Article Review : Cognition, Creativity and Entrepreneurship

Thomas B. Ward

Journal of Business Venturing 19 (2003) 173-158

Norrizma Niza (CGD11007)Rafidah (CGD11006)

Syahrum (CGD1100X)

PRESENTATION OVERVIEW

INTRODUCTION - TERMINOLOGY Cognition –

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses. A result of this; a perception, sensation, or intuition.Synonyms :

knowledge - cognizance - acquaintance

Creativity – The use of the imagination or original ideas, esp. in the production of an artistic work

Entrepreneurship – (entrepreneur) someone who organizes a business venture and assumes the risk for it.

Entrepreneurial cognition has been defined as “knowledge structures that people use to make assessments, judgments or decisions involving opportunity evaluation and venture creation and growth” (Mitchell et al., 2002a)

COGNITION, CREATIVITY, COGNITION, CREATIVITY, AND ENTREPRENEURSHIPAND ENTREPRENEURSHIP

COGNITION, CREATIVITY, COGNITION, CREATIVITY, AND ENTREPRENEURSHIPAND ENTREPRENEURSHIP

Successful ideasSuccessful ideas Capture consumers’ Capture consumers’

attentionattention Familiar enough to not be Familiar enough to not be

misunderstood or misunderstood or rejected out of hand as rejected out of hand as too radically different.too radically different.

Creative cognition Creative cognition approach serve as guide approach serve as guide to more effective idea to more effective idea developmentdevelopment

COGNITION, CREATIVITY, COGNITION, CREATIVITY, AND ENTREPRENEURSHIPAND ENTREPRENEURSHIP

ChallengersChallengers

A Creative Paradox And A A Creative Paradox And A Cognitive PerspectiveCognitive Perspective

Humans have the capacity to move beyond what Humans have the capacity to move beyond what currently exists to generate and implement new currently exists to generate and implement new ideas.ideas.

Example of creativity…Example of creativity… Barker (1993) has Barker (1993) has

claimed that Sony nearly claimed that Sony nearly missed a golden missed a golden opportunity when they opportunity when they temporarily abandoned temporarily abandoned work on developing CDs work on developing CDs in the mid-1970s…in the mid-1970s…

WHY???WHY???

A Creative Paradox And A Creative Paradox And A Cognitive PerspectiveA Cognitive Perspective

Sometimes knowledge provides a Sometimes knowledge provides a bridge to the next new development bridge to the next new development and sometimes it becomes a fence and sometimes it becomes a fence that blocks the path.that blocks the path.

By examining cognitive processes By examining cognitive processes and structures, individuals and groups and structures, individuals and groups can better understand how to access can better understand how to access and use existing knowledge in more and use existing knowledge in more creative way.creative way.

A Creative Paradox And A Creative Paradox And A Cognitive PerspectiveA Cognitive Perspective

Runco and Chand (1994, 1995)Runco and Chand (1994, 1995) Runco and Chand (1994, Runco and Chand (1994,

1995) have described a model 1995) have described a model that includes processes of that includes processes of problem finding, ideation, and problem finding, ideation, and evaluation that interact with evaluation that interact with one another and with one another and with knowledge and motivation to knowledge and motivation to determine creative outcomes. determine creative outcomes.

Geneplore ModelGeneplore Model Finke et al., 1992; Ward et al. Finke et al., 1992; Ward et al.

1999b characterizes creative 1999b characterizes creative endeavors as interplay endeavors as interplay between generative processes between generative processes that produce candidate ideas that produce candidate ideas possessing varying degrees of possessing varying degrees of creative potential, and creative potential, and exploratory processes that exploratory processes that extend or modify those initially extend or modify those initially generated ideas judged to be generated ideas judged to be most promising.most promising.

Conceptual CombinationConceptual Combination

Analogical Reasoning And Other Analogical Reasoning And Other ProcessesProcesses

Abstration, Problem Abstration, Problem Formulation And OriginalityFormulation And Originality

A Broader PerspectiveA Broader Perspective

There is no less true for There is no less true for entrepreneurial creativity than for entrepreneurial creativity than for artistic or scientific creativity.artistic or scientific creativity.

Entrepreneurs must be able to:Entrepreneurs must be able to: Generate ideas and recognize Generate ideas and recognize

opportunitiesopportunities High levels of intrinsic High levels of intrinsic

motivationmotivation Belief enough in their ideas to Belief enough in their ideas to

push them even in the face of push them even in the face of negative feedbacknegative feedback

Some expectation of external Some expectation of external rewardsrewards

Capacity to persuade others of Capacity to persuade others of their worththeir worth

Entrepreneurs in Our WorldEntrepreneurs in Our World

Tan Sri  Syed Mokhtar Shah bin Syed Nor Al-BukharySyed Mokhtar Shah bin Syed Nor Al-Bukhary born in born in 1952 is the richest 1952 is the richest Bumiputra corporate figure in Malaysia. With  corporate figure in Malaysia. With involvement in diversified business areas which include involvement in diversified business areas which include transportation and  and logistics,,plantations, property , property development, defense and armory as well development, defense and armory as well as engineering and power generation, he has a net worth as engineering and power generation, he has a net worth estimated to be US$3.3 billion.estimated to be US$3.3 billion.

A whole lot of his knowledge and experience was gained A whole lot of his knowledge and experience was gained through his own entrepreneurship experience during his youth through his own entrepreneurship experience during his youth time.  He never attended university but he was also smart to time.  He never attended university but he was also smart to use the experience he had gained from helping his father, as use the experience he had gained from helping his father, as reference in his own business.reference in his own business.

Due in part his family's mediocre-to-poor background, Syed Due in part his family's mediocre-to-poor background, Syed Mokhtar al Bukhary had to step into the working world in his Mokhtar al Bukhary had to step into the working world in his early life, while pursuing his primary and secondary studies. early life, while pursuing his primary and secondary studies. Syed Mokhtar helped his mother planting and selling Syed Mokhtar helped his mother planting and selling vegetables in the market and also selling roti canai. His vegetables in the market and also selling roti canai. His numeric knowledge was used to help his father in doing daily numeric knowledge was used to help his father in doing daily book keeping.book keeping. “Individuals who identify

opportunities and start new companies to develop them” (Baron, 2000, p.15)

Entrepreneurs in Our WorldEntrepreneurs in Our World After finishing school, Syed Mokhtar helped his father in breeding cow After finishing school, Syed Mokhtar helped his father in breeding cow

business but only to see the business washed away by foot and mouth business but only to see the business washed away by foot and mouth disease. Nevertheless, he took over the business and start over by selling disease. Nevertheless, he took over the business and start over by selling meats. He then move on to packaging the meats and start selling them meats. He then move on to packaging the meats and start selling them wholesale.wholesale.

A beneficiary of the New Economic Policy (NEP), the government's A beneficiary of the New Economic Policy (NEP), the government's affirmative action programme to build up bumiputera entrepreneurs, Syed affirmative action programme to build up bumiputera entrepreneurs, Syed Mokhtar made full use of the opportunities available to him. But he refused Mokhtar made full use of the opportunities available to him. But he refused to adopt the “Ali-Baba” approach to doing business with successful Chinese to adopt the “Ali-Baba” approach to doing business with successful Chinese traders. Not content to be a passive investor, he insisted that he be taught traders. Not content to be a passive investor, he insisted that he be taught the ropes and become fully involved in running the business. His gratitude the ropes and become fully involved in running the business. His gratitude towards the NEP kept him from selling off his shares, even in times of crisis. towards the NEP kept him from selling off his shares, even in times of crisis. But it was his insistence on being a true businessman, rather than a rentier, But it was his insistence on being a true businessman, rather than a rentier, that allowed him to weather the tough times and emerge as one of the that allowed him to weather the tough times and emerge as one of the biggest names in Malaysia's corporate landscape today.biggest names in Malaysia's corporate landscape today.

Entreprenuers in Our WorldEntreprenuers in Our World For anyone who loves shopping, the For anyone who loves shopping, the

brand Ms Read gives the impression brand Ms Read gives the impression that it is a brand from overseas. In fact, that it is a brand from overseas. In fact, the misconception is that Ms Read is a the misconception is that Ms Read is a British brand but it is actually a British brand but it is actually a Malaysian born brand because Ms Malaysian born brand because Ms Helen Elizabeth Read is the founder Helen Elizabeth Read is the founder and owner of the Ms Read brand as and owner of the Ms Read brand as well as the DELIcious Café chain.well as the DELIcious Café chain.

Helen stated that in her life, she was Helen stated that in her life, she was exposed to various books which exposed to various books which contributed to her learning. Her contributed to her learning. Her passion for business made her passion for business made her determined to succeed as an determined to succeed as an entrepreneur.entrepreneur.

“The generation and implementation of novel, appropriate ideas to establish a new venture” (Amabile, 1997, p.20)

Entrepreneurs in Our WorldEntrepreneurs in Our World The Ms Read brand was set up in 1997 and has since grown by leaps and bounds. It The Ms Read brand was set up in 1997 and has since grown by leaps and bounds. It

was intended to offer apparel for women who are looking for the larger sizes between was intended to offer apparel for women who are looking for the larger sizes between 12 to 24 which will not compromise on the beauty of the person. The mission of Ms 12 to 24 which will not compromise on the beauty of the person. The mission of Ms Read is to allow them to be comfortable with themselves regardless of what size they Read is to allow them to be comfortable with themselves regardless of what size they are and to allow them to walk tall and feel good about themselves. There are 3 main are and to allow them to walk tall and feel good about themselves. There are 3 main lines available from Ms Read which are Career, Casual and After 5 which offers a lines available from Ms Read which are Career, Casual and After 5 which offers a wholesome range for Malaysian women.In 2004, the One Utama Shopping Center wholesome range for Malaysian women.In 2004, the One Utama Shopping Center saw the opening of the first DELIcious Café inside the Ms Read signature store. Less saw the opening of the first DELIcious Café inside the Ms Read signature store. Less than a year later, a second branch opened in Bangsar Village in Kuala Lumpur and to than a year later, a second branch opened in Bangsar Village in Kuala Lumpur and to date there are more than 10 Ms Read outlets in Kuala Lumpur, Johor and in Penang.date there are more than 10 Ms Read outlets in Kuala Lumpur, Johor and in Penang.

Conclusion

References1. Ward, TB, 2004. Cognition, creativity, and entrepreneurship, Journal of Business Venturing 19,

173-188

2. http://en.wikipedia.org/wiki/Syed_Mokhtar_Al-Bukhary

3. http://thestar.com.my/lifestyle/story.asp?file=/2011/4/21/lifeliving/8469519

4. Luftans, F,Stajkovic, DA, Ibrayeva, E, 2000, Environmental and psychological challenges facing entrepreneurial development in transitional economies, Journal of World Business Vol 35, Issue 1, 95-110

5. Christopher P. Neck, Heidi M. Neck, Charles C. Manz, Jeffrey Godwin, (1999) "“I think I can; I think I can”: A self-leadership perspective toward enhancing entrepreneur thought patterns, self-efficacy, and performance", Journal of Managerial Psychology, Vol. 14 Iss: 6, pp.477 - 501