corporate entreneurship & innovation

8/14/2019 corporate entreneurship & innovation

1/18


2/18


3/18

Ch1

What is entrepreneurship?

Defined simply, it is . . .

New Entry That is, entering new or establishedmarkets with new or existing goods and

services.


4/18

Ch1

Entrepreneurship takes many forms

. New Established

Products

&

Services

New

Existing

Markets


5/18

Ch1

Defining EntrepreneurshipDefining Entrepreneurship

Firms capabilities to develop new goods orFirms capabilities to develop new goods or

services and manage the innovation processservices and manage the innovation process

Corporate EntrepreneurshipCorporate Entrepreneurship

Creating or developing a new product or process ideaCreating or developing a new product or process ideaInventionInvention

Creating a commercializable product from inventionCreating a commercializable product from invention

InnovationInnovation

Adoption of innovation by a population of similar firmsAdoption of innovation by a population of similar firms

ImitationImitation


6/18

Ch1

An Entrepreneurial Orientation

(EO) provides a larger view ofentrepreneurship

EO refers to more than just new venture

creation.

It involves drawing on an entrepreneurial

perspective to achieve strategic renewal.

It refers to a mindset that affects company

practices and decision-making styles


7/18Ch1

An Entrepreneurial Orientation

consists of Five Dimensions

Innovativeness

Risk Taking Proactiveness

Competitive Aggressiveness

Autonomy


8/18Ch1

INNOVATIVENESS

A willingness to support creativity and

experimentation in introducing new

products/services, and novelty,technological leadership and R&D in

developing new processes; key is using

creative insights to achieve innovativesolutions.


9/18Ch1

RISK TAKING

A tendency to take bold actions by

venturing into the unknown and/or

committing a large portion ofresources to ventures with

uncertain outcomes; key is to

reduce uncertainty by effective riskassessment.


10/18Ch13-

PROACTIVENESS

A response to opportunities; occurs

when a firm has an opportunity-

seeking, forward-looking perspectivecharacterized by introducing new

products or services ahead of the

competition and acting inanticipation of future demand.


11/18Ch13-

COMPETITIVE

AGGRESSIVENESS

A response to threats; refers to

the intensity of a firm's effort tooutperform industry rivals,

characterized by a strong offensive

posture or an aggressive

responses to competitor actions.


12/18Ch13-

AUTONOMY

Independent action taken by

entrepreneurial champions or teams

aimed at bringing forth a new

venture and carrying it through to

completion.


13/18Ch13-

Successful EntrepreneurshipSuccessful Entrepreneurship

The key to success with entrepreneurship andThe key to success with entrepreneurship and

innovation is moving from the invention of ideasinnovation is moving from the invention of ideasto effective commercialization and acceptance into effective commercialization and acceptance in

the marketplacethe marketplace


14/18Ch13-

TimelyTimelyTimelyTimely

Difficult forDifficult forcompetitors to imitatecompetitors to imitate

Difficult forDifficult forcompetitors to imitatecompetitors to imitate

Commercially exploitableCommercially exploitablewith present capabilitieswith present capabilitiesCommercially exploitableCommercially exploitablewith present capabilitieswith present capabilities

Innovation and Competitive AdvantageInnovation and Competitive Advantage

CompetitiveCompetitive

AdvantageAdvantageCompetitiveCompetitive

AdvantageAdvantageProvides significantProvides significant

value to customersvalue to customers

Provides significantProvides significant

value to customersvalue to customers


15/18


16/18Ch13-

ValueValue

AppropriationAppropriationfromfrom

InnovationInnovation

Barriers to IntegrationBarriers to Integration

Different TimeDifferent Time

InterpersonalInterpersonal

Different GoalDifferent Goal

Formality ofFormality of

OrientationOrientation

OrientationOrientation

OrientatioOrientatio

nn

StructureStructure

Facilitators ofFacilitators of

IntegrationIntegration

Shared ValuesShared Values

Leaders VisionLeaders Vision

EffectiveEffective

Budget AllocationBudget Allocation

CommunicationCommunication

Appropriating Value from InnovationAppropriating Value from Innovation

Cross-Cross-

FunctionalFunctionalIntegration/Integration/

Design TeamsDesign Teams

Time toTime to

MarketMarket

ProductProduct

QualityQuality

Creation ofCreation ofCustomerCustomer

ValueValue


17/18Ch13-

Cooperating to Produce InnovationCooperating to Produce Innovation

Strategic alliances can help to foster innovation byStrategic alliances can help to foster innovation bycombining the knowledge and resources of two orcombining the knowledge and resources of two ormore partnersmore partners

Firms must focus on building knowledge, identifyingFirms must focus on building knowledge, identifyingcore competencies and developing strong humancore competencies and developing strong humanresources to manage these projectsresources to manage these projects

Firms can also give away their core competencies byFirms can also give away their core competencies byoutsourcing to alliance partners rather than developingoutsourcing to alliance partners rather than developingtheir own capabilities over timetheir own capabilities over time


18/18Ch13

Acquiring Innovative CapabilityAcquiring Innovative Capability

Many firms now use acquisitions of other firms asMany firms now use acquisitions of other firms asa substitute for developing innovations internallya substitute for developing innovations internally

This can reduce risk and lower costly R&DThis can reduce risk and lower costly R&Dinvestmentsinvestments

The drawback is that firms can eventually loseThe drawback is that firms can eventually losetheir ability to generate innovations internallytheir ability to generate innovations internally

Documents

corporate entreneurship & innovation