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Corporate Entrepreneurship

Defining Entrepreneurship. Corporate Entrepreneurship. Firm’s capabilities possessed to develop new goods or services and manage the innovation process. Invention. Creating or developing a new product or process idea. Innovation. Creating a commercializable product from invention.

JasminFlorian
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Corporate Entrepreneurship

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  1. Defining Entrepreneurship Corporate Entrepreneurship Firm’s capabilities possessed to develop new goods or services and manage the innovation process Invention Creating or developing a new product or process idea Innovation Creating a commercializable product from invention Imitation Adoption of innovation by a population of similar firms

  2. Successful Entrepreneurship The key to success with entrepreneurship and innovation is moving from the invention of ideas to effective commercialization and acceptance in the marketplace

  3. Innovation and Competitive Advantage Characteristics of Innovations which lead to... Competitive Advantage

  4. Innovation and Competitive Advantage Commercially Exploitable with Present Capabilities Difficult for Competitors to Imitate Competitive Advantage Provides Significant Value to Customers Timely

  5. Appropriating Value from Innovation The goal or end point is developing a system which allows the firm to extract value effectively from their internal innovative capabilities Value Appropriation from Innovation

  6. Appropriating Value from Innovation Cross-Functional Integration/ Design Teams Value Appropriation from Innovation Cross-functional design teams can help to break down barriers to entrepreneurship within firms

  7. Appropriating Value from Innovation Barriers to Integration Different Time Orientation Interpersonal Orientation Cross-Functional Integration/ Design Teams Different Goal Orientation Value Appropriation from Innovation Formality of Structure These factors tend to reduce the effectiveness of Cross-functional integration or design teams

  8. Appropriating Value from Innovation Barriers to Integration Different Time Orientation Interpersonal Orientation Cross-Functional Integration/ Design Teams Different Goal Value Appropriation from Innovation Orientation Formality of Structure Facilitators of Integration These factors tend to increase the effective-ness of Cross-functional integration or design teams Shared Values Leaders’ Vision Budget allocation Effective Communication

  9. Appropriating Value from Innovation Barriers to Integration Different Time Time to Market Orientation Interpersonal Orientation Cross-Functional Integration/ Design Teams Different Goal Value Appropriation from Innovation Orientation Product Quality Formality of Structure Facilitators of Integration Creation of Customer Value Shared Values Leaders’ Vision Budget Allocation Effective Communication

  10. Appropriating Value from Innovation Barriers to Integration Different Time Time to Market Orientation Interpersonal Orientation Cross-Functional Integration/ Design Teams Different Goal Value Appropriation from Innovation Orientation Product Quality Formality of Structure Facilitators of Integration Creation of Customer Value Shared Values Leaders’ Vision Budget Allocation Effective Communication

  11. Cooperating to Produce Innovation Strategic Alliances Alliances can help to foster innovation by combining the knowledge and resources of two or more partners Firms must focus on building knowledge, identifying core competencies and developing strong human resources to manage these projects Firms can also give away their core competencies by outsourcing to alliance partners rather than developing their own capabilities over time

  12. Acquiring Innovative Capability Many firms now use acquisitions of other firms as a substitute for developing innovations internally This can reduce risk and lower costly R&D investments The drawback is that firms can eventually lose their ability to generate innovations internally Many firms now use acquisitions of other firms as a substitute for developing innovations internally

  13. Small Firms and Innovation Small firms have created most of the new jobs in the U.S. in the 1990s While large firms account for over 80% of the world’s R&D spending, individuals or small firms are granted more than half of U.S. patents Many small firms are created when employees leave large firms to start their own businesses, frequently continuing to interact with their former firms to develop innovations and new products

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