Corporate entrepreneurship
Download
1 / 17

Corporate Entrepreneurship - PowerPoint PPT Presentation


  • 218 Views
  • Uploaded on

Corporate Entrepreneurship . Corporate culture Leadership Structural features that guide and constrain action Organizational systems that foster learning and manage rewards Depends on all of the following:. Whether the company is product or service oriented

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Corporate Entrepreneurship' - cato


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Corporate entrepreneurship
Corporate Entrepreneurship

  • Corporate culture

  • Leadership

  • Structural features that guide and constrain action

  • Organizational systems that foster learning and manage rewards

  • Depends on all of the following:

  • Whether the company is product or service oriented

  • Whether the firm’s innovation efforts are aimed at product or process improvements

  • The extent to which it is high-tech or low-tech


Focused approaches to corporate entrepreneurship
Focused Approaches to Corporate Entrepreneurship

Autonomous corporate venturing work group

  • Autonomous corporate venturing (work) group

    • Frees entrepreneurial team members from constraints imposed by existing norms and routines

    • Facilitates open-minded creativity

    • But, does isolate the group from the corporate mainstream

      • New venture groups (NVGs)

      • Business incubators


New venture groups nvgs

Focused approach

New Venture

Group

New Venture Groups (NVGs)

  • Goal is to identify, evaluate, and cultivate venture opportunities

  • Typically function as semi-autonomous units with little formal structure

  • Involvement includes

    • Innovation and experimentation

    • Coordinating with other corporate divisions

    • Identifying potential venture partners

    • Gathering resources

    • Launching the venture


Business incubators

Focused approach

Business Incubators

Business Incubators

  • Business incubators are designed to “hatch” new businesses

  • Incubators provide some or all of the following functions

    • Funding

    • Physical space

    • Business services

    • Monitoring

    • Networking


Disbursed approaches to corporate entrepreneurship
Disbursed Approaches to Corporate Entrepreneurship

  • Dedication to principles and practices of entrepreneurship is spread throughout the firm

    • Ability to change is a core capability

    • Stakeholders can bring new ideas or venture opportunities to anyone in the organization

  • Two related aspects of dispersed entrepreneurship

    • Entrepreneurial culture

    • Product champions


Entrepreneurial culture

Dispersed approach Entrepreneurial Culture

Entrepreneurial Culture

  • Culture of entrepreneurship

    • Search for venture opportunities permeates every part of the organization

    • Effect is strongest when it animates all parts of the organization

    • Strategic leaders and the culture generate a strong impetus

      • to innovate

      • Take risks

      • Seek out new venture opportunities


Product champions

Dispersed approach Product

Champions

Product Champions

  • Product (or project) champions

    • Bring entrepreneurial ideas forward

    • Identify what kind of market exists for the product or service

    • Find resources to support the venture

    • Promote the venture concept to upper management

  • New project must pass two critical stages

    • Project definition

    • Project impetus


Measuring the success of corporate entrepreneurship activities
Measuring the Success of Corporate Entrepreneurship Activities

  • Techniques used to limit the expense of venturing or to cut losses when entrepreneurial initiatives (CE) appear doomed

  • Comparing strategic and financial CE goals

    • Are the products or services offered by the venture accepted in the marketplace?

    • Are the contributions of the venture to the corporation’s internal competencies and experience valuable?

    • Is the venture able to sustain its basis of competitive advantage?


Measuring the success of corporate entrepreneurship activities1
Measuring the Success of Corporate Entrepreneurship Activities

  • Techniques used to limit the expense of venturing or to cut losses when entrepreneurial initiatives (CE) appear doomed

  • Exit champions

    • Willing to question the viability of a venture project

    • Demand hard evidence and challenge the belief system that is carrying an idea forward

    • Hold the line on ventures that appear shaky

  • Real options

    • Managing the uncertainty associated with launching new ventures


Entrepreneurial orientation
Entrepreneurial Orientation Activities

Dimension Definition

Autonomy Independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion.

Innovativeness A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes.

Proactiveness A forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand.

Source: J. G. Covin and D. P. Sleving, “A conceptual Model of Entrepreneurship As Firm Behavior,” Entrepreneurship Theory & Practice, Fall 1991, pp. 7-25; G. T. Lumpkin and G. G. Dess, “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance,” Academy of Management Review 21, no. 1 (1996), pp. 135-72; D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science 29 (1983), pp. 770-91.

Adapted from Exhibit 12.2 Dimensions of Entrepreneurial Orientation


Entrepreneurial orientation1

Competitive Activities An intense effort to outperform industry rivals. It is characterized by a combative posture or an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace.

aggressiveness

Entrepreneurial Orientation

Dimension Definition

Risk taking Making decisions and taking action without certain knowledge of probable outcomes; some undertakings may also involve making substantial resource commitments in the process of venturing forward.

Source: J. G. Covin and D. P. Sleving, “A conceptual Model of Entrepreneurship As Firm Behavior,” Entrepreneurship Theory & Practice, Fall 1991, pp. 7-25; G. T. Lumpkin and G. G. Dess, “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance,” Academy of Management Review 21, no. 1 (1996), pp. 135-72; D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science 29 (1983), pp. 770-91.

Adapted from Exhibit 12.2 Dimensions of Entrepreneurial Orientation


Entrepreneurial orientation2
Entrepreneurial Orientation Activities

  • Autonomy

    • Two techniques often used to promote autonomy

      • Using skunkworks to foster entrepreneurial thinking

      • Designing organization structures that support independent action

  • Innovativeness

    • Two methods used to enhance competitive position through innovativeness

      • Fostering creativity and experimentation

      • Investing in new technology, R&D, and continuous improvement


Entrepreneurial orientation3
Entrepreneurial Orientation Activities

  • Proactiveness

    • Two methods to promote acting proactively

      • Introducing new products or technological capabilities ahead of the competition

      • Continuously seeking out new product or service offerings

  • Competitive aggressiveness

    • Two ways competitively aggressive firms enhance their entrepreneurial position

      • Entering markets with drastically lower prices

      • Copying the business practices or techniques of successful competitors


Entrepreneurial orientation4
Entrepreneurial Orientation Activities

  • Risk taking

    • Three types of risks faced by organizations and their executives

      • Business risk taking

      • Financial risk taking

      • Personal risk taking

    • Two methods to strengthen competitive position through risk taking

      • Researching and assessing risk factors to minimize uncertainty

      • Using techniques that have worked in other domains


Individual entrepreneurship in ireland
Individual Entrepreneurship in Ireland Activities

  • From the Global Entrepreneurship Monitor Project report for 2008

  • Ireland continues to have one of the highest rates of early stage entrepreneurs (7.6%) and established owner managers (9%) of the adult population

  • Ireland has dropped dramatically with respect to nascent entrepreneurs (3.3%) and number of women starting new firms.

  • Also declining was the number of people who perceived good opportunities (was 94%), as those starting due to need rose from 6% to 19%.


Cultural support for entrepreneurship
Cultural Support for Entrepreneurship Activities

  • 80% believe that successful entrepreneurs are held in high esteem. Media is generally supportive.

  • Primary motive: independence, not wealth

  • Those who have lived outside the country are considerably more involved

  • Relatively high confidence that they have the skills they need, although few report getting any specific training.


Environment for entrepreneurship
Environment for Entrepreneurship Activities

  • Ireland is classified as “innovation driven”

  • Finance is the main negative – very difficult to get.

  • Government – good support programs, but hard to find; too much bureaucracy and regulations.

  • Technology transfer process too complicated

  • Entrepreneurship education, commercial and legal infrastructure, and ability to enter markets all adequate.


ad