1 / 15

CHAPTER 13 ENTREPRENEURIAL IMPLICATIONS FOR STRATEGY

CHAPTER 13 ENTREPRENEURIAL IMPLICATIONS FOR STRATEGY. KNOWLEDGE OBJECTIVES. IMPORTANT DEFINITIONS . Organizational culture: the complex set of ideologies, symbols, and core values shared throughout the firm and that influence how the firm conducts business

jadzia
Download Presentation

CHAPTER 13 ENTREPRENEURIAL IMPLICATIONS FOR STRATEGY

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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. CHAPTER 13ENTREPRENEURIAL IMPLICATIONS FOR STRATEGY

  2. KNOWLEDGE OBJECTIVES

  3. IMPORTANT DEFINITIONS • Organizational culture:the complex set of ideologies, symbols, and core values shared throughout the firm and that influence how the firm conducts business • The social energy that drives—or fails to drive—the organization • Strategic entrepreneurship:entrepreneurial actions (exploiting found opportunities in the external environment) through a strategic perspective (innovation efforts) • Entrepreneurship dimension:identifying opportunities to exploit through innovations • Strategic dimension:determining the best way to manage the firm’s innovation efforts

  4. ENTREPRENEURSHIP AND ENTREPRENEURIAL OPPORTUNITIES • Entrepreneurship is concerned with: • The discovery of profitable opportunities • The exploitation of profitable opportunities • Entrepreneurship: the process by which individuals or groups identify and pursue entrepreneurial opportunities without the immediate constraint of the resources they currently control

  5. KEY CHAPTER POINTS THREE ‘I’s • Three types of innovation activities according to Schumpeter • ●Invention • ● Innovation • ● Imitation THREE WAYS TO INNOVATE • ● Internal - autonomous vs. induced • ● Cooperative strategies (e.g., strategic alliances) • ● Acquisitions

  6. INNOVATION • Innovation is the “specific function of entrepreneurship” (Drucker) It is “the means by which the entrepreneur either creates new wealth-producing resources or endows existing resources with enhanced potential for creating wealth” (Drucker) • It is a source of competitive success, especially in turbulent and highly competitive environments • For global markets, innovation is key for competitive parity at a minimum, much less for competitive advantage

  7. INNOVATION Invention • The act of creating or developing a new product or process • Brings something new into being • Technical criteria determine the success of an invention

  8. INNOVATION Invention Innovation • Process of creating a commercial product from an invention • Brings something new into use • Commercial criteria determine the success of an innovation

  9. INNOVATION Invention Innovation Imitation • Adoption of an innovation by similar firms • Usually leads to product or process standardization • Products based on imitation often are offered at lower prices and without as many features • Results of imitation • Product or process standardization • Products made with fewer features • Products offered at lower prices

  10. INTERNAL INNOVATION • Firms take deliberate efforts to develop inventions and innovations within the organization, selecting from several types of innovation and the specific processes through which each type is produced. • Most innovation is due to research and development (R&D): • Investments are uncertain • Often not achieved in the short term

  11. INTERNAL INNOVATION • Internal Corporate Venturing refers to the set of activities firms use to develop internal inventions and innovations: autonomous and induced

  12. INTERNAL INNOVATION • ■ Bottom-up process in which product champions pursue new ideas, often through a political process, to develop and coordinate the commercialization of a new good or service • ■ Product champion: individual with an entrepreneurial vision of a new good or service who seeks to create support in the organization for its commercialization • ■ Autonomous strategic behavior is focused on firm’s knowledge and resources • ■ Knowledge must be continuously diffused throughout the firm

  13. INTERNAL INNOVATION Induced strategic behavior • Top-down process whereby the firm’s current strategy and structure foster product innovations that are closely associated with that strategy and structure

  14. INNOVATION THROUGH COOPERATIVE STRATEGIES • To successfully commercialize inventions, firms may need to cooperate and integrate knowledge and resources • Entrepreneurial new venture firms may need investment capital and distribution capabilities • More established companies may need new technological knowledge possessed by newer entrepreneurial firms • To innovate via cooperative relationships, firms must share their knowledge and skills – strategic alliances and joint ventures allow this to occur

  15. INNOVATION THROUGH ACQUISITIONS • Rapidly extend the product line • Increase the firm’s revenues • KEY RISK: a firm may substitute its ability to buy innovations for its ability to produce innovations internally • A firm may: • Lose its intensity in R&D efforts • Lose its ability to produce patents • Research demonstrates that subsequent to acquisitions, firms introduce fewer new products into the market • This is because firms focus on the financial controls at the expense of strategic control

More Related