Chapter2ClassLecture_D2L.pptx

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Section 1 The Entrepreneurial Perspective Chapter 2 Corporate Entrepreneurship

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LEARNING OBJECTIVES Causes of interest in corporate entrepreneurship   “Entrepreneurial” mode of managing firms and distinguish it from the traditional mode   Management adopts entrepreneurial or traditional behaviors   Established firms can develop an entrepreneurial culture   Dual process model for maximizing learning from failure experiences

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Interest in Corporate Entrepreneurship There is an interest in entrepreneurship within organizations. Developing corporate entrepreneurship , helps overcome resistance to flexibility, growth, and diversification. Entrepreneurial endeavors consist of four key elements: New business venturing. Organizational innovativeness. Self-renewal. Proactiveness .

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Strategic Orientation and Commitment to Opportunity Both entrepreneurship and strategy have important implications for the performance of the firm. Strategic orientation Entrepreneurial management An entrepreneurial orientation toward opportunity

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Commitment of Resources and Control of Resources An entrepreneurial orientation toward the commitment of resources minimizes resources needed to pursue an opportunity. Entrepreneurially managed firms are less concerned about ownership of resources than about access to others’ resources. In contrast, traditionally managed firms focus on the ownership and accumulation of resources.

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Management Structure and Reward Philosophy An entrepreneurial orientation toward management structure is organic A traditionally managed firm’s structure is suited for internal efficiencies Entrepreneurially managed firms focus on pursuing opportunity Traditionally managed firms reward based on responsibilities.

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Growth Orientation and Entrepreneurial Culture A firm with an entrepreneurial orientation toward growth has a strong desire to expand the firm, rapidly. Culture distinguishes entrepreneurially and traditionally managed firms. Most firms fall somewhere between traditionally managed and entrepreneurially managed.

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Characteristics of an Entrepreneurial Environment Organization operates on frontiers of technology. New ideas are encouraged. Trial and error is encouraged. Failures are allowed. No opportunity parameters. Resources are available and accessible. Multidiscipline teamwork approach. Long time horizon. Volunteer program. Appropriate reward system. Sponsors and champions available. Support of top management.

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Leadership Characteristics of Corporate Entrepreneurs A corporate entrepreneur understands the environment. They must be a visionary leader – a person dreaming great dreams. They must be flexible and create management options. They encourage teamwork, using a multi-disciplined approach. Corporate entrepreneurs encourage open discussion. Openness leads to a strong coalition of supporters. A corporate entrepreneur must be persistent to make a new venture successful.

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Establishing Corporate Entrepreneurship The first step is to secure top management commitment . Second, identify areas of interest and money available. Third, use technology to make the company more flexible. Fourth, interested managers will train employees. Fifth, develop ways to get closer to customers. Sixth, learn to be more productive with fewer resources. Seventh, establish a strong support structure. Eighth, tie rewards to performance of the entrepreneurial unit. Finally, allow successful units to expand and unsuccessful ones to be eliminated.

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Problems and Successful Efforts One study found new ventures started within a corporation performed worse than those started independently. There are successfully implemented corporate entrepreneurship. 3M allows employees to devote a percent of their time to independent projects - the most successful being Post-It notes. Problems are not insurmountable and implementing corporate entrepreneurship can lead to new products, growth, and a new corporate environment and culture.

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Learning From Failure Sometimes initiatives fail to achieve their objectives and are terminated. Individuals using a dual process model of coping with negative emotions recover more easily. The dual process requires oscillating between two alternate approaches to loss. Loss orientation A restoration orientation

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Practical Implications of the Dual Process Knowledge that the feelings of loss are normal may reduce feelings of shame and embarrassment. Realizing the psychological and physiological outcomes caused by the loss are “symptoms” There is a process of recover from a failure to learn The dual process model of copying with negative emotions. Recovery from loss

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LEARNING OBJECTIVES REVIEW To understand the causes of interest in corporate entrepreneurship .   To introduce the “entrepreneurial” mode of managing firms and distinguish it from the traditional mode.   To provide a scale for capturing the extent to which management adopts entrepreneurial or traditional behaviors.   To discuss how established firms can develop an entrepreneurial culture and the challenges of doing so.   To acknowledge that projects fail and people feel bad about it, and to introduce the dual process model for maximizing learning from failure experiences.

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Click to edit Master title style Click to edit Master text styles Second level Third level Fourth level Fifth level ©McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.  No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education. Prof. Edward Papabathini ICS: 394 Entrepreneurship Strategy

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Slide 1 Amy Papabathini, Edward 81 2020-06-11T06:16:52Z 2018-08-24T14:57:00Z 2020-06-17T23:04:23Z

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