Ch 2 The Process of Corporate Innovation

Top management entrepreneurial behaviors consist of

Ratifying, recognizing and directing

With the strategic entrepreneurship approach, innovation can be in these five areas

Strategy Product Served markets Internal organization Business model

Managerial outcomes of effective entrepreneurial behavior are

contribution to strategy implementation, enhancement of skills set, stronger link to cover competencies, bonuses, salary increases, promotions and recognition.

Managerial outcomes of ineffective entrepreneurial behavior are

insufficient contributions to strategy implementation and an increase in training and development

Operational Management organizational antecedents consist of:

Entrepreneurial training Work design discretion Organizational culture Team building skills

What 3 responsibilities must senior managers assume in order to sustain the corporate innovation process in an organization?

Establish a clear definition of the challenges that everyone should address, create self-confidence within all employees and clear out obstacles.

What is the third step in planning a corporate innovation strategy?

Establish an innovative ENVIRONMENT.

Operating management entrepreneurial behaviors consist of

Experiencing, adjusting and confirming.

Some problems that cause corporations to pursue innovation

Increased global competition Downsizing of organizations seeking greater efficiency Changes in the marketplace Perceived weaknesses in traditional methods of org management Innovative minded employees

What are the three different trajectories of innovation?

Incremental, disruptive and radical

What five factors are necessary for an innovative environment to flourish?

Managements support, work discretion/autonomy, rewards/reinforcement, time availability and organizational boundaries

Critical obstacles in the corporate innovation process

No time Poor rewards Underfunded Job domain No allies Fellow employees

Organizational outcomes of entrepreneurial behaviors include

Strategic renewal, creation of new ventures, enhanced reputation, development of value-creating core competencies, effective strategic adaptation, increased organizational knowledge, more innovative behavior, improved financial performance, increased market share and enhanced reputation.

Middle management organizational antecedents consist of:

Support from top management Available time Work discretion/autonomy Effective Reinforcement

Collective entrepreneurship

Where individual skills are integrated into a group and their collective capacity to innovate becomes greater than the sum of its parts.

What are 3 benefits of relying on co-optation for resource acquisitioning?

reduced cost of start-up reduced risk by decreasing the initial investment increase the ROA of the venture

Innovation teams should exhibit these four characteristics.

self-directing, self-managing, high-performing and empowering.

The vision must be clearly articulated by ____________________ and the specific objectives should be developed by _____________________.

the organization's leaders; the managers and employees.

Corporate innovation strategy

A vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity.

Corporate venturing

Adding new business or portions of new businesses to the corporation

Corporate Entrepreneurship Assessment Instrument

An instrument used to measure the effectiveness of the CIP that resulted in the identification of five factors necessary for an innovative environment.

Social capital

An inventory of trust, gratitude, or obligations that can be "cashed in" when the new project is in demand.

Champion (venture team key role)

Any individual who makes a decisive contribution to the project by promoting its progress through the critical early stages, particularly up to the point of implementation.

Why is corporate innovative activity difficult?

Because it involves radically changing traditional forms of internal corporate behavior and structural patterns

What are the four strategies for co-optation?

Borrowing, begging, scavenging and amplifying

What are two methods for handling the obstacles of innovation?

Building social capital and acquiring resources

How can corporations develop key managers for innovative leadership?

By implementing a Corporate Innovation Program.

Middle management entrepreneurial behaviors consist of

Championing, synthesizing, facilitating and implementing

What is the major method of securing necessary resources?

Co-optation or leveraging or the resources currently underutilized by the firm

What are the two ways of executing corporate entrepreneurship strategy?

Corporate venturing and strategic entrepreneurship

Top management organizational antecedents consist of

Decision discretion Entrepreneurial mind-set Organizational culture Effective governance mechanisms

What is the fourth step in planning a corporate innovation strategy?

Developing MANAGERS for corporate innovation leadership

What is the second step in planning a corporate innovation strategy?

Encouraging INNOVATION

What are the 5 key roles to fill in a venture team?

Innovator, venture manager, champion, innovative CEO, sponsor.

What are some external transformational triggers that cause organization to pursue innovative strategies?

Intense competition Rapid technology change Shorter product life cycles

Corporate venturing can be accomplished through three implementation modes:

Internal corporate venturing Cooperative corporate venturing External corporate venturing

Fellow employees can be an obstacle to innovation and many new ideas are blocked by:

Uninformed judgements neophobia caution politics

What five critical elements are needed in the implementation of any innovation strategy?

Vision, innovation, environment, managers and teams

Strategic entepreneurship

Developing large-scale or highly consequential innovations that are adopted in the firm's pursuit of competitive advantage

What are two key rules that 3M follows to encourage innovation?

Don't kill a project and tolerate failure

What is the fifth step in planning a corporate innovation strategy?

Encouraging the creation and use of innovation TEAMS.

How can you build social capital?

Sharing information Creating opportunities for people to demonstrate their skills and competence Building and using influence networks

What is the first step in planning a corporate innovation strategy?

Sharing the VISION of innovation that the corporate leaders wish to achieve.

The Corporate Innovation Program consists of these 7 modules.

The Innovative Experience Innovative Thinking Idea Acceleration Process Barriers and Facilitators to Innovative Thinking Sustaining Innovative Teams The Innovation Plan Assessing the Innovative Culture

Amplification

The capacity to leverage far more value out of an asset than is perceived by the original owner of the asset

neophobia

The dread of anything new, fear of the unknown.

Sponsor (venture team key role)

The high-level person in the parent company who acts as buffer protect and modifier to rules and policies and who helps the venture obtain the needed resources.

Innovative CEO (venture team key role)

The individual who is in charge of the venture and controls the allocation of resources.

Corporate innovation or intrapreneurship

The innovative activity inside of the organization where individuals (innovators) will champion new ideas from development to complete reality

Venture manager (venture team key role)

The internal entrepreneur responsible for the overall progress of the project.

Innovator (venture team key role)

The person who has made the major technical innovation.