MGT 492 Test 1

Gazelle

- A business establishment with at least 20% sales growth in each year for five years, starting with a base of at least $100,000 in annual sales. - Gazelles are leaders in innovation - No gazelles survive

Innovation (I) Team

- A semi-autonomous self-directing, self-managing, high-performing group of two or more people who formally create and share the ownership of a new organization. - The leader is called a "innovation champion" or a "corporate entrepreneur."

Factors in large corporations that are successful innovators:

- Atmosphere and vision - Orientation to the market - Small, flat organizations - Multiple approaches - Interactive learning - Skunk Works

Social Entrepreneurs

- Creative thinkers continuously striving for innovation in technologies, supply sources, distribution outlets, or methods of production. - Change agents who create large-scale change using pattern-breaking ideas to address the root causes of social problems.

The Entrepreneur's Confrontation with Risk

- Financial risk versus profit (return) motive varies in entrepreneurs' desire for wealth. - Career risk—loss of employment security - Family and social risk—competing commitments of work and family - Psychic risk—psychological impact of failure on the well-being of entrepreneurs

Collective Entrepreneurship

- Individual skills are integrated into a group; this collective capacity to innovate becomes something greater than the sum of its parts.

Global Entrepreneurs

- Opportunity-minded and open-minded global thinkers able to see different points of view and weld them into a unified focus. - Rise above nationalistic differences to see the big picture of global competition without abdicating their own nationalities.

Typical Creative Process

- Phase 1: Background or knowledge accumulation - Phase 2: The incubation process - Phase 3: The idea experience - Phase 4: Evaluation and implementation

Types of Innovation

- Radical Innovation - Incremental Innovation

The Social Entrepreneurship Process

- Recognition of a perceived social opportunity translated into an enterprise concept. - Resources are acquired to execute the enterprise's goals.

Entrepreneurs

- Recognize opportunities where others see chaos, contradiction, or confusion - Are aggressive catalysts for change within the marketplace - Challenge the unknown and continuously create breakthroughs for the future - Focus their efforts on innovation, profitability and sustainable growth

Entrepreneurship: A Mind-Set

- Seeking opportunities - Taking risks beyond security - Having the tenacity to push an idea through to reality

Micro View: Internal Locus of Control

- The Entrepreneurial Trait School of Thought - The Venture Opportunity School of Thought - The Strategic Formulation School of Thought

Macro View: External Locus of Control

- The Environmental School of Thought - the Financial/Capital School of Thought - The Displacement School of Thought

Types of people involved with contemporary small business

- The entrepreneur - The manager - The technician

Radical Innovation

- The launching of inaugural breakthroughs. - These innovations take experimentation and determined vision, which are not necessarily managed but must be recognized and nurtured.

Incremental Innovation

- The systematic evolution of a product or service into newer or larger markets. - Many times the incremental innovation will take over after a radical innovation introduces a breakthrough.

Benefit Corporation

1. Purpose: To create a material positive impact on society and the environment. 2. Accountability: To have a fiduciary duty to consider the interests of workers, the community, and the environment. 3. Transparency: To report annually to the public on overall social and environmental performance with a credible and transparent third-party standard.

Ecovision

A leadership style that encourages open and flexible structures that encompass the employees, the organization, and the environment, with attention to evolving social demands.

Corporate Entrepreneurship

A process whereby an individual or a group of individuals, in association with an existing organization, creates a new organization or instigates renewal or innovation within the organization

Corporate Entrepreneurship 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 Social Responsibility

Actions that appear to further some social good, beyond the interests of the firm and that which is required by law and often denotes societal engagement of organizations

Social Entrepreneurship

Activities and processes undertaken to discover, define, and exploit opportunities in order to enhance social wealth by creating new ventures or managing existing organizations in an innovative manner

Triple Bottom Line (TBL)

An accounting framework that goes beyond the traditional measures of profit, return on investment, and shareholder value to include environmental and social dimensions.

Corporate entrepreneurship strategy is manifested through the presence of three elements

An entrepreneurial strategic vision A pro-entrepreneurship organizational architecture Entrepreneurial processes and behavior as exhibited throughout the organization

Entrepreneurship Theory

E=f(e)

Global Thinking

Entrepreneurs who expand into foreign markets think about how to design and adopt strategies for different countries.

Ecopreneruship

Environmental entrepreneurship with entrepreneurial actions contributing to preserving the natural environment, including the Earth, biodiversity, and ecosystems.

Sustainable Entrepreneurship

Focus on the preservation of nature, life support, and community.

Diaspora networks

Global networks of relationships among ethnic groups that share cultural and social norms. Advantages of Diaspora Networks: - They speed the flow of information across borders - They create a bond of trust. - They create connections that help entrepreneurs collaborate within a country and across ethnicities.

Corporate Innovation Philosophy

Important practices for establishing an innovation-driven organization: 1.Set explicit goals. 2.Create a system of feedback and positive reinforcement. 3.Emphasize individual responsibility. 4.Provide rewards based on results. 5.Do not punish failures.

Dealing with Failure (Restoration Orientation)

Involves both distracting oneself from thinking about the failure event and being proactive towards secondary causes of stress.

Dealing with Failure (Loss Orientation)

Involves focusing on the particular loss to construct an account that explains why the loss occurred.

Small Businesses Owners

Manage their businesses by expecting stable sales, profits, and growth

Right Brain

Nonverbal, Synthesizing, Seeing analogies, Nonrational, Spatial, Intuitive, Imaginative

Social Cognition Theory

Posits that knowledge structures (mental models of cognitions) can be ordered to optimize personal effectiveness within given situations.

The Entrepreneurial Mindset in Organizations

Response to rapid, discontinuous, and significant changes in companies external and internal environments in a global economy

The Entrepreneurial Ego

Self-Destructive Characteristics: - Overbearing need for control - Sense of distrust - Overriding desire for success - Unrealistic externalized optimism

Trends

Societal Trends: Aging demographics, health and fitness growth, senior living Technology Trends: Mobile (cell phone) technology, e-commerce, Internet advances Economic Trends: Higher disposable incomes, dual wage-earner families, performance pressures Government Trends: Increased regulations, petroleum prices, terrorism

Encouraging an Intrapreneurial Environment

Steps to help restructure corporate thinking and encourage an intrapreneurial environment: 1.Early identification of potential innovators 2.Top management sponsorship of innovative projects 3.Creation of innovation goals in strategic activities 4.Promotion of entrepreneurial thinking through experimentation 5.Development of collaboration between innovators and the organization at large

Cognitive Adaptability

The ability to be dynamic, flexible, and self-regulating in one's cognitions given dynamic and uncertain task environments.

Entrepreneurial Stress

The extent to which entrepreneurs' work demands and expectations exceed their abilities to perform as venture initiators, they are likely to experience stress. Sources: Loneliness, Immersion in business, People problems, Need to achieve

Entrepreneurial Cognition

The knowledge structures that people use to make assessments, judgments, or decisions involving opportunity evaluation, venture creation, and growth.

Cognition

The mental functions, processes (thoughts), and states of intelligent humans—attention, remembering, producing and understanding language, solving problems, and making decisions.

Left Brain

Verbal, Analytical, Abstract, Rational, Logical, Linear

The Myths of Entrepreneurship

•Myth 1:Entrepreneurs Are Doers, Not Thinkers •Myth 2:Entrepreneurs Are Born, Not Made •Myth 3:Entrepreneurs Are Always Inventors •Myth 4:Entrepreneurs Are Academic and Social Misfits •Myth 5:Entrepreneurs Must Fit the Profile •Myth 6:All Entrepreneurs Need Is Money •Myth 7:All Entrepreneurs Need Is Luck •Myth 8:Entrepreneurship Is Unstructured and Chaotic •Myth 9:Most Entrepreneurial Initiatives Fail •Myth 10:Entrepreneurs Are Extreme Risk Takers