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.
