Chapter 2

Entrepreneurial orientation toward growth

A focus on rapid growth

Entrepreneurial orientation toward opportunity

-Commitment to take action on potential opportunities -Make the most of windows of opportunity -Can withdraw resources from a particular opportunity, and do so quickly

Entrepreneurial orientation toward culture

-Encourages employees to generate ideas, and engage in tasks that might produce opportunities -Often the source of new opportunities for new entry

Entrepreneurial orientation toward management structure

-Has a more organic focus -Has few layers of bureaucracy between top management and the customer -able to capture and communicate more info from the external environment

Characteristics of an Entrepreneurial Environment

-Organization operates on frontiers of technology -New ideas encouraged -Trial and error encouraged -Failures allowed -No opportunity parameters -Resources available and accessible -Multidiscipline teamwork approach -Long time horizon -volunteer program -Appropriate reward system -Sponsors and champions available -Support of top management

Leadership Characteristics of a Corporate Entrepreneur

-Understands the environment -is visionary and flexible -creates management options -encourages teamwork -encourages open discussion -builds a coalition of supporters -persists

Causes of interest in corporate entrepreneurship

-a desire for responsibility -the strong need for individual expression and freedom -not happy with structured organization

Entrepreneurial Activities consist of these 4 key elements

1) New business venturing: creation of a new business 2) Innovativeness: emphasis on development and innovation in technology 3) Self-Renewal: transformation of key ideas 4) Proactiveness: initiative and risk taking, competitive aggressiveness and boldness

Steps to establishing entrepreneurship in an organization

1) Secure a commitment from top, upper, and middle management levels 2) Ideas and general areas that top management is interested in supporting should be identified, along with the amount of risk money that is available to develop the concept further 3) Use of technology to ensure organizational flexibility 4) Identify interested managers to train employees 5) Develop ways to get closer to the customers 6) Learn to be more productive with fewer resources 7) Establish a strong support structure for corporate entrepreneurship 8) The rewards to the performance of the entrepreneurial unit 9) Evaluation system should be such that successful entrepreneurial units thrive and unsuccessful ones are eliminated

Restoration Orientation

An approach to negative emotions based on both avoidance and proactiveness toward secondary sources of strees arising from a major loss and allows for an opportunity to increase one's knowledge of entrepreneurship

Loss Orientation

An approach to negative emotions that involves working through and processing some aspect of the loss experience and as a result of this process, breaking emotional bonds to the object loss

Problems/Successes with Corporate Entrepreneurship

Compared to new ventures started within a corporation, independent start-ups perform better and end up twice as profitable **because corporation's difficulty in maintaining a long-term commitment, lack of freedom to make autonomous decisions, and constrained environment

Entrepreneurial philosophy toward rewards

Compensation is based on generation and exploitation of opportunity -Ability to experiment with opp. and being rewarded accordingly

Corporate Entrepreneurship

Entrepreneurial action within an established organization -capitalizes on individuals who can do things differently and better -an increase in CE reflects an increase in social, cultural, and business pressure.

Strategic Orientation

Focuses on factors that are inputs in formulation of the firm's strategy -The philosophy of the firm that drives its decision about strategy

Entrepreneurial orientation toward control of resources

focuses on how to access others' resources

Dual process model of coping with negative emotions

involves oscillation between a loss orientation and a restoration orientation

Entrepreneurial orientation toward commitment of resources

minimizes resources that would be required in pursuing a particular opportunity