Entrepreneurship Chapter 3

Bootlegging

Secretly working on new ideas on company time and personal time

Incremental innovation

The systematic evolution of a product or service into newer or larger markets

Secretly working on new ideas on company time as well as on personal time is referred to as:

bootlegging

The major thrust of corporate entrepreneurship is to:

increase morale

Which of the following is an obstacle to corporate entrepreneurship?

traditional management techniques

Skunk works

A highly innovative enterprise that uses groups functioning outside traditional lines of authority

Corporate entrepreneurship

A new corporate revolution taking place due to the infusion of entrepreneurial thinking into bureaucratic structures

Champion

A person with an innovative vision and the ability to share it

Corporate Entrepreneurship Assessment Instrument (CEAI)

A questionnaire designed to measure the key entrepreneurial climate factors

Innovation team (I-team)

An internal corporate team formulated for the purpose of creating new innovations for the organization

Intrapreneurship

Entrepreneurial activities that receive organizational sanction and resource commitments for the purpose of innovative results within an established corporation

T/F: Firms do not need to alter management techniques to encourage corporate entrepreneurship since it tends to occur naturally

False

T/F: Skunk works are project groups that work within the traditional lines of authority

False

T/F: Systematic evolution of a product or service into newer or larger markets is referred to as radical innovation

False

T/F: The resources of the organization are irrelevant to the ability of the corporate entrepreneur to implement an idea

False

Collective entrepreneurship

Individual skills integrated into a group wherein the collective capacity to innovate becomes something greater than the sum of its parts

Which of the following is true of corporate venturing?

It is the adding of new businesses or portions of new businesses via equity investments to the corporation

Strategic entrepreneurship

Large-scale or highly consequential innovations that are adopted in the firm's pursuit of competitive advantage. Using these approaches, innovation can be in five areas: the firm's strategy, product offerings, served markets, internal organization (i.e., structure, processes, and capabilities), or business model

Interactive learning

Learning ideas within an innovative environment that cut across traditional lines in the organization

Intracapital

Special capital set aside for the corporate entrepreneur to use whenever investment money is needed for further research ideas

Corporate venturing

The adding of new businesses (or portions via equity investments) to the corporation. This can be accomplished through three implementation modes: internal corporate venturing, cooperative corporate venturing, and external corporate venturing

Radical Innovation

The inaugural breakthroughs launched from experimentation and determined vision that are not necessarily managed but must be recognized and nurtured

T/F: Clever bootlegging of ideas refers to secretly working on new ideas on company time as well as on personal time

True

T/F: In the model of sustained corporate entrepreneurship discussed in the text, a transformational trigger can be internal or external to the company

True

T/F: Individuals may avoid corporate entrepreneurial behavior due to the impact of traditional management techniques

True

T/F: One reason that corporate entrepreneurship has become popular is because it allows corporations to tap the innovative talents of the personnel

True

T/F: Researchers have identified specific factors that organizations can concentrate on in helping individuals develop more entrepreneurial behavior

True

T/F: The first step in planning a strategy of corporate entrepreneurship is sharing the vision of innovation that executives wish to achieve

True

Top management support

When upper level managers in a corporation can concentrate on helping individuals within the system develop entrepreneurial behavior

All of the following are reasons for the growth of corporate entrepreneurship except:

a desire to dramatically increase profitability

Which of the following practices is important for establishing innovation-driven organizations?

create a system of feedback and positive reinforcement

The second step in planning a strategy of entrepreneurship for the enterprise is:

developing and encouraging innovation

Collective entrepreneurship, as a concept, refers to

entrepreneurial thinking that is diffused throughout the company

Which of the following terms refers to the systematic evolution of a product or service into newer or larger markets?

incremental innovation

In restructuring corporate thinking, top management should:

promote entrepreneurship through experimentation

Which of the following terms refers the inaugural breakthroughs launched from experimentation and determined vision?

radical innovation

The first step in planning a strategy of entrepreneurship for enterprise is

sharing the vision of innovation

Groups that function outside traditional lines of authority permitting rapid turnaround of new ideas as well as instilling a high level of group loyalty are called:

skunk works

Transformational triggers in a corporate entrepreneurial environment initiates the need for:

strategically adapting to change

Identified by researchers, which of the following are specific factors identified by the Corporate Entrepreneurship Assessment Instrument (CEAI) that managers in organizations can concentrate on in structuring an entrepreneurial climate?

top management support, time, autonomy, rewards, and organizational boundaries