Ch. 3: Corporate Entrepreneurship
Creating Successful Innovations in Large Corporations
1) Atmosphere and vision 2) Orientation to the market 3) Small, flat organizations 4) Multiple approaches 5) Interactive learning 6) Skunk Works
Five Factors to Structuring the Work Environment to Pursue Innovative Activity
1) Management Support 2) Autonomy/Work Discretion 3) Rewards/Reinforcement 4) Time Availability 5) Organizational Boundaries
Five Steps to Encourage Corporate Innovation
1) Set explicit innovation goals 2) Create a system of feedback and positive reinforcement 3) Emphasize individual responsibility 4) Provide rewards for innovative ideas 5) Do not punish failures
Corporate Innovation Philosophy
In order to establish an entrepreneurial mindset, organizations need to provide the freedom and encouragement required for employees to develop their ideas. Top managers often find it difficult to provide this type of freedom to others in the organization.
Incremental Innovation
refers to the systematic evolution of a product or service into newer markets
Management Key Decision Makers Must
1) find ways to explain the purpose of using a corporate innovation process to those from whom entrepreneurial behaviors are expected 2) Corporate Entrepreneurship training programs 3) Developing Innovation Teams
The Entrepreneurial Mind-Set in Organizations
Corporate strategy has shifted to a focus on innovation with an emphasis on entrepreneurial thinking Entrepreneurship as the major force in American business has led to a desire for this type of activity inside enterprises.
The Five Critical Steps of a Corporate Entrepreneurship Strategy
1) developing the vision 2) encouraging innovation 3) structuring for an entrepreneurial climate 4) preparing individual managers for corporate innovation 5) developing venture teams
The Arising Need for Corporate Entrepreneurship
1) rapid growth in the number of new and sophisticated competitors 2) a sense of distrust in the traditional methods of corporate management 3) some of the best and brightest people from corporations become small- business entrepreneurs themselves 4) international competition 5) downsizing of major corporations 6) an overall desire to improve efficiency and productivity
Corporate Entrepreneurship (a.k.a. Corporate Innovation and Intrapreneurship)
The infusion of entrepreneurial thinking inside large bureaucratic structures.
Corporate Entrepreneurship and Innovation
The major thrust of corporate innovation is to develop the entrepreneurial spirit within organizational boundaries, thus allowing an atmosphere of innovation to prosper. A company must always be ready and willing to accept innovations or it will quickly become obsolete. The modern corporation must develop in-house entrepreneurship or face stagnation, loss of personnel, and decline.
Obstacles to Corporate Entrepreneurship and Innovation
The obstacles to corporate entrepreneurship are usually due to ineffective traditional management techniques. The adverse effects of traditional management principles applied to new venture development must be considered and corrected.
How to Sustain Corporate Entrepreneurship
is contingent upon individual members continuing to undertake innovative activities and upon positive perceptions of the activity by the organization's executive management, which will in turn support the further allocation of necessary organizational antecedents. perceived implementation/output relationships at the organizational and individual levels for sustaining corporate entrepreneurship
Corporate Entrepreneurship Strategy
is manifested through the presence of an entrepreneurial strategic vision, a pro-entrepreneurship organizational architecture, and entrepreneurial processes and behavior exhibited across the organizational hierarchy. The strategy is about creating self-renewing organizations through the unleashing and focusing of entrepreneurial potential that exists throughout those organizations.
Radical Innovation
takes experimentation and determined vision, which are not necessarily managed
