Chapter 20 Corporate Entrepreneurship - Edu @...
Transcript of Chapter 20 Corporate Entrepreneurship - Edu @...
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Chapter 20
Corporate Entrepreneurship
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Chapter 20
Corporate Entrepreneurship
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Learning outcomes
• Define the term ‘corporate entrepreneurship’
• Discuss the different forms of corporate entrepreneurship
• Discuss the corporate entrepreneurial life cycle
• Understand the concept entrepreneurial intensity and how it
can be measured
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Learning outcomes (cont.)
• Understand the role of a corporate entrepreneurship culture
• List the typical characteristics of the corporate
entrepreneurs
• Explain the constraints placed on corporate
entrepreneurship
• Explain how corporate entrepreneurship can be promoted
in an organisation
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Corporate entrepreneurship
Corporate entrepreneurship is a term that is used to describe
entrepreneurial activity within an existing business.
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Manager versus corporate entrepreneur
Manager Corporate entrepreneur
• Vision
• Calculated Risks
• Organising
• Planning
• Coordination
• Control
• Strong sense to report
• Apply managerial principles
• Strong sense of accountability
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Forms of corporate
entrepreneurship • Corporate Venturing, which includes:
o Internal Venturing – New business in existing firm
o New Venturing – New business added on existing
business
• Strategic Renewal– redefine firm relationship with external
environment
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Corporate entrepreneurial
cycle The different stages a company goes through from being very
creative (in early stages) to becoming very formal (as business
grows into a thriving organisation) and settling in with products,
services, processes and systems.
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Corporate entrepreneurial intensity (CEI)
• The degree and frequency of entrepreneurial activity in an existing
business
A company’s CEI will vary according to :
• Internal (type of management structure in place; decision making
routes, policies, rules and regulations in place)
• External factors (competition, government legislation, customer
base) with which they need to deal
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Corporate entrepreneurship culture
Basic beliefs and assumptions about what the company is
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Corporate entrepreneurship culture Steps to find, support and nurture a firm’s own entrepreneurs:
1. Break the silos
2. Identify and foster talent
3. Create the right environment
• Open to risk-taking; encourage trusting relationships; build skills and
knowledge; offer management support; permit access to resources;
maintain supportive organisational structure; set realistic performance
goals
4. Continually asses the environment
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Individual characteristics of the
corporate entrepreneur • Middleclass person
• Highly educated
• Some technical background
• Requires freedom
• Access to company resources
• Self-motivated
• Wants corporate recognition and rewards
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Constraints on corporate
entrepreneur • Strategic direction
• Systems
• Structures
• Policies and procedures
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Promoting corporate entrepreneurship
• Allow employees to experiment with low risk opportunities.
• Listen to new employees and young people.
• Recognise and reward employees for new innovations
• Provide a flow of capital
• Occasionally intentionally set unreasonable goals
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Measuring instruments
• Miller & Friesen (1982) – self-administered 28 question questionnaire
completed by owner/manager
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Measuring instruments (cont.) • Other aspects to measure corporate innovation:
o Surveys of stakeholder opinions
o New sales to new customers
o Measurement of incidence
o Increase in value of IP
o Share-price premium
o Employee retention
o Collaborations and partnerships
o Alignment between strategy and culture