Chapter 3: The Entrepreneurial Mind-Set in
Organizations: Corporate Entrepreneurship.
Entrepreneurial Mind-Set in
Organizations
• The global economy is profoundly and substantively
changing organizations and industries throughout the
world, making it necessary for businesses to re examine
their purpose and to select and follow strategies that
have high probabilities of satisfying multiple
stakeholders.
Corporate Innovation Philosophy
• Despite the fact that entrepreneurship and innovation
are highly touted as a most viable strategy for
successful results in today’s corporation, the fact
remains that successful implementation of corporate
innovation has been quite elusive for most companies.
5 important practices for establishing
innovation-driven organizations.
• 1. Set explicit innovation Goals.
• 2. Create system of feedback and positive
reinforcement.
• 3. Emphasize individual responsibility.
• 4. Provide rewards for innovative ideas.
• 5. Do not punish failures.
Rules for an Innovative Environment
• 1. Encourage action.
• 2. Use informal meetings whenever possible.
• 3. Tolerate failure and use it as a learning experience.
• 4. Persist in getting an idea to a market.
• 5. Reward innovation for innovations sake.
• 6. Plan the physical layout of the enterprise to encourage information
communication.
• 7. Expect clever bootlegging of ideas secretly working on new ideal on
company time as well as personal time.
• 8. Put people on small teams for future-oriented projects.
• 9. Encourage personnel to circumvent rigid procedures and bureaucratic red
tape.
• 10. Reward and promote innovative personnel.
CORPORATE ENTREPRENEURSHIP
AND INNOVATION
• One researcher noted that corporate
innovation is a very broad concept that
includes the generation, development, and
implementation or new ideas or behaviors.
• An innovation can be a new product or
service, an administrative system, or a new
plan or program that pertains to
organizational members. In this context,
corporate entrepreneurship centers on
reenergizing and enhancing the firm’s ability
to acquire innovative skills and capabilities.
Obstacles to Corporate
Entrepreneurship and Innovation
• The obstacles to corporate entrepreneurship usually reflect
the ineffectiveness of traditional management techniques as
applied to innovation development. Understanding these
obstacles is critical to fostering corporate entrepreneurship,
because they are the foundation points for all other
motivational efforts.
• James Brian Quinn, an expert in innovation field found
the following factors in large corporations that have
exhibited successful innovations:
• Atmosphere and vision
• Orientation to the market
• Small, flat organizations
• Multiple approaches
• Interactive learning
• Skunk Words
Corporate Entrepreneurship
Strategy
• It is 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.
Developing the Vision
• The first step in planning a corporate entrepreneurship
strategy. The vision must be clearly articulated by the
organizations leaders however, the specific objectives
are then developed by the managers and employees of
the organizations.
Shared Vision is a critical element
for a strategy that seeks high
achievement.
Encouraging Innovation
• Corporations must understand • 9 behavior's that sabotage
and develop innovation as the innovation
key element in their strategy. 1. Discouraging
Innovation is described as 2. Pushing
chaotic and unplanned and
others insist that it is an 3. Rushing
systematical discipline. 4. Forcing
5. Criticizing
6. Confining
7. De-risking
8. Rejecting
9. Action
Two different types of
Innovation
• Radical Innovation – • Incremental Innovation –
launching of inaugural refers to systematic
breakthroughs evolution of a product or
service into newer or
larger markets.
Structuring the Work Environment
The goal is to create a work
environment which is highly
conducive to innovation and
entrepreneurial behaviors.
Each one should have the
opportunity to step into the
plate. The managerial
challenge becomes that of
using workplace design
elements to develop an
“innovation friendly internal
environment”
Methods of developing managers for
corporate entrepreneurship
• Management Support
• Autonomy/Work Discretion
• Rewards/Reinforcement
• Time Availability
• Organizational Boundaries
Control and Autonomy
These factors drive
corporate entrepreneurial
activity to produce high
levels of innovation
performance are likely
contingent upon a firm’s
ability to control
mechanisms for proper
selection on
entrepreneurial actions and
initiatives.
Preparation for Failure
Managing grief, therefore
represents a particularly
salient task in the context
of corporate
entrepreneurship practice
because the amount of
commitment essential to
project success is often
matched by corresponding
levels of grief when project
fails.
Preparing Management
Key decision makers must find ways to explain the
purpose of using a corporate innovation process to those
from whom entrepreneurial behaviors are expected.
1. The Entrepreneurial Experience
2. Innovative thinking
3. Idea Acceleration Process
4. Barriers and Facilitators to Innovative thinking
5. Sustaining Innovation teams
6. The Innovation Action Plan
Developing I-Teams
Hold for producing innovative results are recognized as a
twenty-first century productivity breakthrough. This
strategy is self-directing, self-managing and high
performing these fits all of these description about these
strategy.
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