What is the difference between focused and dispersed ...
What is the difference between focused and dispersed approaches to corporate entrepreneurship (CE)? -
2 distinct approach to corporate venturing: 1. Focused corporate venturing, in which CE activities are isolated from a firm’s existing operations and worked on by independent work units o Creation of autonomous work groups that pursue entrepreneurial aims independent of the rest of the firm o Advantage: frees entrepreneurial team member to think and act without constraints imposed by existing organizational norms and routines o Disadvantage: because of their isolation from the corporate mainstream, the work groups that concentrate on internal ventures may fail to obtain the resources or support needed to carry an entrepreneurial project through to completion 2. Dispersed corporate venturing, in which all parts of the organization and every organization member are engaged in intra-preneurial activities (entrepreneurship within a business) o Dedication to the principle and practices of entrepreneurship are spread throughout the organization o Advantages: organizational members do not have to be reminded to think entrepreneurially or be willing to change—ability to change considered core capability; because of the firm’s entrepreneurial reputation, stakeholders can bring new ideas or venture opportunities to anyone in the organization and expect them to be well received o Disadvantages: firms that are overzealous about CE sometimes feel they must change for the sake of change, causing them to lose vital competencies or spend heavily on R&D and innovation to the detriment of the bottom line
Describe how the entrepreneurial orientation (EO) dimensions of innovativeness, proactiveness, and risk taking can be combined to create competitive advantages for entrepreneurial firms. ENTREPRENEURIAL ORIENTATION (EO) -
The strategy-making processes that businesses use in identifying and launching corporate ventures 5 dimensions that permeate the decision-making styles and practices of the firm’s members: 1. Autonomy o Independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion. o Willingness to act independently to carry forward an entrepreneurial vision or opportunity o Applies to both individuals and teams that operate outside an organization’s existing norms and strategies o Autonomous work units used to leverage existing strengths in new arenas, identify opportunities that are beyond the organization’s current capabilities, and encourage development of new ventures or improved business practices o Disadvantages: lack coordination; excessive decentralization has a strong potential to create inefficiencies (i.e. duplication of effort and wasting resources on projects with questionable feasibility) 2. Innovativeness o A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes. o A firm’s attitude toward innovations and willingness to innovate o Involves creativity and experimentation
o Requires that firms depart from existing technologies and practices o Disadvantages: expenditures on R&D aimed at identifying new products or processes can be a waste of resources if the effort foes not yield results; competitive environment—another company may develop a similar innovation or find a use for it that is more profitable; R&D and other innovation efforts are among the first to be cut back during an economic downturn
2 distinct approach to corporate venturing: 1. Focused corporate venturing, in which CE activities are isolated from a firm’s existing operations and worked on by independent work units o Creation of autonomous work groups that pursue entrepreneurial aims independent of the rest of the firm o Advantage: frees entrepreneurial team member to think and act without constraints imposed by existing organizational norms and routines o Disadvantage: because of their isolation from the corporate mainstream, the work groups that concentrate on internal ventures may fail to obtain the resources or support needed to carry an entrepreneurial project through to completion 2. Dispersed corporate venturing, in which all parts of the organization and every organization member are engaged in intra-preneurial activities (entrepreneurship within a business) o Dedication to the principle and practices of entrepreneurship are spread throughout the organization o Advantages: organizational members do not have to be reminded to think entrepreneurially or be willing to change—ability to change considered core capability; because of the firm’s entrepreneurial reputation, stakeholders can bring new ideas or venture opportunities to anyone in the organization and expect them to be well received o Disadvantages: firms that are overzealous about CE sometimes feel they must change for the sake of change, causing them to lose vital competencies or spend heavily on R&D and innovation to the detriment of the bottom line
Describe how the entrepreneurial orientation (EO) dimensions of innovativeness, proactiveness, and risk taking can be combined to create competitive advantages for entrepreneurial firms. ENTREPRENEURIAL ORIENTATION (EO) -
The strategy-making processes that businesses use in identifying and launching corporate ventures 5 dimensions that permeate the decision-making styles and practices of the firm’s members: 1. Autonomy o Independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion. o Willingness to act independently to carry forward an entrepreneurial vision or opportunity o Applies to both individuals and teams that operate outside an organization’s existing norms and strategies o Autonomous work units used to leverage existing strengths in new arenas, identify opportunities that are beyond the organization’s current capabilities, and encourage development of new ventures or improved business practices o Disadvantages: lack coordination; excessive decentralization has a strong potential to create inefficiencies (i.e. duplication of effort and wasting resources on projects with questionable feasibility) 2. Innovativeness o A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes. o A firm’s attitude toward innovations and willingness to innovate o Involves creativity and experimentation
o Requires that firms depart from existing technologies and practices o Disadvantages: expenditures on R&D aimed at identifying new products or processes can be a waste of resources if the effort foes not yield results; competitive environment—another company may develop a similar innovation or find a use for it that is more profitable; R&D and other innovation efforts are among the first to be cut back during an economic downturn
