lecture 14 - corporate entrepreneurship.pdf
TRANSCRIPT
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Dr Noor Muhammad [email protected]
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1. What is corporate entrepreneurship?
2. What is entrepreneurial architecture?
3. What is learning organisation?
4. What is entrepreneurial management versus traditional management?
5. What is entrepreneurial culture?
6. Freedom and control in an entrepreneurial organisation.
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Definition
Corporate Entrepreneurship is the term used to describe entrepreneurial behaviour in an established, larger organisation.
Burns (2007)
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1. Entrepreneurial behaviour in established, larger organisations.
2. Creation of new business units.
3. Development and implementation of entrepreneurial strategic thrusts.
4. Emergence of new ideas from all levels in the organisation.
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1. Corporate venturing: Galbraith (1982), Burgelman (1983), Drucker (1985), Christensen (1997)
2. Intrapreneurship: Kanter (1982), Pinchot (1985)
4. Entrepreneurial transformation: Peters & Waterman (1982), Ghoshal & Bartlett (1997), Kanter (1989), Tushman & OReilly (1996), Burns (2005)
Birkinshaw (2003)
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1. Grasp opportunity by innovating:
Doing things differently
2. Managing through uncertainty by:
Developing informal relationships and networks with customers, staff and suppliers
Continuous strategising, developing strategic options underpinned by a strong vision
Justifying risk through information and knowledge
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Architecture is the relational contracts within and around an organisation -
with customers, suppliers and staff. It is based on trust and underpinned by
mutual self-interest.
Kay (1993)
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Culture
Structure and size
Leadership
Organisational architecture Strategy
Environment
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The Learning Organisation
A learning organisation is one that:
Facilitates the learning of all its members and continuously transforms
itself.adapting, changing, developing and transforming themselves in
response to the needs, wishes and aspirations of people, inside and
outside.
(Pedler et al., 1991)
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Experience
Form concepts
Reflect Test
concepts
Know Why
Know How
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Experience
Form concepts
Reflect Test concepts
Know How
Mental Models Assumptions Theories about the
world
Know Why
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1. True learning is by acquiring both know-how and know-why through the wheel of learning and thereby understanding causality (cause & effect).
2. Mental models are shaped by and help shape experience.
3. Learning happens when you share, examine and challenge mental models.
4. The most important learning occurs on the job.
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1. Having vision and ideas
2. Long-term, strategic planning
3. Communication: Internal and External
4. Creating the culture by example
5. Monitoring and controlling performance
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The Entrepreneurial Leader
1. Providing a clear focus on key issues and concerns, on the right things.
2. Getting everyone to understand this focus through effective communication practices.
3. Acting consistently overtime to develop trust.
4. Demonstrating through actions that the leader cares for and respects the organisations members.
5. Creating empowering opportunities that involve the organisations members in making the right thing their own priorities.
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Entrepreneurial
1. Results
2. Job
3. Open
4. Loose
Administrative
1. Process orientation
2. Employee orientation
3. Closed system
4. Tight control
Hofsted (1990)
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Enhances learning
1. Balances interests of stakeholders
2. Focuses on people
3. Empowers people & makes them believe
4. Encourages open communication
5. Believes in teamwork
6. Has approachable leaders
Inhibits learning
1. Tasks more important than people
2. Focus on systems
3. Allows change only when necessary
4. Restricts information & communication
5. Believe in competition between individuals
6. Has controlling leaders
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Close supplier
relationships
Close relationships
with staff
Egalitarian Belief in
teamwork
Commitment
Sharing information &
knowledge Opportunistic Achievement orientation
Change is normal Work is fun
Self-confident but realistic
Celebrating success
Belonging, ownership
Close customer
relationships
Shared visions
Acquiring information &
knowledge
Building networks
People are important
Time for learning and innovation
Open communication
Emphasis on future
Personal responsibility
Attention to basics
Doing the right thing
Hands-on management
Strong relationships
Sharing information &
knowledge
Creative, innovate
Measured risk-taking
Empowered can-do staff
High-level attributes
Detailed elements of culture
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Organic structure
1. Open free-flowing communication
2. Allows different operating styles
3. Authority based on expertise of individual
4. Free to adapt to change
5. Emphasises getting things done
6. Loose and informal control
7. Behaviour shaped by situation & personality
8. Participative decision-making
Entrepreneurial management style
Mechanistic structure
1. Highly structure & restricted communication
2. Stresses uniform operating styles
3. Authority based on role & position
4. Reluctance to change
5. Emphasises compliance with processes &
procedures
6. Tight control
7. Behaviour constrained by job description
8. Hierarchical decision-making
Bureaucratic management style
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Space
Support
Boundaries Direction CONSTRAINT
Too much
Too little
Too few Too little
Birkinshaw (2003)