Hitt - Chapter 13
MGNT428 Spring 2006 Dr. Gar Wiggs, Instructor
Knowledge Objectives
After this session, you should have an understanding of the strategic management knowledge needed to:
Define and explain strategic entrepreneurship. Describe the importance of entrepreneurial opportunities, innovation, and entrepreneurial capabilities. Discuss the importance of international entrepreneurship. Describe autonomous and induced strategic behaviorthe two forms of internal corporate venturing.
Figure 1.1
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Strategic Entrepreneurship
Strategic Entrepreneurship
Taking entrepreneurial actions using a strategic perspective Engaging in simultaneous opportunity seeking and competitive advantage seeking behaviors Designing and implementing entrepreneurial strategies to create wealth
Entrepreneurial Opportunities
Entrepreneurial Opportunities
Conditions in which new products or services can satisfy a need in the market
Innovation Process
Invention
The act of creating or developing a new product or process Brings something new into being Technical criteria are used to determine the success of an invention
Innovation Process
Invention
Innovation
The process of creating a commercial product from an invention Brings something new into use. Commercial criteria are used to determine the success of an innovation
Innovation Process
Invention
Innovation
Imitation
The adoption of an innovation by similar firms Usually leads to product or process standardization Products based on imitation often are offered at lower prices but with fewer features
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Corporate Entrepreneurship
Innovations produced in large established firms
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Entrepreneurs
Entrepreneurs
Individuals acting independently or as part of an organization who create a new venture or develop an innovation, take risks entering innovations into the marketplace Can be any manager or employee in an organization
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Entrepreneurial Capabilities
Entrepreneurial capabilities include:
Intellectual capital Entrepreneurial mind-set Transfer of entrepreneurial competence to others in the organization Effective human capital
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International Entrepreneurship
Entrepreneurship can:
Fuel economic growth Create employment Generate prosperity for citizens
There is a strong positive relationship between the rate of entrepreneurial activity and economic development in a nation
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International Entrepreneurship
There must be a balance (in the culture) between
individual initiative and the spirit of cooperation and group ownership of innovation
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SOURCE: Adapted from R. A. Burgelman, 1983, A model of the interactions of strategic behavior, corporate context, and the concept of strategy, Academy of Management Review, 8: 65.
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Organizational politics
Aggressive competition for resources among different organizational functions Must achieve cross-functional integration with minimal political conflict
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Effective leadership
Sets goals and allocates resources Goals include integrated development and commercialization of new goods and services
Effective communication
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Firms innovate through the sharing their knowledge and skills in a cooperative relationship
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