lecture 14 - corporate entrepreneurship.pdf

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Dr Noor Muhammad [email protected]

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  • Dr Noor Muhammad [email protected]

  • 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.

  • Definition

    Corporate Entrepreneurship is the term used to describe entrepreneurial behaviour in an established, larger organisation.

    Burns (2007)

  • 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.

  • 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)

  • 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

  • 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)

  • Culture

    Structure and size

    Leadership

    Organisational architecture Strategy

    Environment

  • 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)

  • Experience

    Form concepts

    Reflect Test

    concepts

    Know Why

    Know How

  • Experience

    Form concepts

    Reflect Test concepts

    Know How

    Mental Models Assumptions Theories about the

    world

    Know Why

  • 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.

  • 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

  • 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.

  • Entrepreneurial

    1. Results

    2. Job

    3. Open

    4. Loose

    Administrative

    1. Process orientation

    2. Employee orientation

    3. Closed system

    4. Tight control

    Hofsted (1990)

  • 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

  • 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

  • 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

  • Space

    Support

    Boundaries Direction CONSTRAINT

    Too much

    Too little

    Too few Too little

    Birkinshaw (2003)