Chapter 13 : Chapter 13 Corporate Entrepreneurship
and Innovation Michael A. Hitt
R. Duane Ireland
Robert E. Hoskisson ©2000 South-Western College Publishing
Slide2 : Small Firms and Innovation
What is entrepreneurship? : What is entrepreneurship? Defined simply, it is . . .
“New Entry”
That is, “entering new or established markets with new or existing goods and services.”
Entrepreneurship takes many forms : Entrepreneurship takes many forms New Established Products
&
Services New Existing Markets
Slide5 : Defining Entrepreneurship
An “Entrepreneurial Orientation” (EO) provides a larger view of entrepreneurship : An “Entrepreneurial Orientation” (EO) provides a larger view of entrepreneurship EO refers to more than just new venture creation.
It involves drawing on an entrepreneurial perspective to achieve strategic renewal.
It refers to a mindset that affects company practices and decision-making styles
An Entrepreneurial Orientation consists of Five Dimensions : An Entrepreneurial Orientation consists of Five Dimensions Innovativeness
Risk Taking
Proactiveness
Competitive Aggressiveness
Autonomy
INNOVATIVENESS : INNOVATIVENESS A willingness to support creativity and experimentation in introducing new products/services, and novelty, technological leadership and R&D in developing new processes; key is using creative insights to achieve innovative solutions.
RISK TAKING : RISK TAKING A tendency to take bold actions by venturing into the unknown and/or committing a large portion of resources to ventures with uncertain outcomes; key is to reduce uncertainty by effective risk assessment.
PROACTIVENESS : PROACTIVENESS A response to opportunities; occurs when a firm has an opportunity-seeking, forward-looking perspective characterized by introducing new products or services ahead of the competition and acting in anticipation of future demand.
COMPETITIVE AGGRESSIVENESS : COMPETITIVE AGGRESSIVENESS A response to threats; refers to the intensity of a firm's effort to outperform industry rivals, characterized by a strong offensive posture or an aggressive responses to competitor actions.
AUTONOMY : AUTONOMY Independent action taken by entrepreneurial champions or teams aimed at bringing forth a new venture and carrying it through to completion.
Slide13 : Successful Entrepreneurship The key to success with entrepreneurship and innovation is moving from the invention of ideas to effective commercialization and acceptance in the marketplace
Slide14 : Timely Difficult for
competitors to imitate Commercially exploitable
with present capabilities Innovation and Competitive Advantage Competitive
Advantage Provides significant
value to customers
Slide15 : Fostering Entrepreneurial Innovation Internal Corporate Venturing Three approaches: Cooperating to Produce Innovation Acquiring Innovative Capability
Slide16 : Internal Corporate Venturing
Slide17 : Internal Corporate Venturing
Slide18 : Appropriating Value from Innovation
Slide19 : Cooperating to Produce Innovation
Slide20 : Acquiring Innovative Capability