An Entrepreneur and Leader I Dr. ZŽelimir William Todorovic Associate Professor in Small Business and Entrepreneurship Guest Editor, International Journal of Entrepreneurship and Small Business

Resource-Based View of the Firm Basic Assumption Types of resources -Tangible resources -Intangible resources -Organizational capabilities -Organizational competencies -Dynamic Capabilities

Need for Internal Allignment Management preferences Organization Resources Strategy External Environment

Continuum of Radical and Incremental Innovations Exhibit 12.1 Continuum of Radical and Incremental Innovations

Entrepreneurial Orientation DimensionDefinition AutonomyIndependent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion. Innovativeness A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes. ProactivenessA forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand.

Entrepreneurial Orientation (cont’d) DimensionDefinition Source: J. G. Covin and D. P. Sleving, “A conceptual Model of Entrepreneurship As Firm Behavior,” Entrepreneurship Theory & Practice, Fall 1991, pp. 7-25; G. T. Lumpkin and G. G. Dess, “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance,” Academy of Management Review 21, no. 1 (1996), pp ; D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science 29 (1983), pp CompetitiveAn intense effort to outperform industry rivals. It is characterized by a combative posture or an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace. aggressiveness Risk takingMaking decisions and taking action without certain knowledge of probable outcomes; some undertakings may also involve making substantial resource commitments in the process of venturing forward.

Traditional control system Based largely on the feedback approach Traditional approach is sequential Strategies are formulated and top management sets goals Ensuring Informational Control

Contemporary control system Interactive relationships between strategy formulation, implementation and control Two different types of control

Behavioral Control: Balancing Culture, Rewards, and Boundaries Contemporary approach - A balance between Culture Rewards Boundaries Traditional approach -Emphasizes comparing outcomes to predetermined strategies and fixed rules

Characteristics of Good Opportunities Attractive AchievableDurable Value creating Good Business Opportunity Before launching opportunity as a business Consider the resources available to undertake it Consider the characteristics of the entrepreneur pursuing it

A Leader’s Bases of Power

A Good Leader…. Successful traits of leaders at the highest level Technical skills Cognitive abilities Emotional intelligence Accounting, business planning, etc. Analytical reasoning, quantitative analysis, etc. Ability to work with others, passion for work, etc.

Portfolio Management Key Each circle represents one of the firm’s business units Size of circle represents the relative size of the business unit in terms of revenue

Management preferences Organization Resources Strategy External Environment