1. Corporate Entrepreneurship ss 5-8
Mikkel Draebye

2. Agenda Session 5-8 Where are we, What are we doing
Flashback: What’s so interesting about Rob?
Recall: Definitions of entrepreneurship
Entrepreneurial Attitude : October Sky
Relevance of e-ship

3. Where are we?
Course is about understanding corporate entrepreneurship; How to foster, stimulate and nurture it
The course is structured in 5 parts
The nature of entrepreneurship from a behaviorial (R&R) and attitudinal (October sky) point of view ( ch 1&2, session 1-6)
The relevance of entrepreneurship (ch 1&2, session 7-8)
The uniqueness (and non) of corporate entrepreneurship (ch. 1&2, session 9-10)
The definition, measurement and manifestations of corporate entrepreneurship (ch. 2&3, session 11-12)
How foster corporate entrepreneurship (ch 4-15, session 13-44)

4. R&R Case
So, remind me what Rob did that was “entrepreneurial” ?

5. Some definitions of entrepreneurship
“The pursuit of opportunity beyond the resources you currently control”
Howard Stevenson (1988)
“The process of creating value by bringing together a unique combination of resources to exploit an opportunity”
Howard Stevenson (1986)
“Create and build a vision from practically nothing”
Jeffrey Timmons (2000)

6. Promoter vs. Trustee Orientation

7. Promoter vs. Trustee Orientation

8. Promoter vs. Trustee Orientation

9. Promoter vs. Trustee Orientation

10. Promoter vs. Trustee Orientation

11. Promoter vs. Trustee Orientation

12. Promoter vs. Trustee Orientation

13. “The Entrepreneurial Mindset”
It makes good sense to look as entrepreneurship as an attitude or orientation. As such it must be observed as it is interpreted by the entrepreneur.
“The Entrepreneurial Mindset”
A collective investigation into the nature of entrepreneurship and some context conditions
What is that entrepreneurs do that makes them entrepreneurial?
What is that entrepreneurs do that make them succeed?
What is it that facilitates entrepreneurial success?

14. Part 1: Intro and Context

15. Part 2: Idea & Vision

16. Part 3: Starting up

17. Part 4: Team and resources

18. Part 5: Resource acquisition

19. Part 6: Perserverance

20. Part 7: Happy ending

21. Conclusions from video clips
It’s always possible
You are not born an entrepreneur, you become one
Have a clear vision and goal
Put a team together
Don’t be put off by resource and competence constraints: Beg, Borrow and Steal
Share vision and show leadership
Find sponsors and mentors
Tolerate failure
Tolerate risk
Try, try and try again
Learn from mistakes
Look for opportunities where other see landfills
Defy social pressure
Believe that you have the ability to change things
Don’t underestimate yourself
Be open to outside ideas
Share success

22. This corresponds very well to what we in academia normally highlight as themes of desirable and acquirable attitudes and behaviors
Commitment and determination
Leadership
Opportunity obsession
Tolerance of risk, ambuiguity and uncertainty
Creativity, self-reliance and adaptability
Motivation to excel

23. 1. The Entrepreneurial Imperative

24. What arguments has been put forward to claim that this “entrepreneurship thing” is actually useful ?
The turbulent environment argument
The organizational lifecycle argument
The “Blue Ocean” argument (or the fallacy of Porter’s generic strategies)
The national competitiveness argument

25. The turbulent environment

26. A more dynamic industry environment necessitates more dynamic employees and organizations
Adaptability
Flexibility
Speed
Aggressiveness
Innovativeness
Turbulent env.
New “skills”
Traits and characteristics that the entrepreneurial employee posses

27. The organizational lifecycle argument: CE as a revitalization pill
Streamlining,
small-company
thinking
Large
Development of teamwork
Continued
maturity S I Z E
Addition of internal systems
Decline
Crisis:
Need for
revitalization
Provision of clear direction
Crisis:
Need to deal
with too much
red tape
Creativity
Crisis:
Need for
delegation
with control
Crisis:
Need for
leadership 1.
Entrepreneurial
Stage 2.
Collectivity
Stage 3.
Formalization
Stage 4.
Elaboration
Stage
Small
Sources: Adapted from Robert E. Quinn and Kim Cameron, “Organizational
Life Cycles and Shifting Criteria of Effectiveness: Some Preliminary
Evidence,” Management Science 29 (1983): 33-51; and Larry E. Greiner,
“Evolution and Revolution as Organizations Grow,” Harvard Business
Review 50 (July-August 1972):

28. The “Blue Ocean” argument
Based on 150 case studies
Evidence found for the fact that sustained superior performance CANNOT be explained by generic strategy
Authors argue that we are better off developing new value propositions and creating new market space than reacting to competition

29. Red vs. Blue Ocean Strategies
Red Ocean Strategy
Blue Ocean Strategy
Compete in existing market
Create uncontested market space
Beat the competition
Make the competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value-cost trade-off
Break the value-cost trade off
Align the whole system of a strategic firm's activities with its choice of differentiation or low cost
Align the whole system of a firm's activities in pursuit of differentiation and low cost
VALUE INNOVATION

30. “Blue Ocean” is becoming an umbrella notion including also the “older” ideas of “New Game” and “time-based” competition
Wal-Mart
Nokia
Dell
Zara
Amazon
Ryanair
Swatch
Nike
Cirque du Soleil
iPod
Ferrari
Harley Davidson
BIC
Husky
Low
Cost
Focus
New
Game
SPEED
Diff.

31. Empirical research supports the idea that “entrepreneurial”/”innovative”/”blue ocean” companies, outperform their “traditional” strategy peers:
Covin & Slevin 1989, 1990 (New Market Development)
Davis, Morris & Allen 1991 (New Product Development)
Morris & Sexton 1996 (Entrepreneurial Intensity)
Shaker 1999 (NMD
Hornsby 2001 (EI)
Goosen 2002 (NMD, NPD)
Hindle 2004 (EI)
Yiu 2008 (NPD)
Jaakko Aspara, Joel Hietanen & Petri, (Blue Ocean)
WHY ?

32. National competitiveness argument -1
Entrepreneurship & Economic Thought
Joseph Schumpeter (1930s) Israel Kirzner (1970s) S S D D
“CREATIVE DESTRUCTION”
Entrepreneurship moves market
away from equilibrium
“ENTREPRENEURIAL DISCOVERY”
Entrepreneurship moves market
toward equilibrium.
New combinations: new goods,
methods of production, new markets,
sources of supply, organizations.
Entrepreneur alert to opportunities
that already exist and are waiting to
be noticed.

33. National competitiveness argument -2 (GEM)
General National
Framework
Conditions
Openness (External Trade)
Government (Extent,Role)
Financial Markets (Efficiency)
Technology, R&D (Level, Intensity)
Infrastructure (Physical)
Management (Skills)
Labor Markets (Flexible)
Institutions (Unbiased, Rule of Law)
Major
Established Firms
(Primary Economy)
GEM CONCEPTUAL MODEL
Micro, Small, and
Medium Firms
(Secondary Economy)
National
Economic
Growth
(GDP,Jobs)
Social,
Cultural,
Political
Context
Entrepreneurial
Framework
Conditions
Financial
Government Policies
Government Programs
Education & Training
R&D Transfer
Commercial, Legal Infrastructure
Internal Market Openness
Access to Physical Infrastructure
Cultural, Social Norms
Entrepreneurial
Opportunities
Business
Churning
Entrepreneurial
Capacity
- Skills
- Motivation

34. National Competitive Argument -2 (GEM)

35. Conclusion: Interesting, but not an absolute imperative
“Entrepreneurial” organizations tends to be
More aggressive (higher sense of urgency)
Faster
More flexible
More adaptable
More innovative & creative
But also
Less cost efficient
In function of the key success factors of the industry, the potential of transforming the organization towards being more entrepreneurial varies