COMPACT SUMMARY Intro. to Corporate Entrepreneurship (Paper Summary Included)
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Course
Intro. to Corporate Entrepreneurship (325067B6)
Institution
Tilburg University (UVT)
This are the compact summary for Introduction to Corporate Entrepreneurship, which included key points, graph, and paper taught in class and mentioned in the exam.
● Drivers of Chaos:
○ Global connectivity
○ Trade liberation ‘
○ Technology
○ Buyer power, inequalities, etc.
● Managing advantages → Managing Disruption
● Scaling laws: sublinear scaling and super-linear scaling (doubling infrastructure
can increase the number of socio-economic output)
● The average lifespan of companies: 40-50 years but it has recently decreasing
● Why the company's life-span decreasing:
○ Victims of their success
○ Just focus on generating profit
○ Neglecting potential innovation
● Sustaining vs Disruption Innovation
○ Sustaining → maintaining market leadership through improving,
augmenting, iterating
○ Disruptive → pioneering through exploring, inventing, and niche (new
market)
■ Bring new value
■ Rejected by high-end customers and irrational to invest in them
■ Undervalued big companies and low margins
● New entrants
○ Nothing to lose
○ Initially no threat → niche
○ But will facing the market threat later → gains competitive performance,
moves to higher-margin markets, etc.
● Principles of Disruptive Innovation
○ Firms depend on customers and investors for resources
○ Small markets don't solve the growth needs
○ A firm’s capabilities define its disabilities
○ Tech supply may not equal market demand
,Properties of Balance
● Emergent strategies
○ Develops over time through continual strategizing as a business balance
○ Unplanned actions and initiative
○ Needs learning, adaptation, and collaboration
● Entrepreneurship = Approach to management
Stevenson (1983)
● Pursuit of opportunity without regard to resources currently controlled
● Stevenson’s Conceptualization
○ Entrepreneurial Focus (Promoter)
■ Driven by the perception of opportunity
■ Revolutionary with short duration
■ Many stages with minimal exposure
■ Episodic use or rent
■ Management flat
■ Based on value creation
○ Administrative Focus (Trustee)
■ Driven by controlled resources
■ Evolutionary with long-duration
■ A single stage with complete commitment
■ Ownership or employment
■ Hierarchy
■ Based on responsibility
● Corporate Entrepreneurship
○ Entrepreneurial behavior in an established larger organization
○ Encourage entrepreneurial intensity → scale, frequency
○ Outcome: continuous innovation — products, process, business model
,● Exploitation vs Exploration
● Failure trap – trial and error → exploration
○ Most innovations are unrewarding
○ Innovation is likely to perform poorly until it's developed
○ Cycle: search → change → failure
● Competency trap – monitoring and control → exploitation
○ Self-destructive product of learning
○ Competence comes with experience
○ Cycle: competence → returns → doing the same
● Complex Adaptive System
○ Able to adapt
○ Many independent agents
○ Continuous change
○ Unpredictable outcome
● Adaptation through self-organization
○ Requirements:
■ Common identity and purpose
■ Free flow of knowledge and information
■ Strong personal relationship
● Stability → adaptability
● Entrepreneurial Architecture
○ A strategic alignment of corporate resources to encourage entrepreneurship
and innovation on a sustainable basis
, ○ Contains: leadership and management, culture, structure, and
strategies
○ Internal architecture
■ Employees create a distinctive culture
■ Collectivism
■ Attracts like-minded people
○ External architecture
■ Other stakeholders
■ Trust → sharing info with other resources
● Haier’s Success Factors
○ Flat organizational structure (decentralization)
○ Customer-responsive innovation
○ Operational excellence → Improvement and internal competition
○ On-demand production and delivery
● Balance
○ Strong architecture
■ Sense of belonging and trust-based relational contracts
■ Tacit → difficult to copy
○ Highly competitive, complex, fast-changing markets
○ Cognitive skills and innovation are important
● 3M Strategic Thrusts
○ Close to customer
○ Dominating market
○ Diversify
○ R&D!!
○ Organization-wide knowledge sharing
○ Encourage achievement through reward
● Entrepreneurial Orientation
○ Sustained pattern of entrepreneurial behavior
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