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Summary of Lecture and Readings

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Summarized Lecture and Readings with handy table of contents to navigate through the document

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  • 15 juni 2021
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Inhaltsverzeichnis
1.1 The entrepreneurial process................................................................................................................2
Sledzik, K. (2013). Schumpeter’s view on innovation and entrepreneurship................................................2
Blank, S. (2013) Why the lean start-up changes everything..........................................................................5

1.2 Innovation management and its challenges.........................................................................................8
P&G: Case Study...........................................................................................................................................10
Crossan, Apaydin (2010): A multi dimensional framework of organizational innovation: A systematic
review of the literature................................................................................................................................12
THEORY: Radical – architectural – modular – incremental innovation........................................................14
Henderson & Clark (1990): Architectural Innovation: the reconfiguration of existing product technologies
and the failure of established firms..............................................................................................................14
Kuratko, D. F., Covin, J. G., & Hornsby, J. S. (2014). Why implementing corporate innovation is so difficult.
......................................................................................................................................................................16
Wessel, M., & Christensen, C. M. (2012). Surviving disruption....................................................................17
Keeley, Walters, Pikkel (2013) Ten types of innovation: The discipline of building breakthroughs............21
Nylen, Holmström (2014): Digital innovation strategy: A framework for diagnosing and improving digital
product and service innovation....................................................................................................................23
Yoo, Y., Boland Jr, R. J., Lyytinen, K., & Majchrzak, A. (2012). Organizing for innovation in the digitized
world.............................................................................................................................................................25

2.2 Entrepreneurial strategies (practicing the theory).............................................................................27
Sarasvathy (2001) Causation and Effectuation: Toward a theoretical shift from economic inevitability to
entrepreneurial contingency........................................................................................................................28

3.1 Managing organizational structure for innovation: ambidexterity.....................................................31
Tuschman, M.L., et al (2010). Organizational designs and innovation streams..........................................33
Cooper, R. G. (2003). Your NPD portfolio may be harmful to your business’s health.................................35

3.2 Social Entrepreneurship....................................................................................................................38
Prahalad (2002). Serving the world’s poor, profitably.................................................................................38
Mair, Marti (2006) Social entrepreneurship research: A source of explanation, prediction, delight..........40
Felicio et al. (2013) Social Value and organizational performance in non-profit social organizations........43

4.1 Managing organizational structure for innovation: open innovation.................................................46
Weiblen, T., & Chesbrough, H. W. (2015). Engaging with startups to enhance corporate innovation.......48
Appleyard, M. M., & Chesbrough, H. W. (2017). The dynamics of open strategy: from adoption to
reversion.......................................................................................................................................................51
Case Google and Nest Labs...........................................................................................................................53

,4.2 Managing networks in innovation and entrepreneurship..................................................................54
Ferriani et al (2009): The relational antecedents of project-entrepreneurship: Network centrality, team
composition and project performance.........................................................................................................54
Lavie, Haunschild (2012): Organizational differences, relational mechanisms and alliance performance. 57

5.1 Managing people for innovation.......................................................................................................61
Dyler, Gregersen & Christensen (2011): The innovator’s DNA: Mastering the five skills of disruptive
innovators.....................................................................................................................................................61
Amabile, Pratt (2016) The dynamic componential model of creativity and innovation in organizations:
making progress, making meaning...............................................................................................................62
Hansen, M. T., & Nohria, N. (2004). How to build collaborative advantage................................................66

5.2 Financing new ventures.....................................................................................................................69
Kirsch et al (2009) The role of business plans in venture capital decision making......................................69
Shane and Cable (2002): Network ties, reputation and the financing of new ventures..............................73

6.1 Intrapreneurship & Employee Spin-outs............................................................................................77
Klepper (2001) Employee startups in High-Tech industries.........................................................................77
Kacperczyk (2012) Opportunity structures in established firms: Entrepreneurship versus intrapreneurship
in mutual funds.............................................................................................................................................78
Burgelman, R. A. (1983). A process model of internal corporate venturing in the diversified major firm..79
Case Enagas..................................................................................................................................................80

6.2 Crowdfunding....................................................................................................................................81
Mollick, E. (2014). The dynamics of crowdfunding: An exploratory study..................................................81
Soubliere and Gehman (2020): The legitimacy threshold revisited: How prior successes and failures spill
over to other endeavors on kickstarter........................................................................................................83

1.1 The entrepreneurial process
Sledzik, K. (2013). Schumpeter’s view on innovation and entrepreneurship.
Schumpeter Created the field Entrepreneurship & Innovation

Before him:
 One perspective was micro economical: rational, well informed actors in the market
 Other perspective: sociological: all behavior is governed by societal actions: demographics, family
background, sex…
 Schumpeter said market is someone in between: Market evolution is driven by extraordinary individuals-
entrepreneurs
 The market consists of people who are governed by market principals AND by groups

Schumpeter view:
 entrepreneurship and innovation crucial for economic growth.
 Entrepreneurs carry out new combinations
 occurrence of discontinuous and “revolutionary” change as the core of “economic development” which
breaks the economy out of its static mode.

,  Market growth is supported by extraordinary individuals (entrepreneurship).

- Innovation is a process of industrial change. Destroying the old economic structure and consequently
creating a new one.
- Allocating existing resources to new uses and new combinations
Relevance now: capitalism can lead to monopolistic structure and disappearance of the entrepreneur.

Schumpeter’s innovation theory:
Consumer preferences are given and cannot cause the economic change
Development= process of structural changes, driven by innovation

4 types of innovation/ development:

1. Launch of new product or new species of already known product
2. Application of new methods of production or sales of a product (previously unknown)
3. Opening a new market
4. Acquiring of new sources of supply of raw material
5. New industry structure: such as creation or destruction of a monopoly position

Anyone seeking profit must innovate

Dimensions of innovation:

 Invention
 Innovation
 Diffusion (=widely spreading of something=
 imitation

Motives of Entrepreneurs:

 Money???
 For the sake of winningcompeting
 Independence creating own kingdompower and independence
 Joy of creation
 social mission is missing

Characteristics of Entepreneurs:

 Intelligent
 Alert
 Energetic
 Determined
 They can be improved-meaning entrepreneurship isn’t something you’re born with but can be learned
by university education

They create innovation through change-through the process of creative destruction

Innovation:

 Is the creative destruction that develops the economy and entrepreneur is the change creator
 Process of industrial mutation
 Revolutionizes the economic structure from within
 Destroys the old one and creates a new one

Creative destruction:

 Process in which entrepreneurs create something new which is better than the previous solution for the
same problem and replaces the old one
 Entrepreneurs do that through combination of existing resources

,  Everything new is created from existing resources
 Result is profitschumpeter: profit is the reward

Entrepreneurship: Innovation and the actualization of the innovation

Schumpeter’s 1st entrepreneurship theory
Before: entrepreneur is the organizer and manager of production or trade and most often the employer and owner
of capital

According to S: concerns only functions and activities related to innovation

 Entrepreneur not necessarily the owner of capital
 Function: revolutionize the pattern of production by exploiting an invention.
 How? By reorganizing the industry, opening up new source of supply of materials…
 Breaking up old and creating new

Circular motion: as soon as a person organizes its company, it loses the entrepreneurial function

 There is no such thing as lifelong entrepreneurs
 It’s not the entrepreneur who receives a profit but it’s always thanks to him
 Profit goes to the capitalist-owner of the company

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