College aantekeningen

Lectures SEOR

Name: Lectures SEOR
SKU: doc_2539289
Rating: 3.00 (1 reviews)
Author: Isabelav

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Vrije Universiteit Amsterdam (VU)

Lecture notes of 21 pages for the course Strategic Entrepreneurship Organizational Renewal at VU (All lectures SEOR)

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Geupload op 31 maart 2023
Aantal pagina's 21
Geschreven in 2022/2023
Type College aantekeningen
Docent(en) Victor gilsing
Bevat Alle colleges

seor
master business administration

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2 items

1. Samenvatting - Summary articles seor
2. College aantekeningen - Lectures seor
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LECTURE 1. INTRODUCTION

Firm Survival Rates - a Darwinian view
It is not about: being big (size), being strong (€€) and being smart (IQ).
It is about adaptation, being responsive to change.

Innovations:

Product life cycle / S-curve
1. Fluid phase
Strong emphasis on: frequent redefinition of tasks, limited hierarchy
and high lateral communication.
- organic structure = responsive, flexible, startups thrive.
- adaptability (high environmental uncertainty)

2. Specific phase
Strong emphasis on: stable tasks, more hierarchy: coordination
and control, and top-down communication.
- mechanistic structure
- it brings predictability (low environmental uncertainty)

From fluid to specific phase
• Structure: from informal to formal
• Organizational behavior: from flexible and responsive to rigid and predictable
• Power: from entrepreneurs to managers
• Orientation: from external to internal

Innovation discontinuities
The first transition (1 -2): competence enhancing
- Large improvements in price/performance
- Builds on existing knowledge
- New products or new processes
- Rich get richer, established players benefit

The second transition (2 -3): competence destroying
- Large improvements in price/performance
- Existing knowledge becomes obsolete
- Entirely different knowledge and competencies
- Rich get poor(er), new entrants benefit

,How can firms respond?

Dia 61 *
Which one is more important?
You need incremental to survive in the short term. But you also need renewal to guarantee long-
term success, it is essential for continuity on LT.
Sweet sport of optionality = there is a success, and most companies would stop. But for long-term
success you need to go further and put money towards renewal, disrupting yourself.
- doing left and right.

Why so difficult
Due to deeper organizational barriers (innovation killers):
1. Economic – sunk costs
- no motivation

2. Cognitive – no understanding
Makes firms become inward-looking, not-invented-here-syndrome (NIH)
Knowledge makes you wise in some ways, but can make you a blindfolded fool in others.

- Core capabilities ---> Core rigidities
- Competency traps = use of increasingly inferior resources
- Overvaluing of internal knowledge
- Dismissive attitude towards external resources / capabilities
- not open to new ways
- no ability

(note: non-interdisciplinary (divers) teams have a lack of knowledge, so cognitive).

3. Social / psychological
- fear, discomfort
- complacency (voldoening)
- no courage

, These barriers are very strong and always present, but we need them because they brings stability,
comfort, predictability, legitimacy in the eyes of investors etc.

Tutorial:
Why do companies use cashflows for innovations? It is (seems) easy, quick and comparable.
But it is not good… cashflows are more for the short-term. The radical innovation revenue is only
visible on the long-term and the expenses, in the beginning, are high.
What should you use?

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