International entrepreneurship – Glossary
Week 1
Entrepreneurship: Combination of innovative, proactive, and risk-seeking behavior that is
intended to create value in organizations.
● Strategy Perspective: the identification and exploitation of business opportunities in the face
of resource constraints.
● Network perspective: proactive brokers in an ecosystem, creating value by connecting
previously disconnected economic actors.
● Economic perspective: deriving value from carrying the risk of developing business under
risk (or uncertainty).
Corporate entrepreneurship: Combination of innovative, proactive, and risk-seeking behavior by
large, established companies that is intended to create new value.
“The process whereby an individual or a group of individuals, in association with an existing
organization, create a new organization, or instigate renewal or innovation within that organization”
Schumpeter Kirzner
Disequilibrating entrepreneurs Equilibrating entrepreneurs
Requires the creation of new knowledge Builds on existing knowledge of the economic
system
Opportunity identification through creativity Opportunity identification through alertness
Innovation Arbitrage: manier om een conflict op te lossen
zonder daarbij de rechter in te schakelen.
Relatively rare Common
Example: Car replacing the horse Example: opening an Aldi next to the Albert
Heijn
How do organizations renew and innovate
Sustained Regeneration:
● What it is: Constantly coming up with new ideas and products in a company.
● How it works: Creating a culture where innovation is important, having a system for
employees to propose and get rewarded for their ideas, and having a diverse team with
different skills.
● Why it matters: Helps companies stay ahead, beat competitors, and enter new markets. For
example, Dyson's vacuum cleaner and hospital bed.
Organizational Rejuvenation:
● What it is: Improving how a company does things, not necessarily creating new products.
● How it works: Recognizing and rewarding employees, setting work policies (like working
from home), and making the company more efficient.
, ● Why it matters: Keeps the company running smoothly. Example: Ryanair becoming more
efficient by switching to a non-unionized workforce.
Strategic Renewal:
● What it is: Changing how a company competes in the market.
● How it works: Making decisions about exploring new ideas or sticking to what's working,
acquiring other companies, setting prices, and finding the right place in the market.
● Why it matters: Helps the company stay relevant and competitive. For instance,
Harley-Davidson convincing the US government to impose tariffs on Japanese bikes to buy
time for their own strategies.
Domain Redefinition:
● What it is: Creating entirely new markets or products that competitors haven't thought of.
● How it works: Inventing new technologies or finding new uses for existing ones.
● Why it matters: Gives the company an advantage by being the first to offer something new.
Like the Walkman did in creating a market for portable music players.
Creative destruction (= where a product takes over a whole industry; car over horse and
carriage, e.g. Nokia
Why Big Companies Go International:
Advantages:
● More Resources: Bigger companies have more to work with.
● More Customers: Access to a larger market.
● Efficiency: It can be cheaper to produce things in other countries.
Why Internationalization is Easier for Big Companies:
Challenges:
● Legal: Dealing with different laws (legal systems), investing in lawyers, legal advisors.
● Transportation Costs: It can be expensive to move things around, but big companies can
benefit from doing it on a large scale. (economies of scale)
● Setting Up Costs: Opening shop in another country can be costly, like hiring local teams.
Organizational Learning = is a capability allowing firms to create knowledge as the source of
improved performance. Occurs through action (called learning by doing) and memory (the constant
repetition of an organization’s activities)
Acquisitive learning takes place when the firm gains access to and subsequently internalizes
preexisting knowledge from its external environment. Acquisition knowledge is grounded in public
knowledge—that is, knowledge that resides in the public domain
- This is like when a company learns from the outside world. It takes in knowledge that already
exists out there and makes it its own. It's like grabbing information from the public domain.
Experimental learning occurs inside the firm and generates knowledge that is distinctive to it.
Private knowledge, which includes items such as the firm’s unique routines, processes, trade secrets,
and documentation is the basis of experimental learning.
Technical Knowledge: Focus on leveraging existing knowledge.
, Integrative Knowledge: Seek outcomes by recombining and extending knowledge.
Exploitative Knowledge: Concentrate on importing new knowledge into value-creating activities.
