5 Promotion of Entreprenurial commitment Flashcards
What are the necessary conditions to promote entrepreneurial behavior within a company?
**Bottom-up processes: **Encourage entrepreneurial initiatives from lower levels, not just top management.
Avoid bureaucracy: Too much reporting, controlling, or steering can suppress entrepreneurial behavior.
Balance between new and existing initiatives: Allow innovation without neglecting current operations.
Clear communication: Provide clear mission statements and promote the success of entrepreneurial activities.
Focus on middle and junior management: These groups are key to driving entrepreneurial commitment.
What is bootlegging in the context of entrepreneurship?
Bootlegging refers to unsolicited innovation and research activities by employees who work on projects outside of official corporate goals, often without company resources. It usually occurs without formal approval but contributes to innovation.
What motivates employees to engage in bootlegging, and what opportunities does it provide?
Secret preparatory research: 40% of bootleggers conduct research to gather arguments for later official projects.
Improvement of existing products: 34% work on unofficial improvements to current products.
Troubleshooting: 20% solve problems as a favor for other departments.
New products: 5% focus on developing entirely new products.
Academic research: 1% engage in purely academic research.
What challenges do employees face while engaging in bootlegging? What are the solution?
Lack of predictability: Unofficial initiatives are hard to forecast or manage.
Limited resources and power: Employees engaging in bootlegging often lack the necessary authority and resources.
**Path dependency: **Past actions or decisions can limit new innovative ideas.
- Partial release of employees for private projects: Encourage employees to spend a portion of their time on personal innovative projects (e.g., Google’s famous “20% time” which led to products like Gmail).
- Internal start-ups or spin-offs: Allow employees to create new ventures separate from the main organization to drive innovation.
What are the charcteristics of suitable framework conditions?
Positive organizational culture: Encourage behaviors that lead to innovation and growth.
**Adequate resources: **Provide the financial, human, and technological resources necessary for entrepreneurial initiatives.
Motivation and development: Ensure that resources are used to develop and motivate potential intrapreneurs (employees driving internal entrepreneurship).
What conditions ensure the success of entrepreneurial initiatives?
- entrepreneurial vision and strategy: Develop a clear vision and mission focused on innovation.
- Support for risky projects: Encourage the pursuit of new, high-risk ideas.
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Corporate venture capital: Provide funding for innovative projects.
Defne clear venture strategy
Structural autonomy: Allow projects the freedom to operate independently of the main organizational structure.
Interdisciplinary teams: Promote collaboration across different departments to bring diverse skills and perspectives.
Success-oriented rewards: Reward based on results and long-term performance, not just short-term output.
Why is middle management important for promoting entrepreneurial commitment?
Middle management plays a critical role in bridging the gap between top-level strategies and day-to-day operations, making them key in fostering and implementing entrepreneurial initiatives.
What are the organizational factors that support entrepreneurial commitment?
Management support: Superiors should encourage entrepreneurial projects, provide resources, and remove obstacles.
Time and creative freedom: Autonomy and freedom to experiment positively impact employee satisfaction and creativity.
HR management: Job roles should be broad, unstructured, and encourage autonomy, while training and development programs should focus on entrepreneurial skills.
What are the results of entrepreneurial behavior for both companies and individuals?
Company-level outcomes: Innovation leads to competitive advantages, improved reputation, and technological advancements, balance company through diversification.
Individual-level outcomes: Employees develop entrepreneurial skills, contributing to their personal and professional growth.
How should incentive systems be designed to promote entrepreneurial behavior?
Intrinsic motivation: Focus on motivating employees through meaningful work, not just financial rewards.
Fair and long-term incentives: Financial rewards should be perceived as fair, focus on long-term performance, and address both individual and team contributions.
Non-monetary rewards: Include verbal recognition, authority delegation, and career advancement opportunities.
