Lecture 4 Flashcards
Strategic Entrepreneurship
Simultaneous
- Advantage-seeking (exploitation - strategy)
- Opportunity-seeking (exploration - entrepreneurship)
Innovation anywhere & everywhere
- Effectiveness
- Efficiency-oriented
Forms of strategic entrepreneurship
- Sustained regeneration
- Organizational rejuvenation
- Strategic renewal: changes in how company competes.
- Domain redefinition: investing in new product-market arenas, creating new product categories, moving competition to a new arena (blue oceans).
- Business Model Reconstruction
Innovation types
- Newness: Incremental of Radical
- Subject: position innovation or paradigm innovation
Product (Service) Life Cycle
- Introduction
- Growth
- Maturity
- Decline
Sustained regeneration
Focus on effectiveness. Regular introduction of new products or entering new markets.
Organizational rejuvenation
The aim is to improve the implementation of the firm’s strategy. The organization tries to sustain or improve its competitive standing by altering its internal processes/structures/capabilities.
Hofstede’s Cultural Dimensions Theory
- Individualism vs Collectivism
- Power distance
- Uncertainty avoidance
- Masculine vs Feminine
- Short- vs Long-term orientation
- Indulgence vs Restraint
Schein’s Model
- Artifacts
- Values
- Assumptions
Types of failure
Moral failure: breach of ethic standards
Personal failure: inadequate skills, knowledge or understanding
Uncontrollable failure: events or conditions out of the control of the individual.
Organisational Culture
Defines a company, how does an organization serve its customers and distinguish itself towards its competitors.
- Visible: logo, brand, language of the company, buildings
- Invisible: shared values of the employees, you only know it by being a part of it.
The bigger part of an organization is invisible
Strong vs Weak Organizational Culture
Weak Organizational Culture: tend to have employees that don’t share the same values
Material artifacts
e.g., office lay-out, decor, outfits of employees
They all reflect organizational culture and can be designed in a way to enhance this culture, but also entrepreneurial culture (e.g., Google workspace: employees can work and exercise at the same time to keep themselves healthy)
Entrepreneurial Corporate Culture
The entrepreneurial mindset and characteristics of an entrepreneurial culture:
“If you follow the book, you are fired!”
“Don’t ask permission. Just do it!”
“Dare to fail”
Sum up: Important elements of an Entrepreneurial Culture
- Focused on People and Environment
- Rewards for innovation
- Collaboration and teamwork
- Freedom to grow and to fail
- Learning from failure
- Commitment and personal responsibility
- Emphasis on the future and a sense of urgency
- Healthy discontent
