Midterm Flashcards
entrepreneurial mindset
involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions
new entry
offering a new product to an established or new market, offering an established product to a new market, or creating a new organization
entrepreneurial strategy
represents the set of decisions, actions & reactions that first generate, then exploit over time, a new entry
building blocks of a firm’s performance
resource bundles
for a resource bundle to be useful, the resources must be
valuable, rare, & inimitable
what is the basis for an entrepreneurial resource?
knowledge
determination by an entrepreneur that they have sufficient information to exploit or not exploit depends on
stock of information (accumulated & prior knowledge) and level of comfort with making decisions without perfect knowledge
advantages of being a first mover
cost advantage, less competition, can secure important channels, better positioned to satisfy customers, gain expertise
disadvantages of being a first mover
environmental instability, customer uncertainty, short lead time
narrow-scope risk reduction strategy
offers a small product range to a small number of customer groups in order to satisfy a particular need
broad-scope risk reduction strategy
offering a range of products across different market segments to test market uncertainty
imitation risk reduction strategies
franchising & “me too” strategies
liabilities of newness
costs of learning, conflict about undefined responsibilities/roles, informal communication channels not established yet
individuals have stronger intentions to act when taking action is perceived to be
feasible & desirable
strength of ties between entrepreneur and supporting individual depends on
frequency, level, and reciprocity of the relationship
