Wk12: Chapter 6: Entrepreneurship with external stakeholders

Question 1

What are the different modes of corporate venturing?

Answer 1

• Internal venturing- new business created within the organisation
• Cooperative venturing- new business created and owned together with one or more external development partners
• External venturing- new business created by 3rd parties outside corporation, and subsequently bought or invested in by corporation

Question 2

What are the motives for corporate venturing?

Answer 2

• Leveraging: Exploiting existing compentencies in new markets
• Learning: Acquire new knowledge that can be useful in existing product/market arenas

Question 3

What is the network approach to innovation?

Answer 3

Innovation=
* Highly complex and messy affair
* Many interrelated links and deadends
* Innovation is triggered by a combination of networks, connections and interactive knowledge from both inside and outside the organisation
* Novel insights can be gained from stakeholders

Question 4

Why is an open innovation approach important?

Answer 4

Firms cannot only rely on their own inhouse innovative potential since they cannot employ all the greatest people or have all the best competencies.
Therefore they should open-up their innovation process to input from stakeholders during all aspects of the innovation process.

Question 5

How can one combine & recombine to create new value?

Answer 5

• New combinations of existing tested products/services can result in creation of new innovative value for companies.
• Interaction with diverse stakeholders is important to maximise innovative potential

Question 6

What approaches are there to interacting with stakeholders?

Answer 6

• Looking to the extremes (Existing average customers don’t provide much new information when looking for radical innovations)
• Crowdsourcing/Online communities (Gain valuable insight from online customers who play an active role in innovation (they decide what they want and pass ideas on to company))

Question 7

Advantages of open innovation?

Answer 7

• Importing ideas multiplies building blocks of innovation
• Exporting ideas helps raise cash while keeping talent
• Exporting ideas allows measurement of innovation’s real value before investing more capital
• Importing & Exporting ideas help companies clarify what they do best