Creative Business Practices: Entrepreneurship Innovation and the Relevance to the Modern Organization
The work entitled "Globalization of Social Entrepreneurship Opportunities" reports that entrepreneurship "...by new and established companies is a major source of wealth and job creation, economic and technological growth and social transformation. This transformation is made possible by the powerful forces entrepreneurship unleashes, where ordinary people conceive innovative ideas, organize production, assume risk, and engage customers to accumulate wealth or address pressing social causes, often across national borders." (Zahra, 2006)
The work of Donald F. Karatko entitled "Entrepreneurship: Theory, Process and Practice" states that many of today's companies are acknowledging the need for corporate entrepreneurship. (Karatko, 2008, paraphrased) It is stated by Kuratko that this need "has arisen in response to a number of pressing problems which are reported to include such as:
(1) Rapid growth in the number of new and sophisticated competitors;
(2) A sense of distrust in the traditional methods of corporate management;
(3) An exodus of some of the best and brightest people from corporations to become small-business entrepreneurs;
(4) International competition;
(5) Downsizing of major corporations and an overall desire to improve efficiency and productivity. (Kuratko, 2008)
Kuratko states in regards to the problem of competition that this problem has always been an issue for businesses but that more competitors is supporter in the high-tech economy of today's economy. It is reported that another problem relates to the loss of the brightest individuals to independent entrepreneurship, which has risen due to two primary developments:
(1) Status, publicity and economic development; and (2) venture capital growth into a large industry that has the capacity to finance more new ventures than previously. (Karatko, 2008
These enhancements to entrepreneurship have made the choice "more appealing to both young and seasoned employees." (Karatko, 2008 ) The modern organization is stated to be forced to seek "avenues to develop in-house enterpreneuring. To do otherwise is to wait for stagnation, loss of personnel and decline." (Karatko, 2008) This new corporate revolution is stated by Kuratko to be representation of an "appreciation for and a desire to develop innovators within the corporate structure." (Karatko, 2008)
Kuratko states that it is critical to understand the obstacles in order to foster corporate entrepreneurship, as they are "the foundation points for all other motivations efforts." (Karatko, 2008) The following factors are stated to have been identified as factors in large corporations that have demonstrated innovations that are successful in nature:
(1) Atmosphere and vision
(2) Orientation to the market-
(3) Small flat organizations;
(4) Multiple approaches
(5) Interactive learning
(6) Skunk works (a nickname given to small groups that work on their ideas outside of normal organizational time and structure. This is stated to eliminate bureaucracy, permits rapid turnaround, and instills a high level of group identity and loyalty. (Karatko, 2008)
Corporate entrepreneurship is stated by Kuratko to be defined as "vision-directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity." (2008)
The work of Covin, Ireland and Kuratko is stated to present a model that demonstrates how corporate entrepreneurship strategy is manifested through the process of three elements which include those of:
(1) Entrepreneurial strategic vision;
(2) A pro-entrepreneurship organizational architecture; and (3) Entrepreneurial processes and behavior as exhibited across the organizational hierarchy. (Covin, Ireland and Kuratko, n.d,)
This model has several linkages stated to include those as follows:
(1) Individual entrepreneurial cognitions of the organization's member;
(2) External environmental conditions that invite entrepreneurial activity;
(3) Top management's entrepreneurial strategic vision for the firm;
(4) Organizational architectures that encourage entrepreneurial processes and behavior;
(5) The entrepreneurial processes that are reflected in entrepreneurial behavior; and (6) Organizational outcomes that result from the entrepreneurial actions. (Kuratko,, 2008 )
Becker and Kundsen (2004) write in the work entitled: 'The Role of Entrepreneurship in Economic and Technological development: The Contribution of Schumpeter to Understanding Entrepreneurship" that the discussion of entrepreneurship has focused on "three clusters of issues" stated to include those as follows:
(1) individual-level entrepreneurship,
(2) corporate-level entrepreneurship, and (3) the impact of entrepreneurship. (Becker and Knudsen, 2004)
Becker and Knudsen additionally report "Different typologies of entrepreneurs have been proposed in the five organization journals reviewed here. In an early contribution, Webster (1977) distinguished administrative, and independent entrepreneurs, where the Cantillon-entrepreneur. stands for the entrepreneur who is taking risk and also heeds managerial...
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