ENTR 3312 - Chapter 11 - "The greatest difficulty in...

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Unformatted text preview: "The greatest difficulty in the world is not for people to accept new ideas, but to make them forget about old ideas." ~John Maynard Keynes, Economist Copyright (c) 2007 by Donald F. Kuratko All rights reserved. Section III Achieving and Sustaining Entrepreneurial Performance E T his final section of the book outlines pr actical methods for achieving and sustaining high levels of entr epr eneur ial per for mance w ithin or ganizations. Chapter Eleven: Constr aints on Entr epr eneur ial Per for mance Chapter T w elve: L eading the Entr epr eneur ial Or ganization Chapter T hir teen: Assessing Entr epr eneur ial Per for mance Copyright (c) 2007 by Donald Chapter F our teen: ContrF. Kuratko All rights reserved. ol and Entr epr eneur ial Section III Achieving and Sustaining Entrepreneurial Performance E Chapter 11 Constr aints on Entr epr eneur ial Per for mance Copyright (c) 2007 by Donald F. Kuratko All rights reserved. E Introduction T he pur suit of entr epr eneur ship w ithin a company cr eates new and potentially complex sets of challenges on both theor etical and pr actical levels. On a theor etical level , companyw ide entr epr eneur ship is not included in, or accommodated by, most of the theor ies, models, or E Introduction On a pr actical level , manager s typically find themselves in unchar ted ter r itor y w hen it comes to entr epr eneur ship. T hey lack guidelines on how to dir ect or r edir ect r esour ces tow ar ds entr epr eneur ial str ategies. E Obstacles and Effects of Traditional Practices T r aditional M anagement Pr actices Enfor ce standar d pr ocedur es to avoid mistak es M anage functionality Compensate unifor mly E Obstacles and Effects of Traditional Practices Adver se Effects I nnovative solutions block ed Entr epr eneur failur e and/or ventur e failur e L ow motivation and inefficient oper ations A Framework for Understanding the Obstacles Systems Str uctur e Str ategic dir ection Policies and pr ocedur es People Cultur e E E Categories of Organizational Constraints on Corporate Entrepreneurship Systems Oppr essive contr ol systems I nflexible budgeting systems Str uctur es T oo many hier ar chical levels T op-dow n management L ack of accountability Categories of Organizational Constraints on Corporate Entrepreneurship Str ategic D ir ection Absence of innovation goals N o for mal str ategy for entr epr eneur ship Policies and Pr ocedur es Extensive documentation r equir ements E Categories of Organizational Constraints on Corporate Entrepreneurship People F ear of failur e "T ur f" pr otection Cultur e Values that conflict w ith entr epr eneur ial r equir ements E E A Framework for Understanding the Obstacles Which Which Which Which constr aints can be ignor ed? can be w or k ed ar ound? can be eliminated? can be conver ted into facilitator s of entr epr eneur ship? Which must be accepted even if they limit the scope or scale of w hat the cor por ate entr epr eneur can accomplish? E More on the People Factor M anagement may be able to fix the str uctur e and r emove bur eaucr atic r ules and pr ocedur es, but the challenges involved in getting employees to embr ace entr epr eneur ship, change the w ay they do things, collabor ate on pr ojects involving untested ideas, and give up r esour ces to suppor t entr epr eneur ial initiatives can be especially vexing. E More on the People Factor T he pathw ays of most new ideas ar e block ed by: Resistance to change M ak ing pr ematur e and uninfor med judgments N eophobia Caution Or der Anticipation of the extr a tr ouble Politics Limitations that Constrain the Corporate Entrepreneur L ack of political savvy : lear ning E to w or k the system L ack of time: cr isis management L ack of r ew ar ds for innovation : beyond tok enism Limitations that Constrain the Corporate Entrepreneur L ack of people development E sk ills: autocr acy r ules L ack of legitimacy : untested concept and untested entr epr eneur L ack of "seed" capital : the pr oblem of ear ly r esour ces E Limitations that Constrain the Corporate Entrepreneur L ack of a sponsor : someone to w atch over you L ack of ener gy and shar ed enthusiasm : the iner tia pr oblem I ndiffer ence D istr action Competition D isaffection E Limitations that Constrain the Corporate Entrepreneur L ack of per sonal r enew al : the issue of r einfor ced denial L ack of ur gency : fear as good and bad L ack of appr opr iate timing: the r esour ce-shift dilemma E Corporate Innovators or Rogue Managers: An Ethical Dilemma Reasons manager s involved in entr epr eneur ial activity may act in an unethical manner and tak e on the per sonality of a "r ogue manager " "Wilding" L ack of pr oper ethics r ooted in company cultur e L ack of pr oper ethics r ooted in the individual manager E Corporate Innovators or Rogue Managers: An Ethical Dilemma Reasons manager s involved in entr epr eneur ial activity may act in an unethical manner (cont.) T he manager may not clear ly gr asp their pr ofessional r esponsibilities Oper ational factor s w ithin the company may cause the manager to deviate fr om the par ameter s of the for mal or ganizational str uctur e E An Ethical Dilemma? M or al M anagement M odel r espect ethical consider ations and hold the or ganization to the highest mor al standar ds and demonstr ate a str ong ethical leader ship to all stak eholder s I mmor al M anagement M odel based on the pr emise that economic oppor tunities ar e to be exploited w henever and how ever possible Amor al M anagement M odel manager s, E Overcoming the Obstacles and Limitations Building social capital Shar ing infor mation Cr eating oppor tunities for people to demonstr ate their sk ills and competence Building and using influence netw or k s Gaining legitimacy Political tactics E Focusing on the Right Obstacles at the Right Time Who w ill tak e w hat specific actions against w hich opponent? What k ey implementation steps must be tak en, and how should those steps be timed? H ow can w e tell if things ar e not going as planned? What major contingency plans ar e needed, and w hat events w ill tr igger those plans? ...
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