CHAPTER 3CORPORATE ENTREPRENEURIAL MIND-SETCHAPTER OUTLINEI.The Entrepreneurial Mindset in OrganizationsA.Reengineering Organizational ThinkingII.The Nature of Corporate EntrepreneurshipA.Defining the ConceptB.The Need for Corporate EntrepreneuringC.Corporate Venture ObstaclesIII.Conceptualizing Corporate Entrepreneurial StrategyA.Developing the VisionB.Encouraging InnovationC.Structuring for a Corporate Entrepreneurial Environment1.Preparing for failureD.Developing Individual Managers for Corporate Entrepreneurship1.Management support2.Autonomy/Work discretion3.Rewards/Reinforcement4.Tim availability5.Organizational boundariesE.Developing Innovation (I)-TeamsV.SummaryCHAPTER OBJECTIVES1.To understand the entrepreneurial mindset in organizations2.To illustrate the need for entrepreneurial thinking in organizations3.To define the term “corporate entrepreneurship”4.To describe the corporate obstacles preventing innovation within corporations5.To highlight the considerations involved in reengineering corporate thinking6.To describe the specific elements of a corporate entrepreneurial strategy7.To examine the methods of developing managers for corporate entrepreneurship8.To illustrate the interactive process of corporate entrepreneurship1
CHAPTER SUMMARYCorporate entrepreneurship is the process of profitably creating innovation within an organizational setting. Most companies are realizing the need for corporate entrepreneurship as a response to (1) the rapidly growing number of new, sophisticated competitors, (2) a sense of distrust in the traditional methods of corporate management, and (3) an exodus of some of the best and brightest people from corporations to become small-business entrepreneurs.When creating the climate for in-house entrepreneurial ways, companies must develop four climate characteristics: (1) explicit goals, (2) a system of feedback and positive reinforcement, (3) an emphasis on individual responsibility, and (4) rewards based on results. Organizations create entrepreneurship in a number of ways. The first step is to understand the obstacles to corporate venturing. These are usually based on the adverse impact of traditional management techniques. The next step is to adopt innovative principles that include atmosphere, vision, multiple approaches, interactive learning, and skunkworks.Specific strategies for corporate entrepreneurship entail the development of a vision as well as the development of innovation. Two types of innovation exist: radical and incremental.