Chapter 13

Chapter 13 - Chapter 13 Strategic Entrepreneurship...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 13 Strategic Entrepreneurship Entrepreneurship is the economic engine driving many nations’ economies in the global competitive landscape. Entrepreneurship and innovation have become important for young and old, large and small Strategic entrepreneurship is taking entrepreneurial actions using a strategic perspective. More specifically, it involves engaging in simultaneous opportunity seeking and competitive advantage seeking behaviors to design and implement entrepreneurial strategies to create wealth. Because of today’s uncertain environment (i.e., a complex global marketplace), firms cannot easily predict the future. As a result, they must develop strategic flexibility to have a range of strategic alternatives that they can implement as needed. Creating tomorrow’s business requires a constant search for emerging opportunities. ENTREPRENEURSHIP AND ENTREPRENEURIAL OPPORTUNITIES Entrepreneurship is the process by which individuals or groups identify and pursue entrepreneurial opportunities without being immediately constrained by the resources they currently control. Entrepreneurial opportunities represent conditions in which new products or services can satisfy a need in the market. The essence of entrepreneurship is to identify and exploit these opportunities. After identifying opportunities, entrepreneurs take actions to exploit them and establish a competitive advantage. To do that, actions must be valuable, rare, costly to imitate, and nonsubstitutable. INNOVATION Peter Drucker argues that innovation is a function of entrepreneurship, as well as the means that an entrepreneur uses to create wealth-producing resources or enhance the potential of existing resources for creating wealth. Entrepreneurship and innovation are important for large and small firms (and start-ups) as they compete in the new competitive landscape. These are central to creativity, economic growth, productivity, and job creation. Note: Innovation has long been recognized as vital to competitive success. For example, Henry Ford, founder of Ford Motor Company, observed that, “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time. Businesses that grow by development and improvement do not die. But when a business ceases to be creative, when it believes it has reached perfection and needs to do nothing but produce—no improvement, no development—it is done.” Innovation has an impact on firm outcomes. Innovation is a key source of competitive success for firms competing in turbulent, competitive markets. Innovation is intended to enhance a firm’s strategic competitiveness and financial performance. Research shows that firms in global industries that invest more in innovation also achieve greater
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 6

Chapter 13 - Chapter 13 Strategic Entrepreneurship...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online