CE3

• Enhance the performance of the business
• Alignment of goals: principal and agent (psychological principal)
• Entrepreneurial behavior as main path to achieve this goa
• ( someone who feels like an owner of a business will act like an owner of the business) 

Psychological Ownership -> Entrepreneurial behavior .> firm performance 

• feeling od responsibility 
• empowerment ( how can I improve sth? ) 
• strive for efficacy 

•  Does psychological ownership turn agents into so-called "psychological principals"?
• Does a psychological owner really behave like a real owner?
  •  Both parties would share the ultimate goal of company performance
  • Interests aligned
  • Entrepreneurial behavior is a means to contribute to this goal
  • Monitoring would lose in effectance when P.O. is high

Model 

PO- > ( Moderator: Monitoring) - > Entrepreneurial behaviour - > company performance 

if PO is high the Monitoring effect is lower. 
you dont really need the mnitoring then 

• Territoriality behaviors ( dont like if others ate in their revier)
• Reluctance to share knowledge and ideas ( my Idea and i want to follow it)
• Failure to delegate responsibility ( i can do it te best) 
• Conflicts ( bec. upper reasons) 
• Burden of responsibility ( people feel pressure to help business, hgh pressure, burnout) 
• Destructive behavior ( leaving and steal ideas)

• self - efficacy/ effectance / “A central feature of possession is the ability to affect and control the object in whatever way one wishes”( can control object, shake it etc. )
• self identity / “Ownership helps people define themselves, express their self-identity to others, and maintain the continuity of the self across time»
• having a place / place to feel at home, shape and decorate it hoe you want 

• controlling the ownership target ( can I shae and inpact firm?) 
• intimately know the target/firm
• investing the self into the target 

=> PO as outcome 

• informative justice ( infromed, fair) 
• distributive justice ( feel fairly compensated) 
• gender ( femaind weaker) 
• tendure( the lnger the bigger) 
• hierarchy level ( the higher the more) 

= > PO towards the company 

• Transformational Leadership ( strong effect) 
• Transactional Leadership ( weak effekt) 
• Passive Leadership ( negative effekt) 

effect on: Psychological Ownership ( Organizational based and job based ) 

• For formal ownership to have any effects, ownership feelings have to emerge as a first step
• form formal ownership its not immediatlc behaviour changes !! there are 3 rights 
• Three «rights» necessary
  • Right to actually own a part of the company
  • Right to information
  •  Right to influence

Formal Ownership -----3 rights--->psychological ownership -> effects ( attitudial and behavioral changes) 

Ownership feelings are also possible WITHOUT formal ownership

Avoid disadvantages, use advantages? 

Formal in not necessary if we have psychoogical ownership ! so just skip it and focus on the right side 

• classic agent ( low PO and FO= 
• transient owner ( low PO high FO) 
• Psychlogical Principal (high PO, low FO) 
• true prinpipal ( both high) 

• Step 0: the awareness that you need to approach this problematic systematicaly 
• step 1: Srengthen PO + Improve organizational factors ( this two takes the longest so start at first) 
• Step 2: Introduce meaningful financial incentive system
• Step 3: ( optinal) Introduce meaningsful stock ownership programm
•  

“While it is true that every company needs an entrepreneur to get it under way, healthy growth requires a smattering of intrapreneurs who drive new projects and explore new and unexpected directions for business development. Virgin could never have grown into the group of more than 200 companies it is now, were it not for a steady stream of intrapreneurs who looked for and developed opportunities, often leading efforts that went against the grain“

do it yourown and help others to do so 

 Entrepreneurial behavior captures all actions by firm members that relate to the discovery, evaluation, and exploitation of entrepreneurial opportunities

• Creation of entrepreneurial atmosphere
• Support of subordinates
• Generation of own ideas
• Implementation of entrepreneurial actions

The Manager: 

• planning
• strategy
• organiser
• responsible for budger
• evaluator
• oversignt, control 

THe entrepreneur

• visionary
• innoator
• risk seeking
• user of resources
• dricer of innovations 
• active and adaptive impementation

= > both toghetter: corporate entrepreneur 

• classic bureaucrat (hapy how it is) status quo and blocked 
• frustrated manager: Change an innovatio but bloked 
• satisfied manager ( possible but like status quo, not enoth sence of urgency yet) 
•  COrporate Enrreprenur ( can and wandt so they will)

• Not necessarily inventors of products, services, or processes
• Turn ideas or prototypes into profitable realities

THe Dreamer: Mutual ideas but no plan 

the doers: no ideas but plan to do 

the dreamsrs to do 

• Build a spirited innovation team
• Keep your innovation «underground» until it is ready
• Circumvent bureaucratic orders
• Find a corporate sponsor
• Seek forgiveness instead of permission
• Share the glory with everyone in the team
• (suits)

• Time 
• incentives ( whats in for me as a worker?) 
• seed capital ( prototype but also human capital) 
• idea ownership and power plays ( will someone steal it?) 
• Sponsor ( corporate sponsore to have the power to put the idea up the letter) 
• energy and enthusiasm 
• Urgency ( not to much and not to less) 

The principal ( the firm owner) 

• delegates tasks to the agent 
• homo oeconomicus ( maxim)
• bears entrepreneurial / financial risk 
• long term oriented 
• goal: maximize performance 

THe agent( the employee) 

• perform tasks for the principal 
• homo oeconomicus ( utility maximizer) 
• bears financial consequences of is actions only to a limited extent 
• rather short term oriented 
• goals: salary and job security ( more abour people performance) 

agency relationship

• the principal deleates worj to the agent 
• described with the metaphor of contract
• conflicting foals and desires
• different attitudes toward risk 

agency problem 

• not the same actions are prefered 
• information asymetry
• adverse selection 
• moral hazard 

agency costs

• monitoring expenditures by the principal 
• bonding expenditures by the agent 
• the residual loss

Human Resource Management 
( Stock ownership plans, financial incentive systems) 

+

Psychological ownership 

=> alignment of interests 

=> employees entrepreneurla behavior

• Concerns the relationship between organization and employees
• Captures set of tasks associated with employee…
  • Acquiring
  • Training / developing
  • Organizing
  • Motivating

The old view

• «Personnel»
• Impose rules/procedures on employee recruiting, promotions, and firing

The new view

• Strategic role in developing core competencies
• Achieve sustainable competitive advantage through people
• HRM-related policies can foster or impede entrepreneurshi

• «Corporate Entrepreneurs cannot be assigned or appointed; they must be volunteers who bring a clear vision of what they want to create» (Chambeau & Shays 1984, p. 132)
• Each and every employee is rich in entrepreneurial potential
• How to create a work environment that supports entrepreneurial employees?