CE

It describes entrepreneurial behavior inside established organizations, indicating how entrepreneurial a firm as a whole is. 

• The process whereby an individual or a group of individuals, in association with an existing organization, create a new organization, or instigate renewal or innovation within that organization.
• An organization is entrepreneurial if it develops a higher than average number of new products and/or new markets.
• 1) the birth of new businesses within existing organizations, i.e. internal innovation or venturing, and (2) the transformation of organizations t

• Involve opportunity recognition, evaluation, and exploitation
• Require a unique product, service, or process
• Imply encountering resistance and obstacles
• Entail risk and uncertainty
• Entail a window of opportunity

Start up Entrepreneurship / corporate entrepreneurship 

• entrepreneur "owns" the concept od innovative idea / Company owns the concept and usually intelectual rights
• entrepreneur owns all/much of the business / Enrepreneur may have no /little equity in the company 
• potential rewards for the entrepreneur unlimited / clear limits on the financial rewards for corporate entrepreneurs
• one misstep can mean failure / more room for errors; company can absorb failure 
• flexibility in changing course, experimenting, or trying new directions / rules, procedures, and bureaucracy
• severe resource limitations / access to finances, R&D, production facilities, sales force, distribution channel, costumer base 

• “Start-up advantage": high level of motivation and effort
• Flexible structures and good communication
• Direct and quick decision processes
• Cost advantages
• Orientation towards the clients' needs
• Charismatic entrepreneurs
• „Can do“ attitude

• Established processes and organization
•  Know-how, networks, and resources
• Economies of scale
• Established brand / better marketing
• Know about young firm's advantages

independent entrepreneurship 

corporate Entrepreneurship 

• strategic Entrepreneurship " innovate for competitive advantafe" ( class 4) 
• corporate Venturing " Bring new business to the corporation" ( Class 3) 

•  Existing assumptions challenged
• Value creation in novel ways anywhere
• New product and service introduction at a record rate
• Redefined: what you make, how you make it, where you sell it, how you distribute it

in a nutshell: 

• The pace and magnitude of change are significantly greater than ever before
• Performance and survival at stake
  • Act quickly or miss out opportunities
  • External forces force internal changes
• Established companies can either become victims of this revolution or join it

in a nutshell: 

• The pace and magnitude of change are significantly greater than ever before
• Performance and survival at stake
  • Act quickly or miss out opportunities
  • External forces force internal changes
• Established companies can either become victims of this revolution or join it

• Sustainable competitive advantage needed •
• What is not working
  • Be static and rely on previous success •
  • Too much exploitation
  • Bureaucracy, hierarchy, and «command-and-control»
  •  
• What is needed
  • Continually adjust, adapt, and redefine
  • Adaptability, flexibility, speed, aggressiveness, innovativeness
  • Sense that turbulence and change mean opportunity
  • Corporate entrepreneurship!

• counter the threat of new entrants
• Satisfy and retain motivated employees
• Utilise under-exploited resources
• Divest from non-core activities
• Grow and diversify business activities

=> Entrepreneurship and innovation on the firm level as a key to long-term growth and performance.

Employees’ entrepreneurial behavior (individual level)

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

Corporate Entrepreneurship (firm level) 

•  New products
• New markets
• New services
• Corporate venturing
• Renewal from within

Company performance 

• (Financial) performance
• Growth
• Success across generations
• Competitive advantages
• Survival

The Theory of Economic Development« (1911)

•  Interested in how capitalism administers existing structures, but also how it creates and destroys them
•  Economic development is a dynamic process: it is a disturbance of the economic status quo

•  Bring the economy out of the equilibrium by means of "creative destruction“
• “Process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one“

• Occurs when an entrepreneur sets up a new business
• By destroying existing market structures and shifting market shares to itself, wealth is redistributed
• “Creative destruction process”: creation of innovations and new wealth combined with the destruction of market structures

1. the old ( blockbuster

2. Innovation ( Netflix) 

3. Entrepreneurial rents 

4. Imitation 

5. Growth ( rents get shared over all immitators) 

• Introduction of a new or improved product/service
•  Introduction of a new method of production (Fliessband) 
• Opening of a new market (REdbull Energy drink) 
• Utilization of a new source of supply for raw materials ( Öl) 
• New organizational concepts for an industry (Amazon) 

Technological change ( Internet)

• Makes it possible to allocate resources in different and potentially more productive ways
• reduce transaction costs 

changes in attitude/ values ( dont get in a strangers car- uber) 

Political and regulatory changes ( flight to long distance drives) 

• Re-allocate resources to new uses in ways that are more profitable or to re-distribute wealth from one member of society to another
• Example: deregulation / privatization

• Core concept of firm-level corporate entrepreneurship
• Firm-level strategic orientation which captures an organization's strategy-making practices, managerial philosophies, and firm behaviors that are entrepreneurial in nature (Anderson et al., 2009)
• “The processes, practices, and decisionmaking activities that lead to new entry”

It allows to assess how entreorenurial a business is in a very nuanced way 

Miller 1983: 3 Dimensions that a firm needs to have 

• Innovativeness 
• risk taking
• Proactiveness

Lunkin & Dess 1996

• Innovativeness 
• risk taking 
• proactivesess
• autonomy 
• competitive agressiveness 

Zellweger & Sieger 2012 

• internal innovativeness 
• external innovativeness 
• control risk 
• performance hazard risk
• ownership risk 
• proactiveness
• Internal autonomy 
• external autonomy 
• competitive aggressiveness 

3x risk 

3x innovativeness 

3x proactiveness 

See folie Class 2

• „The freedom granted to individuals and teams who can exercise their creativity and champion promising ideas that is needed for entrepreneurship to occur“ (Lumpkin & Dess 1996) 
• Taking actions free of organizational constraints

Dimensions

• Internal dimension: empowering individuals and teams
• External dimension: autonomy from stakeholders such as banks, suppliers, customers, financial markets

• ideas are not enough for innovation to occur
• a busienss opportunity needs to be shaped and materialized 
• engage in and support new ideas, producs, services or technological processes

Innovation: The successful implementation of creative ideas to exploit an opportunity within an organisation. 

• product and service innovaiton
• product process innovation
• delivery process innovation 

Types : 

• Invention; Nover, untried revolutionary producs, service or process (Birne) 
• Extension; New use or different application of product that already exist ( facebook) 
• Duplikaiton; creative replication of an existing concept ( pepsi coce)
• Synthesis; Combination of existing factors and concepts nto a new formula ( recombination) 
•  

• continuour innovation; incremental, stepwise innovation (cola)
• dynamically continuous innovation; dramatic improvement over state of the art solution ( TV) 
• discoutinous innovaitn; Breakthrough innovation, addresses need not adresses before ( Internet) 

Radical innovation: 

• fundamental rethink
• disruptive technologies
• nurtured for long periods 
• worse initial performance 
• capture new markets
• can create new standadrs

Incremental Innovation 

• steady improvements 
• sustaining technologies 
• can be repidly implemented 
• immediate gians
• develop customer loyalty 
• may hiner radical change 

CORE: optimizing existing products for existing customers

• use existing products and assets, serve existing markets and costumers

Adjacent: expanding from existing business into " new to the company " business 

• add incremental products and assets, enter adjacent markets and costumers

Transformational(developing breakthroughs and inventing things for markets that dont yet exist

• develop new producs, create new markets 

Internal innovation ( not spectacular but very important) 

• Invisible and "unspectacular" innovation often within the firm 
• Examples: reporting systems, management systems, governance structure, leadership styles

External innvovation 

• innovation in the original sense 
• Examples: new markets, products, techonological processes 
• innovation 

• The degree to which managers are willing to make large and risky resource commitments – i.e. those which have a reasonable chance of costly failures“ (Miller & Friesen 1978, p. 932)
• Positively associated with proactiveness

Control risk 

• risk of losing control over the company ( i.e. leverage) 

Performance hazard risk 

• risk of organizational failure induced by opertative business decisions 
• wheter a projects failure will threaten firm survival
• ( All budget in one prototjpe very risky)

Ownership risk

• having invested most personal wealth in only one undiversified asset 

Risk high; Innvoaiton low 

• Imitation

Risk semi Inovation semi 

• continous ( Coce) 
• dynamically continuos ( bit more innovation) TV

Risk high, Innovaiton high: 

• Discntinuous ( internet) 

• „Processes aimed at anticipating and acting on future needs by seeking new opportunities […], introduction of new products and brands ahead of competition, strategically eliminating operations which are in the mature or declining stages of life cycle“
• Acting on rather than reacting to environments
• Potential first-mover advantages ( be the first to exploit it) 

Proactive: premium league asia 

• “Refers to a firm’s propensity to directly and intensely challenge its competitors to achieve entry or improve position, that is, to outperform industry rivals in the marketplace” (Lumpkin & Dess, 1996)
• Can be reactive (imitation of product/service)
• Non-traditional methods of competition (e.g., distribution, marketing) SIXT COMERCIALS 

behaviour change low and product change low 

• easy sells;

limited product changes, significant behaviour changes 

• sure failure 

significant product changes, limited behaviur changesn ( google ) 

• smash hits 

significant product and behaviour changes ( self scan) 

• long hauls 

proactiveness is importand 

innovation middle

U shaped, risk taking, too much is not goof and less is not good