Maharishi International University

MGT 5320 Entrepreneurship

Assignment 4: Corporate entrepreneurship

Submitted To: Dr. Buzeye Zegeye

Submitted by: Kumneger Geremew

Student ID: 613544
Dept.: Business Administration

Date: October 20, 2022

 A. Discuss the four models of Corporate entrepreneurship
The Opportunist

All companies begin as opportunists, the opportunist model works well only in trusting corporate
cultures that are open to experimentation and that have diverse social networks behind the official
hierarchy. “There need to be multiple executives who can say yes to a new business concept. Without that
type of environment, good ideas can easily fall through organization cracks or receive insufficient
funding to prove feasible”, say Wolcott and Lippitz.

The Enabler

The basic premise of the enabler model is that employees across an organization will be willing to
develop new concepts if they are given adequate support. In contrast to the opportunist model of diffused
ownership and ad hoc resource allocation, the enabler model has dedicated resources. “Early stages of
new business conception are explicitly supported, encouraged, and often strategically channeled, with a
promise of serious management attention to those concepts that look promising.” But the enabler model
is not only about allocating capital for corporate entrepreneurship. It is also about personal development
and executive engagement. In the most evolved versions of the enabler model, companies provide the
following: clear criteria for selecting which opportunities to pursue, application guidelines for funding,
decision-making transparency, both recruitment and retention of entrepreneurially minded employees
and, perhaps above all, active support from senior management. When an organization already enjoys
substantial collaboration and ideation at the grassroots level, the enabler model can provide clear
channels for concepts to be considered and funded. For companies seeking cultural transformation,
enabler processes in combination with new hiring criteria and staff development can result in several
employees becoming effective change agents.

The Advocate

The Advocate Model What about cases in which funding isn’t really the issue? In the advocate model, a
company assigns organizational ownership for the creation of new businesses while intentionally
providing only modest budgets to the core group. Advocate organizations act as evangelists and
innovation experts, facilitating corporate entrepreneurship in conjunction with business units.

The Producer
The producer, with focused ownership and dedicated resources, aims to protect emerging projects from
turf battles, to encourage cross-unit collaboration, to build potentially disruptive businesses, and to create
pathways for executives to pursue careers outside their business units, Wolcott and Lippitz explain. A
few companies such as IBM, Motorola and Cargill pursue corporate entrepreneurship by establishing and
supporting formal organizations with significant dedicated funds or active influence over business-unit
funding. As with the enabler and advocate models, an objective is to encourage latent entrepreneurs. If a
company seeks to conquer new growth domains, discover breakthrough opportunities or thwart
potentially disruptive competition, then it should consider the producer model.

B. Discuss the role of management and system to bring entrepreneurial transformation

While the cliché of "transformation is more about people than technology" is worn out, it remains as true
today as it's ever been. Which means that having the right individuals in place to manage and lead
transformation is a matter of honestly assessing people's capabilities and shortcomings, then selecting
those that are best suited for the job to be done. The transformation of any big established organization is
a full-scale enterprise-wide journey, both in process and mindset, so it goes without saying that buy-in
from the entire leadership team and the wider workforce is key.
The people undertaking each of these roles need to be sufficiently equipped to inject significant value
into transformation, which in turn will increase the odds of a company's success.

At the executive level, each leader will have their say, but transformation in most organizations needs to
be spearheaded by one individual, which should be the CEO. In transformation, the most important role
for the CEO to play is that of a visionary who shows the organization the way by communicating a
compelling story and being a visible and vocal advocate for transformation. The CEO needs to serve as
the primary change agent in the business, who together with their senior leadership team, will establish
alignment at all levels of the organization, encouraging speed, agility, and accountability, as well as
anchoring transformation through bold and rapid decision-making.
“As an entrepreneur and investor, I priorities construction and collaboration. Whether it's a five-
person start-up or a global giant, the most productive companies are the ones whose employees
operate with a shared sense of purpose and a clear set of policies for responding to changing
conditions and new opportunities."~ Reid Hoffman - Co-founder of LinkedIn

With transformation being enterprise-wide, the role of the Chief Transformation Officer is vital for
successful transformation. Typically reporting directly into the CEO, they're key to business model
design, the value creation agenda, and operating model design.

Transformation Officers take a holistic and big-picture approach to transformation and provide advice
and guidance to line-of-business leaders and owners of initiatives.

C. Discuss entrepreneurship transformation and strategic renewal

Entrepreneurship transformation and strategic renewal are both dynamic processes concerned with firm
performance. Strategic entrepreneurship involves simultaneous opportunity seeking and advantage
seeking behavior and results in superior firm performance. Strategic management calls for firms to
establish and exploit competitive advantage within an existing context while entrepreneurship promotes
the search for competitive advantage through innovation. It involves taking entrepreneurial actions with
strategic perspectives. For Strategic renewal to succeed in an organization we need: An entrepreneurial
mindset - a way of thinking about business that focuses on and captures the benefits of uncertainty.

Components of an entrepreneurial mindset include:

• Recognizing opportunities
• Entrepreneurial Alertness Real options logic

• Entrepreneurial framework

• An entrepreneurial culture - a set of shared values within the organization linked to entrepreneurial
behaviors

• Entrepreneurial leadership - an ability to influence others to manage resources strategically in order to

emphasis both opportunity seeking and advantage-seeking behaviors. Nourishes entrepreneurial
capability

Protects innovation, Makes sense of opportunity, Questions dominant logic

D. Discuss the relationship between organizational culture and corporate entrepreneurship

(Hint: Power distance and to corporate entrepreneurship, Uncertainty avoidance and corporate
entrepreneurship, Individualism vs collectivism and corporate entrepreneurship, and Masculinity
corporate entrepreneurship)

Corporations are more than ever under pressure to make their organizational systems more efficient and
competitive. The organization may be better off only if competitive advantages were maintained over a
longer period of time. In this context, the knowledge was identified as an important factor of the
entrepreneurial process. Corporation with already built learning organization is true entrepreneurial
organization. However, in order to survive in the market arena, it is not enough only to learn, but to learn
more and faster than the other competitors, whereby through the learning processes the core competence
of the organization may be created.

Organizations must be prepared for changes of organizational model and structure, but perhaps more for
changes of organizational culture (Mullins, 2010, pp.737-748). In this context, constant improvement of
the organizational culture model in order to promote the entrepreneurship values on the one hand and to
encourage entrepreneurial behavior through an appropriate system of motivational factors on the

other hand, is one of the key challenges and tasks of large organizations. Entrepreneurial transformation
as a form of corporate entrepreneurship becomes one of the key prerequisite of sustainable growth and
development of the organization.
Reference:

https://dual-innovation.net/four-models-intrapreneurship-innovation/

http://pw.seipa.edu.pl/s/p/artykuly/90/903/Corporate%20Ent%20%20Projects%204%20Models.p
df

https://www.pfh-university.com/blog/the-four-models-of-corporate-entrepreneurship.html

https://www.linkedin.com/pulse/key-roles-transformation-rob-llewellyn/

https://www.youtube.com/watch?v=bt0jRGks1p8&ab_channel=TasmanianSchoolofBusinessandE
conomics

Organizational Culture And Corporate Entrepreneurship, Svetislav Paunovic, Ioan Constantin

Dima * Annals of the University of Petroşani, Economics, 14(1), 2014, 269-276