FACULTY OF COMMERCE

GRADUATE SCHOOL OF BUSINESS

NAME : ROSELYN MURAWU

REG NO : B227239A

LEVEL : 1.1 HARARE WEEKEND CLASS YEAR: 2023

PROGRAMME : MASTER OF SCIENCE DEGREE IN ENTREPRENUERSHIP &

INNOVATION (MEI)

MODULE CODE : MEI 508

MODULE TITLE : CORPORATE ENTREPRENEURSHIP

LECTURER : DR. G Kichini

DUE DATE : 17MAR 2023

Looking at the Wolcott and Lippitz (2007) Four Models of Corporate Entrepreneurship,
which one would you say aptly describes the current approach to corporate entrepreneurship
in your organization? Justify your assertion with illustrations.

Corporate entrepreneurship is referred to, as the process by which teams within an established
company conceive, foster, launch, and manage a new business that is distinct from the parent
company but leverages the parent’s assets, market position, capabilities, or resources. It is
sometimes referred to, as formal or informal activities to create and exploit new technologies,
products, or businesses inside recognized organizations through product and process
innovations and market developments (Morris & Kuratko, 2002; Zahra, 1991; Ginsberg &
Hay, 1994).

Wolcott and Lippitz offer a useful taxonomy, encompassing four generic entrepreneurship
models that can be differentiated along two dimensions, both of which are under the direct
control of management: The first dimension is organizational ownership: Who, if anyone,
within the organization has primary ownership for the creation of new businesses? One
should also note that responsibility and accountability for new business creation might be
focused in a designated group or groups, or it might be diffused across the organization.

The second dimension is resource authority where we look at whether there is a dedicated
“pot of money” allocated to corporate entrepreneurship, or are new business concepts funded
in an ad hoc manner through divisional or corporate budgets or “slush funds. Together this
generates the following (2×2)-matrix, including the following types which are, Opportunist,
Enabler, Advocate, and Producer. The diagram below shows the 2x2 matrix alluded to and
also a very brief description of the four different models of corporate entrepreneurship.

Each model represents a distinct way of fostering entrepreneurship. Particularly in large

corporations, multiple models can be supported concurrently at different levels and functions.
In our organization, the enabler is the approach that is at play. The goal of this enabler model
employed in this case is to facilitate entrepreneurial employees and teams within this
organization. Thus, under this model, the organization is providing both funding and senior
management attention to prospective Corporate Entrepreneurship projects. The thinking here
is that employees will be willing to develop new ideas if they have adequate, foundational
support.

A very prominent global example of an enabler organization is Google, just to give a global
reference. In fact, both Gmail and Google Maps began as employee side projects. According
to D. Tang on Linked in, Google allows employees to spend 20% of their time working on
Corporate Entrepreneurial projects specifically on activities that include promoting their ideas
to colleagues, assembling teams, and building prototypes

Whilst ‘entrepreneur enabling’ is about working with and supporting individuals,

entrepreneurship enablers are those people who make it (more) possible for entrepreneurs to
emerge and grow in the first place. This aptly describes the context of our organization; such
that the executive professionals have since helped upcoming entrepreneurs to move into
social media realms and develop digital marketing strategies, spearheading them, and at the
same time boosting/growing their own name. They affect the infrastructure and the culture
that others demonstrate is important in regeneration.

This model is generally of particular interest as it assumes that there are ample good ideas
around the company and, more importantly, that there are individuals and teams willing to
flesh the ideas out. Therefore, recruiting and retaining people who have entrepreneurial
dispositions—and who can and want to operate within a large company—is essential.
Executive engagement is also essential if people are to trust that the company is committed to
turning good and proven concepts into real businesses. Otherwise, project funding can
become a casualty of conflicts with established businesses, or can degenerate into “bowling
for dollars”—as an alternative source of funds for ordinary business unit projects, or for
projects that the company is not particularly serious about. The best approach for working
within the model was to first, make sure that top management is truly committed to the
Enabler process. Senior-level sponsorship is essential to all corporate entrepreneurship
projects, as we highlighted in discussing the opportunist model. Beyond this, take special
effort to consider how your project, if successful, can be integrated with the company’s
existing processes and brands. You may have to be innovative in more dimensions than just
technology, product or solution in order to ultimately be successful.

In the most evolved versions of the enabler model, companies provide clear criteria for
selecting which opportunities to pursue, guidelines for applying for funding, decision-making
transparency, and, perhaps above all, well-defined engagement from senior management.
The selection criteria for project funding can serve as an important expression of corporate
strategic intent. In some cases, there may be significant benefits to mine from cross-divisional
collaboration. In other cases, a company may want to encourage innovation in the spaces
between businesses or by taking divisional capabilities into entirely new markets. Providing
such strategic direction may deter corporate entrepreneurship in certain business dimensions,
but if it is well designed, it should encourage a critical mass of effort in those areas that are
deemed most important to the company’s future.

References

 https://www.diva-portal.org/smash/get/diva2:1667304/FULLTEXT01.pdf
 https://www.linkedin.com/pulse/how-do-we-drive-growth-innovation-through-
corporate-david-tang/
 Grow From Within: Mastering Corporate Entrepreneurship and Innovation (McGraw
Hill, 2009)
 Kelsey Miller April 15, 2022. It was originally published on July 7, 2020.
 Kyrgidou, L. P, & Hughes, M. (2010), Strategic Entrepreneurship: origins, core
elements and research directions. European Business Review, Vol. 22 No. 1.

Question 2 [25]

Based on the ten characteristics of entrepreneurial organizations discussed in the module,

carefully and frankly appraise your organization to determine the extent to which each one of
them is evident.

1. High level Curiosity

2. Structured experimenters-is it worthwhile

3. Adaptability

4. Decisiveness

5. Are good at team building

6. High degree of risk tolerance

7. Comfortable with failure

8. Persistence

9. Innovativeness

10. Have a long term vision/focus

High level Curiosity

Curiosity is a quality related to inquisitive thinking such as exploration, investigation, and

learning, evident by observation in humans .Curiosity is heavily associated with all aspects of
human development, in which derives the process of learning and desire to acquire
knowledge and skill.

Successful entrepreneurs have a distinct personality trait that sets them apart from other
organizational leaders: a sense of curiosity. An entrepreneur's ability to remain curious allows
them to continuously seek new opportunities. Rather than settling for what they think they
know, entrepreneurs ask challenging questions and explore different avenues.
Entrepreneurship is described as a “process of discovery." Without curiosity, entrepreneurs
can’t achieve their main objective: discovering new opportunities.

The drive they have to continuously ask questions and challenge the status quo can lead them
to valuable discoveries easily overlooked by other business professionals.

Structured Experimentation

Along with curiosity, entrepreneurs require an understanding of structured experimentation.

With each new opportunity, an entrepreneur must run tests to determine if it’s worthwhile to
pursue.

For example, if you have an idea for a new product or service that fulfills an underserved
demand, you’ll have to ensure customers are willing to pay for it. To do so, you’ll need to
conduct thorough market research and run meaningful tests to validate your idea and
determine its potential.

Adaptability

The nature of business is ever-changing. Entrepreneurship is an iterative process, and new

challenges and opportunities present themselves at every turn. It’s nearly impossible to be
prepared for every scenario, but successful business leaders must be adaptable. This is
especially true for entrepreneurs who need to evaluate situations and remain flexible to
ensure their business keeps moving forward, no matter what unexpected changes occur.

Decisiveness

To be successful, an entrepreneur has to make difficult decisions and stand by them. As a

leader, they’re responsible for guiding the trajectory of their business, including every aspect
from funding and strategy to resource allocation.

Being decisive doesn’t always mean being correct. If you want to be an entrepreneur, it
means having the confidence to make challenging decisions and see them through to the end.
If the outcome turns out to be less than favorable, the decision to take corrective action is just
as important.

Team Building
A great entrepreneur is aware of their strengths and weaknesses. Rather than letting
shortcomings hold them back, they build well-rounded teams that complement their abilities.

In many cases, it’s the entrepreneurial team, rather than an individual, that drives a venture
toward success. When starting your own business, it’s critical to surround yourself with
teammates who have complementary talents and contribute to a common goal.

Risk Tolerance

Entrepreneurship is often associated with risk. While it’s true that launching a venture
requires an entrepreneur to take risks, they also need to take steps to minimize it.

While many things can go wrong when launching a new venture, many things can go right.
According to Entrepreneurship Essentials, entrepreneurs who actively manage the
relationship between risk and reward position their companies to “benefit from the upside.”

Successful entrepreneurs are comfortable with encountering some level of risk to reap the
rewards of their efforts; however, their risk tolerance is tightly related to their efforts to
mitigate it.

Comfortable with Failure

In addition to managing risk and making calculated decisions, entrepreneurship requires a

certain level of comfort with failure.

It’s estimated that nearly 75 percent of new startups fail. The reasons for failure are vast and
encompass everything from a flawed business model to a lack of focus or motivation. While
many of these risks can be avoided, some are inevitable.

Despite this, successful entrepreneurs must prepare themselves for, and be comfortable with,
failure. Rather than let fear hold them back, they allow the possibility of success to propel
them forward.

Persistence
While many successful entrepreneurs are comfortable with the possibility of failing, it
doesn’t mean they give up easily. Rather, they see failure as an opportunity to learn and
grow.

Throughout the entrepreneurial process, many hypotheses turn out to be wrong, and some
ventures fail altogether. Part of what makes an entrepreneur successful is their willingness to
learn from mistakes, continue to ask questions, and persist until they reach their goal.

Innovation

Many ascribe to the idea that innovation goes hand-in-hand with entrepreneurship. This notion is
often true. Some of the most successful startups have taken existing products or services and
drastically improved them to meet the changing needs of the market.

Innovation is a characteristic some, but not all, entrepreneurs possess. Fortunately, it’s a type
of strategic mindset that can be cultivated. By developing your strategic thinking skills, you
can be well-equipped to spot innovative opportunities and position your venture for success.

Long-Term Focus

Finally, most people think of entrepreneurship as the process of starting a business. While the
early stages of launching a venture are critical to its success, the process doesn’t end once the
business is operational.

According to Entrepreneurship Essentials, “it’s easy to start a business, but hard to grow a
sustainable and substantial one. Some of the greatest opportunities in history were discovered
well after a venture launched.”

Entrepreneurship is a long-term endeavor, and entrepreneurs must focus on the process from
beginning to end to ensure long-term success.

Question 3 [25]
 a) With respect to corporate entrepreneurship in your organization, to
what extent is it guided by strategic management considerations?
Elaborate your assessment.

In the journal “Strategic entrepreneurship: origins, core elements and research

directions” (Kyrgidou & Hughes, 2010) we learn that the generally stated that managers
must be able to maximize the pursuit of new business opportunities while
simultaneously maximizing the generation and application of temporary competitive
advantages to sustainably create organizational value. Kyrgidou & Hughes (2010)
stated that the Strategic entrepreneurship (SE) is a domain in its infancy by review
relevant literature on entrepreneurship, strategic management and SE to: ascertain the
roots of the SE concept; identify where the locus of integrations lies; establish what
components emerge at the interface of the two sets of activities; and identify elements
that aid SE to successfully unfold, offering an improved model of SE, based on the
criticism of Ireland.

Integrating entrepreneurial and strategic actions is necessary for firms to create

maximum wealth (Ireland et al., 2001a). Entrepreneurial and strategic actions are
complementary, not interchangeable (McGrath and MacMillan, 2000; Meyer and
Heppard, 2000). Entrepreneurial action is designed to identify and pursue
entrepreneurial opportunities. Thus, it is valuable in dynamic and uncertain
environments such as the new competitive landscape because entrepreneurial
opportunities arise from uncertainty. Entrepreneurial action using a strategic perspective
is helpful to identify the most appropriate opportunities to exploit and then facilitate the
exploitation to establish competitive advantages (hopefully ones that are sustainable for
a reasonable period of time). Because of its value to firms competing in a competitive
landscape characterized by uncertainty, discontinuities, and rapid change, this book
focuses on strategic entrepreneurship. Several domains important to both strategic
management and entrepreneurship are examined herein. Individual chapters identify
entrepreneurial strategies and how they can be effectively implemented to create new
ventures (either independent startups or new units within established organizations) that
produce enhanced wealth. Herein, outstanding entrepreneurship and strategic
management scholars advance novel and path-breaking ideas that have the potential to
meaningfully contribute to both fields and inform our understanding of wealth creation
in organizations. Entrepreneurs create goods and services and managers seek to
establish a competitive advantage with the goods and services created. Thus,
entrepreneurial and strategic actions are complementary and can achieve the greatest
wealth when integrated. In their chapter, Meyer, Neck, and Meeks explain the
intersection between entrepreneur-ship and strategic management while simultaneously
emphasizing the differences. They suggest, for example, that entrepreneurship focuses
on creation while strategic management focuses on building a competitive advantage
(firm performance). Additionally, they note that the entrepreneurship and strategic
management fields have had different foci in the size of firms. Entrepreneurship has
largely examined small businesses while strategic management concentrates on large
businesses. However, they emphasize that the primary interface is creation-
performance. In the framework presented earlier, the creationperformance relationship
involves both opportunity-seeking and advantage-seeking actions, the integration of
which we refer to as strategic entrepreneurship. Meyer et al. also suggest that two other
intersections requiring further study are corporate entrepreneurship and the strategies
and resulting performance of small and medium-sized businesses. Important issues,
both are explored in other chapters in this book. Michael, Storey, and Thomas's chapter
also examines the intersection of strategic management and entrepreneurship. Reaching
a conclusion that differs from that of Meyer et al., they suggest that strategic
management represents the “unrecognized union” between two fields – one
concentrating on coordination and prevention of loss and the other focusing on the
creation of future businesses. They refer to these fields as administrative management
and entrepreneurial management, respectively. Additionally, Michael and his colleagues
argue that most strategic management research has emphasized administrative
management. This conclusion is supported by the results of an analysis of journal
publications that Meyer et al. completed. They found little emphasis in the strategic
management literature on entrepreneurial firms or on research questions important to
them. Michael et al. argue that future strategic management research should emphasize
entrepreneurial management because of its importance. While we see the fields of
strategic management and entrepreneurship as independent, in agreement with Meyer
and his colleagues, we agree on the importance of research on entrepreneurial
management issues. We also suggest that these fields intersect in important areas and
that the integration of theory and research in them is vital. The two aforementioned
chapters provide interesting and thought-provoking arguments, ideas, and directions for
entrepreneurship and strategic management scholars. The third chapter in the first part
presents a framework for entrepreneurial strategies. Developed by Johnson and Van de
Ven, the framework provides four different models of entrepreneurial strategy. The
emphasis is different in each model. Highlighting the different foci are the theoretical
lenses used to explain and support each model. As described by Johnson and Van de
Ven, the models of entrepreneurial strategy (and their theoretical lenses) focus on (1)
opportunity recognition (population ecology model), (2) achieving legitimacy
(institutionalism model), (3) achieving fitness (industrial communities model), and (4)
actions taken related to resource endowments, institutional arrangements, proprietary
activities, and market consumption (industrial communities model). Johnson and Van
de Ven appropriately suggest that each model requires a different entrepreneurial
mindset. This requirement is consistent with arguments advanced by McGrath and
MacMillan (2000). However, this perspective varies from the more common view that
there is a single entrepreneurial mindset with a particular set of characteristics. Johnson
and Van de Ven also suggest that the most important type of entrepreneurial action
identifies entrepreneurial opportunities that in turn lead to the development of new
industries. The integration of entrepreneurial actions and complementary strategic
actions that results in the creation of new industries through marketplace competition is
a critical area of future theoretical and empirical research for strategic management and
entrepreneurship scholars. In particular, there is need for future research on what
differentiates a successful from an unsuccessful entrepreneurial firm and for
understanding the sources of competitive advantage among entrepreneurial firms in the
creation of new technology. Johnson and Van de Ven note that most new industries are
forged not by single entrepreneurs but by numerous entrepreneurs collectively building
an infrastructure. Entrepreneurial actions that create a competitive advantage based on
firms' tangible and intangible resources are the topics of the book's second major part.
Conclusions This book is about a new concept, strategic entrepreneurship. Strategic
entrepreneurship is applicable to smaller newer firms and older established companies
as well. As we have explained herein and as is addressed in different fashions by the
scholars whose work appears in this book, at its most basic, strategic entrepreneurship is
comprised of entrepreneurial actions that are taken using a strategic perspective. In
more depth, this concept details the strategic discipline through which exploration is
used to identify entrepreneurial opportunities by which these opportunities are exploited
to create firm wealth. Thus, strategic entrepreneurship facilitates firms' efforts to
identify the best opportunities (matched to their resources and with the highest potential
returns) and then to exploit them with the discipline of a strategic business plan. The
goal of strategic entrepreneurship is to continuously create competitive advantages that
lead to maximum wealth creation. This book explores strategic entrepreneurship by
integrating the concepts of firm actions that research in the entrepreneurship and
strategic management literatures show to be relevant to the creation of wealth. Chapters
herein explore how firms use their resources to explore for and then to identify the
competitive value of and exploit entrepreneurial opportunities. They explore the use of
alliances and networks in entrepreneurial processes. Other chapters examine innovation,
that which is entrepreneurial and the necessity of it for survival and success. The
chapters include discussions of corporate entrepreneurship and how it is implemented.
International entrepreneurship is examined along with how top managers contribute
entrepreneurial and strategic actions to facilitate and support internationalization of
their firm. Finally, the exercise of strategic leadership and achievement of growth are
explored in separate chapters. Of particular importance are the imperatives of
entrepreneurship for strategic leadership. The concept of strategic leadership has
significant implications for the development and management of new ventures and
larger established firms. These implications extend to the research and teaching in the
disciplines of entrepreneurship and strategic management. Strategic entrepreneurship is
a critically important business concept for the twenty-first century.

References

Ahuja, G. and Katila, R. 2001. Technological acquisitions and the innovation

performance of acquiring firms: A longitudinal study . Strategic Management Journal ,
(22) : 197 220. Ahuja, G. and Lampert, C. M. 2001. Entrepreneurship in the large
corporation: A longitudinal study of how established firms create breakthrough
inventions . Strategic Management Journal , (22) (special issue): in press. Alvarez, S. A.
and Barney, J. B. 2001. How entrepreneurial firms can benefit from alliances with large
partners . Academy of Management Executive , (15) (1): 139 48. Amit, R. and
Schoemaker, P. J. H. 1993. Strategic assets and organizational rent . Strategic
Management Journal , (14) : 33 46. Anders, G. 2001. Steve Ballmer's Big Moves . Fast
company , (March) , 142 8. Barney, J. B. 1991. Firm resources and sustained
competitive advantage . Journal of Management , (17) : 99 129. Barringer, B. R. and
Bluedorn, A. C. 1999. The relationship between corporate entrepreneurship and
strategic management . Strategic Management Journal , (20) : 421 44. Baum, J. R.,
 Locke, E. A., and Smith, K. G. 2001. A multi-dimensional model of venture growth .
Academy of Management Journal , (44) : in press. Bettis, R. A. and Hitt, M. A. 1995.
The new competitive landscape . Strategic Management Journal , (16) (special issue): 7
20. Business Week. 2001. The Top 25 Managers of the Year . January 8, 60

Considering the elements of strategic entrepreneurship discussed in the module, would you
say they are evident in your organization? Explain with clear examples cited in support of
your evaluation.

ELEMENT 1. POWER OF DISTRIBUTION

Power distribution dictates who's involved, how much information each individual can access, and
the decision-making process.

It's crucial to know who you're working from their track record on complex strategy projects
to basic strengths and weaknesses. Talk to other people in the organization who have worked
with them to gain more information. Vet people to avoid surprises and to understand the best
ways to support and motivate team members.

How much of your strategy is confidential? What can -- or should -- be shared with other
groups? Set the boundaries and share them so that everyone agrees and has the same
expectations.

Make sure that the inner working of the group matches the culture and values of the parent
organization. If your company is as free-flowing as Google, don't bind people with
conservative rules that eliminate communal sharing of ideas or the development innovative
solutions.

Element 2: Decision Making

The way that decisions are made in organizations determines how ideas are generated and which
ideas are considered. The way decisions are made influences how these ideas are carried out later.

Does decision making in your organization flow top-down or bottom-up? Who are the
holders of the power to decide which ideas advance and which are eliminated? If ideas are
valued in your culture, there's a strong likelihood that it might not matter who generates the
ideas.
Element 3: Idea Generation
How ideas are generated affects the quantity and quality of these ideas, which directly affects
the number of viable strategy options.

A company that has an annual strategy meeting with a brainstorming component that
encompasses input from many directions within the company uses one type of idea
generation. The Google model involves having employees use 20% of their time for
innovation. They test and grow projects. Some projects are nurtured and provide the company
with revenue. Others are killed off. It's even possible that original projects may mutate into
something different.

Element 2: Decision Making

The way that decisions are made in organizations determines how ideas are generated and
which ideas are considered. The way decisions are made influences how these ideas are
carried out later.

Does decision making in your organization flow top-down or bottom-up? Who are the
holders of the power to decide which ideas advance and which are eliminated? If ideas are
valued in your culture, there's a strong likelihood that it might not matter who generates the
ideas.

Element 4: Process

Process is the way that ideas are handled and consumed within organizations. Process defines
the way that agreements and commitments are made and managed, and how well people
understand what is happening and what to do.

The process-driven organization avoids wasting employee time and energy. People in this
type of company reach agreement that an action is valuable, develop a process around it, and
set it in motion.

Process may be communicated to a team in writing, by word of mouth or in other ways.

Agreement is critical to the understanding of process within an organization.
Element 5: People

In an organization of any size, people bring their domain knowledge, talents, and perspectives
to strategy creation. Often people are viewed as the first point of strategy failure, but they are
actually the last point of failure in a long series of cascading interactions.

Put another way, very bright, creative, motivated people can fail if they are embedded in a
strategy creation structure process where power, decision making, idea generation, or process
are broken.

Each of the five elements is critical to the strength, balance, and practicality of the proposed
strategy. Tighten up around these five and watch your team's next strategy succeed beyond
your plans.