Ch13-1 Chapter 13 Corporate Entrepreneurship and Innovation Michael A. Hitt R. Duane Ireland Robert E. Hoskisson ©2000 South-Western College Publishing Ch13-2 Competitiveness Chapter 3 Internal Environment Chapter 2 External Environment The Strategic Management Process Strategic Intent Strategic Mission Strategic Competitiveness Above Average Returns Feedback Strategy Formulation Chapter 4 Business-Level Strategy Chapter 5 Competitive Dynamics Chapter 6 Corporate-Level Strategy Chapter 8 International Strategy Chapter 9 Cooperative Strategies Chapter 7 Acquisitions & Restructuring Strategy Implementation Chapter 10 Corporate Governance Chapter 11 Structure & Control Chapter 12 Strategic Leadership Chapter 13 Entrepreneurship & Innovation Strategic Inputs Strategic Actions Strategic Outcomes Ch13-3 Defining Entrepreneurship Defining Entrepreneurship Firm’s capabilities to develop new goods or Firm’s capabilities to develop new goods or services and manage the innovation process services and manage the innovation process Corporate Entrepreneurship Corporate Entrepreneurship Creating or developing a new product or process idea Creating or developing a new product or process idea Invention Invention Creating a commercializable product from invention Creating a commercializable product from invention Innovation Innovation Adoption of innovation by a population of similar firms Adoption of innovation by a population of similar firms Imitation Imitation Ch13-4 Successful Entrepreneurship Successful Entrepreneurship The key to success with entrepreneurship and The key to success with entrepreneurship and innovation is moving from the invention of ideas innovation is moving from the invention of ideas to effective commercialization and acceptance in to effective commercialization and acceptance in the marketplace the marketplace Ch13-5 Timely Timely Timely Timely Difficult for Difficult for competitors to imitate competitors to imitate Difficult for Difficult for competitors to imitate competitors to imitate Commercially exploitable Commercially exploitable with present capabilities with present capabilities Commercially exploitable Commercially exploitable with present capabilities with present capabilities Innovation and Competitive Advantage Innovation and Competitive Advantage Competitive Competitive Advantage Advantage Competitive Competitive Advantage Advantage Provides significant Provides significant value to customers value to customers Provides significant Provides significant value to customers value to customers Ch13-6 Fostering Entrepreneurial Innovation Fostering Entrepreneurial Innovation Internal Corporate Venturing Internal Corporate Venturing Three approaches: Three approaches: Cooperating to Produce Innovation Cooperating to Produce Innovation Acquiring Innovative Capability Acquiring Innovative Capability Create it! Co-opt it! Buy it! Ch13-7 Internal Corporate Venturing Internal Corporate Venturing Corporate Corporate Intrapreneurship Intrapreneurship can occur as either a can occur as either a bottom-up process or as a top-down process bottom-up process or as a top-down process Autonomous strategic behavior is a bottom-up process Autonomous strategic behavior is a bottom-up process through which Product Champions pursue new product through which Product Champions pursue new product ideas to commercialization ideas to commercialization Product Champions are individuals who have an Product Champions are individuals who have an entrepreneurial vision for a new product and seek entrepreneurial vision for a new product and seek support for its commercialization support for its commercialization Ch13-8 Structural Context Structural Context Induced Induced Strategic Strategic Behavior Behavior Model of Internal Corporate Venturing Model of Internal Corporate Venturing Concept of Corporate Strategy Concept of Corporate Strategy Autonomous Autonomous Strategic Strategic Behavior Behavior Strategic Context Strategic Context Ch13-9 Internal Corporate Venturing Internal Corporate Venturing Induced strategic behavior is a top-down process Induced strategic behavior is a top-down process in which the current strategy and structure foster in which the current strategy and structure foster product innovations that are closely associated product innovations that are closely associated with the current strategy with the current strategy Environmental uncertainty makes developing Environmental uncertainty makes developing entrepreneurship strategy highly complex entrepreneurship strategy highly complex Requires a decision on which corporate resources Requires a decision on which corporate resources to deploy for new technology development and to deploy for new technology development and which innovative ideas to bring to market which innovative ideas to bring to market Ch13-10 Value Value Appropriation Appropriation from from Innovation Innovation Barriers to Integration Barriers to Integration Different Time Different Time Interpersonal Interpersonal Different Goal Different Goal Formality of Formality of Orientation Orientation Orientation Orientation Orientation Orientation Structure Structure Facilitators of Facilitators of Integration Integration Shared Values Shared Values Leaders’ Vision Leaders’ Vision Effective Effective Budget Allocation Budget Allocation Communication Communication Appropriating Value from Innovation Appropriating Value from Innovation Cross- Cross- Functional Functional Integration/ Integration/ Design Teams Design Teams Time to Time to Market Market Product Product Quality Quality Creation of Creation of Customer Customer Value Value . and manage the innovation process services and manage the innovation process Corporate Entrepreneurship Corporate Entrepreneurship Creating or developing a new product or process idea Creating. firms Imitation Imitation Ch13-4 Successful Entrepreneurship Successful Entrepreneurship The key to success with entrepreneurship and The key to success with entrepreneurship and innovation is moving. Innovative Capability Create it! Co-opt it! Buy it! Ch13-7 Internal Corporate Venturing Internal Corporate Venturing Corporate Corporate Intrapreneurship Intrapreneurship can occur as either