CORPORATE ENTREPRENEURSHIP & INNOVATION Aarhus University Summer, 2012
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1 CORPORATE ENTREPRENEURSHIP & INNOVATION Aarhus University Summer, 2012 PROFESSOR: Dr. Robert P. Garrett Assistant Professor of Management-Entrepreneurship Oregon State University OFFICE: XXXX XXXX PHONE: XXXXXXXXXXX HOURS: By Appointment BOOK: Corporate Entrepreneurship & Innovation 3 rd ed. by Michael H. Morris, Donald F. Kuratko, & Jeffrey G. Covin (Thomson /South-Western Publishing, 2011). COURSE DESCRIPTION AIM OF THE COURSE The focus of this course is on the creation and management of entrepreneurial initiatives within a corporate context. The course will cover the entrepreneurial imperative for corporations, the unique nature of corporate entrepreneurship, and the levels and forms of entrepreneurship in established organizations. After identifying and defining external and internal manifestations of corporate entrepreneurship, the course will concentrate on what managers do to foster climates that facilitate internal corporate entrepreneurship. We will discuss sound venturing strategies regarding what kind of new businesses corporations choose to pursue and how those ventures should be structured and managed for maximal performance. MAIN ISSUES This course will explore issues facing corporations as they attempt to create a sustainable competitive advantage through entrepreneurial activities. Modern companies find themselves in a fast-paced, highly threatening, and increasingly global environment which forces them to continually redefine their markets, restructure their operations, and modify their business models. The abilities to think and act entrepreneurially and to innovate are becoming an increasingly important source of competitive advantage. In spite of widespread recognition of the imperative for companies to behave entrepreneurially, most corporations struggle in these efforts. Traditional management practices emphasize safe, slow, and steady growth within hierarchical organization structures. Entrepreneurial management, on the other hand, focuses on rapid growth as the top priority, accepts the risk attendant with this growth philosophy, and implements flat organizational structures with multiple informal networks. In this course, we will examine the apparent contradiction in the term corporate entreprenuership and discuss managerial techniques and organizational structures that promote entrepreneurial behaviors in a corporate context. Attention will also be given to the difficulties inherent in the process of assessing entrepreneurial performance within a corporation and the control mechanism put in place by corporate managers to restrict the autonomy of corporate entrepreneurial initiatives. TEACHING METHODOLOGY This course will be taught primarily through the use of lecture and in-class discussion. Students will be expected to complete assigned readings before attending class to prepare themselves to make a contribution to the discussion. These readings will include textbook chapters, scholarly articles on the topic of corporate entrepreneurship, and
2 relevant cases. When cases are assigned, students will be expected to deliver a case write-up and be able to present their analysis to the class. Assignments will be given and graded on an individual basis; no group work is anticipated for this course. LEARNING OUTCOME Upon completion of this course, students should be able to: Understand and evaluate the specific organizational challenges associated with corporate entrepreneurship and innovation in practice. Identify the elements of a corporate culture that either inhibit or support the process of corporate entrepreneurship and innovation. Analyze how corporate entrepreneurial activities relate to a company s ability to drive innovation throughout the organization. Compare the attributes of various organizations regarded as leaders or corporate innovation and examine the synergy necessary between leadership, ethics, corporate culture, and organizational dynamics. CORPORATE ENTREPRENEURSHIP & INNOVATION COURSE OUTLINE I: Building Blocks for Corporate Entrepreneurship A. THE NEW ENTREPRENEURIAL IMPERATIVE 1. Turbulent Environments and the Embattled Corporation 2. The New Path to Sustainable Competitive Advantage 3. What Is Entrepreneurship? 4. What Is Corporate Entrepreneurship? 5. Management versus Entrepreneurship 6. Why Companies Lose Their Entrepreneurial Way: The Organizational Life Cycle 7. The Entrepreneurial Imperative: A Persistent Sense of Urgency B. THE UNIQUE NATURE OF CORPORATE ENTREPRENEURSHIP 1. Dispelling the Myths and Sidestepping the Folklore 2. Entrepreneurial Realities: Understanding the Process 3. How Corporate Entrepreneurship Differs 4. Where to Find Entrepreneurship within a Company 5. General Frameworks for Understanding Corporate Entrepreneurship C. LEVELS OF ENTREPRENEURSHIP IN ORGANIZATIONS: ENTREPRENEURIAL INTENSITY 1. Exploring the Dimensions of Entrepreneurship 2. Entrepreneurial Intensity: Combining Degree and Frequency of Entrepreneurship 3. Applying the Entrepreneurial Grid to Organizations 4. Applying the Grid at the Level of the Individual Manager 5. Things We Know and Don t Know About Entrepreneurial Intensity D. THE FORMS OF CORPORATE ENTREPRENEURSHIP 1. Corporate Venturing: Bringing New Businesses to the Corporation 2. Strategic Entrepreneurship: Innovating In Pursuit of Competitive Advantage 3. The Business Model as a Vehicle for Corporate Entrepreneurship 4. The Open Innovation Revolution E. ENTREPRENEURSHIP IN OTHER CONTEXTS: NON-PROFIT AND GOVERNMENT ORGANIZATIONS
3 1. Applying Entrepreneurial Concepts to the Non-Profit and Public Sectors 2. Exploring Entrepreneurship in Non-Profit Organizations 3. Exploring Entrepreneurship in Government Organizations 4. How Public Sector Managers View Entrepreneurship 5. Toward Entrepreneurial Government II: Creating the Entrepreneurial Organization A. HUMAN RESOURCES IN THE ENTREPRENEURIAL ORGANIZATION: THE CREATIVE INDIVIDUAL 1. The Creative Individual in a Company 2. The Creative Process 3. The Creative Blocks 4. Creativity Techniques and Creative Quality 5. The Entrepreneurial Personality 6. Motivating Entrepreneurial Behavior 7. Are Corporate Entrepreneurs Different? 8. Categories of Entrepreneurs 9. Critical Roles in Corporate Entrepreneurship 10. Myths about Corporate Entrepreneurs B. HUMAN RESOURCES AND THE ENTREPRENEURIAL ORGANIZATION: THE ORGANIZATIONAL PERSPECTIVE 1. Understanding the HRM Function 2. Creating the Work Environment 3. HRM and the Paradox of Creative Abrasion 4. HRM Policies and Entrepreneurship 5. Some Evidence to Support the Relationships 6. Motivation and the Critical Role of Reward Systems 7. Subordinates View of the Entrepreneurial Manager 8. The Need for a Champions Program C. CORPORATE STRATEGY AND ENTREPRENEURSHIP 1. The Changing Landscape 2. Does The Dominant Logic Fit The Competitive Landscape? 3. The Role of Strategic Management and Corporate Strategy 4. Integrating Entrepreneurship with Strategy 5. Managing Innovation Strategically: A Portfolio Approach 6. Technology, Entrepreneurship and Strategy 7. Technology Limits and Platforms 8. Technology-Push versus Market Pull 9. Key Strategic Concepts: Entrepreneurship as the Driver 10. Entrepreneurial Strategy: Some Contributing Factors 11. Implementation Issues: Fatal Visions D. STRUCTURING THE COMPANY FOR ENTREPRENEURSHIP 1. The Components of Structure 2. How Structures Evolve 3. Types of Structures: Links to an Entrepreneurial Strategy 4. An Entrepreneurial Structure and the Concept of Cycling 5. Structures to Support New Product/Service Development Projects 6. Entrepreneurial Projects: Structures within Structures 7. Structuring Relationships between Entrepreneurial Initiatives and the Corporation E. DEVELOPING AN ENTREPRENEURIAL CULTURE 1. The Nature of Culture in Organizations 2. The Pieces and Parts of Culture 3. Core Ideology and the Envisioned Future 4. Generic Culture Types 5. Elements of an Entrepreneurial Culture 6. Entrepreneurial Development through Culture 7. Exploring a Key Value: Individualism 8. Conceptualizing Failure: Learning from Entrepreneurial Failure
4 9. Cultures within Cultures III: Achieving and Sustaining Entrepreneurial Performance A. CONSTRAINTS ON ENTREPRENEURIAL PERFORMANCE 1. A Framework for Understanding the Obstacles 2. Coming up Short: Limitations of the Corporate Entrepreneur 3. Corporate Innovators or Rogue Managers: An Ethical Dilemma 4. Overcoming the Obstacles and Constraints 5. Focusing On the Right Obstacles at the Right Time B. LEADING THE ENTREPRENEURIAL ORGANIZATION 1. Top-Level Managers in the Entrepreneurial Organization 2. The Entrepreneurial Imperatives of Strategic Leadership 3. Middle-Level Managers: Linchpins in the Entrepreneurial Organization 4. First-Level Managers and Non-Managerial Personnel: Entrepreneurship at The Grass Roots-Level 5. Variations in Managerial Roles across the Forms of Strategic Entrepreneurship C. ASSESSING CORPORATE ENTREPRENEURIAL PERFORMANCE 1. Assessing Entrepreneurial Activity in Companies 2. A Systematic Approach: The Entrepreneurial Health Audit 3. Assessing Individual Entrepreneurial Projects 4. Discovery Driven Planning 5. Developing a Comprehensive Corporate Venture Plan 6. Sustainable Entrepreneurship: A Dual Focus D. CONTROL AND ENTREPRENEURIAL ACTIVITY 1. The Nature of Control in Organizations 2. Organizations Out Of Control: A Story of Unintended Consequences 3. Dimensions of Control and Entrepreneurship 4. A Paradox: Simultaneous Looseness and Tightness 5. Control and Entrepreneurship as Complementary 6. Expanding on the Concept of Slack 7. Internal Venture Capital Pools 8. Control and Costs: The Open Book Revolution 9. The Concept of Profit Pools E. SUSTAINING ENTREPRENEURIAL PERFORMANCE IN THE 21ST CENTURY 1. A Personal Approach to the Entrepreneurial Process 2. The Importance of Sponsors 3. Beware of the Dark Side of Entrepreneurship 4. Recognizing and Managing the Triggering Events 5. The Adaptive Organization 6. Creating a Sense of Urgency 7. The New Strategic Imperative: Embracing Paradoxes 8. The Entrepreneurial Mindset 9. The 21 st Century Entrepreneurial Company: A Dynamic Incubator F. COMPANIES TO DISCUSS: Microsoft (pgs ) Walmart, Best Buy, Sysco, Walgreens (pgs ) P&G (pgs ) The World s Best Companies for Innovation ( ) 3-M (pgs ) Google (pgs ) Signode (pgs ) Apple (pgs ) Samsung (pgs ) Sony (pgs ) RIM ( )
5 Appendix A: TOPIC CALENDAR: SUMMER, 2012 Teaching hours are 9-12 every day Day Topics Readings 1 Student arrival and check-in Readings should be completed in advance of attending class discussion 2 (1) Introduction & Orientation Syllabus & Introduction 3 (1) The New Entrepreneurial Imperative Chpt. 1 (Morris/Kuratko/Covin) (2) Nature and Levels of Corporate Entrepreneurship Chpts. 2 & 3 (3) Levels of Entrepreneurship in Organizations (Morris/Kuratko/Covin) (4) Group Discussion: Microsoft, Walmart, Best Buy. 4 (1) The Forms of Corporate Entrepreneurship Chpt. 4 (Morris/Kuratko/Covin) (2) Video Case Illustration 5 (1) Human Resources and Corporate Entrepreneurship Chpts. 6 & 7 (2) Group Discussion: P&G, Best Companies, 3-M (Morris/Kuratko/Covin) 6 (1) Corporate Strategy and Entrepreneurship Chpts. 8 & 9 (2) Structuring the Company for Entrepreneurship (Morris/Kuratko/Covin) 7 (1) Developing an Entrepreneurial Culture Chpt. 10 (2) Group Discussion: Google, Signode (Morris/Kuratko/Covin) 8 (1) Video Case Illustration Ch. 11 (2) Understanding the Constraints on Corporate Entrepreneurship (Morris/Kuratko/Covin) (3) Group Discussion: Best Innovative Companies (Apple, Samsung) 9 (1) Leading the Entrepreneurial Organization Chs. 12 & 13 (2) Assessing Entrepreneurial Performance (Morris/Kuratko/Covin) (3) Group Discussion: Sony, RIM 10 (1) Control and Entrepreneurial Activity Chs. 14, 15 (2) Sustaining Entrepreneurship Today and Tomorrow (Morris/Kuratko/Covin)
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