Chapter 13 - STRATEGY
Diversify -> spread risk
1
Through acquisitions-> firms gain access to knowledge with the potential to
contribute to innovative outputs in other operations held by the firm = success
Strategic entrepreneurship = taking entrepreneurial actions using a strategic
perspective
(Can contribute to economic development of countries)
– Entrepreneurship dimension = identifying opportunities in the external
market to exploit through innovation
– Strategic dimension = determining the best way to competitively
manage the firm’s innovation efforts
Younger, entrepreneurial venture -> take better entrepreneurial actions
– Excel at opportunity-seeking (entrepreneurial behaviour)
Large, more established firms -> better at using a strategic perspective as part
of strategic entrepreneurship
– Excel at advantage-seeking (strategic) behaviour
Responsibility of managers focusing on innovation and emerging brands: find
entrepreneurial opportunities
Corporate responsibility = the use or application of entrepreneurship within an
established firm
Entrepreneurship = the process by which individuals, teams or organisations
identify and pursue entrepreneurial opportunities without being immediately
constrained by the resources they currently control
– Critical for innovation
– Firms place high value on individual innovation and continuous
innovation
– Most entrepreneurial countries in 2024: India, Turkey, United States,
Brazil, China, Iceland, Ireland, Russia, Estonia, and Austria
Entrepreneurial opportunities = conditions in which new goods or services can
satisfy a need in the market
– Exist because of competitive imperfections in markets and among
factors of production use to produce them or because they were
independently developed by entrepreneurs
Innovative activities
. Invention = the act of creating or developing the success of an
invention
– Technical criteria used to determine its success
, 2
– Patents create entry barriers
. Innovation = used to create a commercial product from an invention
(bring an invention into use)
– Commercial criteria used to determine its success
– Commercialising the inventions can be difficult even if they are
created
– Top 10 innovative countries: South Korea, Japan, Germany, Finland,
Israel, the United States, Sweden, Singapore, France, and the
United Kingdom
. Imitation = the adoption of a similar innovation by different firms
– Usually leads to product standardisation
– Often offered at lower prices and less features
ENTREPRENEURS
= individuals acting independently or as a part of an organisation, who identify
an entrepreneurial opportunity and take risks to develop an innovation and
exploit it
Tend to demonstrate:
– High motivation
– Willingness to take responsibility for their projects
– Self-confidence
– Optimism
– Passion and emotional about the value and importance of their ideas
– Can deal with uncertainty
– More alert to opportunities than other
A person with an entrepreneurial mindset -> values uncertainty in markets and
seeks to continuously identify opportunities in those markets that can be
pursued through innovation
INTERNATIONAL ENTREPRENEURSHIP
= a process in which firms creatively discover and exploit opportunities that are
outside their domestic markets
Can enhance firm’s performance
Improve economic development within a country
BUT risks:
– Unstable foreign currencies
– Market inefficiencies
– Insufficient infrastructure to support businesses
– Limitations on market size
Diversify -> spread risk
1
Through acquisitions-> firms gain access to knowledge with the potential to
contribute to innovative outputs in other operations held by the firm = success
Strategic entrepreneurship = taking entrepreneurial actions using a strategic
perspective
(Can contribute to economic development of countries)
– Entrepreneurship dimension = identifying opportunities in the external
market to exploit through innovation
– Strategic dimension = determining the best way to competitively
manage the firm’s innovation efforts
Younger, entrepreneurial venture -> take better entrepreneurial actions
– Excel at opportunity-seeking (entrepreneurial behaviour)
Large, more established firms -> better at using a strategic perspective as part
of strategic entrepreneurship
– Excel at advantage-seeking (strategic) behaviour
Responsibility of managers focusing on innovation and emerging brands: find
entrepreneurial opportunities
Corporate responsibility = the use or application of entrepreneurship within an
established firm
Entrepreneurship = the process by which individuals, teams or organisations
identify and pursue entrepreneurial opportunities without being immediately
constrained by the resources they currently control
– Critical for innovation
– Firms place high value on individual innovation and continuous
innovation
– Most entrepreneurial countries in 2024: India, Turkey, United States,
Brazil, China, Iceland, Ireland, Russia, Estonia, and Austria
Entrepreneurial opportunities = conditions in which new goods or services can
satisfy a need in the market
– Exist because of competitive imperfections in markets and among
factors of production use to produce them or because they were
independently developed by entrepreneurs
Innovative activities
. Invention = the act of creating or developing the success of an
invention
– Technical criteria used to determine its success
, 2
– Patents create entry barriers
. Innovation = used to create a commercial product from an invention
(bring an invention into use)
– Commercial criteria used to determine its success
– Commercialising the inventions can be difficult even if they are
created
– Top 10 innovative countries: South Korea, Japan, Germany, Finland,
Israel, the United States, Sweden, Singapore, France, and the
United Kingdom
. Imitation = the adoption of a similar innovation by different firms
– Usually leads to product standardisation
– Often offered at lower prices and less features
ENTREPRENEURS
= individuals acting independently or as a part of an organisation, who identify
an entrepreneurial opportunity and take risks to develop an innovation and
exploit it
Tend to demonstrate:
– High motivation
– Willingness to take responsibility for their projects
– Self-confidence
– Optimism
– Passion and emotional about the value and importance of their ideas
– Can deal with uncertainty
– More alert to opportunities than other
A person with an entrepreneurial mindset -> values uncertainty in markets and
seeks to continuously identify opportunities in those markets that can be
pursued through innovation
INTERNATIONAL ENTREPRENEURSHIP
= a process in which firms creatively discover and exploit opportunities that are
outside their domestic markets
Can enhance firm’s performance
Improve economic development within a country
BUT risks:
– Unstable foreign currencies
– Market inefficiencies
– Insufficient infrastructure to support businesses
– Limitations on market size
