Entrepreneurship and Publishing Industry
Added on 2020-04-13
12 Pages3496 Words215 Views
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Running Head: Entrepreneurship and innovationEntrepreneurship and innovationName of the StudentName of the UniversityAuthor Note
1ENTREPRENEURSHIP AND INNOVATIONThe essay is based on the subject entrepreneurship and innovation. Corporateentrepreneurship is the process of creating the new organisation or innovation in association withthe existing organization and group of people (Kuratko et al. 2015). In any entrepreneurialactivity, innovation is the intrinsic element. Creative thinking is correlated with the innovation,especially the ideas generation stage of the innovation process (Kuratko and Audretsch 2013). Ifan organisation defines innovation as critical for long-term success, or rewards individualinnovation then it is considered as best practice. There are many barriers to innovation The essayexplores the nature of creative thinking. A number of strategies are offered, that leaders may findhelpful in their efforts to build a more creative and innovative enterprise. The essay is focused oncritical analysis of research demonstrating depth and breadth of understanding of key conceptsregarding innovation and corporate entrepreneurship. The line of enquiry used for this purposeis- “what are some of the barriers to corporate entrepreneurship being sustained in anorganisation, and what kinds of strategies help to overcome those barriers?’” The essay criticallyanalyses the real life cases of the corporate entrepreneurship in this regard as an example. Those organisations that were more creative and innovative are the ones that havesucceeded in the long haul. These organisations use innovative ideas to develop unique product,application and service. For large companies, it is challenging to create new business. Costcutting and downsizing have been problems since years. It is not an option to lose success. It isimperative from the advancement in technology and aging product portfolios that companiesmust create innovative business develop it and sustain the innovation. However, corporateentrepreneurship is risky job. There, are many barriers to the corporate entrepreneurship beingsustained in the new organisation.
2ENTREPRENEURSHIP AND INNOVATIONWell established businesses when start their new ventures or business face the problem oftwo cultures. With the existing operations bulk of revenue is generated due to tuned supportsystem in the organisation. In the well established organisations, efficiency, stability andincremental growth are the main executive goals. It is easy to predict the operating environment.This culture is different from the new business. New business may plan to offer cutting edgingproducts. However, it may happen that in market place their technologies are not widely diffusedand they lack hard data. It is common to have large errors as new businesses are not well definedand financial forecasts are undependable (Davidsson 2015). New ventures always requireinnovation which comes from fresh ideas and mavericks. Instead most leaders are trapped inunconventional thinking for instance, media companies distastes blogs. Too many radical ideasare foolish argued. According to Kuratko et al. (2015) it is challenging to fit between the old andnew business. It holds true in regards to human resource management and budgeting. Somebusiness design HR system in manner that is well suited to the well developed business. Newcorporations require entrepreneurial skills that are more strategic and conceptual. In conclusionthe two culture problem is the barrier to sustain the corporate entrepreneurship. Not only the newbut existing corporations also fail to sustain its corporate entrepreneurship due to traditionalresponses. Traditional strategies such as imposing aggressive targets lead to diffused responsibility.It is very commonly found that employees are promised to give compensation if they cancontribute 30% of the sales from the product developed in last few years (2-3). Diffusingresponsibility may fizzle out argued (Morgan and Sisak 2016). According to Mathias et al.(2015) this approach has drawbacks as new ventures may get dominated by the traditional ones.In case of veteran employees, it was observed that new ideas are suppressed by ignoring the
3ENTREPRENEURSHIP AND INNOVATIONincentives. It may be due to new ways of working or because it renders the old skills obsolete. Itthus, acts as a barrier to the corporate entrepreneurship. This barrier can be well explained bydiscussing the example of US giant, RR Donnelley. RR Donnelley founded in 1864, is the largest printing company in US by revenue. Thecompany provides, commercial printing, business communications, and marketing services. Theorganisation failed in its first attempt of making the digital printing popular. It was due tointernational resistance as per literature review. There was decrease in demand for paper andprint. According to Sandler (2017) the sales managers were uncomfortable in selling thesolutions to managers at senior level as demanded by the company. The sales people wereaccustomed to sell long term contracts. These contracts were sold to customers’ purchasingmanagers. It was possible due to the personal relationships with the clients and sold it on thebasis of price per page. The management did not consider that the employees wereuncomfortable selling solutions to senior managers. The employees also did not wanted to sendorders its way or share the expertise with the digital printing division. There was no way themanagement could point fingers at them as they were good with the numbers. It was indicativeof poor commitment and was observed by one of the executive of Donnelley. These employeeswere resistant to the new business ideas. It was found that few managers were takingresponsibility but only for the project that they viewed as diversions. In relation this case it wasmentioned by DeTienne et al. (2015) that new ventures must fit with the product lines of theexisting companies. Else it will be trouble finding an organisational home. It can be interpretedthat the entrepreneurs may have overwhelmed the employees in the quest to create new ideas inDonnelley. Other barriers to sustain the corporate entrepreneurship were the out datedtechnology. As per the report of www.xerox.de (2017) the employees of R R Donnelley,
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