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About this book

Written by a highly regarded expert on entrepreneurship, this bestselling textbook provides an engaging and comprehensive overview of corporate entrepreneurship. Now in its fourth edition and fully revised throughout, this accessible text is structured in four key parts that cover everything a student needs to know about the topic. After an initial consideration of what constitutes corporate entrepreneurship and innovation, the author then guides students through the four pillars of entrepreneurial architecture: culture, structure, leadership and strategy. The third section focusses on the entrepreneurial mind-set, including how to encourage creativity, business ideas and developing concepts. Finally, the book draws attention to corporate venturing, examining venture teams, intrapreneurs, market development and the role of shareholder value.

It is no longer sufficient for businesses to grow simply by cutting costs and taking over competitors. To achieve true success, organisations must avoid an ageing product or service portfolio to bring new, innovative ideas to market. Corporate entrepreneurship is inherently risky and therefore requires a fresh approach to strategy. The approach Paul Burns offers will successfully overcome barriers to launching new ideas, internal challenges of managing creativity and show how to foster an entrepreneurial culture.

This is the go-to textbook for all students studying Corporate Entrepreneurship, Intrapreneurship or Corporate Venturing at undergraduate, postgraduate or MBA level. The book is also essential reading for courses on Strategic Entrepreneurship and Innovation.

Table of Contents

1. Introduction: Entrepreneurship – thriving in chaos

Abstract
Change – continuous and unpredictable, often turbulent and disruptive – has so far characterized the twenty-first century. Furthermore, the pace of change has accelerated, making it increasingly difficult to predict and manage. The idea that change has become endemic, continuous and, above all, unpredictable, sometimes resulting in discontinuous or revolutionary shifts that can create chaos, has powerful implications for us all, but it is nothing new.
Paul Burns

Entrepreneurship and innovation

Frontmatter

2. Corporate entrepreneurship

Abstract
Corporate entrepreneurship is the broad term used to describe entrepreneurial behaviour in an established, larger organization. The objective is to encourage greater entrepreneurial intensity within the organization by increasing both the degree, or scale and the frequency of entrepreneurial activity at all levels within it – at corporate, division, business unit, functional and/or project team levels.
Paul Burns

3. Innovation

Abstract
Entrepreneurial architecture seeks to create within an organization an entrepreneurial orientation that results in greater entrepreneurial intensity, measured in Figure 2.1 as frequency and scale of entrepreneurial outputs. But what is the purpose of these outputs? What is the aim of innovation? Th eories of ‘industrial evolution’, supported by empirical evidence, have linked entrepreneurship and economic growth directly (Audretsch, 1995; Ericson and Pakes, 1995; Hopenhayn, 1992; Jovanovic, 1982; Klepper, 1996; Lambson, 1991).
Paul Burns

Building Entrepreneurial Architecture

Frontmatter

4. Culture in the entrepreneurial organization

Abstract
As we saw in Chapter 2, organizational culture is at the base of how many of the behavioural characteristics (or the ‘organizational climate’) of entrepreneurial orientation are defined: innovativeness, risk-taking, pro-activeness, competitive aggressiveness and autonomy. It is also one of the specific pillars of entrepreneurial architecture. Any group, family, organization, even a nation, has its own culture – each interacting and influencing the other. However, culture is an elusive concept.
Paul Burns

5. Structure in the entrepreneurial organization

Abstract
Larger organizations have been trying to become more entrepreneurial and responsive to changing markets for some time by ‘deconstructing’ themselves – that is, breaking themselves down into smaller units. They seem to recognize that size can be the enemy of entrepreneurship and innovation.
Paul Burns

6. Leading the entrepreneurial organization

Abstract
Organizational architecture may be based on structure and culture but the chief architect is the leader of the organization and the builders are their managers. Leading and managing an entrepreneurial organization is a distinctive challenge that requires some specific skills and capabilities. This chapter and the next are about these challenges and the skills needed to address them.
Paul Burns

7. Managing the entrepreneurial organization

Abstract
The previous chapter looked at the challenges of leadership in the entrepreneurial organization. This chapter looks at the challenges of management. Management is concerned with handling complexity in organizational processes and the execution of work. It is linked to the authority given to managers within a hierarchy. Back in the nineteenth century Max Fayol identified five functions of management: planning, organizing, commanding, coordinating and controlling.
Paul Burns

8. Managing risk in the entrepreneurial organization

Abstract
The previous chapter looked at the challenges of managing change in the entrepreneurial organization. This chapter looks at the challenges of managing risk. Because it operates in a changing, uncertain environment and/or is introducing frequent or radical innovation, the entrepreneurial organization probably faces greater risks than other organizations. The skill of risk management is therefore important.
Paul Burns

Encouraging the Entrepreneurial Mind-set

Frontmatter

9. Encouraging creativity and innovation

Abstract
Innovation is the prime tool entrepreneurs use to create opportunity. It is underpinned by creativity, which is the ability to find or create something new – ideas, rules, patterns, methodologies etc. But if creativity underpins innovation, then entrepreneurship and the ability to perceive opportunities is the context in which it will flourish.
Paul Burns

10. Generating business ideas

Abstract
Finding a new commercial business opportunity is about being able to find a solution to a problem – a solution that sufficient people are willing to pay for and one that competitors have not (yet) come up with. Successful entrepreneurs are able to match opportunities in the marketplace with innovative ways of meeting those opportunities. They link opportunity with creativity and innovation.
Paul Burns

11. Encouraging concept development

Abstract
Coming up with a business idea or innovation is only the first step in the journey towards launching it onto a market. There will be many blocks and many blockers along the route – all of which have to be dealt with. Some of these will relate to how the new product/service fits into the company’s existing portfolio.
Paul Burns

12. Strategy and business model development

Abstract
A business model is the plan for how a business competes, uses its resources, structures its relationships, communicates with customers, creates value and generates profits. For a company operating within a single product/market, it constitutes the main part of their strategic plan.
Paul Burns

Corporate Venturing

Frontmatter

13. Venture teams and intrapreneurs

Abstract
Corporate venturing can be viewed simply as a series of tools or techniques that can help bring about entrepreneurial outcomes. They help generate and maintain strategic renewal. Some of these tools and techniques relate to how the organization structures and manages itself internally (called internal corporate venturing) whilst others relate to how it structures itself externally (called external corporate venturing).
Paul Burns

14. Product/market development

Abstract
Innovation involves moving into new products and/or new markets and the risks involved increase the further the firm moves from its core competencies. This point was made in Chapter 3 and Figure 3.3 is reproduced as Figure 14.1a. The greater the degree of innovation and the greater the unfamiliarity of the market, the higher the risk.
Paul Burns

15. Shareholder value in the multi-product/ market firm

Abstract
Most large firms have a portfolio of different product/market offerings. The portfolio grows over time through corporate venturing in its different forms. Even as successive waves of innovation might bring in new products or new markets, however, the old product/market offerings still need to be managed – and innovation, albeit probably only incremental – continues to have a part to play.
Paul Burns

16. Summary: The Corporate Entrepreneurship Audit

Abstract
Entrepreneurial architecture comprises four elements or pillars: leadership and management, culture, structures and strategies (Figure 2.3). Combined so as to match the challenges of the competitive environment, they form a powerful force to develop sustainable competitive advantage and in particular the ability to innovate continuously. Kay (1995) identified three capabilities that he said formed the basis for sustainable competitive advantage.
Paul Burns
Additional information