Corporate Entrepreneurship and Innovation - Article Example

Article Review: Entrepreneurship Behavior and Innovation in Organizations Introduction The aim of this review is evaluate what existing literature discusses about corporate entrepreneurship and innovation. Underlying research or studies on corporate entrepreneurship is that the modern business environment is fast changing thus requires organizational culture that supports innovations through corporate entrepreneurship. The review, therefore, aims at enlightening modern business managers or leaders on how they can use corporate entrepreneurship to position and strategize their organizations so as to sustain competition by encouraging innovativeness among the human resource. Luke (2012) discusses the extent to which organizations can support entrepreneurial behavior and innovation by suggesting the importance of paying attention to the concept. Besides, the paper critiques some of the barriers the author identifies as constraints to ensuring entrepreneurship and innovation. In addition, this paper critiques the proposed components of an organizations innovative behavior as well as crucial factors for the creatiion of corporate entrepreneurship. Finally, it is imperative to review some of the recommendations that the author proposes as fostering innovation and entrepreneurship behavior. Discuss the main purpose of the article The main objective of this article is to bring to light some of the factors and elements that foster corporate entrepreneurship and innovation in an organization. On the other hand, the article explains how modern businesses can manage the competition in the global economy by focusing on flexibility, adaptability, risk-taking, competitive aggressiveness, and innovativeness. All of the above are elements of entrepreneurship thus the article rather presents some of the conditions that favor corporate entrepreneurship and innovation. Nonetheless, the article illustrates the nature of corporate entrepreneurship and innovativeness in the modern economic environment where issues like imitation and theft to intellectual property can hinder efforts to stay competitiveness. Moreover, the article offers advice to small and large businesses in the need to create organizational culture that foster proper management of small ideas since they are the basis of corporate entrepreneurship and innovation. Finally, Luke summarizes by stating some distinct recommendations on how organizations can create and nurture innovative behaviors among its employees. Elaborate on the content of the article. Luke begins by defining corporate entrepreneurship as a process of that gathers resources for the purpose of implementing various innovative activities result in the production of new goods or products, new business processes, service or models. The article identifies strategic, political, and behavioral barriers to corporate entrepreneurship and innovation. According to Luke, strategic barriers stem from the lack of innovation goals where the company is lacking a clear vision or in some cases, blurred. Besides, he identifies systematic barriers as the factors deeply rooted in the formal managerial system, and they include factors like routine bureaucratic reporting, poor reward systems, and inflexible budgeting. Political barriers are the power wars deeply rooted in the organizational authority system. Furthermore, the article discusses some innovation dilemmas claiming that difficulties may lie in the uncertainty of innovation results and that the process requires a lot of resources in terms of finances and time. Besides, the author describes the innovation process using Stage models that divide the process into phases of initiation, adoption, and implementation. Moreover, the article discusses the role that individuals play in corporate entrepreneurship and innovation. He presumes that employees play various roles in entrepreneurship and innovation. Luke identifies that the process must have an initiator who comes with the idea as well the champion of implementing the idea. On the other hand, he puts more emphasis on the role that a sponsor does in the entire process, where the sponsor is always an executive manager who advocates the entrepreneurial, and innovation activity. The sponsor advises the champion, helps in finding appropriate resources, supports the process by his or her personal authority. However, there is the opposing role who criticizes the project by identifying some weaknesses of the entire process. Moreover, the article argues that the middle managers play key roles in making the entrepreneurship and innovative ideas success through information support and provision of resources. Nonetheless, the article suggests that organizational climate is the influence innovation behavior where the top management has to make support the entire process by properly rewarding the sources of the new ideas. Finally, the article proposes some of the simple ways of measuring how employees perceive the organizations support for innovation and recommend that the Innovation Support Inventory is the best tool for assessing employees. Discuss the conclusion(s) drawn by author. In summary, the author suggests that though there is an urgent need for modern organizations to support entrepreneurship and innovation behaviors effectively, it is not an easy task as it always seems. In fact, Luke is right to infer that the difficult dilemmas and barriers complicate almost all the entrepreneurship and innovation processes. However, the best way to overcome the challenges is only if executive management changes the entire organizational culture to foster innovations by setting up systems that encourage entrepreneurial behavior the employees. On the other hand, the author concludes by providing a list of recommendations on how organizations can nurture corporate and innovative behaviors among their employees. Discuss the authors point of view and assumptions. The author refers to literature that outlines corporate entrepreneurship strategy that firms should create. The model assumes that innovativeness is best achieved by focusing on corporate strategy antecedents or conditions that support innovativeness and elements that include the top management supportive structure. In explaining barriers to corporate entrepreneurship, the author relies on the assumption that the organization standardizes h their procedures and rules that if well manipulated, should increase efficiency in particular areas of doing business. In this case, the top management has a role in ensuring that corporate entrepreneurship and innovation activity is a success. Discuss the significance of the article. Why it is important? On what do you base your assertions? The article is crucial in understanding conditions under which entrepreneurial and innovative behavior can thrive. The article also draws attention to barriers to successful implementation of innovation ideas and categorizes into strategic, systematic, and political factors. Nevertheless, the article discusses the extent to which the organizational climate or culture influences corporate innovation. All of these aspects are important considering the role that innovation plays in sustaining competitiveness of a business entity. Besides, the changing face of competition in the global economy requires the advice of this article on how to nurture corporate entrepreneurship and innovative behaviors. Conclusion that summarizes the important aspects of the review A crucial aspect of the article review is the extent to which organizational climate influence corporate entrepreneurial and innovative behaviors among employees because it is up to the executive management to support the initiatives. On the other hand, the review identifies roles that individuals play in corporate entrepreneurship and innovation. For instance, employees are the implementers and also important sources of information while executive management provides support including resources, information, and proper rewards for the entrepreneurship efforts. Reference Luke, M. (2012). Supporting Entrepreneurial Behavior and Innovation in Organizations. Central European Business Review 1(2), 1-8. Read More