What are the major differences between traditionally managed firms and entrepreneurially managed firms?

Corporate EntrepreneurshipCorporate entrepreneurshipis entrepreneurial action within an organisation.Causes for Interest in CorporateEntrepreneurshipDesire for responsibilityStrong need for individual expression and freedomDiscontent within the structured organisationElements of Corporate EntrepreneurshipNew business venturing (sometimes calledcorporate venturing) refers to the creation of anew business within an existing organization. These entrepreneurial activities consist of creatingsomething new of value either by redefining the company’s current products or services, developingnew markets, or forming more formally autonomous or semiautonomous units or firms.Formations of new corporate ventures are the most salient manifestations of corporateentrepreneurship.Organizational innovativenessrefers to product and serviceinnovation, with an emphasis on development and innovation in technology. It includes new productdevelopment, product improvements, and new production methods and procedures.Self-renewalis the transformation of an organization through the renewal of the key ideas onwhich it is built. It has strategic and organizational change connotations and includes a redefinition ofthe business concept, reorganization, and the introduction of system-wide changes to increaseinnovation.Proactivenessincludes initiative and risk taking, as well as competitive aggressiveness andboldness, which are particularly reflected in the orientations and activities of top management. Aproactive organization tends to take risks by conducting experiments; it also takes initiative and isbold and aggressive in pursuing opportunities. Organizations with this proactive spirit attempt to leadrather than follow competitors in such key business areas as the introduction of new products orservices, operating technologies, and administrative techniques.MANAGERIAL VERSUSENTREPRENEURIAL DECISIONMAKINGEntrepreneurial management is distinct from traditional management in terms of eight dimensions:1.strategic orientation2.commitment to opportunity

Related Textbook Solutions

3.commitment of resources4.control of resources5.management structure6.reward philosophy7.growth orientation8.entrepreneurial culture.The nature of the differences among thesedimensions is represented in Table 2.1 anddescribed in greater detail belowTABLE 2.1DistinguishingEntrepreneurially from Traditionally Managed FirmsStrategic Orientation and Commitment toOpportunitystrategic orientation- A focus on those factors that are inputs into the formulation of thefirm’s strategyStrategic orientation refers to those factors that are inputs into the formulation of the firm’s strategy.We can think of it as the philosophy of the firm that drives its decision about strategy; the way that itlooks at the world and the way it looks at itself and these perceptions are the driving factors behindthe firm’s strategy. The strategy of entrepreneurial management is driven by the presence or