Enterprise: Entrepreneurship and Innovation: Concepts, Contexts and Commercialization

471 Pages·2006·3.29 MB·English

by  Robin Lowe

H6920-FM 3/29/06 4:03 PM Page i
Enterprise:
Entrepreneurship and
Innovation
H6920-FM 3/29/06 4:03 PM Page ii
To Sylvia, Catherine and Jonathan
– Robin
To Andrew, Ian and bouncebackability
– Sue
H6920-FM 3/29/06 4:03 PM Page iii
Enterprise:
Entrepreneurship
and Innovation
Concepts, Contexts and
Commercialization
Robin Lowe and Sue Marriott
AMSTERDAM• BOSTON• HEIDELBERG• LONDON• NEWYORK• OXFORD
PARIS• SANDIEGO• SANFRANCISCO• SINGAPORE• SYDNEY• TOKYO
Butterworth-Heinemann is an imprint of Elsevier
H6920-FM 3/29/06 4:03 PM Page iv
Butterworth-Heinemann is an imprint of Elsevier
Linacre House, Jordan Hill, Oxford OX2 8DP
30 Corporate Drive, Suite 400, Burlington, MA 01803, USA
First edition 2006
Copyright © 2006, Robin Lowe and Sue Marriott. Published by Elsevier Ltd.
All rights reserved
The right of Robin Lowe and Sue Marriott to be identified as the authors
of this work has been asserted in accordance with the Copyright, Designs and
Patents Act 1988
No part of this publication may be reproduced, stored in a retrieval system or
transmitted in any form or by any means electronic, mechanical, photocopying,
recording or otherwise without the prior written permission of the publisher
Permissions may be sought directly from Elsevier’s Science & Technology Rights
Department in Oxford, UK: phone ((cid:1)44) (0) 1865 843830; fax ((cid:1)44) (0) 1865
853333; e-mail: [email protected]. Alternatively you can submit your
request online by visiting the Elsevier website at http://elsevier.com/locate/
permissions, and selecting Obtaining permission to use Elsevier material
Notice
No responsibility is assumed by the publisher for any injury and/or damage to
persons or property as a matter of products liability, negligence or otherwise,
or from any use or operation of any methods, products, instructions or ideas
contained in the material herein
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
Library of Congress Cataloguing in Publication Data
A catalogue record for this book is available from the Library of Congress
ISBN-13: 978-0-7506-6920-7
ISBN-10: 0-7506-6920-9
For information on all Butterworth-Heinemann publications
visit our website at http://books.elsevier.com
Typeset by Charon Tec Ltd, Chennai, India
www.charontec.com
Printed and bound in The Netherlands
06 07 08 09 10 10 9 8 7 6 5 4 3 2 1
H6920-FM 3/29/06 4:03 PM Page v
Contents
Introduction xvi
Part I Concepts 1
Chapter 1 What is enterprise and where do we find it? 3
Learning objectives 3
Introduction 3
The evolving conceptual perspectives of entrepreneurship 4
The physiocrats 5
The Austrian School 6
Risk taking 6
Entrepreneurship as a multifaceted activity 8
The social dimension to entrepreneurship 8
Some definitions of entrepreneurship 10
Narrow definitions of entrepreneurship 10
Broader definitions 11
Focusing on skills or attitudes 11
The characteristics of individual enterprise 12
Self-managed or -employed 13
Knowledge and learning 13
The family connection 14
Personality drivers 14
Life circumstances 15
Perceptions of risk 16
The cultural dimension 16
The continuum of enterprise 17
Organizational enterprise 18
Innovation 18
Creative destruction or incremental change 19
H6920-FM 3/29/06 4:03 PM Page vi
vi Contents
Contexts – where do we find enterprise? 21
Size of businesses 21
Creating jobs and turnover 22
The types of organizations 22
The myths of entrepreneurship 25
Individual propensity to entrepreneurship 26
Developing an enterprise culture 28
Government support for enterprise 28
Cause and effect of intervention 29
Learning the lessons 30
Summary 32
Chapter questions 32
Case study 33
References and further reading 34
Chapter 2 What entrepreneurs are like, and what they do 37
Learning objectives 37
Introduction 37
What entrepreneurs are like 38
The ‘entrepreneurial personality’ 39
Nurture rather than nature 42
Early life experiences 43
Motivations of entrepreneurs 44
What entrepreneurs do 47
Entrepreneurs as managers 47
The entrepreneur–administrator continuum 49
Entrepreneurial actions 51
Entrepreneurial capacity 54
Dimensions of entrepreneurial capacity 54
Developing entrepreneurial capacity 57
Process 58
Summary 60
Chapter questions 60
Case study 61
References and further reading 62
Chapter 3 Innovation and its management 63
Learning objectives 63
Introduction 63
The nature and role of market-based innovation 64
Innovation and creativity 65
The alternative categories of innovation 70
H6920-FM 3/29/06 4:03 PM Page vii
Contents vii
Technology and step changes 71
Technological discontinuities 72
Incremental and architectural innovation 74
Innovation throughout the life cycle 76
Industry breakpoints 79
Marketing and operational breakpoints 79
The categories of innovation and commercialization challenges 79
Continuous innovations 80
Dynamically continuous innovations 81
Creative destruction and the internal organizational challenges 81
The innovation process 84
Technology push,market pull 85
The innovation models 86
The management of innovation 88
Developing an appropriate innovation stance 88
The key innovation process steps 90
The lessons of success in the innovation process 92
Reasons for failure in innovation 94
The challenges in managing innovation 95
Summary 97
Chapter questions 98
Case study 99
References and further reading 100
Chapter 4 Learning, decision-making and leadership 102
Learning objectives 102
Introduction 102
The nature of individual learning and enterprise 104
Skills,knowledge and attitudes 105
Intuition and luck 106
The alternative education approaches 107
Lateral leaders 109
The link with professional development 109
Personal reflection 110
The process of reflection 110
Making choices 112
Overcoming the fear of failure 112
Critical incidents 113
Leadership and learning capability 113
Vision as a driving force for learning 114
Innovative climate 114
Alternative leadership styles 115
H6920-FM 3/29/06 4:03 PM Page viii
viii Contents
Entrepreneurial organizational learning 117
The learning organization 117
Decision-making in entrepreneurial organizations 119
Dealing with ambiguity in decision-making 120
Learning capability and entrepreneurial strategy 123
Single- and double-loop learning 123
Signal and 3R learning 124
3R learning and innovation 126
The learning spiral 128
Summary 128
Chapter questions 129
Case study 129
References and further reading 130
Part I Integrated personal development activity 132
Part II Contexts 139
Chapter 5 The personal enterprise environment 141
Learning objectives 141
Introduction 141
Female entrepreneurship 142
Typologies 142
Hidden entrepreneurial activity 144
Facts and figures 144
Perceived barriers 145
Policy issues 148
Ethnic minority entrepreneurship 149
Facts and figures 150
Push and pull factors 150
Dislocation and hardship 151
Geographical concentration 151
Policy issues 153
Family businesses 153
Definitions 153
Incidence 154
Insularity 154
Conflicting priorities 155
Communication 155
Succession 156
Support needs 159
H6920-FM 3/29/06 4:03 PM Page ix
Contents ix
Young entrepreneurs and grey entrepreneurs 159
Young entrepreneurs 159
Grey entrepreneurs 160
Self-perceptions 161
Readiness for self-employment 161
Self-perceived effective capacity 162
Culture 165
Degree of fit 166
The support infrastructure 167
Personal support networks 167
The know-how and know-who of social networks 167
Supporting enterprising people 168
Public sector support 169
Employer support 171
Categorizing entrepreneurs 172
Summary 173
Chapter questions 174
Case study 174
References and further reading 175
Chapter 6 The enterprise environment and the entrepreneurial
response 177
Learning objectives 177
Introduction 177
The entrepreneurial environment 178
The business environment 178
The entrepreneurial organizational environment 180
The nature of macro environmental changes and the
entrepreneurial strategic response 181
Changes in the macro environment 181
The nature of the strategic response of entrepreneurial
organizations to macro environmental changes 182
The nature of micro environmental changes and the
entrepreneurial strategic response 190
Changing customer behaviour 190
Competition and its changing nature 193
Sector changes 196
The public sector environment 196
Other not-for-profit environments 198
Strategic response 199