Critical Evaluation Of A Definition Of Corporate Entrepreneurship Commerce Essay Example

production methods, and innovations. Schumpeter referred to this process as "creative destruction," where entrepreneurs often replace existing products or methods with new ones. This is seen positively as it brings improvements in product or process utility, leading to increased interest from buyers and overall economic activity.

While Schumpeter primarily focused on individual entrepreneurs' actions, corporate-level entrepreneurship can also be seen as a phenomenon. Entrepreneurship in reshaping a company's strategy suggests that entrepreneurial activities result from interactions between individuals and groups at different levels within the corporation. Therefore, entrepreneurship is viewed as a phenomenon at the corporate level.

The interpretation of entrepreneurship is not limited to one definition and is used in various ways; hence the term "entrepreneurship" refers to the process carried out by entrepreneurs itself.The broad nature of corporate entrepreneurship (CE) literature can make it difficult to understand. Depending on the outcome for the organization, the study of entrepreneurship within organizations takes different approaches. According to Sharma and Chrisman (1999), CE is defined as the process of collaborating with an existing organization to create a new one or bring about innovation within that organization. This includes establishing new businesses and rejuvenating current strategies. The main goal is for corporations to utilize their managers' entrepreneurial thinking in pursuit of future growth in unpredictable environments. Research suggests that CE activities involve idea generation, selection, and implementation or maintenance. Various studies have explored these areas with different interpretations. Autonomy is commonly emphasized as a crucial element of CE, allowing enterprising directors to rely on their own experience and ideas rather than depending solely on top management-led strategy development.Both individual characteristics of entrepreneurial managers and organizational dynamics such as control

and reward systems, top management support, resource availability, a supportive organizational structure, and a risk-taking culture influence Corporate Entrepreneurship (CE). In this context, liberty refers to providing an incentive for risk-averse entrepreneurial directors to think outside the box and experiment with new ideas. CE involves pursuing entrepreneurial activities and innovations that transform the organization through strategic greening processes and enable expansion into new domains. Additionally, CE encompasses organizational regeneration along with innovation and corporate venturing activities (Goodale et al., 2011; Phan et al., 2009). Corporate embarking refers to the creative activity of exploring new concerns both internally and externally. Apple Inc.'s creation of the Macintosh in the early 1980s exemplifies CE. This event led to the division of the company into two groups - Macintosh and the rest. CE involves actions that enhance a corporation's capacity for participation and risk-taking, potentially involving new concerns. Steve Jobs' development of the iPod mp3 player in the early 2000s serves as another example of this. Belousova O., et al.(2010) found that CE starts at the highest level of a company where a companywide strategy is established to gain a competitive advantage.Some scholars refer to the use of entrepreneurial skills, innovation, and start-up business practices within an organization as Intrapreneurship. The late Mr. Steve Jobs from Apple Inc. can be categorized under this group. Overall, CE or Intrapreneurship is a behavioral phenomenon underlying its core concept. All companies exist on a spectrum from highly traditional to highly entrepreneurial. Entrepreneurial companies are characterized by their risk-taking, innovative, and proactive strategies. Similarly, enterpriser directors possess traits such as calculated risk-taking, thinking outside the box, and confidence - allowing them to identify

opportunities in chaotic situations.

When organizations and individuals adopt entrepreneurial values, it creates a culture of corporate entrepreneurship. This case study focuses on Apple Inc., specifically Steve Jobs, to examine the concept of corporate entrepreneurship (CE) or intrapreneurship. Jobs' entrepreneurial skills and influence have played a crucial role in Apple's success and transformation into an organization that embraces corporate entrepreneurship.

According to Sharma and Chrisman (1999), CE is defined as the process where individuals or groups establish a new organization or drive renewal and innovation within an existing organizationIn this essay, the definition will be critically evaluated by referencing relevant literature and using Lumpkin and Dess' (1996) entrepreneur orientation modelAccording to this model, all organizational activities such as planning, decision making, and strategic management are involved in the process of strategic decision-making. The reason for choosing this model is because the techniques, ideologies, and decision-making styles of leaders shape a company's entrepreneurial culture. In their research in 1996, Lumpkin and Dess used five dimensions - autonomy, innovativeness, risk taking, proactiveness, and competitive aggressiveness - that characterize and distinguish a company's entrepreneurial orientation (EO). By examining Apple Inc. and Steve Jobs as a case study, it becomes clear how having an entrepreneur at the core of a company fosters an entrepreneurial culture and encourages entrepreneurial orientation. Figure 2 displays the Entrepreneur Orientation Dimensions based on Lumpkin and Dess's research in 1996. An EO refers to the methods, ideologies, and decision-making activities that lead to new creation or innovation or revitalization within an organization. This aligns with Sharma and Chrisman's definition in 1999 of entrepreneurship as creating a new organization or inspiring revitalization or innovation. Therefore, when combined with

an entrepreneurial organizational culture, entrepreneurs contribute to creating entrepreneurial orientation. The dimensions of corporate entrepreneurship (CE) reflect the characteristics of entrepreneurs. To fully understand CE requires knowledge about both the corporate culture and the entrepreneurs within the organization.Steve Jobs made a transition from being an entrepreneur to becoming an intrapreneur due to the demands of his work environment. According to Thornberry (2001), corporate entrepreneurship, originally known as 'Intrapreneuring' by Pinchot in 1985, primarily involves startup entrepreneurship within an organization. On April 1st, 1976, Steve Jobs, Steve Wozniak, and Ronald Wayne established Apple with the initial goal of selling the Apple I personal computer kit that Wozniak had personally hand-built. However, in 1985, Jobs was ousted from the company but eventually returned as CEO in 1997. At the time of his death in 2012 at age 56, Jobs had transformed a financially struggling company into the most profitable technology firm globally with a $150 million investment from Microsoft. Known for his exceptional presentation skills, Jobs effectively communicated his vision to large audiences and turned Apple into one of the world's most influential brands. In 2012, their annual revenues reached $108 billion (CNN most admired company 2012). Both Jobs and Wozniak initially held steady jobs but their entrepreneurial dreams remained unfulfilled until they founded Apple Inc. However, in 1980, Apple faced challenges such as increased competition and poor sales of products like the Apple III and LISA. To recover from this setback, Jobs introduced their groundbreaking product -the Macintosh- in 1984 which featured a user-friendly graphical interface controlled by a mouse.The ease-of-use revolution in personal computers, under the leadership of Steve Jobs and his MAC group, showcased

Apple's innovation and willingness to take risks during challenging times (Shimizu et al.). The autonomy granted to the MAC group led to independent strategic initiatives that resulted in new business creation within Apple. However, differences in creativity between Jobs and the board of directors led to his resignation from Apple in 1985. This highlights the importance of independence for entrepreneurs but also serves as a warning against excessive control with potential negative consequences.

During this disruptive period, Apple seemed to lose its entrepreneurial orientation and culture after separating from its "creative destruction" entrepreneur described by Schumpeter (1952). Nevertheless, restless entrepreneurs like Steve Jobs continuously seek new challenges. In 1985, Jobs used funds from stock sales to establish NeXT Computer Co., aiming to revolutionize higher education through innovative computer development. This demonstrated his resilience and determination as an entrepreneur.

Despite facing obstacles and failures along the way, Jobs persevered and created a new business venture that showcased his qualities of innovation and proactivity. He took a bold risk with his savings to prove his ability to create something out of nothing.In 1988, the NeXT computer was introduced with various innovations. However, its high price tag of $9,950 posed challenges in generating sufficient sales for the company. Despite facing setbacks, Steve Jobs remained determined and shifted the company's focus from hardware to software. He also directed his attention towards Pixar Animation Studios, which he had acquired in 1986. This display of entrepreneurial skill allowed him to learn from failure and expand his business by creating a subsidiary within his company.

Steve Jobs can be seen as a serial entrepreneur who established new organizations and created new ventures within them when

the primary business no longer satisfied his drive for entrepreneurship. Apple eventually acquired NeXT for $400 million, with Jobs being re-appointed as an advisor to Apple's president and CEO Gilbert F. Amelio. This decision was considered risky yet innovative, showcasing Apple's entrepreneurial spirit.

The move was made due to their financial loss and a decrease in market share resulting from their failure in developing a next-generation Macintosh operating system. Turning to Jobs was seen as a way to turn the company around.Despite emotional factors playing a role in accepting the offer, Jobs returned to his old leadership style at Apple by setting an example once again as its leader.Under Steve Jobs' leadership, Apple Inc.experienced a resurgence in success.Under Steve Jobs' leadership, Apple Inc. achieved remarkable success in revenue growth and industry transformation by embracing knowledge gained from past mistakes, showcasing traits common among successful entrepreneurs. To secure the company's survival, Jobs struck a deal with Microsoft and implemented the G3 PowerPC microprocessor in all Apple computers, surpassing the speed of competing Pentium PCs. He also spearheaded the development of the highly acclaimed iMac desktop computers, released to positive reviews in August 1998. By year-end, Apple's sales reached $5.9 billion.

Furthermore, Jobs introduced major innovations such as the original iPod and iTunes music store in 2001, revolutionizing digital music purchasing. In January 2007, he surprised the industry with the launch of the first iPhone after multiple redesigns. Although not being the first touchscreen phone on the market, its user-friendly interface and design set a new benchmark for future smartphones.

According to Zahra (1991), achieving market development can involve finding new markets for existing products. However, Apple took a different

approach by reinventing their own product and creating a completely new market with their iPhone. This reconfiguration of the smartphone market prompted established players like Microsoft, Nokia,and RIM to reassess and adapt their own mobile strategies.

Overall, under Steve Jobs' guidance and through innovative products like Mac computers and iPhones, Apple Inc.experienced significant success in revenue growth while transforming industries within which it operates.The main focus of this essay is Apple's unique strategic design approach, which was led by Jobs. He believed in identifying external opportunities and positioning the company to seize them while also meeting stakeholders' needs. Jobs emphasized the importance of reinventing or creating new markets, products, customers, and services. Apple had a long-term strategy that went beyond personal computers as they waited for the next major breakthrough, which eventually came with the iPod and iPhone.

Jobs' personal values heavily influenced Apple's entrepreneurial strategy, emphasizing consistency and regularity. By taking calculated risks and recognizing trends, Jobs capitalized on opportunities by aligning himself with Henry Ford's perspective on customer needs. This trait was reflected in Apple's overall approach as they embraced "creative destruction" by challenging industry norms. Recognizing industry dynamics and driving performance factors were crucial elements of Apple's success.

Furthermore, Apple closely monitors competitors' strategic actions to prevent complacency among its employees. The text highlights the aggressive marketing tactics and active competition in the mp3 device industry where iPod's dominance has limited other competitors. It states that Sharma and Chrisman's definition of entrepreneurship is intertwined with Lumpkin and Dess’s five dimensions.

Overall, this text provides a case study on Apple Inc.'s unconventional strategic design approach driven by Steve Jobs' vision and values.The text highlights the example of

Steve Jobs and how he collaborates with Apple Inc. to foster innovation and create new enterprises, illustrating the promotion of entrepreneurship and intrapreneurship by Apple Inc. This aligns with the core ideals of their strategies, such as independence, proactiveness, risk-taking, innovativeness, and intense competition. It acknowledges the challenge in defining entrepreneurship initially but concludes that Sharma and Chrisman's (1999) definition can only explain certain aspects of corporate entrepreneurship (CE). The complexity and nature of CE are emphasized by Hornsby et al., while Barringer and Bluedorn (1999) argue that entrepreneurship, CE, and entrepreneur orientation are interconnected concepts involving various interactions within a corporation.The quote frequently attributed to Charles Darwin, "It is not the strongest of the species that survives, nor the most intelligent, but rather the one most adaptable to change," applies to corporations striving for success in a competitive market. In order to adapt and respond to both external and internal changes, these companies must embrace CE as demonstrated in the case study discussed in this essay.

The entrepreneurial acquisition process can be defined as choices made among conflicting rules or activities based on new experiences encountered over time (Arthur, W.B., 1993; Bullard & Duffy , J., 1999; Riechmann , T., 1999). To effectively showcase my skills and weaknesses, I will utilize a mind map which includes green qualities representing my existing skills and red ones indicating skills I lack or have not yet demonstrated. The numbers on the red boxes show urgency levels (1 or 2) identified in the SWOT analysis. Additionally, an action plan will address areas of concern moving forward.

Mind Map:

The green qualities represent my existing skills while the red ones indicate skills

and abilities I lack or have not demonstrated yet. The numbers on the red boxes show urgency levels (1 or 2) as shown in the SWOT analysis. The SWOT analysis, presented in Figure 3: Mind map, further explains how to address the red boxes in the action plan section below. The SWOT analysis is based on the above mind map and examines my entrepreneurship capabilities.In terms of my strengths, I am highly creative and innovative in my thinking. My unique perspective often impresses others, and I confidently communicate and passionately express my beliefs. Additionally, I have a talent for asking important questions and considering different viewpoints. Challenges energize me as they allow me to bring something new to life, and taking calculated risks does not intimidate me. Furthermore, I strive for objectivity by thoroughly examining both sides of an argument, and working under pressure invigorates me. Stressful situations are also invigorating because I view failures as valuable learning opportunities that contribute to personal growth. My constant desire to expand knowledge and skills remains unwavering.

However, there are areas where improvements can be made. Sometimes, rushing through tasks compromises their quality for me, and managing too many projects at once can be overwhelming. Some people may misinterpret my confidence as arrogance at times. Autonomy is occasionally lacking in certain situations which can present a challenge for me. Balancing work with leisure activities can also be difficult due to numerous distractions that arise. Furthermore, my competitive nature has negatively impacted relationships with others; additionally marketing is not a strong suit as it lacks natural talent on my part.

Lastly, it should be noted that although untested leadership has been

enjoyable when given the opportunity, sometimes I make quick judgments about people that hinder potential relationships.
My relationships with my directors have been damaged due to my skepticism towards their promises. Occasionally, my desire for freedom and authority causes issues within the team, as others perceive my direct approach as rude and I often lack empathy when necessary.

Opportunities:

The MBA degree provides me with an opportunity to address these weaknesses through group work and interaction with experienced professors and diverse colleagues. Subjects like entrepreneurship, marketing, organizational behavior, and human resource management help me understand business areas theoretically while academic articles raise awareness of my behavior and thought patterns.

Threats:

The current economic environment presents challenges in finding a job where I can showcase entrepreneurial skills due to sluggish business growth. Additionally, I currently lack confidence in starting my own business. It is important for me to improve upon these weaknesses so they do not become permanent personality traits in the future.

Action Plan:

Pursuing an MBA offers the perfect platform for me to present different solutions for countries facing challenges.In the upcoming months, I aim to utilize available resources to learn from others and acquire skills that I currently lack. According to the mind map, my initial focus should be on improving skills labeled as "1" in order to progress to "2." To begin, I need to enhance my interpersonal skills by actively listening and empathizing with others before making judgments. It is crucial for me to avoid arrogance and instead adopt a more indirect approach when addressing issues. However, there may be situations where directness is necessary and diplomacy may not be appropriate, so it is important for me to

learn when each approach is most suitable. While I have had limited opportunities to demonstrate leadership abilities, I can seize every chance to act as a leader and showcase my managerial skills. Acquiring these skills requires time and effort; therefore, prioritizing quality over quantity is essential (Hornsby et al., 1993). Furthermore, it is crucial not to fear failure because entrepreneurs learn from their mistakes and failures according to Minniti & Bygrave (2001), gathering valuable information that can be used or modified depending on the circumstances. Additionally, it remains important for me to work on improving existing skills as there will always be room for improvement.Surrounding myself with people from diverse backgrounds helps me achieve social accomplishments and gain a better understanding of different perspectives. The dynamic action plan, which depends on the current situation, will be changed after completing the MBA program. It is crucial to adapt to change as unexpected events may occur. Not everyone who has the necessary skills and attributes for entrepreneurship has the potential or desire to become an entrepreneur. Some individuals with entrepreneurial qualities may prefer working for someone else due to reasons unrelated to entrepreneurship. However, these individuals can still utilize their entrepreneurial achievements to advance their careers without taking on the risks associated with entrepreneurship. Personally, I have recognized that I possess some of these characteristics but am not inclined to pursue entrepreneurship at this point in my career. Instead, my intention is to leverage my entrepreneurial skills within a company in order to further my career goals.

Entrepreneurial education is characterized by concepts such as transformation, uncertainty, changes, and risks (Cope, J. 2005), rather than principles like stability,

reliability, and predictability. While some individuals naturally possess entrepreneurial inclinations, others acquire these skills through learning. Personally, although I may not have been born an entrepreneur initially, I am actively involved in acquiring entrepreneurial knowledge.