The Development of Collaborative Entrepreneurship in Organizations

Entrepreneurship comes in many forms, methods, and pathways. Most often it is discussed in terms of small business development but also includes important aspects of developing stronger products, services, and proactive problem-solving. Research conducted on a Finnish consulting firm helps to highlight how internal organizational entrepreneurship can exist within the team framework of the organizations leaders. It is this leadership inclusion and culture of discussion that can turn reactive management into proactive problem-solving that improves performance. 

Entrepreneurship within organizations should be honored and encouraged to foster stronger performing companies. The main task of organizational entrepreneurship is to improve economic performance through better developed strategies and operations (Rauch, et. al., 2009; Ireland, Covin & Kuratko, 2009). Such activities encourage innovative development of both the decision-makers processes as well as the operational structures they control. 

A large percentage of organizational performance is based within the capacity and behavioral patterns of the leadership team. It is this leadership team that develops the processes and procedures by which other organizational aspects function. These processes and procedures create a structure that primes employee’s behavior through the rewards, punishments, expectations, communication lines, and processes. Enhancing the entrepreneurship of the leadership team has a huge impact on the functioning of the rest of the organization. 

Since leader’s decisions are important and have a wide impact on the organization it is beneficial to create checks and balances by offering as many possible solutions and counter solutions as relevancy allows. Some have advocated a four step process of joint decision-making that includes proposal, access, agreement and commitment (Stevanovic, 2012). As proposals make their way into the leadership war room they should be fairly pondered, accepted or discarded, and finally committed upon. 

A study conducted by Peltola from the University of Helsinki helps to further define how entrepreneurship and decision-making innovation works within executive teams (2013). The study offers a case study of a consultative business management organization with access to a number of other firms in Finland. Meetings were recorded to determine overall effectiveness of practices. 

Results:

-Collaborative decision-making practices to solve jointly-acknowledged performance problems are important at the initial stages of entrepreneurship. 

- Entrepreneurship in decision making is founded on proposals, access, agreement and commitment. 

-Strong decision-making processes require conversational subtlety. 

-Powerful members must first adapt and model entrepreneurship traits for others.

Business Analysis:

The development of an entrepreneurial culture starts at the very top of an organization. Those leaders who adapt and model the stages will encourage others to come forward with solutions. The stages depend on a proposal, access to decision makers, agreement about fundamental issues and approaches, and finally commitment to enact the proposal. The successful solicitation and presentation of proposals requires the ability to engage in productive conversation versus the subtle rejection of anything new. Organizations that desire to stay ahead of problems need to be open to potential solutions and accepting of those solutions for debate. 

Ireland, R.D., Covin, J.G., Kuratko, D.F., (2009). Conceptualizing Corporate Entrepreneurship Strategy. Entrepreneurship Theory and Practice, 33(1).

Peltola, S. (2013). The emergence of entrepreneurship in organizations: joint decision-making about new sales practices in management group meeting interaction. Poznan University of Economics Review, 13 (1).

Rauch, A., Wiklund, J., Lumpkin, G.T., Frese, M., (2009) Entrepreneurial Orientation and Business Performance: An Assessment of Past Research and Suggestions for the Future. Entrepreneurship Theory and Practice, 33(3).

Stevanovic, M., (2012) Establishing Joint Decisions in a Dyad. Discourse Studies, 14 (6).

Innovation Factors in Brazilian Industries

Innovation is often seen within the vantage point of knowledge sharing networks and technology. However, the decisional process that creates innovation may include other factors that can provide competitive advantages for organizations. There are a range of complementary capabilities that improve upon organizational innovation (Yam, et al., 2011).

According to the neo-Schumpeterian models there are four areas that help to create sustainability (Nelson and Winter, 1982). Technology, account operations, management, and transactions have an influence on the success of the entire business. Each of these concepts interrelates and influences the overall innovation standards. 

The factors that lead to higher levels of market performance are often embedded in other functions within the organization. For example, the personalities of the management team will determine management innovative capabilities. Research helps to improve upon the overall development of appropriate constructs for improving the overall organization. 

A proper research method for understanding and developing new constructs is through the use of case studies. Such phenomenological research allows for in-depth analysis of the main concepts. Quantitative approaches review existing constructs and measure them at a high level. To understand a concept in depth requires keep observation by exploring the associations of various components of the phenomenon. The study discussed below uses the case study approach.

The purpose Zawislak, et. al. (2013) study was to develop a greater understanding of how innovation is fostered within organizations by reviewing case studies. The study included 26 companies from the various sectors of Rio Grande do Sul. The directors and managers from ten total companies agreed to participate in the analysis of the innovation structure. Information was collected through data mining, interviews, and site visits creating triangulation of data and higher levels of validity. Four final cases were used to assess the constructs in the study. 

Results:

-The firm’s current capabilities will determine its ability to be innovative and its market strategy.

-Redevelopment of departments based upon input from universities and research centers.

-A company that provides small batch production seeks innovation through efficiency of operational functions.

-Management innovation has led to integration of functions and year-to-year revenue increase of 20% when compared to the industries 5%.

-Transactional efficiencies have led to growth and market expansion in the area. 

Analysis: 

Firms have market approaches that allow them to compete within the market. Due to the perception of management most innovations are going to be focused on their competitive strengths. To create wider matrices of improvement requires a change in management that affords new perspectives and insight. Furthermore, pushing particular vantage points may create a phenomenon called “group think” where new ideas are not forthcoming. Through the development of management innovation, transactional improvements, operational efficiencies, and restructuring organizations can further their innovative and market interests.

Nelson, R., Winter, S.(1982) An Evolutionary Theory of Economic Change. The Belknap Press of Harvard University Press, Cambridge, Ma.

Yam, R., Lo, W., Tang, E. & Lau, A. (2011). Analysis of sources of innovation, technological innovation capabilities, and performance: an empirical study of Hong Kong manufacturing industries. Research Policy, 40 (3). 

Zawislak, P., Alves, A., Tell-Gamarra, J., Barbieux, D. & Reichert, F. (2013). Influences of the internal capabilities of firms on their innovation performance: a case study investigation in Brazil. International Journal of Management, 30 (1).