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SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 96
A Quarterly Journal
N i n e d e s i g n e l e m e n t s o f h o l i s t i c i n t r a p r e
n e u r s h i p a r e i d e n t i f i e d a n d a r o l e m o d e l
f o r e n t r e p r e n e u r i a l f i r m s i n a g l o b a l b u s
i n e s s e n v i r o n m e n t i s d e v e l o p e d w i t h a
v i e w t o a d d r e s s i n g t h e e n t r e p r e n e u r i a l r
o l e s ( w h a t t a s k s a r e p e r f o r m e d ) t h a t a
f i r m h a s t o f u l f i l i n a s p e c i f i c w a y . T h i s i
s d o n e v i a a s u r v e y o f t h e r e l e v a n t l i t e r a t
u r e
o n i n t r a p r e n e u r s h i p i n a g l o b a l c o n t e x t .
T h e r o l e m o d e l c a n b e i n t e r p r e t e d a s a
s y n t h e s i s b e t w e e n t h e i n d i v i d u a l i s t i c a n
d t h e c o l l e c t i v i s t i c a p p r o a c h e s o f
i n t r a p r e n e u r s h i p f o u n d i n t h e l i t e r a t u r e .
I t c a p t u r e s s e v e r a l r o l e s o f i n t r a p r e n e u r
s h i p
a s i d e n t i f i e d i n t h e w o r k o f v a r i o u s a u t h o
r s w i t h i n a h o l i s t i c f r a m e w o r k .
T
A
b
s
t
r
a
c
t
Global Business Environment:
Holistic Intrapreneurship
Bernd P. Platzek, Dietmar Winzker, and Leon Pretorius
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D r. B e r n d P. P l a t z e k , D i r e c t o r - E x e c u t i v e
P r o g r a m m e s , H o c h s c h u l e
R a v e n s b u r g -We i n g a r t e n , U n i v e r s i t y o f A p
p l i e d S c i e n c e s , P o s t f a c h 1 2
6 1 , D - 8 8 2 4 1 We i n g a r t e n , E - m a i l : p l a t z e k
@ h s - w e i n g a r t e n . d e
D r. D i e t m a r W i n z k e r, M e m b e r R e s e a r c h G r
o u p f o r S y s t e m s , E n e r g y a n d
I n n o v a t i o n , U n i v e r s i t y o f P r e t o r i a , S A - 0
0 0 2 P r e t o r i a , L y n n w o o d R o a d ,
E m a i l : d w i n z k e r @ i a f r i c a . c o m
D r. L e o n P r e t o r i u s , R e s e a r c h S u p e r v i s o r,
C o o r d i n a t o r R e s e a r c h G r o u p
f o r S y s t e m s - E n e r g y a n d I n n o v a t i o n , P r o
f e s s o r, G r a d u a t e S c h o o l o f
Te c h n o l o g y M a n a g e m e n t , U n i v e r s i t y o f P r
e t o r i a , S o u t h A f r i c a , E m a i l :
l e o n . p r e t o r i u s @ u p . a c . z a
h r e e r e s e a r c h q u e s t i o n s a r e a d d r e s s e d i n
t h i s
p a p e r : W h a t a r e t h e d e s i g n e l e m e n t s o f h o
l i s t i c
intrapreneurship? What role does intrapreneurship
play in established
t e c h n o l o g y f i r m s
i n t o d a y ’ s g l o b a l
and dynamic busi-
n e s s t e c h n o l o g y
e n v i r o n m e n t ?
H o w c a n t h e s e
firms achieve inno-
v a t i o n a n d l o n g -
term success while
p u r s u i n g c u r r e n t
o p e r a t i o n s i n a
d i s c i p l i n e d w a y ?
T h e f o c u s i s o n
s t r a t e g i c i n t e n t a s
strategy combined
with nimble footed-
n e s s t o r i d e t h e
waves of oppor tunity in a turbulent ocean that is the
global competitive business arena.
G l o b a l m a r k e t s ,
o n g o i n g t e c h n o -
logical change to -
g e t h e r w i t h o t h e r
r a p i d c h a n g e s i n
t h e e x t e r n a l b u s i -
ness environment ,
m a k e t h e w o r l d
more complex and
r e q u i r e c h a n g e i n
t r a d i t i o n a l m a n a -
g ement. This affects
t h e i m m e d i a t e a s
w e l l a s t h e c o n -
tinued profitability
o f o r g a n i z a t i o n s .
Va r i o u s a s p e c t s
are summarized in
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
97
A Quarterly Journal
t h e r e l e v a n t l i t e r a t u r e c o n c e r n i n g t h e t e
r m
i n t r a p r e n e u r s h i p ( R a j a s e k a r a n 2 0 0 8 ) . I d
e n t i f y i n g
o p p o r t u n i t i e s a n d a c c e l e r a t i n g i n n o v a t i
o n i n e x i s t i n g
firms are a principal issue. Some authors generally prefer
a m o r e i n d i v i d u a l i s t i c a p p r o a c h t o g e n e r
a t i n g a n d
m a n a g i n g e n t r e p r e n e u r i a l i d e a s , w h i l s t o
t h e r s o p t f o r a
m o r e c o l l e c t i v e o n e . T h e l i f e c y c l e a p p r o
a c h t o
i n n o v a t i o n i n p r o d u c t s , s e r v i c e s a n d p r o
c e s s e s ,
i s g a i n i n g i m p o r t a n c e , i n t h a t p r o d u c t s a
r e n o
l o n g e r c o n s i d e r e d i n i s o l a t i o n f r o m t h e e
n v i r o n m e n t
a n d t h e l o g i s t i c c h a i n s u p p o r t i n g t h e m . A
l l t h i s
r e q u i r e s e n h a n c e d u n d e r s t a n d i n g a n d n u r
t u r i n g o f
i n t r a p r e n e u r s h i p t o e n s u r e i n n o v a t i o n s w
h i c h s u p p o r t
the life cycles of organizations.
A systems approach to innovation in a global context
a n d i n t r a p r e n e u r s h i p r e s u l t i n g i n a n e n t r
e p r e n e u r i a l
p o s t u r e f o r t h e w h o l e o r g a n i z a t i o n s e e m
t o b e k e y
s u c c e s s f a c t o r s f o r s u r v i v a l i n t o d a y ’ s g l
o b a l l y
competitive technological business environment – in the
e n t r e p r e n e u r i a l a g e ( F a r r e l l 2 0 0 1 ) a n d i n
t h e m i d s t o f a
g l o b a l e n t r e p r e n e u r i a l r e v o l u t i o n ( M o r r
i s a n d K u r a t k o
2002).
Corporate entrepreneurship or intrapreneurship can b e
d e f i n e d a s i d e n t i f y i n g , e v a l u a t i n g , s e l e c
t i n g a n d
o r g a n i z i n g o p p o r t u n i t i e s ( B l o c k a n d M a c
M i l l a n 1 9 9 5 )
a n d c o n s i d e r i n g r i s k s ( S c h w a b 1 9 7 6 ) w i t
h i n t h e
organization itself, in the industries and markets it serves
and in the general external environment. From a systems
v i e w, t h e p a r a m o u n t e n t r e p r e n e u r i a l t a s k
c a n b e
s p e c i f i e d a s d e s i g n i n g t h e e x c h a n g e o f i n
f o r m a t i o n ,
goods and services between the organization and its
turbulent business environment (Duncan 1975).
T h e p e r m a n e n t c h a n g e o f t h e g e n e r a l m a c
r o -
environment (Fahey and Narayanan 1986, Morrison 2006)
and of the microenvironment with industry, competitive
and task environment (Por ter 1980/2004, Ulrich and Fluri
1 9 9 5 ) r e q u i r e s b e s i d e s a n e x t e r n a l e n v i r
o n m e n t a l
a n a l y s i s , a n i n t e r n a l a n a l y s i s ( K i e s e r a n
d K u b i c e k 1 9 8 3 ,
Por ter 1985/2004, Mintzberg 1993, Picot et al. 1997,
Rüegg-Stürm 2002) and an analysis of the links between
t he org aniz at ion and it s environm ent (Burns an d Sta lke r
1961/2001, Emer y and Trist 1965, Lawrence and Lorsch
1967/1986, Schreyögg 1978/1994, Aldrich 1979/2008,
Morgan 1998).
With a holistic management approach (Winzker 2006),
t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n c a n i d e
n t i f y
o p p o r t u n i t i e s a n d r i s k s a s w e l l a s a d a p t t
h e
organizational design to pursue entrepreneurial activities
in a complex world (Ulrich and Probst 1991, Wheatley
1999, Bleicher 2004).
To b r i n g e n t r e p r e n e u r i a l a c t i v i t i e s s u c c e
s s f u l l y i n t o t h e
g lob al m arket place, a s t rong focus on cult ural dive r sity
i s n e c e s s a r y i n o r d e r t o t a k e a d v a n t a g e o
f t h i s d i v e r s i t y
and to adapt business oppor tunities to local markets
(Dülfer 1997, Trompenaars and Hampden-Tur ner 1998,
Hofstede 2001).
The various literatures (Drucker 1985, Pinchot 1988, Guth
and Gins-berg 1990, Senge 1990, Covin and Slevin 1991,
Abell 1993, Block and MacMillan 1995, Birkinshaw 2000,
Morris et al. 2008) define different main themes in terms
of the implementation and design of intrapreneurship.
Nine central design elements of holistic intrapreneurship
are identified (fig. 1). The star ting point and first element
i s a d e f i n i t i o n o f t h e m a i n e n t r e p r e n e u r i
a l t a s k :
E n t r e p r e n e u r i a l o r g a n i s a t i o n s m u s t i d e n
t i f y a n d p r o c e s s
o p p o r t u n i t i e s a n d r i s k s i n t h e i n t e r n a l a n
d e x t e r n a l
b u s i n e s s e n v i r o n m e n t . H e r e , s t r o n g i m p l
e m e n t a t i o n
skills are impor tant if entrepreneurial activities are to be
r e a l i s e d i n e x i s t i n g a n d n e w b u s i n e s s e s u
s i n g b o t h
existing and future resources and competencies.
The second element defines the entrepreneurial fields
o f o p e r a t i o n i n t h e e x t e r n a l b u s i n e s s e n v
i r o n m e n t :
entrepreneurial oppor tunities and risks can be identified
in both the macro and microenvironment. In par ticular,
c h a n g e s i n t h e l o c a l a n d g l o b a l b u s i n e s s
a n d f a c t o r
markets are sources of oppor tunities and risks. The third
e l e m e n t i s t h e i n t e r n a l b u s i n e s s e n v i r o n
m e n t . T h e
entrepreneurial design of the organisation impacts upon
i t s e n t r e p r e n e u r i a l o r i e n t a t i o n . T h e e n t r
e p r e n e u r i a l
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 98
A Quarterly Journal
d y n a m i c o f a n o r g a n i s a t i o n i s d e t e r m i n e d
b y t h e
e n t r e p r e n e u r i a l s t r a t e g y , s t r u c t u r e a n d c
u l t u r e , a s w e l l
a s b y t h e e n t r e p r e n e u r i a l a c t o r s , t h e r e s o
u r c e s a n d
c o m p e t e n c i e s . F l e x i b i l i t y t o i n c r e a s e a d
a p t a b i l i t y a n d
i n n o v a t i o n , a s w e l l a s s t a b i l i t y i n p r o d u c
t i o n i n o r d e r t o
i n c r e a s e e f f i c i e n c y , i s q u o t e d a s t a r g e t s
t o h e l p
implementation and adaptation of the entrepreneurial
v i s i o n a n d m i s s i o n . T h i s i s a c h i e v e d t h r o
u g h d e -
c e n t r a l i s e d r e s p o n s i b i l i t y , i n i t i a t i v e a n
d s e l f - m o n i t o r i n g
s i m u l t a n e o u s l y w i t h c e n t r a l c o o r d i n a t i o
n a n d p l a n n i n g .
T h e f o u r t h e l e m e n t e x p l i c i t l y s p e c i f i e s t
h e t h r e e
entrepreneurial strategy fields as innovation, adaptation
and optimisation. Entrepreneurial decision fields are the
fifth element and relate to the buy-side (input), the sell-
s i d e ( o u t p u t ) a n d t h e i n s i d e ( t h r o u g h p u t )
. T h e s i x t h
element comprises the entrepreneurial action fields of
product, market and technology.
The remaining elements determine the entrepreneurial
a l i g n m e n t o f t h e o r g a n i s a t i o n . O r i e n t a t i
o n t o w a r d s
v i a b i l i t y i s t h e s e v e n t h e l e m e n t a n d r e q u
i r e s t h e p u r s u i t
of shor t-ter m and long-ter m success potential. In this
process, when entrepreneurial decisions are taken, t he
life cycles of the organisation (Wright 1989) as well as
the products, markets and technologies are taken into
a c c o u n t . B y c a r r y i n g o u t e n t r e p r e n e u r i a l
a c t i v i t i e s , a
continuous renewal of the organization (Wright 1989)
i s a c h i e v e d a n d t h e b o u n d a r i e s a n d n e t w o
r k s o f t h e
o r g a n i s a t i o n a r e c o n t i n u o u s l y a d j u s t e d .
T h e e i g h t h e l e m e n t i s g l o b a l o r i e n t a t i o n
( B a r t l e t t a n d
G h o s h a l ) , w h i c h w i d e n s t h e f i e l d o f p l a y
f o r
e n t r e p r e n e u r i a l a c t i v i t i e s a n d t a k e s i n t o
c o n s i d e r a t i o n
t h e g l o b a l d y n a m i c s o f t h e m a r k e t s a n d c
u l t u r a l
differences in ter ms of how oppor tunities and risks are
i d e n t i f i e d a n d p r o c e s s e d . S u b s i d i a r i e s i
n v a r i o u s
countries can be the agents of global entrepreneurial
a c t i v i t i e s .
The ninth element, holistic orientation (O’Connor and
McDermott 2006), makes it possible to have internal and
e x t e r n a l s y n e r g i e s , i n t e r n a l h a r m o n y b e t
w e e n t h e
i n d i v i d u a l a c t o r s a n d t h e o r g a n i s a t i o n , a
s w e l l a s a
s y m b i o s i s o f t h e e n t r e p r e n e u r i a l o r g a n i s
a t i o n w i t h t h e
e x t e r n a l e n v i r o n m e n t . C o m m o n m e n t a l m
o d e l s a n d
s c e n a r i o s s t r e n g t h e n c o l l a b o r a t i o n a n d a
d a p t a t i o n
w i t h i n t h e o r g a n i s a t i o n ( B l e i c h e r 2 0 0 4 ) .
G l o b a l , h o l i s t i c
a n d s u s t a i n a b l e o r i e n t a t i o n l e n d s s u p p o r
t t o t h e
e n t r e p r e n e u r i a l a l i g n m e n t o f t h e o r g a n i s
a t i o n .
Fig. 1: Nine Central Design Elements For Holistic
Intrapreneurship
T h r e e e n t r e p r e n e u r i a l t a s k s o f t h e e n t r e p
r e n e u r i a l
o r g a n i z a t i o n f o l l o w f r o m t h i s a n a l y s i s :
(1) Entrepreneurial collection of information about the
b u s i n e s s e n v i r o n m e n t ;
(2) E n t r e p r e n e u r i a l c r e a t i o n o f t h e f u t u r e
t h r o u g h
exchange with the business environment;
(3) B u i l d i n g t h e o r g a n i z a t i o n a l a r c h i t e c t
u r e o f t h e
entrepreneurial organization to make it adaptable.
Element 1:Element 1:Element 1:Element 1:Element 1:
EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE
ntrepreneurial
tasktasktasktasktask
Element 2:Element 2:Element 2:Element 2:Element 2:
ExternalExternalExternalExternalExternal
entrepreneurialentrepreneurialentrepreneurialentrepreneurialentr
epreneurial
operation fieldsoperation fieldsoperation fieldsoperation
fieldsoperation fields
Element 3:Element 3:Element 3:Element 3:Element 3:
EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE
ntrepreneurial
organisation designorganisation designorganisation
designorganisation designorganisation design
Element 4:Element 4:Element 4:Element 4:Element 4:
EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE
ntrepreneurial
strategy fieldsstrategy fieldsstrategy fieldsstrategy
fieldsstrategy fields
Element 5:Element 5:Element 5:Element 5:Element 5:
EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE
ntrepreneurial
decision fieldsdecision fieldsdecision fieldsdecision
fieldsdecision fields
Element 6:Element 6:Element 6:Element 6:Element 6:
EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE
ntrepreneurial
action fieldsaction fieldsaction fieldsaction fieldsaction fields
Element 7:Element 7:Element 7:Element 7:Element 7:
OrientationOrientationOrientationOrientationOrientation
towards viabilitytowards viabilitytowards viabilitytowards
viabilitytowards viability
Element 8:Element 8:Element 8:Element 8:Element 8:
GlobalGlobalGlobalGlobalGlobal
OrientationOrientationOrientationOrientationOrientation
Element 9:HolisticElement 9:HolisticElement 9:HolisticElement
9:HolisticElement 9:Holistic
orientationorientationorientationorientationorientation
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
99
A Quarterly Journal
T h e s e t h r e e t a s k s c o n s o l i d a t e t h e n i n e d e
v e l o p m e n t
elements for intrapreneurship derived from the literature
search. To describe the entrepreneurial organization, the
star ting point is to look at the three entrepreneurial tasks
i d e n t i f i e d a n d d e s c r i b e d i n g l o b a l l i t e r a
t u r e s u r v e y s . To
r e a l i z e t h e s e t h r e e e n t r e p r e n e u r i a l t a s k s
, e a c h
o r g a n i z a t i o n h a s t o d e s i g n t h e i n t e r n a l b
u s i n e s s
e n v i r o n m e n t i n a s p e c i f i c w a y . A r o l e m o
d e l o f t h e
entrepreneurial organization has been developed as a
r e s u l t o f a n a l y s i s a n d s y n t h e s i s u s i n g e c
o n o m i c a n d
s y s t e m s t h i n k i n g t o d e f i n e w h a t e n t r e p r e
n e u r i a l r o l e s
a r e n e c e s s a r y t o p e r f o r m t h e s e t h r e e e n t r
e p r e n e u r i a l
tasks in general. The role model presented here can be
u s e d a s a g u i d e l i n e a n d h e l p s t o u n d e r s t a
n d t h e
o r g a n i z a t i o n “ h o l i s t i c a l l y ” a s a n e n t r e p r
e n e u r i a l
c o r p o r a t i v e a c t o r. I n p r a c t i c e , t h i s e n t r e
p r e n e u r i a l r o l e
has to be fulfilled through job-sharing and spec ializ ing ,
coordination and motivation to harmonize the individual,
common and organizational interests.
A framework of the global business environment helps
t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n t o u n d e
r s t a n d t h e
characteristics and issues of the external environm ent
a s a p l a y i n g f i e l d f o r o p p o r t u n i t i e s a n d r
i s k s . T h e
q u a l i t a t i v e m o d e l l i n k s t h e i n t e r n a l w i t h
t h e e x t e r n a l
b u s i n e s s e n v i r o n m e n t a n d g i v e s a n o v e r v
i e w o f h o w
t h e v i t a l e n t r e p r e n e u r i a l o r g a n i z a t i o n c a
n a d a p t a n d a c t
i n t e r r e l a t e d w i t h t h e e x t e r n a l e n v i r o n m e
n t t h r o u g h
e n t r e p r e n e u r i a l a c t i v i t i e s i n e s t a b l i s h e d
a n d n e w
b u s i n e s s e s .
Ta s k s o f a n E n t r e p r e n e u r i a l O r g a n i z a t i o n
T h e s t a r t i n g p o i n t i n t h e r e s e a r c h m e t h o d
i s t o h a v e a
s t r o n g f o c u s o n r e l e v a n t l i t e r a t u r e i n t h e
f i e l d s o f
i n t r a p r e n e u r s h i p , i n t e r n a t i o n a l b u s i n e s
s e n v i r o n m e n t
a n d s t r a t e g i c m a n a g e m e n t i n o r d e r t o i d e
n t i f y t h e
r o l e s o f i n t r a p r e n e u r s h i p i n t o d a y ’ s t u r b
u l e n t b u s i n e s s
a n d h i g h t e c h n o l o g y e n v i r o n m e n t . T h e r o
l e s i d e n t i f i e d
c a n b e a s s i g n e d t o t h e t h r e e e n t r e p r e n e u r
i a l t a s k s ( F i g .
2 ) a s a f i r s t b u i l d i n g b l o c k f o r a n e n t r e p r
e n e u r i a l
o r g a n i z a t i o n .
E n t r e p r e n e u r i a l Co l l e c t i o n o f In f o r m a t i o
n :
Lo o k i n g f o r Op p o r t u n i t i e s a n d Ri s k s
S c a n n i n g t h e b u s i n e s s e n v i r o n m e n t t o i d e
n t i f y
o p p o r t u n i t i e s i s t h e b a s i c a c t i v i t y i n t h e
e n t r e p r e n e u r i a l
collection of information (Kirzner 1973, Drucker 1985).
Expectations about change in the business environment,
t r e n d s a n d s c e n a r i o s a r e a n i m p o r t a n t s o u
r c e f o r
identif ying future oppor tunities (Penrose 1959, Schwab
Fig. 2: Three Tasks of the Entrepreneurial Organization Pursue
(Roberts 2004)
Entrepreneurial collection of informationEntrepreneurial
collection of informationEntrepreneurial collection of
informationEntrepreneurial collection of
informationEntrepreneurial collection of information
about the business environmentabout the business
environmentabout the business environmentabout the business
environmentabout the business environment
Entrepreneurial creation of the futureEntrepreneurial creation of
the futureEntrepreneurial creation of the futureEntrepreneurial
creation of the futureEntrepreneurial creation of the future
through exchange with the externalthrough exchange with the
externalthrough exchange with the externalthrough exchange
with the externalthrough exchange with the external
Making the organizational architecture of theMaking the
organizational architecture of theMaking the organizational
architecture of theMaking the organizational architecture of
theMaking the organizational architecture of the
entrepreneurial organizationentrepreneurial
organizationentrepreneurial organizationentrepreneurial
organizationentrepreneurial organization
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 100
A Quarterly Journal
1976, Thornberry 2006, Kotter 2009). Customers and
s u p p l i e r s a r e r e g a r d e d a s a n i m p o r t a n t s o
u r c e o f
i n f o r m a t i o n c o l l e c t e d c o m m o n l y b y t h e e
m p l o y e e s
(Moss-Kanter 1983 and 1989, Brandt 1986, Joyce 2008).
Developing common mental models about the business
environment can help to identify oppor tunities and risks
(Senge 1990, Oden 1997, Kuhn 2000, Thornberry 2006,
Joyce 2008, Kohlöffel and Rosche 2009).
Subjects to analyse are the life-cycle and the dynamics
of industries (Covin and Slevin 1991, Lumpkin and Dess
1996, Weick and Sutcliffe 2001, Hitt 2002 and 2005),
t h e c u s t o m e r s ( M a u c h e r 2 0 0 7 , K o h l ö f f e l
a n d R o s c h e
2009), the cultural and country specific context as well
as the global business environment (Covin and Slevin
1991, Zahra and George 2002, Hitt et al. 2002 and 2005)
a n d t h e i n t e r n a l ( a n d e x t e r n a l ) b u s i n e s s
e n v i r o n m e n t
(Kotter 2009).
Entrepreneurial Creation of the Future:
Adaptation and Proactive Activities for a
Sustainable Vitality of the Organization
New products and new markets are essential for future
viability of the entrepreneurial organization (Schumpeter
1912/2006 and 1950, Penrose 1959, Lumpkin and Dess
1 9 9 6 ) . I n t e r n a t i o n a l t r a d e a n d g l o b a l i z a
t i o n p r e s e n t
oppor tunities and risks in global markets (Smith 1789/
1 9 8 2 , Ver n o n 1 9 6 6 a n d 1 9 7 9 , S c h w a b 1 9 7 6
, M o s s -
Kanter 1983, 1989 and 1997, Hamel and Prahaland 1994,
B i r k i n s h a w 2 0 0 0 , Z a h r a a n d G e o r g e 2 0 0 2
) .
Understanding and using cultural diversity make for many
entrepreneurial activities (Trompenaars and Hampden-
Tur ner 1998, Maucher 2007).
R e n e w a l o f t h e o r g a n i z a t i o n n e e d s p e r m a
n e n t
i n n o v a t i o n , e v a l u a t i o n o f e s t a b l i s h e d b u
s i n e s s e s a n d
internal efficiency (Schwab 1976, Drucker 1985, Moss-
Kanter 1983, 1989 und 1997, Hamel and Prahaland 1994,
O d e n 1 9 9 7 , K u h n 2 0 0 2 , T h o r n b e r r y 2 0 0 6 ,
M a u c h e r
2007).
M a n y e n t r e p r e n e u r i a l a c t i v i t i e s a t a l l l e
v e l s , c o m p e t i t i v e
orientatio n and permanent seeking out of competitive
a d v a n t a g e s a r e s u c c e s s f a c t o r s f o r e n t r e
p r e n e u r i a l
posture (Peters and Water man 1982, Covin and Slevin
1 9 9 1 , B l o c k a n d M a c M i l l a n 1 9 9 3 , L u m p k i
n a n d D e s s
1996, Hitt 2005, Morris and Kurratko 2002, Sathe 2003).
The global business environment also requires alliances
and cooperation with other organizations (Moss-Kanter
1983 and 1989).
R e s o u r c e s a n d c o m p e t e n c e s a r e f u n d a m e n
t a l f o r
e n t r e p r e n e u r i a l a c t i v i t i e s a n d e n t r e p r e n
e u r i a l a c t i v i t i e s
m a k e a c o n t r i b u t i o n t o t h e d e v e l o p m e n t o
f n e w
c o m p e t e n c e s a n d r e s o u r c e s ( P e n r o s e 1 9 5
9 , M o s s
K a n t e r 1 9 8 3 , 1 9 8 9 , 1 9 9 7 , G u t h a n d G i n s b
e r g 1 9 9 0 ,
Hamel and Prahaland 1994).
A d a p t a t i o n t o c h a n g e , r i s k s a n d c r i s i s , o
r g a n i z a t i o n a l
r e s i l i e n c e , f a s t l e a r n i n g f r o m t h e m a r k e t
, a h o l i s t i c v i e w
a n d a l o n g - t e r m o r i e n t a t i o n a r e r e q u i r e d
f o r s u s t a i n a b l e
vitality of the entrepreneurial organization (Moss-Kanter
1983 and 1989, Senge 1990, Kuhn 2000, Weick and Sut-
cliffe 2001, Sathe 2003, Joyce 2008, Kotter 2009).
Building the Organizational Architecture of
the Entrepreneurial Organization
Improving efficiency through job-sharing (Smith 1789/
1982) and Coordination (Penrose 1959, Abell 1993) is
t h e f i r s t b a s i c a s p e c t o f b u i l d i n g t h e e n t r
e p r e n e u r i a l
architecture of the organization. The second basic aspect
is to achieve innovations (Schumpeter 1912/2006 and
1950). To realize these two basic aspects, it is impor tant
t o h a r m o n i z e t h e o r g a n i z a t i o n a l a n d i n d i
v i d u a l ( l o n g -
t e r m ) i n t e r e s t s a n d t o m o t i v a t e t h e s t a f f
t o a c t i n
a c c o r d a n c e w i t h t h e e n t r e p r e n e u r i a l o r g a
n i z a t i o n
(Schwab 1976, Trompenaars 2007, Oden 1997, Kuhn
2 0 0 0 , M a u c h e r 2 0 0 7 , J o y c e 2 0 0 8 ) . T h e s e
t w o b a s i c
a s p e c t s c a n b e s e e n a s d u a l e n t r e p r e n e u r i
a l s t r a t e g i e s :
efficiency in established businesses and new business
development (Moss-Kanter 1983, 1989 and 1997, Abell
1993, Hamel and Prahaland 1994, Oden 1997, Birkinshaw
2 0 0 0 , M o r r i s a n d K u r r a t k o 2 0 0 2 ) .
There are several design fields for acting on these basic
aspects. Designing incentives (Kirzner 1973, Block and
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
101
A Quarterly Journal
M a c M i l l a n ) a n d f l e x i b l e , d e c e n t r a l i z e d s
t r u c t u r e s
(Schwab 1976, Hamel and Prahaland 1994, Oden 1997,
H i t t e t a l . 2 0 0 5 , T h o r n b e r r y 2 0 0 6 , M a u c h
e r 2 0 0 7 ,
K o h l ö f f e l a n d R o s c h e 2 0 0 9 ) w i t h e n t r e p r
e n e u r i a l
m a n a g e m e n t t e a m s ( Tr o m p e n a a r s 2 0 0 7 , K
u h n 2 0 0 0 ,
M a u c h e r 2 0 0 7 ) a n d m a n a g e r s ( D r u c k e r 1 9
8 5 , B r a n d t
1986, Thornberry 2006, Kohlöffel and Rosche) who lead
the entrepreneurial units (Peters and Water man 1982)
and build the formal structure. Some literature defines a
s t r o n g r e l e v a n c e o f i n f o r m a l s t r u c t u r e s f
o r
entrepreneurial activities (Peters and Water man 1982,
Pinchot 1985).
N o t j u s t t h e s t r u c t u r e s e e m s t o b e r e l e v a
n t f o r a n
e n t r e p r e n e u r i a l o r g a n i z a t i o n a l d e s i g n , b
u t a l s o a n
e n t r e p r e n e u r i a l s p i r i t a n d c u l t u r e ( S c h w
a b 1 9 7 6 ,
D r u c ke r 1 9 8 5 , Wu n d e r e r 1 9 9 3 , Tr o m p e n a a r
s 2 0 0 7 , B a -
d e n - F u l l e r a n d S t o p f o r d 1 9 9 4 , K o t t e r 2 0
0 9 , K o h l ö f f e l
a n d Ro s c h e 2 0 0 9 ) . To d e v e l o p s u c h a n e n t r
e p r e n e u r i a l
c u l t u r e , o r g a n i z a t i o n s c a n g i v e i m p o r t a n
t n e w p r o j e c t s
t o s u c c e s s f u l e n t r e p r e n e u r i a l m a n a g e r s a
s a n i n c e n t i v e
( B l o c k a n d M a c M i l l a n 1 9 9 3 ) o r u s e e n t r e
p r e n e u r i a l
e x p e r i m e n t s t o p r o v i d e c o m m o n l e a r n i n g
f r o m t h e s e
e x p e r i m e n t s ( S e n g e 1 9 9 0 , H a m e l a n d P r a
h a l a n d 1 9 9 4 ,
S a t h e 2 0 0 3 , K o h l ö f f e l a n d R o s c h e 2 0 0 9 ) .
T h e s e v e r a l
b u i l d i n g b l o c k s o f o r g a n i z a t i o n a l d e s i g n
( s t r a t e g y ,
s t r u c t u r e a n d s y s t e m s , c u l t u r e , h u m a n r e
s o u r c e s ,
p h y s i c a l a n d f i n a n c i a l r e s o u r c e s ) s h o u l d
b e
c o o r d i n a t e d t o s u p p o r t e n t r e p r e n e u r i a l p
o s t u r e
( C o v i n a n d S l e v i n 1 9 9 1 ) .
The entrepreneurial organization can use and coordinate
i t s r e s o u r c e s a n d i t s k n o w l e d g e t o r e a l i z
e s y n e r g i e s
between and inside units (Hitt et al. 2005, Joyce 2008)
a l s o o n a g l o b a l s c a l e t o r e a l i z e i n t e r n a l
a n d e x t e r n a l
e n t r e p r e n e u r i a l a c t i v i t i e s ( B i r k i n s h a w 2
0 0 0 ) . To
c o o r d i n a t e t h e d e c e n t r a l i s e d e n t r e p r e n e
u r i a l a c t i v i t i e s ,
t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n c a n u s e
( a s a n
a l t e r n a t i v e t o t h e h i e r a r c h i c a l s y s t e m ) i
n t e r n a l m a r k e t s
and networks (Wunderer 1993, Abell 1993). The whole
o r g a n i z a t i o n a l d e s i g n f o r o p e r a t i o n s s h o
u l d b e s t a b l e
in crisis (Weick and Sutcliffe 2007).
A conceptual role model of the entrepreneurial firm as
a g eneral fram ework for addres s ing t he ent repr e ne ur ia l
r o l e s ( w h a t t a s k s a r e p e r f o r m e d ) t h a t a f i
r m h a s t o f u l f i l l
i n a s p e c i f i c w a y i s d e a l t w i t h n e x t .
A Ro l e Mo d e l f o r t h e En t r e p r e n e u r i a l
Or g a n i z a t i o n
The role model (Fig. 3) can be interpreted as a synthesis
b e t w e e n t h e i n d i v i d u a l i s t i c a n d t h e c o l l e
c t i v i s t i c
approaches of int rapreneurs hip t hat one can find in the
Fig. 3: Role Model for an Entrepreneurial Organization
I d e a m a n a g e rI d e a m a n a g e rI d e a m a n a g e rI d
e a m a n a g e rI d e a m a n a g e r
for new business
I n n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e rI n
n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e rI n n o
v a t i o n m a n a g e r
for new business
K n o w l e d g e m a n a g e rK n o w l e d g e m a n a g e rK n
o w l e d g e m a n a g e rK n o w l e d g e m a n a g e rK n o w
l e d g e m a n a g e r
for oppor tunties and risks
E n t r e p r e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l
m a n a g e rE n t r e p r e n e u r i a l m a n a g e rE n t r e p r
e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l m a n a g e
r
of established business
S y n e r g y m a n a g e rS y n e r g y m a n a g e rS y n e r g y
m a n a g e rS y n e r g y m a n a g e rS y n e r g y m a n a g e
r
for holistic management
of resources and activities
Entrepreneurial organizationEntrepreneurial
organizationEntrepreneurial organizationEntrepreneurial
organizationEntrepreneurial organization
Entrepreneurial collection of information
Entrepreneurial creation of the future
Building the organization architecture of
the entrepreneurial organization
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 102
A Quarterly Journal
l i t e r a t u r e . I t c a p t u r e s s e v e r a l r o l e s o f i n
t r a p r e n e u r s h i p
i d e n t i f i e d i n t h e r e l e v a n t w o r k o f v a r i o u
s a u t h o r s a n d i n
the view of the global competitive business environment
i n a n i n t e g r a t i v e f r a m e w o r k . T h e r o l e m o
d e l g i v e s a
f r a m e w o r k t o p e r f o r m t h e t h r e e e n t r e p r e n
e u r i a l t a s k s
a n d g i v e s a g e n e r a l o r i e n t a t i o n t o c r e a t e
t h e
e n t r e p r e n e u r i a l o r g a n i z a t i o n i n a s p e c i f i
c w a y a n d i n a
specific context.
T h e k n o w l e d g e m a n a g e r c o l l e c t s a n d a n a l
y s e s
s y s t e m a t i c a l l y r e l e v a n t i n f o r m a t i o n a b o
u t t h e i n t e r n a l
(Por ter 1985, Johnson and Scholes 1993, Pedler et al.
1 9 9 7 , D e s s a n d L u m p k i n 2 0 0 3 , H i t t e t a l .
2 0 0 5 ) a n d
exter nal business environment (Por ter 1980, Fahey and
N a r a y a n a n 1 9 8 6 , S e n g e 1 9 9 0 , G r a f 1 9 9 9 a
n d 2 0 0 0 ,
Palmer 2002, Morrison 2006, Parr Rud 2009) to create
k n o w l e d g e ( C h e c k l a n d a n d H o l w e l l 1 9 9 8 )
a b o u t
c u s t o m e r s , s u p p l i e r s , m a r k e t s a n d i n d u s t
r i e s ,
c o m p e t i t o r s a s w e l l a s m e n t a l m o d e l s , t r e
n d s a n d
s c e n a r i o s a b o u t t h e g e n e r a l m a c r o - e n v i r
o n m e n t . T h i s
knowledge helps to identif y oppor tunities and risks for
new businesses and in established businesses. L earning
f r o m e n t r e p r e n e u r i a l a c t i v i t i e s ( B l o c k a
n d M a c M i l l a n
1995, Argyris 1999) and the working place (Raelin 2008),
crisis (De Geus 2002), the present (Naisbitt 2007) and
from the emerging future (Scharmer 2009) also creates
knowledge and future options. The knowledge manager
needs a global perspective (Thurow 2004) and has to
link information from different disciplines (Palm er and
Har tley 2002).
The idea manager has to think up new things creatively
(Peters and Water man 1982) to recognize and assess
oppor tunities and risks in a discover y process (Smith
and Di Gregorio 2002). He can use the information from
the knowledge manager for agenda setting and create
t h e m a t c h b e t w e e n t h e i d e a a n d t h e o r g a n i
z a t i o n a l
strategy and design (Rogers 2003). To evaluate and select
t h e o p p o r t u n i t i e s , h e h a s t o c h e c k t h e f e a
s i b i l i t y, t h e
economic potential and the fit to strategy (Block and
MacMillan 1995). The idea manager can use creativity
t e c h n i q u e s ( D e B o n o 1 9 8 9 a n d 1 9 9 0 , v o n
A e r s s e n
2009), training and publications (Block and MacMillan
1995) or a discipl ined and organized process (Drucker
1985) to increase the flow of ideas. He can also use
simulation and experiments to find ideas (Anderson et
al. 2010). The idea m anag er has t o t hink s ys t ema tic a lly
about entering new markets and creating new products,
services and industries (Kim and Mauborgne 2005).
The innovation manager has to implement many ideas,
because innovation success is a numbers game (Peters
a n d Wa t e r m a n 1 9 8 2 ) . H e h a s t o o r g a n i z e r
e s o u r c e s ,
design the innovation process and guide the new idea
t h r o u g h t h e s t a g e s o f i m p l e m e n t a t i o n ( R o
g e r s 2 0 0 3 ,
F rank 2006). The innovat ion m anag er has t o c onside r
different t ypes of innovat ions and different co nte x ts to
design the implementation (Wunderer and Bruch 2000).
H e c a n f o c u s i n t e r n a l l y o n s t r a t e g y , s t r u
c t u r e ,
p r o c e s s e s , c a p a b i l i t i e s ( o r g a n i z a t i o n a l
r e j u v e n a t i o n ,
b u s i n e s s m o d e l r e c o n s t r u c t i o n , s t r a t e g i c
r e n e w a l ) o r
e x t e r n a l l y o n p r o d u c t s a n d m a r k e t s ( s u s t
a i n e d r e -
g e n e r a t i o n , d o m a i n r e d e f i n i t i o n ) i n o r d e
r t o i n n o v a t e
(Morris et al. 2008). He can us e corporat e labor a tor ie s
for product engineering and development (Best 2001).
The innovation manager acts in the field of non-routine
a n d o f t e n s e p a r a t e f r o m t h e d a y - t o - d a y b
u s i n e s s
(Narayanan 2001).
The ent repreneurial m anager in es t ab lis hed b usine sse s
designs job-sharing, coordination and motivation within
the businesses (Picot et al. 1997). He has to develop a
clear picture of the internal value added chain and the
costs added at each stage to reveal leverage points for
c o s t r e d u c t i o n – a n a n a l o g o u s a n a l y s i s b e
y o n d t h e
o r g a n i z a t i o n p o i n t s t o l e v e r a g e p o i n t s i n
t h e e x t e r n a l
b u s i n e s s s y s t e m ( A b e l l 1 9 9 3 ) . T h e r e f o r e
, t h e
ent repreneurial m anager in es t ab lis hed b us inesse s ha s
to look at all floating activities of the value chain internally
a s w e l l a s a c r o s s t h e o r g a n i z a t i o n t o d e s i
g n t r a n s p a r e n t
a n d e f f i c i e n t r e l a t i o n s h i p s i n s i d e t h e o r
g a n i z a t i o n a n d
w i t h t h e n e t w o r k o r g a n i z a t i o n s ( Wo m a c k
a n d J o n e s
1997). He also has to create and improve the processes
of the organization in a holistic way, in accordance with
the strategy, to create value for customers and to adapt
the organization to external change through learning and
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
103
A Quarterly Journal
r e d e s i g n o f t h e p r o c e s s e s ( H a m m e r 1 9 9 7 )
. T h e
e n t r e p r e n e u r i a l m a n a g e r i n e s t a b l i s h e d b
u s i n e s s e s
d e s i g n s i t s o p e r a t i o n s a n d t h e s u p p l y c h a
i n w i t h a
special focus on flexibility to adapt quickly to a changing
a n d r i s k y b u s i n e s s e n v i r o n m e n t a n d t o r e
a l i z e
c o n t i n u o u s i m p r o v e m e n t s t o r e d u c e c o s t s
a n d t o
achieve efficiency (Slack et al. 1995, Kaluza and Blecker
2 0 0 5 , P o u l t e r 2 0 0 6 ) . H e o p t i m i z e s , m o d i
f i e s o r
i n c r e a s e s i t s e x i s t i n g a c t i v i t i e s a n d m a k
e s e f f e c t i v e
d e c i s i o n s t o s o l v e b a s i c p r o b l e m s i n i t s b
u s i n e s s e s
( D r u c k e r 2 0 0 7 ) . T h e e n t r e p r e n e u r i a l m a n
a g e r h a s a
s t r o n g f o c u s o n r e s u l t s a n d i d e n t i f i e s w h
a t a c t i v i t i e s
should be ceased (Malik 2000). He makes decisions on
o u t s o u r c i n g o f v a l u e - c h a i n a c t i v i t i e s a n
d s u p p o r t
activities, and creates formal and informal netw orks t o
integrate processes (Child 2005).
The synergy manager designs job-sharing, coordination
and motivation between depar tments (Picot et al. 1997),
b e t w e e n o r g a n i z a t i o n s ( W u n d e r e r 2 0 0 6 ) ,
b e t w e e n
s u b s i d i a r i e s a n d b e t w e e n t h e s u b s i d i a r y
a n d i t s p a r e n t
o r g a n i z a t i o n ( B i r k i n s h a w 2 0 0 0 ) . H e f i n d
s a b a l a n c e
between the shor t-ter m and the long-ter m planning in
t u r b u l e n t t i m e s ( K o t l e r a n d C a s l i o n e 2 0 0
9 ) , a s w e l l a s
b e t w e e n t h e e n t r e p r e n e u r i a l b e n e f i t s o f
d e -
c e n t r a l i z a t i o n a n d t h e b e n e f i t s o f r e c o g n
i z i n g a n d
exploiting corporate synergies e.g., across product lines
in any function or through sharing a (common) resource
(Abell 1993). He secures the organization’s position in
the future through building competencies and realizing
e n t r e p r e n e u r i a l a c t i v i t i e s w h i c h n e e d m o
r e r e s o u r c e s
t h a n a s i n g l e b u s i n e s s u n i t h a s ( H a m e l a n
d P r a h a l a d
1996). He realizes synergies between entrepreneurial
a c t i v i t i e s , a s w e l l a s b e t w e e n n e w b u s i n e
s s e s a n d
established businesses (Por ter 1980/2004). The synergy
manager has to fulfill three strategic needs - efficiency,
i n n o v a t i o n , a n d a d a p t a b i l i t y – t o o r g a n i z
e b u s i n e s s
activities with reference to the changed context in which
t h e b u s i n e s s e s o p e r a t e ( C h i l d 2 0 0 5 ) . H e
s t r u c t u r e s
e f f e c t i v e o r g a n i z a t i o n s t h r o u g h t h e a s s i
g n m e n t o f
d e c i s i o n r i g h t s w i t h i n t h e c o m p a n y , m e t h
o d s o f
r e w a r d i n g i n d i v i d u a l s a n d t h e d e s i g n o f s
y s t e m s t o
e v a l u a t e t h e p e r f o r m a n c e o f i n d i v i d u a l s
a n d u n i t s
(Brickley et al. 2004). He has to set the boundaries of
the whole organization (what businesses should it do)
and to decide on what basis the organization should
c o m p e t e t o d e t e r m i n e t h e d e s i g n o f t h e i n
t e r n a l
organization (Besanko et al. 2007). The synergy manager
c r e a t e s l o n g - t e r m p a r t n e r s h i p s w i t h c u s t
o m e r s a n d
s u p p l i e r s , l i n k s p e o p l e i n d i f f e r e n t p a r t s
o f t h e i n t e r n a l
o r g a n i z a t i o n a n d r e a l i z e s a f i t a m o n g t h e
s t r a t e g y , t h e
o r g a n i z a t i o n a l d e s i g n a n d t h e r e l e v a n t b
u s i n e s s
environment through sor ting out which of the identified
oppor tunities the entrepreneurial organization should
pursue (Rober ts 2004).
Conceptual Framework for the Global
Business Environment
T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n h a s t o
p l a y t h e
e n t r e p r e n e u r i a l r o l e s i n i n t e r p l a y w i t h i
t s e x t e r n a l
business environment which is in a permanent state of
change. This brings new oppor tunities and risks as well
a s t h e n e e d f o r a d a p t a t i o n i n e s t a b l i s h e d
b u s i n e s s e s .
U n d e r s t a n d i n g t o d a y ’ s g l o b a l a n d d y n a m
i c b u s i n e s s
e n v i r o n m e n t i s e s s e n t i a l f o r t h e e n t r e p r e
n e u r i a l
o r g a n i z a t i o n a n d i t i s a r e s u l t o f t h e e n t r
e p r e n e u r i a l
collection of information. A clear picture of the external
b u s i n e s s e n v i r o n m e n t h e l p s t o d e v e l o p a
c o m m o n
m e n t a l m o d e l a b o u t t h e b u s i n e s s a r e n a a n
d o f f e r s a
foundation for thinking about the proactive and reactive
e n t r e p r e n e u r i a l a c t i v i t i e s r e p r e s e n t i n g t
h e r e s u l t o f t h e
ent repreneurial creat ion of t he fut ure; t he focus is on
the exchange between the entrepreneurial organization
a n d i t s e n v i r o n m e n t . To r e a l i z e t h e s e e n t
r e p r e n e u r i a l
activities it is necessary to design and adapt the internal
b u s i n e s s e n v i r o n m e n t . T h e p e r m a n e n t l y c
h a n g i n g
b u s i n e s s e n v i r o n m e n t m a k e s i t n e c e s s a r y
t o
c o n t i n u o u s l y r e d e s i g n t h e o r g a n i z a t i o n a
l a r c h i t e c t u r e .
A conceptual frame-work of the business environment
helps t o creat e a s pecific pict ure of t he org ani za tion in
it s environm ent t o act on t he ent repreneurial role s a nd
t o p u r s u e t h e e n t r e p r e n e u r i a l t a s k s .
The Business Environment
I n t h e l i t e r a t u r e , t h e r e a r e n u m e r o u s c o n
c e p t s t o
d e s c r i b e ( Ke r r a n d L i t t l e f i e l d 1 9 7 4 , We i n
s h a l l 1 9 7 7 ,
Fayer weather 1978, Ulrich and Probst 1991, Tepstra and
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 104
A Quarterly Journal
D a v i d 1 9 9 1 , M a l i k 2 0 0 8 ) a n d t o a n a l y z e (
Fa h e y a n d
N a r a y a n a n 1 9 8 6 , J o h n s o n a n d S c h o l e s 1 9
9 3 , R u g m a n
2006, Louw and Venter 2006, Daniels et al. 20 07) t he
b u s i n e s s e n v i r o n m e n t .
Some authors focus on the availability of resources for
the organization (Emer y and Trist, 1965, Aldrich 2008),
others on the attributes of the external environm ent like
t u r b u l e n c e , h o s t i l i t y , c o m p l e x i t y t h a t d e
t e r m i n e s
u n c e r t a i n t y ( K h a n d w a l l a 1 9 7 7 , A n s o f f 2 0
0 7 ) a n d
d i v e r s i t y ( Tr o m p e n a a r s a n d H a m p d e n -Tu r
n e r 1 9 9 8 ,
Hofstede 2001, Schuster and Copeland 2006).
A common distinction to define the fields of influence
a n d i n t e r a c t i o n b e t w e e n t h e o r g a n i z a t i o n
a n d i t s
e n v i r o n m e n t i s m a d e b e t w e e n a g e n e r a l ( c
o n t e x t u a l )
m a c r o - e n v i r o n m e n t a n d a n i m m e d i a t e ( o p
e r a t i o n a l )
micro -environment (Wor thington and Britton 2000, Hitt
e t a l . 2 0 0 5 ) . T h e m a c r o - e n v i r o n m e n t i s b
u i l t b y t h e
political/legal, economic, socio-cultural, technological,
a n d p h y s i c a l s e g m e n t s ( D ü l f e r 1 9 9 7 ) . T h
e M i c r o -
e n v i r o n m e n t c o n t a i n s t h e c o m p e t i t i v e o r
i n d u s t r y
e n v i r o n m e n t a n d t h e t a s k e n v i r o n m e n t o f
t h e
organization (Fahey and Narayanan 1986, Por ter 1985/
2004).
For the global organization the local communities, the
nation states, the world regions and the whole world
a r e r e l e v a n t g e o g r a p h i c a l d i m e n s i o n s o f
t h e
environment (Graf 2005, Morrison 2006). This makes a
systems view on the business environment very useful
( M i l l e r 1 9 9 5 , H a i n e s 1 9 9 8 ) . T h e i n t e r n a l
b u s i n e s s
e n v i r o n m e n t c a n b e d e s c r i b e d i n p a r t i c u l
a r t h r o u g h
p r o c e s s e s ( Por t e r 1 9 8 0 / 2 0 0 4 ) , s t r u c t u r e s
( M i n t z b e r g
1993, Child 2005) and other arrangements like strategy,
culture as well as orientation on optimization and renewal
(Rüegg-Stürm 2002).
A F r a m e w o r k f o r v i e w i n g t h e G l o b a l
Business Environment
To g e t a h o l i s t i c p i c t u r e o f t h e g l o b a l b u s
i n e s s
e n v i r o n m e n t o f a s p e c i f i c o r g a n i z a t i o n (
F i g . 4 ) , i t i s
n e c e s s a r y t o d e f i n e f o u r d i m e n s i o n s . T h e
f i r s t
d i m e n s i o n f o c u s e s o n t h e g e o g r a p h i c a r e
a s i n w h i c h
t h e o r g a n i z a t i o n o p e r a t e s . E n v i r o n m e n t s
f o r o p e r a t i o n s
a r e t h e g l o b a l e c o n o m y, w o r l d r e g i o n s , n a
t i o n s t a t e s
a n d l o c a l c o m m u n i t i e s . T h e s e c o n d d i m e n
s i o n
f o c u s e s o n t h e f i e l d s f o r t h e o p e r a t i o n a l
i n t e r p l a y
b e t w e e n t h e o r g a n i z a t i o n a n d i t s e n v i r o n
m e n t . T h e
r e l e v a n t g e n e r a l m a c r o - e n v i r o n m e n t a n d
t h e s p e c i f i c
m i c r o e n v i r o n m e n t d e f i n e t h e s e f i e l d s o f
i n f l u e n c e
a n d i n t e r a c t i o n f o r t h e e x c h a n g e b e t w e e n
t h e
o r g a n i z a t i o n a n d i t s e x t e r n a l b u s i n e s s e n
v i r o n m e n t .
T h e t h i r d a n d f o u r t h d i m e n s i o n s f o c u s o n
t h e
a t t r i b u t e s o f u n c e r t a i n t y a n d d i v e r s i t y .
T h e
e n t r e p r e n e u r i a l o r g a n i z a t i o n h a s t o a s s e
s s t h e
c u l t u r a l d i v e r s i t y a n d t h e u n c e r t a i n t y o f
t h e b u s i n e s s
e n v i r o n m e n t . T h i s a s s e s s m e n t h a s i m p o r t
a n t
i m p l i c a t i o n s f o r t h e r e q u i r e d c u l t u r a l a d
a p t a t i o n o f
t h e e n t r e p r e n e u r i a l a c t i v i t i e s a n d t h e o p
t i m i z a t i o n
o f t h e o r g a n i z a t i o n a l d e s i g n i n s e v e r a l g
e o g r a p h i c
a r e a s . I t h e l p s t o i d e n t i f y p o s s i b l e o p p o r
t u n i t i e s
f r o m c u l t u r a l d i v e r s i t y a n d t o d e f i n e t h e
d e s i r a b l e
i n t e n s i t y o f e n t r e p r e n e u r i a l p o s t u r e i n c
o r r e s p o n d e n c e
t o t h e d y n a m i c i n t e n s i t y o f t h e b u s i n e s s
e n v i r o n m e n t
( L a w r e n c e a n d L o r s c h 1 9 8 6 , M o r r i s e t a l .
2 0 0 8 ) .
L i n k i n g t h e E n t r e p r e n e u r i a l F i r m t o I t s
Environment
V i e w i n g t h e e n t r e p r e n e u r i a l o r g a n i z a t i o
n a s a n o p e n
system (Duncan 1975, Schein 1980), the entrepreneurial
f o c u s i s o n t h e e x c h a n g e o f i n p u t s a n d o u t
p u t s
( p r o d u c t s , s e r v i c e s , i n f o r m a t i o n ) b e t w e
e n t h e
organization and its macro and microenvironment as well
as on the internal adaptation of the organizational goals
and architecture to suppor t this exchange (Thompson
1967/2007, Schreyögg 1974/1994, Aldrich 2008). The
d y n a m i c s o f t h e b u s i n e s s e n v i r o n m e n t i n
f l u e n c e s
e s p e c i a l l y t h e t e c h n o l o g i c a l b a s i s o f p r o
d u c t i o n a n d
t h e m a r k e t s i t u a t i o n ( B u r n s a n d S t a l k e r 1
9 6 1 / 2 0 0 1 ) f o r
new and established businesses.
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
105
A Quarterly Journal
T h e s i t u a t i o n i n t h e b u s i n e s s e n v i r o n m e n
t d e t e r m i n e s
t h e s t r u c t u r e o f t h e e n t r e p r e n e u r i a l o r g a
n i z a t i o n
( C h a n d l e r 1 9 6 2 , M i n t z b e r g 1 9 8 3 / 1 9 9 3 ) t
o c r e a t e
e n t r e p r e n e u r i a l a c t i v i t i e s a n d t o a c h i e v e
a s t r a t e g i c f i t
between different par ts of the organization (Dess and
Lumpkin 2003) as well as between the organization and
i t s e n v i r o n m e n t ( K i e s e r a n d K u b i c e k 1 9 8
3 ) . T h e
e n t r e p r e n e u r i a l o r g a n i z a t i o n a c t s t o d e v
e l o p n e w
competencies and resources to foster entrepreneurial
activities induced through the Top-Management as well
a s t h r o u g h d e c e n t r a l a u t o n o m o u s e n t r e p r
e n e u r i a l
b e h a v i o u r ( H i t t e t a l . 2 0 0 5 ) .
The entrepreneurial behaviour of the organization can
b e s t i m u l a t e d t h r o u g h a c h a n g i n g e x t e r n a
l b u s i n e s s
e n v i r o n m e n t ( J o h n s o n a n d S c h o l e s 1 9 9 3 )
a s w e l l a s
through an internal dynamic (Schumpeter 1912/2006 and
1950, Bos s el 2004) b as ed on organiz at ional le ve r s like
e n t r e p r e n e u r i a l s t r a t e g y , s t r u c t u r e , c u l t
u r e , r e s o u r c e s
and competencies. The entrepreneurial organization as
a w h o l e l i v i n g o r g a n i z a t i o n l e a r n s a b o u t
a n d a d a p t s t o
t h e c h a n g i n g e n v i r o n m e n t , b u i l d s s u s t a i
n a b l e a n d
c o n s t r u c t i v e r e l a t i o n s h i p s w i t h i n t h e o r
g a n i z a t i o n a n d
wit h ent it ies in t he ext ernal b us ines s environme nt ( De
Geus 1997).
Fig. 4: A Framework for the Business Environment
U n c e r t a i n t y i n t h e
b u s i n e s s e n v i o r n m e n t
G e o g r a p h i c f i e l d s f o r
o p e r a t i o n s
Wo r l d
Wo r l d Region
Nation State
C o m m u n i t y
dynamic
complex
dynamic
s i m p l e
stable
complex
stable
complex
O p e r a t i o n a l f i e l d s o f t h e
b u s i n e s s e n v i r o n m e n t
Ta s k Competitor Industry General
E n v i r o n m e n t
s i m i l a r
c u l t u r e
m o d e r a t e
d i f f e r e n c e
significant
differences
significant
differences
no or less
adaption
less
adaption
less
adaption
significant
adaption
A t t r i b u t e s o f t h e B u s i n e s s
E n v i r o n m e n t
D i v e r s i t y of the business
environment
F i e l d s o f i n f l u e n c e a n d a c t i o n
environment and organization
Internal
c o m p l e x i t y
L o c a t i o n
O r g a n i z a t i o n
Culture
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 106
A Quarterly Journal
Interaction between the Organization and Its
Environment: A Systems View
In the literature there are different approaches in systems
t h i n k i n g w h i c h s e e m t o b e r e l e v a n t t o g i v
e s o m e
i m p o r t a n t i m p l i c a t i o n s f o r s e e i n g t h e e n t
r e p r e n e u r i a l
organization in a holistic way and for identifying the role
o f i n t r a p r e n e u r s h i p i n t o d a y ’ s g l o b a l b u s
i n e s s
environment. A holistic view helps to create a whole
entrepreneurial organization which is more than the sum
o f t h e i r p a r t s a n d w h i c h e n a b l e s t h e o r g a
n i z a t i o n t o
adapt through exchange of information, communication
and feedback (Ber-tanlanffy 1968).
A changing environment requires a systematic collection
o f i n f o r m a t i o n a b o u t t h e s e c h a n g e s a n d a
n i n t e r n a l
f l e x i b i l i t y o f s t r u c t u r e s a n d p r o c e s s e s (
K a t z a n d K a h n
1966). Entrepreneurial organizations need to understand
t h e c o m p l e x i t y o f t h e i n t e r n a l a n d e x t e r n
a l b u s i n e s s
environment as well as the structure of the relationships
between the organization and its environment (Emery
a n d Tr i s t 1 9 6 5 ) . To c r e a t e a v i a b l e e n t r e p
r e n e u r i a l
o r g a n i z a t i o n , t h e o r g a n i z a t i o n n e e d s a u t
o n o m o u s
o p e r a t i o n a l u n i t s w h i c h e x c h a n g e w i t h t h
e i r
e n v i r o n m e n t s , a s w e l l a s a u n i t w h i c h i d e
n t i f i e s
oppor tunities and risks from the whole organization’s
point of view (Beer 1979, 1995).
T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n a s a m u
l t i - l e v e l - m u l t i -
g o a l - s e e k i n g s y s t e m i s a b l e t o g r o w u n t i l
i t h a s a n
e n a b l i n g b u s i n e s s e n v i r o n m e n t f o r i t s p r
o d u c t s a n d
s e r v i c e s a n d u n t i l i t a d a p t s i t s i n t e r n a l s
t r u c t u r e s
effectively to changing environments (Miller 1995). The
e n t r e p r e n e u r i a l o r g a n i z a t i o n b u i l d s t e m
p o r a r y s t a b l e
i n t e r n a l s t r u c t u r e s t o r e a l i z e a r o t a t i o n
b e t w e e n c h a n g e
a n d s t a b i l i t y ( W h e a t l e y 1 9 9 9 ) . M a n a g i n g
c o m p l e x i t y
( W o o d 2 0 0 0 , B l e i c h e r 2 0 0 4 , Ve s t e r 2 0 0 5 )
a n d
organizational learning (Ulrich and Probst 1991 , S enge
2003) in established businesses and for new businesses
is essential for viability and renewal of the entrepreneurial
organization with adaptable and holographic structures
(Morgan 1998).
A Model of a Vital Entrepreneurial
Organization and Its Environments
From the systems, strategy and contingency literature, it
i s p o s s i b l e t o d e d u c e r e l e v a n t v a r i a b l e s
f o r t h e v i t a l
e n t r e p r e n e u r i a l o r g a n i z a t i o n a n d i t s b u s
i n e s s
environment as a dynamic landscape for oppor tunities
and risks. The entrepreneurial organization has to manage
the exchange between the organization and the external
environment in established and new businesses to stay
v i t a l , a s w e l l a s t o c r e a t e a e n t r e p r e n e u r i
a l p o s t u r e a s a
momentum of its own.
The general macro-environment contents the global and
l o c a l p o l i t i c a l / r e g u l a t o r y , e c o n o m i c , s o
c i a l a n d
t e c h n o l o g i c a l / e c o l o g i c a l d i m e n s i o n . T h
e i n d u s t r y a n d
task environment contains the relevant variables of the
m i c r o e n v i r o n m e n t s u c h a s i n d u s t r y a n d c
o m p e t i t i v e
dynamics, as well as the buy-side and the sell-side of
t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n . T h i s h
e l p s t o i d e n t i f y
t h e i n d i r e c t a n d d i r e c t i n f l u e n c e s o f t h e
e x t e r n a l
e n v i r o n m e n t o n t h e o r g a n i z a t i o n ( Pa l m e r
a n d H a r t l e y
2 0 0 2 ) . T h e ( r e l e v a n t ) g e n e r a l m a c r o - e n v
i r o n m e n t
influences the industry and the competitive environment
d i r e c t l y a n d t h e o r g a n i z a t i o n s o p e r a t i n g
i n t h i s i n d u s t r y
more indirectly. The (relevant) microenvironment with
industry, competitive and task environment interact with
t he ent repreneurial organiz at ion m ore direct ly ( O sbor n
et al. 1980).
The Top-Management and decentralized, autonomous
e n t r e p r e n e u r i a l u n i t s i n d u c e e n t r e p r e n e
u r i a l a c t i v i t i e s .
The se activities are coordinated and stimulated through
the organizational design and the corresponding internal
d y n a m i c s . T h e s e i n t e r n a l e n t r e p r e n e u r i a
l d y n a m i c s
depend on (1) the entrepreneurial strategy in established
a n d n e w b u s i n e s s e s a n d t h e e v o l u t i o n o f t
h e
organiz at ions m is s ion over t im e, (2) t he ent repr e ne ur ia
l
a r c h i t e c t u r e w i t h t h e f o r m a l a n d i n f o r m a
l s t r u c t u r e s a s
w e l l a s t h e i n c e n t i v e a n d l e a r n i n g s t r u c t
u r e s , ( 3 ) t h e
e n t r e p r e n e u r i a l c u l t u r e w i t h a s p e c i a l f o
c u s o n
i n f o r m a t i o n , c o m m u n i c a t i o n , c o o p e r a t i o
n , i n n o v a t i o n ,
l e a r n i n g , i d e n t i f i c a t i o n a n d m o t i v a t i o n ,
( 4 ) t h e
e n t r e p r e n e u r i a l e x p l o i t a t i o n o f r e s o u r c e
s a n d
c o m p e t e n c i e s .
S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
u a r y - M a r c h , 2 0 1 1.
107
A Quarterly Journal
T h e q u a l i t a t i v e m o d e l ( F i g . 5 ) l i n k s t h e e
n t r e p r e n e u r i a l
o r g a n i z a t i o n w i t h i t s e n v i r o n m e n t a n d p r
e s e n t s t h e
exchange through entrepreneurial activities in new and
established businesses on a highly aggregated level.
C o n c l u s i o n s
F i r s t l y , t o d a y ’ s b u s i n e s s e n v i r o n m e n t d e
m a n d s
i n t r a p r e n e u r s h i p a n d i n n o v a t i o n f r o m c o
m p a n i e s ,
e m b e d d e d i n a h o l i s t i c m a n a g e m e n t a p p r o
a c h .
Secondly, successful intrapreneurship requires a s t rong
focus on the external and internal business environment
t o f i n d a n d w o r k o n e n t r e p r e n e u r i a l o p p o
r t u n i t i e s a n d
risks to build new competitive advantages, as well as to
a d a p t t h e f i r m t o a c h a n g i n g a n d t u r b u l e n
t w o r l d .
E n t r e p r e n e u r i a l f i r m s h a v e t o a c h i e v e a d
y n a m i c f i t
between the firm’s internal configuration (organizational
a r c h i t e c t u r e , c u l t u r e , r e s o u r c e s a n d c a p
a b i l i t i e s
including technology) and the strategic exchange with
their external business environment (in both directions).
T h e r e f o r e , e n t r e p r e n e u r i a l o r g a n i z a t i o n
s c a n u s e a n d
d e v e l o p i n t e r n a l e n t r e p r e n e u r i a l s y s t e m
s d y n a m i c s t o
s u p p o r t e m e r g i n g e n t r e p r e n e u r i a l a c t i v i
t i e s a s w e l l a s
an explicit initiating of entrepreneurial activities through
the Top-Management and through decentralized unities
and venture teams. Holistic intrapreneurship means to
act on three basic entrepreneurial tasks to implement
the nine central design elements:
(1) E nt repreneurial collect ion of inform at ion: Looking
f o r o p p o r t u n i t i e s a n d r i s k s ;
(2) Entrepreneurial creation of the future: Adaptation
and proactive activities for a sustainable vitality of
t he org aniz at ion;
(3) B u i l d i n g t h e o r g a n i z a t i o n a l a r c h i t e c t
u r e o f t h e
e n t r e p r e n e u r i a l o r g a n i z a t i o n .
There is no one best way to design an entrepreneurial
o r g a n i z a t i o n , s o e v e r y o r g a n i z a t i o n h a s t
o b u i l d t h e i r
o w n o r g a n i z a t i o n ’ s d e s i g n u s i n g c u l t u r a l
d i v e r s i t y i n
global market places. Entrepreneurial organizations adapt
t h i s o r g a n i z a t i o n a l a r c h i t e c t u r e a n d t h e
s t r a t e g i e s f o r
i n t e r a c t i n g w i t h t h e e x t e r n a l b u s i n e s s e n
v i r o n m e n t
p e r m a n e n t l y t o r e s p o n d a n d a c t o n t h e c o
n t i n u o u s
change in the macro and microenvironment.
The conceptual role model of the entrepreneurial firm
introduced here is a general framework to address the
entrepreneurial roles that a firm has to fulfill in a specific
Fig. 5: The Vital Entrepreneurial Organization
General
Microenvironment
Time lag
Vital
Entrepreneurial
Organization
SCMS Journal of Indian Management , J a n u a r y - M a r c h
, 2 011. 108
A Quarterly Journal
w a y t o p e r f o r m e n t r e p r e n e u r i a l t a s k s . T h
i s u n i q u e
forming (how the tasks are performed) depends heavily
on the cultural context and the specific environment in
which it operates. The conceptual model defines five
entrepreneurial roles:
(1) K n o w l e d g e m a n a g e r - s c a n n i n g , m o n i t o
r i n g ,
f o r e c a s t i n g a n d a s s e s s m e n t : u n d e r s t a n d t
h e
( f u t u r e ) g l o b a l b u s i n e s s e n v i r o n m e n t a n
d t h e
means for the organization;
(2) Idea manager - thinking up new things: identify new
o p p o r t u n i t i e s a n d r i s k s i n t h e g l o b a l b u s
i n e s s
e n v i r o n m e n t
(3) Innovation manager - doing new things: put new
oppor tunities into practice and manage risks;
(4) Entrepreneurial manager – carrying out established
business with an entrepreneurial posture: managing
o p t i m i z a t i o n , r i s k s , f l e x i b i l i t y a n d a d a p
t a t i o n ;
(5) S y n e r g y m a n a g e r – h o l i s t i c m a n a g e m e n
t o f
r e sources and activities: organizational design for
job-sharing, specializing and learning, coordination
and motivation with harmonized organizational and
i n d i v i d u a l i s t i c o b j e c t i v e s , a s w e l l a s t a k
i n g
a d v a n t a g e o f ( c u l t u r a l ) d i v e r s i t y .
F o r a n e n t r e p r e n e u r i a l a n a l y s i s o f t h e g l
o b a l
b u s i n e s s e n v i r o n m e n t , i t i s u s e f u l t o f o c
u s o n f o u r
d i m e n s i o n s :
(1) G e o g r a p h i c d i m e n s i o n o f t h e b u s i n e s s
environment: how global are the current and future
operations and industries? Where are the current
and future markets and playing fields?
(2) F i e l d s o f i n f l u e n c e a n d i n t e r a c t i o n b e t
w e e n t h e
o r g a n i z a t i o n a n d i t s b u s i n e s s e n v i r o n m e
n t : h o w
c a n o n e d e s c r i b e a n d u n d e r s t a n d t h e b u s i
n e s s
environment? What is the operational and what is
the relevant general environment?
(3) U n c e r t a i n t y i n t h e b u s i n e s s e n v i r o n m e
n t : h o w
dynamic and complex is the environment? What
e n t r e p r e n e u r i a l i n t e n s i t y i s s u f f i c i e n t ?
(4) C u l t u r a l d i m e n s i o n o f t h e b u s i n e s s e n v
i r o n m e n t :
how can the entrepreneurial organization use the
divers it y? W hat adapt at ions are required?
T h e M o d e l o f a v i t a l e n t r e p r e n e u r i a l o r g a
n i z a t i o n
describes the ex-change between the entrepreneurial
o r g a n i z a t i o n a n d i t s e x t e r n a l e n v i r o n m e
n t i n b o t h
d i r e c t i o n s . E n t r e p r e n e u r i a l a c t i v i t i e s i n
e s t a b l i s h e d
b u s i n e s s e s h e l p t o i m p r o v e t h e s h o r t - t e r
m v i t a l i t y o f
t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n . T h e l o
n g - t e r m v i t a l i t y
d e p e n d s o n a c o n t i n u o u s s t r e a m o f n e w b u
s i n e s s e s ,
e s p e c i a l l y i n a g l o b a l l y c o m p e t i t i v e t e c h
n o l o g i c a l
b u s i n e s s e n v i r o n m e n t . T h e m o d e l i n c l u d e
s s t r u c t u r a l
b u i l d i n g b l o c k s t o s u p p o r t p o s i t i v e e n t r e
p r e n e u r i a l
d y n a m i c s .
The role model and the three basic entrepreneurial tasks
can be used as a guideline to evaluate and assess the
b a s i c a c t i o n s t o a c h i e v e a n e n t r e p r e n e u r i
a l p o s t u r e i n
t e c h n o l o g y f i r m s i n a h o l i s t i c w a y. I t i s a
l s o a s t a r t i n g
p o i n t f o r b u i l d i n g a s p e c i f i c f i r m m o d e l i
n a u n i q u e
cultural context. This model may also be extended to
i n c l u d e c r o s s c u l t u r a l e f f e c t s . U s i n g t h e
f r a m e w o r k
d e v e l o p e d f o r u n d e r s t a n d i n g t h e g l o b a l b
u s i n e s s
environment and the model of the vital entrepreneurial
o r g a n i z a t i o n i n i t s e n v i r o n m e n t , t h e e n t r
e p r e n e u r i a l
organization can identify the specific lever for long-term
vitality.
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#1. DUE Thursday 12/18 NOON…. Continue working with the
company you originally chose from the Fortune’s 500 Best List
( Johnson & Johnson)
http://archive.fortune.com/magazines/fortune/mostadmired/2006
/best_worst/worst8.html
Detail Directions (See Below) – CLASSROOM FORUM
DISCUSSION
1. Perform research (minimum of 2Scholarly sources plus
text in APA format).
2. Identify a Global Environment for the company (an
international country for the company).
3. What are the characteristics of the new Global
Country/Environment that will best suit the company for
success?
4. What barriers exist in the new Global
Country/Environment? You cannot state there are no barriers.
5. How will the company overcome those barriers
(strategies)?
6. Minimum 3 complete paragraphs; a paragraph is a
minimum of 100 words.
LO - 3 – Given a chosen company, the student will apply
strategy to barriers of government regulations and
characteristics of success using a Global environment for the
company.
Use this as one of the References. Article is attached
Platzek, B. P., Winzker, D., & Pretorius, L. (2011). Global
Business Environment: Holistic Intrapreneurship. SCMS Journal
Of Indian Management, 8(1), 96-114.
___________________________________
#2 . DUE Saturday 12/20/14 NOON . Continue working with
your chosen company from Fortune’s 500 Worst List ( Chosen
Company is “Google”)
http://archive.fortune.com/magazines/fortune/mostadmired/2006
/best_worst/worst8.html
Detail Directions (See Below) – FORMAL PAPER
Assignment Instructions
Continue working with your chosen least admired company for
the assignments and complete the following:
1. Identify the industry for your chosen company and its
Domestic Environment.
2. Identify a Global Environment for the company (an
international country for the company).
3. What are the characteristics of the new Global
Country/Environment that will best suit the company for
success?
4. What barriers exist in the new Global
Country/Environment? You cannot state there are no barriers.
5. How will the company overcome those barriers
(strategies)?
6. Research requirement: minimum 2 scholarly sources
PLUS the text/readings.
7. Min Page requirement: 3 pages in APA format.
NOTE: Items 1 and 2 (combined) should not exceed 1 paragraph
(100 words in a paragraph).
Note: ALL Assignments are submitted to turnitin.com and
checked for originality.
LO - 3 – Given a chosen company, the student will apply
strategy to barriers of government regulations and
characteristics of success using a Global environment for the
company.
Use this as one of the References. Article is attached
Platzek, B. P., Winzker, D., & Pretorius, L. (2011). Global
Business Environment: Holistic Intrapreneurship. SCMS Journal
Of Indian Management, 8(1), 96-114.
ADDITIONAL NOTES / INFORMATION:
Now that you’ve studied a company in its domestic
environment, it’s now time to study it in the global
environment. There are various ways to enter a global market,
such as exporting, licensing, franchising, management
contracts, manufacturing contracts, direct investment, strategic
alliances, wholly owned subsidiaries, globalized operations, and
global trade. Being international is more than just having an e-
commerce website. There are so many other ways to work
globally. What will fit your company the best?
For this week, you will identify the government regulations in a
global environment of your choice. Please note that the global
environment means a country of foreign origin to the company.
For example, for U.S. Airways their domestic environment was
the U.S. so their global environment would be England. For
Guiness, their global environment would be the U.S. For Honda,
their global environment would be Taiwan.
All Sources must be “Scholarly Article or Book”. A scholarly
article or book generally is based on original research or
experimentation. It is written by a researcher or expert in the
field who is often affiliated with a college or university. Most
scholarly writing includes footnotes and/or a bibliography and
may include graphs or charts as illustrations as opposed to
glossy pictures. In addition, articles that appear in scholarly
journals or book that are published by academic presses, are
subject to a peer-review process, which means that other
"experts" or specialist in the field evaluate the quality and
originality of the research as precondition of publication. The
peer-review (as opposed to editorial review) process is also one
thing that sets scholarly journals apart from journals that may
otherwise seem quite similar. Journals such as Foreign
Affairs, for instance, are generally not considers "scholarly
journals," because many of the articles are solicited by the
magazine's editors; in addition many of the articles are written
by policy-makers who may be expressing an informed view, but
whose article may not be based on original research.Scholarly
research is typically published by a academic association or a
university/academic press. In international relations and
comparative politics, representative scholarly journals
include Asian Survey, Comparative Politics, International
Organization, International Security Studies, Journal of
Comparative Politics, Journal of Democracy, and World
Politics.
Reading / Resources:
You are not limited to the below:
1. Platzek, B. P., Winzker, D., & Pretorius, L. (2011, January).
Global business environment: Holistic intrapreneurship. SCMS
Journal of Indian Management, 8(1), 96-114
2. Elekdağ, S. (2008). How does the global economic
environment influence the demand for IMF resources? IMF
Staff Papers, 55(4), 624-653. doi:10.1057/imfsp.2008.4 located
in

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SCMS Journal of Indian Management , J a n u a r y - M a r c.docx

  • 1. SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 96 A Quarterly Journal N i n e d e s i g n e l e m e n t s o f h o l i s t i c i n t r a p r e n e u r s h i p a r e i d e n t i f i e d a n d a r o l e m o d e l f o r e n t r e p r e n e u r i a l f i r m s i n a g l o b a l b u s i n e s s e n v i r o n m e n t i s d e v e l o p e d w i t h a v i e w t o a d d r e s s i n g t h e e n t r e p r e n e u r i a l r o l e s ( w h a t t a s k s a r e p e r f o r m e d ) t h a t a f i r m h a s t o f u l f i l i n a s p e c i f i c w a y . T h i s i s d o n e v i a a s u r v e y o f t h e r e l e v a n t l i t e r a t u r e o n i n t r a p r e n e u r s h i p i n a g l o b a l c o n t e x t . T h e r o l e m o d e l c a n b e i n t e r p r e t e d a s a s y n t h e s i s b e t w e e n t h e i n d i v i d u a l i s t i c a n d t h e c o l l e c t i v i s t i c a p p r o a c h e s o f i n t r a p r e n e u r s h i p f o u n d i n t h e l i t e r a t u r e . I t c a p t u r e s s e v e r a l r o l e s o f i n t r a p r e n e u r s h i p a s i d e n t i f i e d i n t h e w o r k o f v a r i o u s a u t h o r s w i t h i n a h o l i s t i c f r a m e w o r k . T
  • 2. A b s t r a c t Global Business Environment: Holistic Intrapreneurship Bernd P. Platzek, Dietmar Winzker, and Leon Pretorius 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901
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  • 4. 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901
  • 5. 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 12345678901234567890123456789012123456789012345678901 234567890121234567890123456 D r. B e r n d P. P l a t z e k , D i r e c t o r - E x e c u t i v e P r o g r a m m e s , H o c h s c h u l e R a v e n s b u r g -We i n g a r t e n , U n i v e r s i t y o f A p p l i e d S c i e n c e s , P o s t f a c h 1 2 6 1 , D - 8 8 2 4 1 We i n g a r t e n , E - m a i l : p l a t z e k @ h s - w e i n g a r t e n . d e D r. D i e t m a r W i n z k e r, M e m b e r R e s e a r c h G r o u p f o r S y s t e m s , E n e r g y a n d I n n o v a t i o n , U n i v e r s i t y o f P r e t o r i a , S A - 0 0 0 2 P r e t o r i a , L y n n w o o d R o a d , E m a i l : d w i n z k e r @ i a f r i c a . c o m
  • 6. D r. L e o n P r e t o r i u s , R e s e a r c h S u p e r v i s o r, C o o r d i n a t o r R e s e a r c h G r o u p f o r S y s t e m s - E n e r g y a n d I n n o v a t i o n , P r o f e s s o r, G r a d u a t e S c h o o l o f Te c h n o l o g y M a n a g e m e n t , U n i v e r s i t y o f P r e t o r i a , S o u t h A f r i c a , E m a i l : l e o n . p r e t o r i u s @ u p . a c . z a h r e e r e s e a r c h q u e s t i o n s a r e a d d r e s s e d i n t h i s p a p e r : W h a t a r e t h e d e s i g n e l e m e n t s o f h o l i s t i c intrapreneurship? What role does intrapreneurship play in established t e c h n o l o g y f i r m s i n t o d a y ’ s g l o b a l and dynamic busi- n e s s t e c h n o l o g y e n v i r o n m e n t ? H o w c a n t h e s e firms achieve inno- v a t i o n a n d l o n g - term success while
  • 7. p u r s u i n g c u r r e n t o p e r a t i o n s i n a d i s c i p l i n e d w a y ? T h e f o c u s i s o n s t r a t e g i c i n t e n t a s strategy combined with nimble footed- n e s s t o r i d e t h e waves of oppor tunity in a turbulent ocean that is the global competitive business arena. G l o b a l m a r k e t s , o n g o i n g t e c h n o - logical change to - g e t h e r w i t h o t h e r r a p i d c h a n g e s i n t h e e x t e r n a l b u s i - ness environment , m a k e t h e w o r l d
  • 8. more complex and r e q u i r e c h a n g e i n t r a d i t i o n a l m a n a - g ement. This affects t h e i m m e d i a t e a s w e l l a s t h e c o n - tinued profitability o f o r g a n i z a t i o n s . Va r i o u s a s p e c t s are summarized in S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n u a r y - M a r c h , 2 0 1 1. 97 A Quarterly Journal t h e r e l e v a n t l i t e r a t u r e c o n c e r n i n g t h e t e r m i n t r a p r e n e u r s h i p ( R a j a s e k a r a n 2 0 0 8 ) . I d e n t i f y i n g o p p o r t u n i t i e s a n d a c c e l e r a t i n g i n n o v a t i
  • 9. o n i n e x i s t i n g firms are a principal issue. Some authors generally prefer a m o r e i n d i v i d u a l i s t i c a p p r o a c h t o g e n e r a t i n g a n d m a n a g i n g e n t r e p r e n e u r i a l i d e a s , w h i l s t o t h e r s o p t f o r a m o r e c o l l e c t i v e o n e . T h e l i f e c y c l e a p p r o a c h t o i n n o v a t i o n i n p r o d u c t s , s e r v i c e s a n d p r o c e s s e s , i s g a i n i n g i m p o r t a n c e , i n t h a t p r o d u c t s a r e n o l o n g e r c o n s i d e r e d i n i s o l a t i o n f r o m t h e e n v i r o n m e n t a n d t h e l o g i s t i c c h a i n s u p p o r t i n g t h e m . A l l t h i s r e q u i r e s e n h a n c e d u n d e r s t a n d i n g a n d n u r t u r i n g o f i n t r a p r e n e u r s h i p t o e n s u r e i n n o v a t i o n s w h i c h s u p p o r t the life cycles of organizations. A systems approach to innovation in a global context a n d i n t r a p r e n e u r s h i p r e s u l t i n g i n a n e n t r
  • 10. e p r e n e u r i a l p o s t u r e f o r t h e w h o l e o r g a n i z a t i o n s e e m t o b e k e y s u c c e s s f a c t o r s f o r s u r v i v a l i n t o d a y ’ s g l o b a l l y competitive technological business environment – in the e n t r e p r e n e u r i a l a g e ( F a r r e l l 2 0 0 1 ) a n d i n t h e m i d s t o f a g l o b a l e n t r e p r e n e u r i a l r e v o l u t i o n ( M o r r i s a n d K u r a t k o 2002). Corporate entrepreneurship or intrapreneurship can b e d e f i n e d a s i d e n t i f y i n g , e v a l u a t i n g , s e l e c t i n g a n d o r g a n i z i n g o p p o r t u n i t i e s ( B l o c k a n d M a c M i l l a n 1 9 9 5 ) a n d c o n s i d e r i n g r i s k s ( S c h w a b 1 9 7 6 ) w i t h i n t h e organization itself, in the industries and markets it serves and in the general external environment. From a systems v i e w, t h e p a r a m o u n t e n t r e p r e n e u r i a l t a s k c a n b e
  • 11. s p e c i f i e d a s d e s i g n i n g t h e e x c h a n g e o f i n f o r m a t i o n , goods and services between the organization and its turbulent business environment (Duncan 1975). T h e p e r m a n e n t c h a n g e o f t h e g e n e r a l m a c r o - environment (Fahey and Narayanan 1986, Morrison 2006) and of the microenvironment with industry, competitive and task environment (Por ter 1980/2004, Ulrich and Fluri 1 9 9 5 ) r e q u i r e s b e s i d e s a n e x t e r n a l e n v i r o n m e n t a l a n a l y s i s , a n i n t e r n a l a n a l y s i s ( K i e s e r a n d K u b i c e k 1 9 8 3 , Por ter 1985/2004, Mintzberg 1993, Picot et al. 1997, Rüegg-Stürm 2002) and an analysis of the links between t he org aniz at ion and it s environm ent (Burns an d Sta lke r 1961/2001, Emer y and Trist 1965, Lawrence and Lorsch 1967/1986, Schreyögg 1978/1994, Aldrich 1979/2008, Morgan 1998). With a holistic management approach (Winzker 2006),
  • 12. t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n c a n i d e n t i f y o p p o r t u n i t i e s a n d r i s k s a s w e l l a s a d a p t t h e organizational design to pursue entrepreneurial activities in a complex world (Ulrich and Probst 1991, Wheatley 1999, Bleicher 2004). To b r i n g e n t r e p r e n e u r i a l a c t i v i t i e s s u c c e s s f u l l y i n t o t h e g lob al m arket place, a s t rong focus on cult ural dive r sity i s n e c e s s a r y i n o r d e r t o t a k e a d v a n t a g e o f t h i s d i v e r s i t y and to adapt business oppor tunities to local markets (Dülfer 1997, Trompenaars and Hampden-Tur ner 1998, Hofstede 2001). The various literatures (Drucker 1985, Pinchot 1988, Guth and Gins-berg 1990, Senge 1990, Covin and Slevin 1991, Abell 1993, Block and MacMillan 1995, Birkinshaw 2000, Morris et al. 2008) define different main themes in terms of the implementation and design of intrapreneurship.
  • 13. Nine central design elements of holistic intrapreneurship are identified (fig. 1). The star ting point and first element i s a d e f i n i t i o n o f t h e m a i n e n t r e p r e n e u r i a l t a s k : E n t r e p r e n e u r i a l o r g a n i s a t i o n s m u s t i d e n t i f y a n d p r o c e s s o p p o r t u n i t i e s a n d r i s k s i n t h e i n t e r n a l a n d e x t e r n a l b u s i n e s s e n v i r o n m e n t . H e r e , s t r o n g i m p l e m e n t a t i o n skills are impor tant if entrepreneurial activities are to be r e a l i s e d i n e x i s t i n g a n d n e w b u s i n e s s e s u s i n g b o t h existing and future resources and competencies. The second element defines the entrepreneurial fields o f o p e r a t i o n i n t h e e x t e r n a l b u s i n e s s e n v i r o n m e n t : entrepreneurial oppor tunities and risks can be identified in both the macro and microenvironment. In par ticular, c h a n g e s i n t h e l o c a l a n d g l o b a l b u s i n e s s a n d f a c t o r markets are sources of oppor tunities and risks. The third
  • 14. e l e m e n t i s t h e i n t e r n a l b u s i n e s s e n v i r o n m e n t . T h e entrepreneurial design of the organisation impacts upon i t s e n t r e p r e n e u r i a l o r i e n t a t i o n . T h e e n t r e p r e n e u r i a l SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 98 A Quarterly Journal d y n a m i c o f a n o r g a n i s a t i o n i s d e t e r m i n e d b y t h e e n t r e p r e n e u r i a l s t r a t e g y , s t r u c t u r e a n d c u l t u r e , a s w e l l a s b y t h e e n t r e p r e n e u r i a l a c t o r s , t h e r e s o u r c e s a n d c o m p e t e n c i e s . F l e x i b i l i t y t o i n c r e a s e a d a p t a b i l i t y a n d i n n o v a t i o n , a s w e l l a s s t a b i l i t y i n p r o d u c t i o n i n o r d e r t o i n c r e a s e e f f i c i e n c y , i s q u o t e d a s t a r g e t s t o h e l p implementation and adaptation of the entrepreneurial
  • 15. v i s i o n a n d m i s s i o n . T h i s i s a c h i e v e d t h r o u g h d e - c e n t r a l i s e d r e s p o n s i b i l i t y , i n i t i a t i v e a n d s e l f - m o n i t o r i n g s i m u l t a n e o u s l y w i t h c e n t r a l c o o r d i n a t i o n a n d p l a n n i n g . T h e f o u r t h e l e m e n t e x p l i c i t l y s p e c i f i e s t h e t h r e e entrepreneurial strategy fields as innovation, adaptation and optimisation. Entrepreneurial decision fields are the fifth element and relate to the buy-side (input), the sell- s i d e ( o u t p u t ) a n d t h e i n s i d e ( t h r o u g h p u t ) . T h e s i x t h element comprises the entrepreneurial action fields of product, market and technology. The remaining elements determine the entrepreneurial a l i g n m e n t o f t h e o r g a n i s a t i o n . O r i e n t a t i o n t o w a r d s v i a b i l i t y i s t h e s e v e n t h e l e m e n t a n d r e q u i r e s t h e p u r s u i t of shor t-ter m and long-ter m success potential. In this process, when entrepreneurial decisions are taken, t he
  • 16. life cycles of the organisation (Wright 1989) as well as the products, markets and technologies are taken into a c c o u n t . B y c a r r y i n g o u t e n t r e p r e n e u r i a l a c t i v i t i e s , a continuous renewal of the organization (Wright 1989) i s a c h i e v e d a n d t h e b o u n d a r i e s a n d n e t w o r k s o f t h e o r g a n i s a t i o n a r e c o n t i n u o u s l y a d j u s t e d . T h e e i g h t h e l e m e n t i s g l o b a l o r i e n t a t i o n ( B a r t l e t t a n d G h o s h a l ) , w h i c h w i d e n s t h e f i e l d o f p l a y f o r e n t r e p r e n e u r i a l a c t i v i t i e s a n d t a k e s i n t o c o n s i d e r a t i o n t h e g l o b a l d y n a m i c s o f t h e m a r k e t s a n d c u l t u r a l differences in ter ms of how oppor tunities and risks are i d e n t i f i e d a n d p r o c e s s e d . S u b s i d i a r i e s i n v a r i o u s countries can be the agents of global entrepreneurial a c t i v i t i e s .
  • 17. The ninth element, holistic orientation (O’Connor and McDermott 2006), makes it possible to have internal and e x t e r n a l s y n e r g i e s , i n t e r n a l h a r m o n y b e t w e e n t h e i n d i v i d u a l a c t o r s a n d t h e o r g a n i s a t i o n , a s w e l l a s a s y m b i o s i s o f t h e e n t r e p r e n e u r i a l o r g a n i s a t i o n w i t h t h e e x t e r n a l e n v i r o n m e n t . C o m m o n m e n t a l m o d e l s a n d s c e n a r i o s s t r e n g t h e n c o l l a b o r a t i o n a n d a d a p t a t i o n w i t h i n t h e o r g a n i s a t i o n ( B l e i c h e r 2 0 0 4 ) . G l o b a l , h o l i s t i c a n d s u s t a i n a b l e o r i e n t a t i o n l e n d s s u p p o r t t o t h e e n t r e p r e n e u r i a l a l i g n m e n t o f t h e o r g a n i s a t i o n . Fig. 1: Nine Central Design Elements For Holistic Intrapreneurship T h r e e e n t r e p r e n e u r i a l t a s k s o f t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n f o l l o w f r o m t h i s a n a l y s i s :
  • 18. (1) Entrepreneurial collection of information about the b u s i n e s s e n v i r o n m e n t ; (2) E n t r e p r e n e u r i a l c r e a t i o n o f t h e f u t u r e t h r o u g h exchange with the business environment; (3) B u i l d i n g t h e o r g a n i z a t i o n a l a r c h i t e c t u r e o f t h e entrepreneurial organization to make it adaptable. Element 1:Element 1:Element 1:Element 1:Element 1: EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE ntrepreneurial tasktasktasktasktask Element 2:Element 2:Element 2:Element 2:Element 2: ExternalExternalExternalExternalExternal entrepreneurialentrepreneurialentrepreneurialentrepreneurialentr epreneurial operation fieldsoperation fieldsoperation fieldsoperation fieldsoperation fields Element 3:Element 3:Element 3:Element 3:Element 3: EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE ntrepreneurial organisation designorganisation designorganisation designorganisation designorganisation design Element 4:Element 4:Element 4:Element 4:Element 4:
  • 19. EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE ntrepreneurial strategy fieldsstrategy fieldsstrategy fieldsstrategy fieldsstrategy fields Element 5:Element 5:Element 5:Element 5:Element 5: EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE ntrepreneurial decision fieldsdecision fieldsdecision fieldsdecision fieldsdecision fields Element 6:Element 6:Element 6:Element 6:Element 6: EntrepreneurialEntrepreneurialEntrepreneurialEntrepreneurialE ntrepreneurial action fieldsaction fieldsaction fieldsaction fieldsaction fields Element 7:Element 7:Element 7:Element 7:Element 7: OrientationOrientationOrientationOrientationOrientation towards viabilitytowards viabilitytowards viabilitytowards viabilitytowards viability Element 8:Element 8:Element 8:Element 8:Element 8: GlobalGlobalGlobalGlobalGlobal OrientationOrientationOrientationOrientationOrientation Element 9:HolisticElement 9:HolisticElement 9:HolisticElement 9:HolisticElement 9:Holistic orientationorientationorientationorientationorientation S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n u a r y - M a r c h , 2 0 1 1.
  • 20. 99 A Quarterly Journal T h e s e t h r e e t a s k s c o n s o l i d a t e t h e n i n e d e v e l o p m e n t elements for intrapreneurship derived from the literature search. To describe the entrepreneurial organization, the star ting point is to look at the three entrepreneurial tasks i d e n t i f i e d a n d d e s c r i b e d i n g l o b a l l i t e r a t u r e s u r v e y s . To r e a l i z e t h e s e t h r e e e n t r e p r e n e u r i a l t a s k s , e a c h o r g a n i z a t i o n h a s t o d e s i g n t h e i n t e r n a l b u s i n e s s e n v i r o n m e n t i n a s p e c i f i c w a y . A r o l e m o d e l o f t h e entrepreneurial organization has been developed as a r e s u l t o f a n a l y s i s a n d s y n t h e s i s u s i n g e c o n o m i c a n d s y s t e m s t h i n k i n g t o d e f i n e w h a t e n t r e p r e n e u r i a l r o l e s a r e n e c e s s a r y t o p e r f o r m t h e s e t h r e e e n t r e p r e n e u r i a l
  • 21. tasks in general. The role model presented here can be u s e d a s a g u i d e l i n e a n d h e l p s t o u n d e r s t a n d t h e o r g a n i z a t i o n “ h o l i s t i c a l l y ” a s a n e n t r e p r e n e u r i a l c o r p o r a t i v e a c t o r. I n p r a c t i c e , t h i s e n t r e p r e n e u r i a l r o l e has to be fulfilled through job-sharing and spec ializ ing , coordination and motivation to harmonize the individual, common and organizational interests. A framework of the global business environment helps t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n t o u n d e r s t a n d t h e characteristics and issues of the external environm ent a s a p l a y i n g f i e l d f o r o p p o r t u n i t i e s a n d r i s k s . T h e q u a l i t a t i v e m o d e l l i n k s t h e i n t e r n a l w i t h t h e e x t e r n a l b u s i n e s s e n v i r o n m e n t a n d g i v e s a n o v e r v i e w o f h o w t h e v i t a l e n t r e p r e n e u r i a l o r g a n i z a t i o n c a n a d a p t a n d a c t
  • 22. i n t e r r e l a t e d w i t h t h e e x t e r n a l e n v i r o n m e n t t h r o u g h e n t r e p r e n e u r i a l a c t i v i t i e s i n e s t a b l i s h e d a n d n e w b u s i n e s s e s . Ta s k s o f a n E n t r e p r e n e u r i a l O r g a n i z a t i o n T h e s t a r t i n g p o i n t i n t h e r e s e a r c h m e t h o d i s t o h a v e a s t r o n g f o c u s o n r e l e v a n t l i t e r a t u r e i n t h e f i e l d s o f i n t r a p r e n e u r s h i p , i n t e r n a t i o n a l b u s i n e s s e n v i r o n m e n t a n d s t r a t e g i c m a n a g e m e n t i n o r d e r t o i d e n t i f y t h e r o l e s o f i n t r a p r e n e u r s h i p i n t o d a y ’ s t u r b u l e n t b u s i n e s s a n d h i g h t e c h n o l o g y e n v i r o n m e n t . T h e r o l e s i d e n t i f i e d c a n b e a s s i g n e d t o t h e t h r e e e n t r e p r e n e u r i a l t a s k s ( F i g . 2 ) a s a f i r s t b u i l d i n g b l o c k f o r a n e n t r e p r e n e u r i a l o r g a n i z a t i o n .
  • 23. E n t r e p r e n e u r i a l Co l l e c t i o n o f In f o r m a t i o n : Lo o k i n g f o r Op p o r t u n i t i e s a n d Ri s k s S c a n n i n g t h e b u s i n e s s e n v i r o n m e n t t o i d e n t i f y o p p o r t u n i t i e s i s t h e b a s i c a c t i v i t y i n t h e e n t r e p r e n e u r i a l collection of information (Kirzner 1973, Drucker 1985). Expectations about change in the business environment, t r e n d s a n d s c e n a r i o s a r e a n i m p o r t a n t s o u r c e f o r identif ying future oppor tunities (Penrose 1959, Schwab Fig. 2: Three Tasks of the Entrepreneurial Organization Pursue (Roberts 2004) Entrepreneurial collection of informationEntrepreneurial collection of informationEntrepreneurial collection of informationEntrepreneurial collection of informationEntrepreneurial collection of information about the business environmentabout the business environmentabout the business environmentabout the business environmentabout the business environment Entrepreneurial creation of the futureEntrepreneurial creation of the futureEntrepreneurial creation of the futureEntrepreneurial creation of the futureEntrepreneurial creation of the future through exchange with the externalthrough exchange with the externalthrough exchange with the externalthrough exchange
  • 24. with the externalthrough exchange with the external Making the organizational architecture of theMaking the organizational architecture of theMaking the organizational architecture of theMaking the organizational architecture of theMaking the organizational architecture of the entrepreneurial organizationentrepreneurial organizationentrepreneurial organizationentrepreneurial organizationentrepreneurial organization SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 100 A Quarterly Journal 1976, Thornberry 2006, Kotter 2009). Customers and s u p p l i e r s a r e r e g a r d e d a s a n i m p o r t a n t s o u r c e o f i n f o r m a t i o n c o l l e c t e d c o m m o n l y b y t h e e m p l o y e e s (Moss-Kanter 1983 and 1989, Brandt 1986, Joyce 2008). Developing common mental models about the business environment can help to identify oppor tunities and risks (Senge 1990, Oden 1997, Kuhn 2000, Thornberry 2006, Joyce 2008, Kohlöffel and Rosche 2009). Subjects to analyse are the life-cycle and the dynamics
  • 25. of industries (Covin and Slevin 1991, Lumpkin and Dess 1996, Weick and Sutcliffe 2001, Hitt 2002 and 2005), t h e c u s t o m e r s ( M a u c h e r 2 0 0 7 , K o h l ö f f e l a n d R o s c h e 2009), the cultural and country specific context as well as the global business environment (Covin and Slevin 1991, Zahra and George 2002, Hitt et al. 2002 and 2005) a n d t h e i n t e r n a l ( a n d e x t e r n a l ) b u s i n e s s e n v i r o n m e n t (Kotter 2009). Entrepreneurial Creation of the Future: Adaptation and Proactive Activities for a Sustainable Vitality of the Organization New products and new markets are essential for future viability of the entrepreneurial organization (Schumpeter 1912/2006 and 1950, Penrose 1959, Lumpkin and Dess 1 9 9 6 ) . I n t e r n a t i o n a l t r a d e a n d g l o b a l i z a t i o n p r e s e n t oppor tunities and risks in global markets (Smith 1789/
  • 26. 1 9 8 2 , Ver n o n 1 9 6 6 a n d 1 9 7 9 , S c h w a b 1 9 7 6 , M o s s - Kanter 1983, 1989 and 1997, Hamel and Prahaland 1994, B i r k i n s h a w 2 0 0 0 , Z a h r a a n d G e o r g e 2 0 0 2 ) . Understanding and using cultural diversity make for many entrepreneurial activities (Trompenaars and Hampden- Tur ner 1998, Maucher 2007). R e n e w a l o f t h e o r g a n i z a t i o n n e e d s p e r m a n e n t i n n o v a t i o n , e v a l u a t i o n o f e s t a b l i s h e d b u s i n e s s e s a n d internal efficiency (Schwab 1976, Drucker 1985, Moss- Kanter 1983, 1989 und 1997, Hamel and Prahaland 1994, O d e n 1 9 9 7 , K u h n 2 0 0 2 , T h o r n b e r r y 2 0 0 6 , M a u c h e r 2007). M a n y e n t r e p r e n e u r i a l a c t i v i t i e s a t a l l l e v e l s , c o m p e t i t i v e orientatio n and permanent seeking out of competitive a d v a n t a g e s a r e s u c c e s s f a c t o r s f o r e n t r e p r e n e u r i a l
  • 27. posture (Peters and Water man 1982, Covin and Slevin 1 9 9 1 , B l o c k a n d M a c M i l l a n 1 9 9 3 , L u m p k i n a n d D e s s 1996, Hitt 2005, Morris and Kurratko 2002, Sathe 2003). The global business environment also requires alliances and cooperation with other organizations (Moss-Kanter 1983 and 1989). R e s o u r c e s a n d c o m p e t e n c e s a r e f u n d a m e n t a l f o r e n t r e p r e n e u r i a l a c t i v i t i e s a n d e n t r e p r e n e u r i a l a c t i v i t i e s m a k e a c o n t r i b u t i o n t o t h e d e v e l o p m e n t o f n e w c o m p e t e n c e s a n d r e s o u r c e s ( P e n r o s e 1 9 5 9 , M o s s K a n t e r 1 9 8 3 , 1 9 8 9 , 1 9 9 7 , G u t h a n d G i n s b e r g 1 9 9 0 , Hamel and Prahaland 1994). A d a p t a t i o n t o c h a n g e , r i s k s a n d c r i s i s , o r g a n i z a t i o n a l r e s i l i e n c e , f a s t l e a r n i n g f r o m t h e m a r k e t , a h o l i s t i c v i e w
  • 28. a n d a l o n g - t e r m o r i e n t a t i o n a r e r e q u i r e d f o r s u s t a i n a b l e vitality of the entrepreneurial organization (Moss-Kanter 1983 and 1989, Senge 1990, Kuhn 2000, Weick and Sut- cliffe 2001, Sathe 2003, Joyce 2008, Kotter 2009). Building the Organizational Architecture of the Entrepreneurial Organization Improving efficiency through job-sharing (Smith 1789/ 1982) and Coordination (Penrose 1959, Abell 1993) is t h e f i r s t b a s i c a s p e c t o f b u i l d i n g t h e e n t r e p r e n e u r i a l architecture of the organization. The second basic aspect is to achieve innovations (Schumpeter 1912/2006 and 1950). To realize these two basic aspects, it is impor tant t o h a r m o n i z e t h e o r g a n i z a t i o n a l a n d i n d i v i d u a l ( l o n g - t e r m ) i n t e r e s t s a n d t o m o t i v a t e t h e s t a f f t o a c t i n a c c o r d a n c e w i t h t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n
  • 29. (Schwab 1976, Trompenaars 2007, Oden 1997, Kuhn 2 0 0 0 , M a u c h e r 2 0 0 7 , J o y c e 2 0 0 8 ) . T h e s e t w o b a s i c a s p e c t s c a n b e s e e n a s d u a l e n t r e p r e n e u r i a l s t r a t e g i e s : efficiency in established businesses and new business development (Moss-Kanter 1983, 1989 and 1997, Abell 1993, Hamel and Prahaland 1994, Oden 1997, Birkinshaw 2 0 0 0 , M o r r i s a n d K u r r a t k o 2 0 0 2 ) . There are several design fields for acting on these basic aspects. Designing incentives (Kirzner 1973, Block and S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n u a r y - M a r c h , 2 0 1 1. 101 A Quarterly Journal M a c M i l l a n ) a n d f l e x i b l e , d e c e n t r a l i z e d s t r u c t u r e s (Schwab 1976, Hamel and Prahaland 1994, Oden 1997, H i t t e t a l . 2 0 0 5 , T h o r n b e r r y 2 0 0 6 , M a u c h e r 2 0 0 7 ,
  • 30. K o h l ö f f e l a n d R o s c h e 2 0 0 9 ) w i t h e n t r e p r e n e u r i a l m a n a g e m e n t t e a m s ( Tr o m p e n a a r s 2 0 0 7 , K u h n 2 0 0 0 , M a u c h e r 2 0 0 7 ) a n d m a n a g e r s ( D r u c k e r 1 9 8 5 , B r a n d t 1986, Thornberry 2006, Kohlöffel and Rosche) who lead the entrepreneurial units (Peters and Water man 1982) and build the formal structure. Some literature defines a s t r o n g r e l e v a n c e o f i n f o r m a l s t r u c t u r e s f o r entrepreneurial activities (Peters and Water man 1982, Pinchot 1985). N o t j u s t t h e s t r u c t u r e s e e m s t o b e r e l e v a n t f o r a n e n t r e p r e n e u r i a l o r g a n i z a t i o n a l d e s i g n , b u t a l s o a n e n t r e p r e n e u r i a l s p i r i t a n d c u l t u r e ( S c h w a b 1 9 7 6 , D r u c ke r 1 9 8 5 , Wu n d e r e r 1 9 9 3 , Tr o m p e n a a r s 2 0 0 7 , B a - d e n - F u l l e r a n d S t o p f o r d 1 9 9 4 , K o t t e r 2 0 0 9 , K o h l ö f f e l
  • 31. a n d Ro s c h e 2 0 0 9 ) . To d e v e l o p s u c h a n e n t r e p r e n e u r i a l c u l t u r e , o r g a n i z a t i o n s c a n g i v e i m p o r t a n t n e w p r o j e c t s t o s u c c e s s f u l e n t r e p r e n e u r i a l m a n a g e r s a s a n i n c e n t i v e ( B l o c k a n d M a c M i l l a n 1 9 9 3 ) o r u s e e n t r e p r e n e u r i a l e x p e r i m e n t s t o p r o v i d e c o m m o n l e a r n i n g f r o m t h e s e e x p e r i m e n t s ( S e n g e 1 9 9 0 , H a m e l a n d P r a h a l a n d 1 9 9 4 , S a t h e 2 0 0 3 , K o h l ö f f e l a n d R o s c h e 2 0 0 9 ) . T h e s e v e r a l b u i l d i n g b l o c k s o f o r g a n i z a t i o n a l d e s i g n ( s t r a t e g y , s t r u c t u r e a n d s y s t e m s , c u l t u r e , h u m a n r e s o u r c e s , p h y s i c a l a n d f i n a n c i a l r e s o u r c e s ) s h o u l d b e c o o r d i n a t e d t o s u p p o r t e n t r e p r e n e u r i a l p o s t u r e ( C o v i n a n d S l e v i n 1 9 9 1 ) .
  • 32. The entrepreneurial organization can use and coordinate i t s r e s o u r c e s a n d i t s k n o w l e d g e t o r e a l i z e s y n e r g i e s between and inside units (Hitt et al. 2005, Joyce 2008) a l s o o n a g l o b a l s c a l e t o r e a l i z e i n t e r n a l a n d e x t e r n a l e n t r e p r e n e u r i a l a c t i v i t i e s ( B i r k i n s h a w 2 0 0 0 ) . To c o o r d i n a t e t h e d e c e n t r a l i s e d e n t r e p r e n e u r i a l a c t i v i t i e s , t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n c a n u s e ( a s a n a l t e r n a t i v e t o t h e h i e r a r c h i c a l s y s t e m ) i n t e r n a l m a r k e t s and networks (Wunderer 1993, Abell 1993). The whole o r g a n i z a t i o n a l d e s i g n f o r o p e r a t i o n s s h o u l d b e s t a b l e in crisis (Weick and Sutcliffe 2007). A conceptual role model of the entrepreneurial firm as a g eneral fram ework for addres s ing t he ent repr e ne ur ia l r o l e s ( w h a t t a s k s a r e p e r f o r m e d ) t h a t a f i r m h a s t o f u l f i l l
  • 33. i n a s p e c i f i c w a y i s d e a l t w i t h n e x t . A Ro l e Mo d e l f o r t h e En t r e p r e n e u r i a l Or g a n i z a t i o n The role model (Fig. 3) can be interpreted as a synthesis b e t w e e n t h e i n d i v i d u a l i s t i c a n d t h e c o l l e c t i v i s t i c approaches of int rapreneurs hip t hat one can find in the Fig. 3: Role Model for an Entrepreneurial Organization I d e a m a n a g e rI d e a m a n a g e rI d e a m a n a g e rI d e a m a n a g e rI d e a m a n a g e r for new business I n n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e rI n n o v a t i o n m a n a g e r for new business K n o w l e d g e m a n a g e rK n o w l e d g e m a n a g e rK n o w l e d g e m a n a g e rK n o w l e d g e m a n a g e rK n o w l e d g e m a n a g e r for oppor tunties and risks E n t r e p r e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l m a n a g e rE n t r e p r e n e u r i a l m a n a g e r of established business S y n e r g y m a n a g e rS y n e r g y m a n a g e rS y n e r g y
  • 34. m a n a g e rS y n e r g y m a n a g e rS y n e r g y m a n a g e r for holistic management of resources and activities Entrepreneurial organizationEntrepreneurial organizationEntrepreneurial organizationEntrepreneurial organizationEntrepreneurial organization Entrepreneurial collection of information Entrepreneurial creation of the future Building the organization architecture of the entrepreneurial organization SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 102 A Quarterly Journal l i t e r a t u r e . I t c a p t u r e s s e v e r a l r o l e s o f i n t r a p r e n e u r s h i p i d e n t i f i e d i n t h e r e l e v a n t w o r k o f v a r i o u s a u t h o r s a n d i n the view of the global competitive business environment i n a n i n t e g r a t i v e f r a m e w o r k . T h e r o l e m o d e l g i v e s a f r a m e w o r k t o p e r f o r m t h e t h r e e e n t r e p r e n e u r i a l t a s k s
  • 35. a n d g i v e s a g e n e r a l o r i e n t a t i o n t o c r e a t e t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n i n a s p e c i f i c w a y a n d i n a specific context. T h e k n o w l e d g e m a n a g e r c o l l e c t s a n d a n a l y s e s s y s t e m a t i c a l l y r e l e v a n t i n f o r m a t i o n a b o u t t h e i n t e r n a l (Por ter 1985, Johnson and Scholes 1993, Pedler et al. 1 9 9 7 , D e s s a n d L u m p k i n 2 0 0 3 , H i t t e t a l . 2 0 0 5 ) a n d exter nal business environment (Por ter 1980, Fahey and N a r a y a n a n 1 9 8 6 , S e n g e 1 9 9 0 , G r a f 1 9 9 9 a n d 2 0 0 0 , Palmer 2002, Morrison 2006, Parr Rud 2009) to create k n o w l e d g e ( C h e c k l a n d a n d H o l w e l l 1 9 9 8 ) a b o u t c u s t o m e r s , s u p p l i e r s , m a r k e t s a n d i n d u s t r i e s , c o m p e t i t o r s a s w e l l a s m e n t a l m o d e l s , t r e n d s a n d
  • 36. s c e n a r i o s a b o u t t h e g e n e r a l m a c r o - e n v i r o n m e n t . T h i s knowledge helps to identif y oppor tunities and risks for new businesses and in established businesses. L earning f r o m e n t r e p r e n e u r i a l a c t i v i t i e s ( B l o c k a n d M a c M i l l a n 1995, Argyris 1999) and the working place (Raelin 2008), crisis (De Geus 2002), the present (Naisbitt 2007) and from the emerging future (Scharmer 2009) also creates knowledge and future options. The knowledge manager needs a global perspective (Thurow 2004) and has to link information from different disciplines (Palm er and Har tley 2002). The idea manager has to think up new things creatively (Peters and Water man 1982) to recognize and assess oppor tunities and risks in a discover y process (Smith and Di Gregorio 2002). He can use the information from the knowledge manager for agenda setting and create t h e m a t c h b e t w e e n t h e i d e a a n d t h e o r g a n i z a t i o n a l
  • 37. strategy and design (Rogers 2003). To evaluate and select t h e o p p o r t u n i t i e s , h e h a s t o c h e c k t h e f e a s i b i l i t y, t h e economic potential and the fit to strategy (Block and MacMillan 1995). The idea manager can use creativity t e c h n i q u e s ( D e B o n o 1 9 8 9 a n d 1 9 9 0 , v o n A e r s s e n 2009), training and publications (Block and MacMillan 1995) or a discipl ined and organized process (Drucker 1985) to increase the flow of ideas. He can also use simulation and experiments to find ideas (Anderson et al. 2010). The idea m anag er has t o t hink s ys t ema tic a lly about entering new markets and creating new products, services and industries (Kim and Mauborgne 2005). The innovation manager has to implement many ideas, because innovation success is a numbers game (Peters a n d Wa t e r m a n 1 9 8 2 ) . H e h a s t o o r g a n i z e r e s o u r c e s , design the innovation process and guide the new idea
  • 38. t h r o u g h t h e s t a g e s o f i m p l e m e n t a t i o n ( R o g e r s 2 0 0 3 , F rank 2006). The innovat ion m anag er has t o c onside r different t ypes of innovat ions and different co nte x ts to design the implementation (Wunderer and Bruch 2000). H e c a n f o c u s i n t e r n a l l y o n s t r a t e g y , s t r u c t u r e , p r o c e s s e s , c a p a b i l i t i e s ( o r g a n i z a t i o n a l r e j u v e n a t i o n , b u s i n e s s m o d e l r e c o n s t r u c t i o n , s t r a t e g i c r e n e w a l ) o r e x t e r n a l l y o n p r o d u c t s a n d m a r k e t s ( s u s t a i n e d r e - g e n e r a t i o n , d o m a i n r e d e f i n i t i o n ) i n o r d e r t o i n n o v a t e (Morris et al. 2008). He can us e corporat e labor a tor ie s for product engineering and development (Best 2001). The innovation manager acts in the field of non-routine a n d o f t e n s e p a r a t e f r o m t h e d a y - t o - d a y b u s i n e s s (Narayanan 2001). The ent repreneurial m anager in es t ab lis hed b usine sse s
  • 39. designs job-sharing, coordination and motivation within the businesses (Picot et al. 1997). He has to develop a clear picture of the internal value added chain and the costs added at each stage to reveal leverage points for c o s t r e d u c t i o n – a n a n a l o g o u s a n a l y s i s b e y o n d t h e o r g a n i z a t i o n p o i n t s t o l e v e r a g e p o i n t s i n t h e e x t e r n a l b u s i n e s s s y s t e m ( A b e l l 1 9 9 3 ) . T h e r e f o r e , t h e ent repreneurial m anager in es t ab lis hed b us inesse s ha s to look at all floating activities of the value chain internally a s w e l l a s a c r o s s t h e o r g a n i z a t i o n t o d e s i g n t r a n s p a r e n t a n d e f f i c i e n t r e l a t i o n s h i p s i n s i d e t h e o r g a n i z a t i o n a n d w i t h t h e n e t w o r k o r g a n i z a t i o n s ( Wo m a c k a n d J o n e s 1997). He also has to create and improve the processes of the organization in a holistic way, in accordance with the strategy, to create value for customers and to adapt
  • 40. the organization to external change through learning and S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n u a r y - M a r c h , 2 0 1 1. 103 A Quarterly Journal r e d e s i g n o f t h e p r o c e s s e s ( H a m m e r 1 9 9 7 ) . T h e e n t r e p r e n e u r i a l m a n a g e r i n e s t a b l i s h e d b u s i n e s s e s d e s i g n s i t s o p e r a t i o n s a n d t h e s u p p l y c h a i n w i t h a special focus on flexibility to adapt quickly to a changing a n d r i s k y b u s i n e s s e n v i r o n m e n t a n d t o r e a l i z e c o n t i n u o u s i m p r o v e m e n t s t o r e d u c e c o s t s a n d t o achieve efficiency (Slack et al. 1995, Kaluza and Blecker 2 0 0 5 , P o u l t e r 2 0 0 6 ) . H e o p t i m i z e s , m o d i f i e s o r i n c r e a s e s i t s e x i s t i n g a c t i v i t i e s a n d m a k e s e f f e c t i v e
  • 41. d e c i s i o n s t o s o l v e b a s i c p r o b l e m s i n i t s b u s i n e s s e s ( D r u c k e r 2 0 0 7 ) . T h e e n t r e p r e n e u r i a l m a n a g e r h a s a s t r o n g f o c u s o n r e s u l t s a n d i d e n t i f i e s w h a t a c t i v i t i e s should be ceased (Malik 2000). He makes decisions on o u t s o u r c i n g o f v a l u e - c h a i n a c t i v i t i e s a n d s u p p o r t activities, and creates formal and informal netw orks t o integrate processes (Child 2005). The synergy manager designs job-sharing, coordination and motivation between depar tments (Picot et al. 1997), b e t w e e n o r g a n i z a t i o n s ( W u n d e r e r 2 0 0 6 ) , b e t w e e n s u b s i d i a r i e s a n d b e t w e e n t h e s u b s i d i a r y a n d i t s p a r e n t o r g a n i z a t i o n ( B i r k i n s h a w 2 0 0 0 ) . H e f i n d s a b a l a n c e between the shor t-ter m and the long-ter m planning in t u r b u l e n t t i m e s ( K o t l e r a n d C a s l i o n e 2 0 0 9 ) , a s w e l l a s
  • 42. b e t w e e n t h e e n t r e p r e n e u r i a l b e n e f i t s o f d e - c e n t r a l i z a t i o n a n d t h e b e n e f i t s o f r e c o g n i z i n g a n d exploiting corporate synergies e.g., across product lines in any function or through sharing a (common) resource (Abell 1993). He secures the organization’s position in the future through building competencies and realizing e n t r e p r e n e u r i a l a c t i v i t i e s w h i c h n e e d m o r e r e s o u r c e s t h a n a s i n g l e b u s i n e s s u n i t h a s ( H a m e l a n d P r a h a l a d 1996). He realizes synergies between entrepreneurial a c t i v i t i e s , a s w e l l a s b e t w e e n n e w b u s i n e s s e s a n d established businesses (Por ter 1980/2004). The synergy manager has to fulfill three strategic needs - efficiency, i n n o v a t i o n , a n d a d a p t a b i l i t y – t o o r g a n i z e b u s i n e s s activities with reference to the changed context in which t h e b u s i n e s s e s o p e r a t e ( C h i l d 2 0 0 5 ) . H e s t r u c t u r e s
  • 43. e f f e c t i v e o r g a n i z a t i o n s t h r o u g h t h e a s s i g n m e n t o f d e c i s i o n r i g h t s w i t h i n t h e c o m p a n y , m e t h o d s o f r e w a r d i n g i n d i v i d u a l s a n d t h e d e s i g n o f s y s t e m s t o e v a l u a t e t h e p e r f o r m a n c e o f i n d i v i d u a l s a n d u n i t s (Brickley et al. 2004). He has to set the boundaries of the whole organization (what businesses should it do) and to decide on what basis the organization should c o m p e t e t o d e t e r m i n e t h e d e s i g n o f t h e i n t e r n a l organization (Besanko et al. 2007). The synergy manager c r e a t e s l o n g - t e r m p a r t n e r s h i p s w i t h c u s t o m e r s a n d s u p p l i e r s , l i n k s p e o p l e i n d i f f e r e n t p a r t s o f t h e i n t e r n a l o r g a n i z a t i o n a n d r e a l i z e s a f i t a m o n g t h e s t r a t e g y , t h e o r g a n i z a t i o n a l d e s i g n a n d t h e r e l e v a n t b u s i n e s s environment through sor ting out which of the identified oppor tunities the entrepreneurial organization should pursue (Rober ts 2004). Conceptual Framework for the Global Business Environment T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n h a s t o
  • 44. p l a y t h e e n t r e p r e n e u r i a l r o l e s i n i n t e r p l a y w i t h i t s e x t e r n a l business environment which is in a permanent state of change. This brings new oppor tunities and risks as well a s t h e n e e d f o r a d a p t a t i o n i n e s t a b l i s h e d b u s i n e s s e s . U n d e r s t a n d i n g t o d a y ’ s g l o b a l a n d d y n a m i c b u s i n e s s e n v i r o n m e n t i s e s s e n t i a l f o r t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n a n d i t i s a r e s u l t o f t h e e n t r e p r e n e u r i a l collection of information. A clear picture of the external b u s i n e s s e n v i r o n m e n t h e l p s t o d e v e l o p a c o m m o n m e n t a l m o d e l a b o u t t h e b u s i n e s s a r e n a a n d o f f e r s a foundation for thinking about the proactive and reactive e n t r e p r e n e u r i a l a c t i v i t i e s r e p r e s e n t i n g t h e r e s u l t o f t h e ent repreneurial creat ion of t he fut ure; t he focus is on the exchange between the entrepreneurial organization a n d i t s e n v i r o n m e n t . To r e a l i z e t h e s e e n t r e p r e n e u r i a l activities it is necessary to design and adapt the internal b u s i n e s s e n v i r o n m e n t . T h e p e r m a n e n t l y c h a n g i n g b u s i n e s s e n v i r o n m e n t m a k e s i t n e c e s s a r y t o c o n t i n u o u s l y r e d e s i g n t h e o r g a n i z a t i o n a l a r c h i t e c t u r e . A conceptual frame-work of the business environment helps t o creat e a s pecific pict ure of t he org ani za tion in it s environm ent t o act on t he ent repreneurial role s a nd t o p u r s u e t h e e n t r e p r e n e u r i a l t a s k s .
  • 45. The Business Environment I n t h e l i t e r a t u r e , t h e r e a r e n u m e r o u s c o n c e p t s t o d e s c r i b e ( Ke r r a n d L i t t l e f i e l d 1 9 7 4 , We i n s h a l l 1 9 7 7 , Fayer weather 1978, Ulrich and Probst 1991, Tepstra and SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 104 A Quarterly Journal D a v i d 1 9 9 1 , M a l i k 2 0 0 8 ) a n d t o a n a l y z e ( Fa h e y a n d N a r a y a n a n 1 9 8 6 , J o h n s o n a n d S c h o l e s 1 9 9 3 , R u g m a n 2006, Louw and Venter 2006, Daniels et al. 20 07) t he b u s i n e s s e n v i r o n m e n t . Some authors focus on the availability of resources for the organization (Emer y and Trist, 1965, Aldrich 2008), others on the attributes of the external environm ent like t u r b u l e n c e , h o s t i l i t y , c o m p l e x i t y t h a t d e t e r m i n e s
  • 46. u n c e r t a i n t y ( K h a n d w a l l a 1 9 7 7 , A n s o f f 2 0 0 7 ) a n d d i v e r s i t y ( Tr o m p e n a a r s a n d H a m p d e n -Tu r n e r 1 9 9 8 , Hofstede 2001, Schuster and Copeland 2006). A common distinction to define the fields of influence a n d i n t e r a c t i o n b e t w e e n t h e o r g a n i z a t i o n a n d i t s e n v i r o n m e n t i s m a d e b e t w e e n a g e n e r a l ( c o n t e x t u a l ) m a c r o - e n v i r o n m e n t a n d a n i m m e d i a t e ( o p e r a t i o n a l ) micro -environment (Wor thington and Britton 2000, Hitt e t a l . 2 0 0 5 ) . T h e m a c r o - e n v i r o n m e n t i s b u i l t b y t h e political/legal, economic, socio-cultural, technological, a n d p h y s i c a l s e g m e n t s ( D ü l f e r 1 9 9 7 ) . T h e M i c r o - e n v i r o n m e n t c o n t a i n s t h e c o m p e t i t i v e o r i n d u s t r y e n v i r o n m e n t a n d t h e t a s k e n v i r o n m e n t o f t h e organization (Fahey and Narayanan 1986, Por ter 1985/
  • 47. 2004). For the global organization the local communities, the nation states, the world regions and the whole world a r e r e l e v a n t g e o g r a p h i c a l d i m e n s i o n s o f t h e environment (Graf 2005, Morrison 2006). This makes a systems view on the business environment very useful ( M i l l e r 1 9 9 5 , H a i n e s 1 9 9 8 ) . T h e i n t e r n a l b u s i n e s s e n v i r o n m e n t c a n b e d e s c r i b e d i n p a r t i c u l a r t h r o u g h p r o c e s s e s ( Por t e r 1 9 8 0 / 2 0 0 4 ) , s t r u c t u r e s ( M i n t z b e r g 1993, Child 2005) and other arrangements like strategy, culture as well as orientation on optimization and renewal (Rüegg-Stürm 2002). A F r a m e w o r k f o r v i e w i n g t h e G l o b a l Business Environment To g e t a h o l i s t i c p i c t u r e o f t h e g l o b a l b u s i n e s s
  • 48. e n v i r o n m e n t o f a s p e c i f i c o r g a n i z a t i o n ( F i g . 4 ) , i t i s n e c e s s a r y t o d e f i n e f o u r d i m e n s i o n s . T h e f i r s t d i m e n s i o n f o c u s e s o n t h e g e o g r a p h i c a r e a s i n w h i c h t h e o r g a n i z a t i o n o p e r a t e s . E n v i r o n m e n t s f o r o p e r a t i o n s a r e t h e g l o b a l e c o n o m y, w o r l d r e g i o n s , n a t i o n s t a t e s a n d l o c a l c o m m u n i t i e s . T h e s e c o n d d i m e n s i o n f o c u s e s o n t h e f i e l d s f o r t h e o p e r a t i o n a l i n t e r p l a y b e t w e e n t h e o r g a n i z a t i o n a n d i t s e n v i r o n m e n t . T h e r e l e v a n t g e n e r a l m a c r o - e n v i r o n m e n t a n d t h e s p e c i f i c m i c r o e n v i r o n m e n t d e f i n e t h e s e f i e l d s o f i n f l u e n c e a n d i n t e r a c t i o n f o r t h e e x c h a n g e b e t w e e n t h e o r g a n i z a t i o n a n d i t s e x t e r n a l b u s i n e s s e n v i r o n m e n t .
  • 49. T h e t h i r d a n d f o u r t h d i m e n s i o n s f o c u s o n t h e a t t r i b u t e s o f u n c e r t a i n t y a n d d i v e r s i t y . T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n h a s t o a s s e s s t h e c u l t u r a l d i v e r s i t y a n d t h e u n c e r t a i n t y o f t h e b u s i n e s s e n v i r o n m e n t . T h i s a s s e s s m e n t h a s i m p o r t a n t i m p l i c a t i o n s f o r t h e r e q u i r e d c u l t u r a l a d a p t a t i o n o f t h e e n t r e p r e n e u r i a l a c t i v i t i e s a n d t h e o p t i m i z a t i o n o f t h e o r g a n i z a t i o n a l d e s i g n i n s e v e r a l g e o g r a p h i c a r e a s . I t h e l p s t o i d e n t i f y p o s s i b l e o p p o r t u n i t i e s f r o m c u l t u r a l d i v e r s i t y a n d t o d e f i n e t h e d e s i r a b l e i n t e n s i t y o f e n t r e p r e n e u r i a l p o s t u r e i n c o r r e s p o n d e n c e t o t h e d y n a m i c i n t e n s i t y o f t h e b u s i n e s s e n v i r o n m e n t
  • 50. ( L a w r e n c e a n d L o r s c h 1 9 8 6 , M o r r i s e t a l . 2 0 0 8 ) . L i n k i n g t h e E n t r e p r e n e u r i a l F i r m t o I t s Environment V i e w i n g t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n a s a n o p e n system (Duncan 1975, Schein 1980), the entrepreneurial f o c u s i s o n t h e e x c h a n g e o f i n p u t s a n d o u t p u t s ( p r o d u c t s , s e r v i c e s , i n f o r m a t i o n ) b e t w e e n t h e organization and its macro and microenvironment as well as on the internal adaptation of the organizational goals and architecture to suppor t this exchange (Thompson 1967/2007, Schreyögg 1974/1994, Aldrich 2008). The d y n a m i c s o f t h e b u s i n e s s e n v i r o n m e n t i n f l u e n c e s e s p e c i a l l y t h e t e c h n o l o g i c a l b a s i s o f p r o d u c t i o n a n d t h e m a r k e t s i t u a t i o n ( B u r n s a n d S t a l k e r 1 9 6 1 / 2 0 0 1 ) f o r new and established businesses.
  • 51. S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n u a r y - M a r c h , 2 0 1 1. 105 A Quarterly Journal T h e s i t u a t i o n i n t h e b u s i n e s s e n v i r o n m e n t d e t e r m i n e s t h e s t r u c t u r e o f t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n ( C h a n d l e r 1 9 6 2 , M i n t z b e r g 1 9 8 3 / 1 9 9 3 ) t o c r e a t e e n t r e p r e n e u r i a l a c t i v i t i e s a n d t o a c h i e v e a s t r a t e g i c f i t between different par ts of the organization (Dess and Lumpkin 2003) as well as between the organization and i t s e n v i r o n m e n t ( K i e s e r a n d K u b i c e k 1 9 8 3 ) . T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n a c t s t o d e v e l o p n e w competencies and resources to foster entrepreneurial activities induced through the Top-Management as well a s t h r o u g h d e c e n t r a l a u t o n o m o u s e n t r e p r
  • 52. e n e u r i a l b e h a v i o u r ( H i t t e t a l . 2 0 0 5 ) . The entrepreneurial behaviour of the organization can b e s t i m u l a t e d t h r o u g h a c h a n g i n g e x t e r n a l b u s i n e s s e n v i r o n m e n t ( J o h n s o n a n d S c h o l e s 1 9 9 3 ) a s w e l l a s through an internal dynamic (Schumpeter 1912/2006 and 1950, Bos s el 2004) b as ed on organiz at ional le ve r s like e n t r e p r e n e u r i a l s t r a t e g y , s t r u c t u r e , c u l t u r e , r e s o u r c e s and competencies. The entrepreneurial organization as a w h o l e l i v i n g o r g a n i z a t i o n l e a r n s a b o u t a n d a d a p t s t o t h e c h a n g i n g e n v i r o n m e n t , b u i l d s s u s t a i n a b l e a n d c o n s t r u c t i v e r e l a t i o n s h i p s w i t h i n t h e o r g a n i z a t i o n a n d wit h ent it ies in t he ext ernal b us ines s environme nt ( De Geus 1997). Fig. 4: A Framework for the Business Environment
  • 53. U n c e r t a i n t y i n t h e b u s i n e s s e n v i o r n m e n t G e o g r a p h i c f i e l d s f o r o p e r a t i o n s Wo r l d Wo r l d Region Nation State C o m m u n i t y dynamic complex dynamic s i m p l e stable complex stable complex O p e r a t i o n a l f i e l d s o f t h e b u s i n e s s e n v i r o n m e n t Ta s k Competitor Industry General E n v i r o n m e n t s i m i l a r c u l t u r e
  • 54. m o d e r a t e d i f f e r e n c e significant differences significant differences no or less adaption less adaption less adaption significant adaption A t t r i b u t e s o f t h e B u s i n e s s E n v i r o n m e n t D i v e r s i t y of the business environment F i e l d s o f i n f l u e n c e a n d a c t i o n environment and organization Internal c o m p l e x i t y L o c a t i o n
  • 55. O r g a n i z a t i o n Culture SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 106 A Quarterly Journal Interaction between the Organization and Its Environment: A Systems View In the literature there are different approaches in systems t h i n k i n g w h i c h s e e m t o b e r e l e v a n t t o g i v e s o m e i m p o r t a n t i m p l i c a t i o n s f o r s e e i n g t h e e n t r e p r e n e u r i a l organization in a holistic way and for identifying the role o f i n t r a p r e n e u r s h i p i n t o d a y ’ s g l o b a l b u s i n e s s environment. A holistic view helps to create a whole entrepreneurial organization which is more than the sum o f t h e i r p a r t s a n d w h i c h e n a b l e s t h e o r g a n i z a t i o n t o adapt through exchange of information, communication
  • 56. and feedback (Ber-tanlanffy 1968). A changing environment requires a systematic collection o f i n f o r m a t i o n a b o u t t h e s e c h a n g e s a n d a n i n t e r n a l f l e x i b i l i t y o f s t r u c t u r e s a n d p r o c e s s e s ( K a t z a n d K a h n 1966). Entrepreneurial organizations need to understand t h e c o m p l e x i t y o f t h e i n t e r n a l a n d e x t e r n a l b u s i n e s s environment as well as the structure of the relationships between the organization and its environment (Emery a n d Tr i s t 1 9 6 5 ) . To c r e a t e a v i a b l e e n t r e p r e n e u r i a l o r g a n i z a t i o n , t h e o r g a n i z a t i o n n e e d s a u t o n o m o u s o p e r a t i o n a l u n i t s w h i c h e x c h a n g e w i t h t h e i r e n v i r o n m e n t s , a s w e l l a s a u n i t w h i c h i d e n t i f i e s oppor tunities and risks from the whole organization’s point of view (Beer 1979, 1995).
  • 57. T h e e n t r e p r e n e u r i a l o r g a n i z a t i o n a s a m u l t i - l e v e l - m u l t i - g o a l - s e e k i n g s y s t e m i s a b l e t o g r o w u n t i l i t h a s a n e n a b l i n g b u s i n e s s e n v i r o n m e n t f o r i t s p r o d u c t s a n d s e r v i c e s a n d u n t i l i t a d a p t s i t s i n t e r n a l s t r u c t u r e s effectively to changing environments (Miller 1995). The e n t r e p r e n e u r i a l o r g a n i z a t i o n b u i l d s t e m p o r a r y s t a b l e i n t e r n a l s t r u c t u r e s t o r e a l i z e a r o t a t i o n b e t w e e n c h a n g e a n d s t a b i l i t y ( W h e a t l e y 1 9 9 9 ) . M a n a g i n g c o m p l e x i t y ( W o o d 2 0 0 0 , B l e i c h e r 2 0 0 4 , Ve s t e r 2 0 0 5 ) a n d organizational learning (Ulrich and Probst 1991 , S enge 2003) in established businesses and for new businesses is essential for viability and renewal of the entrepreneurial organization with adaptable and holographic structures (Morgan 1998).
  • 58. A Model of a Vital Entrepreneurial Organization and Its Environments From the systems, strategy and contingency literature, it i s p o s s i b l e t o d e d u c e r e l e v a n t v a r i a b l e s f o r t h e v i t a l e n t r e p r e n e u r i a l o r g a n i z a t i o n a n d i t s b u s i n e s s environment as a dynamic landscape for oppor tunities and risks. The entrepreneurial organization has to manage the exchange between the organization and the external environment in established and new businesses to stay v i t a l , a s w e l l a s t o c r e a t e a e n t r e p r e n e u r i a l p o s t u r e a s a momentum of its own. The general macro-environment contents the global and l o c a l p o l i t i c a l / r e g u l a t o r y , e c o n o m i c , s o c i a l a n d t e c h n o l o g i c a l / e c o l o g i c a l d i m e n s i o n . T h e i n d u s t r y a n d task environment contains the relevant variables of the m i c r o e n v i r o n m e n t s u c h a s i n d u s t r y a n d c o m p e t i t i v e dynamics, as well as the buy-side and the sell-side of t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n . T h i s h e l p s t o i d e n t i f y t h e i n d i r e c t a n d d i r e c t i n f l u e n c e s o f t h e e x t e r n a l e n v i r o n m e n t o n t h e o r g a n i z a t i o n ( Pa l m e r a n d H a r t l e y 2 0 0 2 ) . T h e ( r e l e v a n t ) g e n e r a l m a c r o - e n v i r o n m e n t influences the industry and the competitive environment d i r e c t l y a n d t h e o r g a n i z a t i o n s o p e r a t i n g
  • 59. i n t h i s i n d u s t r y more indirectly. The (relevant) microenvironment with industry, competitive and task environment interact with t he ent repreneurial organiz at ion m ore direct ly ( O sbor n et al. 1980). The Top-Management and decentralized, autonomous e n t r e p r e n e u r i a l u n i t s i n d u c e e n t r e p r e n e u r i a l a c t i v i t i e s . The se activities are coordinated and stimulated through the organizational design and the corresponding internal d y n a m i c s . T h e s e i n t e r n a l e n t r e p r e n e u r i a l d y n a m i c s depend on (1) the entrepreneurial strategy in established a n d n e w b u s i n e s s e s a n d t h e e v o l u t i o n o f t h e organiz at ions m is s ion over t im e, (2) t he ent repr e ne ur ia l a r c h i t e c t u r e w i t h t h e f o r m a l a n d i n f o r m a l s t r u c t u r e s a s w e l l a s t h e i n c e n t i v e a n d l e a r n i n g s t r u c t u r e s , ( 3 ) t h e e n t r e p r e n e u r i a l c u l t u r e w i t h a s p e c i a l f o c u s o n i n f o r m a t i o n , c o m m u n i c a t i o n , c o o p e r a t i o n , i n n o v a t i o n , l e a r n i n g , i d e n t i f i c a t i o n a n d m o t i v a t i o n , ( 4 ) t h e e n t r e p r e n e u r i a l e x p l o i t a t i o n o f r e s o u r c e s a n d c o m p e t e n c i e s . S C M S J o u r n a l o f In d i a n M a n a g e m e n t , J a n
  • 60. u a r y - M a r c h , 2 0 1 1. 107 A Quarterly Journal T h e q u a l i t a t i v e m o d e l ( F i g . 5 ) l i n k s t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n w i t h i t s e n v i r o n m e n t a n d p r e s e n t s t h e exchange through entrepreneurial activities in new and established businesses on a highly aggregated level. C o n c l u s i o n s F i r s t l y , t o d a y ’ s b u s i n e s s e n v i r o n m e n t d e m a n d s i n t r a p r e n e u r s h i p a n d i n n o v a t i o n f r o m c o m p a n i e s , e m b e d d e d i n a h o l i s t i c m a n a g e m e n t a p p r o a c h . Secondly, successful intrapreneurship requires a s t rong focus on the external and internal business environment t o f i n d a n d w o r k o n e n t r e p r e n e u r i a l o p p o r t u n i t i e s a n d risks to build new competitive advantages, as well as to a d a p t t h e f i r m t o a c h a n g i n g a n d t u r b u l e n
  • 61. t w o r l d . E n t r e p r e n e u r i a l f i r m s h a v e t o a c h i e v e a d y n a m i c f i t between the firm’s internal configuration (organizational a r c h i t e c t u r e , c u l t u r e , r e s o u r c e s a n d c a p a b i l i t i e s including technology) and the strategic exchange with their external business environment (in both directions). T h e r e f o r e , e n t r e p r e n e u r i a l o r g a n i z a t i o n s c a n u s e a n d d e v e l o p i n t e r n a l e n t r e p r e n e u r i a l s y s t e m s d y n a m i c s t o s u p p o r t e m e r g i n g e n t r e p r e n e u r i a l a c t i v i t i e s a s w e l l a s an explicit initiating of entrepreneurial activities through the Top-Management and through decentralized unities and venture teams. Holistic intrapreneurship means to act on three basic entrepreneurial tasks to implement the nine central design elements: (1) E nt repreneurial collect ion of inform at ion: Looking f o r o p p o r t u n i t i e s a n d r i s k s ;
  • 62. (2) Entrepreneurial creation of the future: Adaptation and proactive activities for a sustainable vitality of t he org aniz at ion; (3) B u i l d i n g t h e o r g a n i z a t i o n a l a r c h i t e c t u r e o f t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n . There is no one best way to design an entrepreneurial o r g a n i z a t i o n , s o e v e r y o r g a n i z a t i o n h a s t o b u i l d t h e i r o w n o r g a n i z a t i o n ’ s d e s i g n u s i n g c u l t u r a l d i v e r s i t y i n global market places. Entrepreneurial organizations adapt t h i s o r g a n i z a t i o n a l a r c h i t e c t u r e a n d t h e s t r a t e g i e s f o r i n t e r a c t i n g w i t h t h e e x t e r n a l b u s i n e s s e n v i r o n m e n t p e r m a n e n t l y t o r e s p o n d a n d a c t o n t h e c o n t i n u o u s change in the macro and microenvironment. The conceptual role model of the entrepreneurial firm introduced here is a general framework to address the
  • 63. entrepreneurial roles that a firm has to fulfill in a specific Fig. 5: The Vital Entrepreneurial Organization General Microenvironment Time lag Vital Entrepreneurial Organization SCMS Journal of Indian Management , J a n u a r y - M a r c h , 2 011. 108 A Quarterly Journal w a y t o p e r f o r m e n t r e p r e n e u r i a l t a s k s . T h i s u n i q u e forming (how the tasks are performed) depends heavily on the cultural context and the specific environment in which it operates. The conceptual model defines five entrepreneurial roles: (1) K n o w l e d g e m a n a g e r - s c a n n i n g , m o n i t o r i n g , f o r e c a s t i n g a n d a s s e s s m e n t : u n d e r s t a n d t
  • 64. h e ( f u t u r e ) g l o b a l b u s i n e s s e n v i r o n m e n t a n d t h e means for the organization; (2) Idea manager - thinking up new things: identify new o p p o r t u n i t i e s a n d r i s k s i n t h e g l o b a l b u s i n e s s e n v i r o n m e n t (3) Innovation manager - doing new things: put new oppor tunities into practice and manage risks; (4) Entrepreneurial manager – carrying out established business with an entrepreneurial posture: managing o p t i m i z a t i o n , r i s k s , f l e x i b i l i t y a n d a d a p t a t i o n ; (5) S y n e r g y m a n a g e r – h o l i s t i c m a n a g e m e n t o f r e sources and activities: organizational design for job-sharing, specializing and learning, coordination and motivation with harmonized organizational and i n d i v i d u a l i s t i c o b j e c t i v e s , a s w e l l a s t a k i n g
  • 65. a d v a n t a g e o f ( c u l t u r a l ) d i v e r s i t y . F o r a n e n t r e p r e n e u r i a l a n a l y s i s o f t h e g l o b a l b u s i n e s s e n v i r o n m e n t , i t i s u s e f u l t o f o c u s o n f o u r d i m e n s i o n s : (1) G e o g r a p h i c d i m e n s i o n o f t h e b u s i n e s s environment: how global are the current and future operations and industries? Where are the current and future markets and playing fields? (2) F i e l d s o f i n f l u e n c e a n d i n t e r a c t i o n b e t w e e n t h e o r g a n i z a t i o n a n d i t s b u s i n e s s e n v i r o n m e n t : h o w c a n o n e d e s c r i b e a n d u n d e r s t a n d t h e b u s i n e s s environment? What is the operational and what is the relevant general environment? (3) U n c e r t a i n t y i n t h e b u s i n e s s e n v i r o n m e n t : h o w dynamic and complex is the environment? What
  • 66. e n t r e p r e n e u r i a l i n t e n s i t y i s s u f f i c i e n t ? (4) C u l t u r a l d i m e n s i o n o f t h e b u s i n e s s e n v i r o n m e n t : how can the entrepreneurial organization use the divers it y? W hat adapt at ions are required? T h e M o d e l o f a v i t a l e n t r e p r e n e u r i a l o r g a n i z a t i o n describes the ex-change between the entrepreneurial o r g a n i z a t i o n a n d i t s e x t e r n a l e n v i r o n m e n t i n b o t h d i r e c t i o n s . E n t r e p r e n e u r i a l a c t i v i t i e s i n e s t a b l i s h e d b u s i n e s s e s h e l p t o i m p r o v e t h e s h o r t - t e r m v i t a l i t y o f t h e e n t r e p r e n e u r i a l o r g a n i z a t i o n . T h e l o n g - t e r m v i t a l i t y d e p e n d s o n a c o n t i n u o u s s t r e a m o f n e w b u s i n e s s e s , e s p e c i a l l y i n a g l o b a l l y c o m p e t i t i v e t e c h n o l o g i c a l b u s i n e s s e n v i r o n m e n t . T h e m o d e l i n c l u d e s s t r u c t u r a l
  • 67. b u i l d i n g b l o c k s t o s u p p o r t p o s i t i v e e n t r e p r e n e u r i a l d y n a m i c s . The role model and the three basic entrepreneurial tasks can be used as a guideline to evaluate and assess the b a s i c a c t i o n s t o a c h i e v e a n e n t r e p r e n e u r i a l p o s t u r e i n t e c h n o l o g y f i r m s i n a h o l i s t i c w a y. I t i s a l s o a s t a r t i n g p o i n t f o r b u i l d i n g a s p e c i f i c f i r m m o d e l i n a u n i q u e cultural context. This model may also be extended to i n c l u d e c r o s s c u l t u r a l e f f e c t s . U s i n g t h e f r a m e w o r k d e v e l o p e d f o r u n d e r s t a n d i n g t h e g l o b a l b u s i n e s s environment and the model of the vital entrepreneurial o r g a n i z a t i o n i n i t s e n v i r o n m e n t , t h e e n t r e p r e n e u r i a l organization can identify the specific lever for long-term vitality. R e f e r e n c e s
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  • 91. u n t e r n e h m e r i s c h e F ü h r u n g s l e h r e , 6 . ” A u f l a g e , Luchterhand. München: 2006. Wu n d e r e r, R . a n d B r u c h , H . “ U m s e t z u n g s ko m p e t e n z : D i a g n o s e u n d F ö r d e r u n g i n T h e o r i e u n d U n t e r n e h m e n s p r a x i s . ” Ve r l a g Fr a n z Va h l e n . München: 2000. Z a h r a , S . A . a n d G e o r g e , G . 2 0 0 2 . “ I n t e r n a t i o n a l E n t r e p r e n e u r s h i p : T h e C u r r e n t S t a t u s o f t h e F i e l d a n d F u t u r e R e s e a r c h A g e n d a . ” H i t t , M . ; I r e l a n d , R . D . ; C a m p , S . M . ; S e x t o n , D . L . Blackwell P ub lis hing. 2002. Copyright of SCMS Journal of Indian Management is the property of SCMS Journal of Indian Management and its content may not be copied or emailed to multiple sites or
  • 92. posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. #1. DUE Thursday 12/18 NOON…. Continue working with the company you originally chose from the Fortune’s 500 Best List ( Johnson & Johnson) http://archive.fortune.com/magazines/fortune/mostadmired/2006 /best_worst/worst8.html Detail Directions (See Below) – CLASSROOM FORUM DISCUSSION 1. Perform research (minimum of 2Scholarly sources plus text in APA format). 2. Identify a Global Environment for the company (an international country for the company). 3. What are the characteristics of the new Global Country/Environment that will best suit the company for success? 4. What barriers exist in the new Global Country/Environment? You cannot state there are no barriers. 5. How will the company overcome those barriers (strategies)? 6. Minimum 3 complete paragraphs; a paragraph is a minimum of 100 words. LO - 3 – Given a chosen company, the student will apply strategy to barriers of government regulations and characteristics of success using a Global environment for the company. Use this as one of the References. Article is attached Platzek, B. P., Winzker, D., & Pretorius, L. (2011). Global Business Environment: Holistic Intrapreneurship. SCMS Journal Of Indian Management, 8(1), 96-114. ___________________________________
  • 93. #2 . DUE Saturday 12/20/14 NOON . Continue working with your chosen company from Fortune’s 500 Worst List ( Chosen Company is “Google”) http://archive.fortune.com/magazines/fortune/mostadmired/2006 /best_worst/worst8.html Detail Directions (See Below) – FORMAL PAPER Assignment Instructions Continue working with your chosen least admired company for the assignments and complete the following: 1. Identify the industry for your chosen company and its Domestic Environment. 2. Identify a Global Environment for the company (an international country for the company). 3. What are the characteristics of the new Global Country/Environment that will best suit the company for success? 4. What barriers exist in the new Global Country/Environment? You cannot state there are no barriers. 5. How will the company overcome those barriers (strategies)? 6. Research requirement: minimum 2 scholarly sources PLUS the text/readings. 7. Min Page requirement: 3 pages in APA format. NOTE: Items 1 and 2 (combined) should not exceed 1 paragraph (100 words in a paragraph). Note: ALL Assignments are submitted to turnitin.com and checked for originality. LO - 3 – Given a chosen company, the student will apply strategy to barriers of government regulations and characteristics of success using a Global environment for the company. Use this as one of the References. Article is attached
  • 94. Platzek, B. P., Winzker, D., & Pretorius, L. (2011). Global Business Environment: Holistic Intrapreneurship. SCMS Journal Of Indian Management, 8(1), 96-114. ADDITIONAL NOTES / INFORMATION: Now that you’ve studied a company in its domestic environment, it’s now time to study it in the global environment. There are various ways to enter a global market, such as exporting, licensing, franchising, management contracts, manufacturing contracts, direct investment, strategic alliances, wholly owned subsidiaries, globalized operations, and global trade. Being international is more than just having an e- commerce website. There are so many other ways to work globally. What will fit your company the best? For this week, you will identify the government regulations in a global environment of your choice. Please note that the global environment means a country of foreign origin to the company. For example, for U.S. Airways their domestic environment was the U.S. so their global environment would be England. For Guiness, their global environment would be the U.S. For Honda, their global environment would be Taiwan. All Sources must be “Scholarly Article or Book”. A scholarly article or book generally is based on original research or experimentation. It is written by a researcher or expert in the field who is often affiliated with a college or university. Most scholarly writing includes footnotes and/or a bibliography and may include graphs or charts as illustrations as opposed to glossy pictures. In addition, articles that appear in scholarly journals or book that are published by academic presses, are subject to a peer-review process, which means that other "experts" or specialist in the field evaluate the quality and originality of the research as precondition of publication. The peer-review (as opposed to editorial review) process is also one thing that sets scholarly journals apart from journals that may
  • 95. otherwise seem quite similar. Journals such as Foreign Affairs, for instance, are generally not considers "scholarly journals," because many of the articles are solicited by the magazine's editors; in addition many of the articles are written by policy-makers who may be expressing an informed view, but whose article may not be based on original research.Scholarly research is typically published by a academic association or a university/academic press. In international relations and comparative politics, representative scholarly journals include Asian Survey, Comparative Politics, International Organization, International Security Studies, Journal of Comparative Politics, Journal of Democracy, and World Politics. Reading / Resources: You are not limited to the below: 1. Platzek, B. P., Winzker, D., & Pretorius, L. (2011, January). Global business environment: Holistic intrapreneurship. SCMS Journal of Indian Management, 8(1), 96-114 2. Elekdağ, S. (2008). How does the global economic environment influence the demand for IMF resources? IMF Staff Papers, 55(4), 624-653. doi:10.1057/imfsp.2008.4 located in