Corporate Entrepreneurship and Innovation

492 Pages·2020·29.676 MB·English

by  Paul Burns

‘Another great textbook by Paul Burns. Th e revised text off ers even greater insight into the
dynamic world of entrepreneurial behaviour, with well thought-out contemporary case
studies and pedagogy alongside a progressive structure throughout. Th e text is cleverly
positioned for both undergraduates and postgraduates, off ering a broad appeal to all.’
—Kevin Blanchard, University of Lincoln, UK
‘Paul Burns gracefully connects the deep theoretical foundations of corporate entrepreneur-
ship with the existential yet clear and present challenges that corporations face every day. Lively
discussions of contemporary issues in the domain are supported by relevant and high value-
added fi gures, tables, lists, and, perhaps most importantly, case insights that help crystallize the
topics discussed. Overall, the book is both robust and fresh. I am genuinely excited about using
this textbook in both my undergraduate and graduate corporate entrepreneurship courses.’
—Nesij Huvaj, Suff olk University, USA
‘I’m a real advocate of this textbook and am delighted that there is a new edition! I have
regularly used the previous version with Executive MBA and fi nal year undergraduate
entrepreneurship and i nnovation students. Th e case studies and group discussions are par-
ticularly helpful for bringing theoretical frameworks alive. Th e jewel in the crown, for me,
is the Corporate Entrepreneurship Audit tool!’
—Karen Bill, University of Worcester, UK
‘An up-to-date textbook that helps lecturers fl ip their classrooms into action-oriented
launchpads for experiential innovations. Th e exciting way in which Professor Burns inte-
grates organizational, strategic, cultural and corporate governance theories with cases,
refl ections and activities from around the world makes this book a dynamic and eff ective
resource for lecturers and students of corporate entrepreneurship.’
—Mayank Kumar Golpelwar,
City University of Applied Sciences (Bremen), Germany
‘Th e new edition of Corporate Entrepreneurship and Innovation builds upon an already solid
textbook and takes it to the next level. Professor Burns’ textbook teaches the hows and whys
of corporate entrepreneurship at a level undergraduate students can understand. Th e updated
case studies about companies worldwide not only highlight important concepts using an
international lens but will engage my students in lively classroom discussions. Kudos to
Professor Burns for giving students an edge as they become corporate entrepreneurs.’
—Jay Azriel, York College of Pennsylvania, USA
‘Corporate Entrepreneurship and Innovation is a thorough guide to business development and
innovation in contemporary business. Indispensable for entrepreneurship students and practi-
tioners in developing their knowledge in this fi eld, it is also a vital tool for educators in providing
a structured approach to learning about contemporary matters in entrepreneurship.’
—Robert Bowen, Swansea University, UK
‘Th is book provides distinct insights into the development of the entrepreneurial mindset.
Th e use of various learning resources provides an eff ective balance between knowing how
and knowing why. I applaud the author especially for the case insights which cover a broad
range of sectors and countries, both developed and developing. I recommend this book to
both undergraduates and postgraduates.’
—Juliet Puchert, University of Fort Hare, South Africa
‘Th is is a detailed, in-depth, accessible and wide ranging book that deserves to hold pride of
place in any comprehensive library of entrepreneurship theory and practice. Burns’ latest
edition is carefully organized to take the reader eff ortlessly and elegantly from “knowing-
how” to “knowing-why”. Th e wide range of varied but seamlessly integrated elements pro-
vides inspiration, provokes curiosity, and involves both group and individual opportunities
for deep and eff ective learning. Burns robustly answers the challenge of how to create
entrepreneurial transformation in larger organizations.’
—Joanna Berry, Durham University, UK
‘Corporate Entrepreneurship and Innovation is a very comprehensive textbook with updated
cases from both developed and emerging economies, and from both traditional and new
industries. It can also serve as a nice reference book for practitioners and researchers.’
—Xufei Ma, City University of Hong Kong, Hong Kong
‘Detailed textbooks on corporate entrepreneurship and innovation are hard to fi nd.
Professor Burns presents a thorough treatise in this new edition that is comprehensive,
informative and accessible. Th e latest edition of this well-established book should benefi t
anyone interested in making organizations more entrepreneurial and innovative.’
—Mathew Hughes, Loughborough University, UK
‘One of my favourite aspects of Paul Burns’ new edition of Corporate Entrepreneurship and
Innovation is the “Index of case insights”, which not only off ers a big picture about real-
world corporate entrepreneurship and innovation but also organizes various topics, sectors
and countries in a unique way.’
—Vincent Chang, China Europe International Business School, China
‘Th is textbook covers not only the latest insights into corporate entrepreneurship but also
draws on case studies from organizations all over the globe in order to develop a cross-cultural
understanding of entrepreneurship. Links to psychometric testing and practical information
are an added bonus. Th is new edition is the best yet. Paul Burns has created a must-read text-
book for the entrepreneurs and intrapreneurs of the future.’
—Bert Meeuwsen, Wittenborg University of Applied Sciences, the Netherlands
‘Th is new edition has a greater focus on innovation and enhanced coverage of corporate
entrepreneurship. Featuring case studies of high-profi le companies from around the globe,
this book provides excellent insights into contemporary theory and practice in corporate
entrepreneurship and innovation.’
—Catherine Wang, Brunel University London, UK
‘Paul Burns’ Corporate Entrepreneurship and Innovation is one of the best textbooks to
help students comprehend the fundamental pillars of contemporary entrepreneurialism
from the eyes of corporations. Th e book actively facilitates the learning process by encour-
aging students to connect theory to practice by dint of a great deal of lively case insights
from well-known enterprises in all parts of the world.’
—Celal Cahit Agar, University of St Andrews, UK
PAUL BURNS
CORPORATE
E NTREPRENEURSHIP
AND INNOVATION
fourth edition
© Paul Burns, under exclusive licence to Macmillan Education Limited 2005, 2008,
2013, 2020
All rights reserved. No reproduction, copy or transmission of this publication may be
made without written permission.
No portion of this publication may be reproduced, copied or transmitted save with written
permission or in accordance with the provisions of the Copyright, Designs and Patents
Act 1988, or under the terms of any licence permitting limited copying issued by the
Copyright Licensing Agency, Saffron House, 6–10 Kirby Street, London EC1N 8TS.
Any person who does any unauthorized act in relation to this publication may be liable to
criminal prosecution and civil claims for damages.
The author has his right to be identifi ed as the author of this work in accordance with the
Copyright, Designs and Patents Act 1988.
This edition published 2020 by
RED GLOBE PRESS
Previous editions published under the imprint PALGRAVE
Red Globe Press in the UK is an imprint of Macmillan Education Limited, registered in
England, company number 01755588, of 4 Crinan Street, London, N1 9XW.
Red Globe Press® is a registered trademark in the United States, the United Kingdom,
Europe and other countries.
ISBN 978-1-352-00879-1 paperback
This book is printed on paper suitable for recycling and made from fully managed and
sustained forest sources. Logging, pulping and manufacturing processes are expected to
conform to the environmental regulations of the country of origin.
A catalogue record for this book is available from the British Library.
A catalog record for this book is available from the Library of Congress.
To Jean - my love and inspiration
And my boys: Alex, Ben and Oli - my hope for the future
v
Brief contents
Contents ix
List of fi gures and tables xviii
Index of case insights xxi
About the author xxviii
Preface to the fourth edition xxx
Acknowledgements xxxv
Guided tour of the book xxxvi
1 Introduction: Entrepreneurship – thriving in chaos 1
Part I: Entrepreneurship and innovation 29
2 Corporate entrepreneurship 31
3 Innovation 57
Part II: Building entrepreneurial architecture 83
4 Culture in the entrepreneurial organization 85
5 Structure in the entrepreneurial organization 111
6 Leading the entrepreneurial organization 143
7 Managing the entrepreneurial organization 175
8 Managing risk in the entrepreneurial organization 203
Part III: Encouraging the entrepreneurial mindset 227
9 Encouraging creativity and innovation 229
10 Generating business ideas 259
11 Encouraging concept development 285
12 Strategy and business model development 307
Part IV: Corporate venturing 335
13 Venture teams and intrapreneurs 337
14 Product/market development 365
15 Shareholder value in the multi-product/market fi rm 393
16 Summary: The Corporate Entrepreneurship Audit 417
vii
Brief contents
Glossary of Key Terms 451
Subject index 457
Author index 461
Quotes index 465
viii
Contents
1. Introduction: Entrepreneurship – thriving in chaos 1
The new age of change and uncertainty 2
The challenge of entrepreneurship 6
Can big companies survive? 9
Implications for big companies 12
The entrepreneurial mindset 14
Complexity theory and managing in chaos 22
Summary 25
Group discussion topics 26
Activities 27
References 27
Case insights
1.1 Jack Ma and Alibaba 7
1.2 Kiran Mazumdar-Shaw and Biocon 8
1.3 Jim Ratcliffe and Ineos 17
1.4 Steve Jobs and Apple (1) 23
Part I: Entrepreneurship and innovation 29
2. Corporate entrepreneurship 31
Entrepreneurial intensity 32
Defi ning corporate entrepreneurship 34
Entrepreneurial orientation 36
Entrepreneurial architecture 38
Architecture, relationships and organizational knowledge 41
Architecture and organizational learning 43
Matching architecture with environment 45
Building entrepreneurial architecture 49
Summary 53
Group discussion topics 54
Activities 54
References 55
ix
Contents
Case insights
2.1 Haier Group 39
2.2 Sulhail Bhawan Group 47
2.3 3M (1) 50
3. Innovation 57
The purpose of innovation 58
Defi ning and measuring innovation 59
Radical product/service innovation 61
Business model innovation 63
Challenging market paradigms 66
Creativity and innovation 68
Innovation intensity 70
Innovation and risk 72
Innovation, profi tability and growth 74
Innovation, company size and industry structure 75
Summary 78
Group discussion questions 78
Activities 79
References 79
Case insights
3.1 Rolls-Royce and Finferries 63
3.2 Bill Gates and Microsoft 65
3.3 Rolls-Royce and TotalCare® 66
3.4 Swatch 67
3.5 Astex Therapeutics 77
Part II: Building entrepreneurial architecture 83
4. Culture in the entrepreneurial organization 85
Culture 86
The dimensions of culture 87
International infl uences on culture 90
Measuring an individual’s culture 92
Organizational culture 93
The cultural web 94
Culture in the entrepreneurial organization 97
Measuring organizational culture 102
Constructing and reconstructing culture 104
Summary 107
x