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ENTREPRENEURIAL ARCHITECTURE (A Framework to Promote Innovation in Large…
ENTREPRENEURIAL ARCHITECTURE
(A Framework to Promote Innovation in Large Firms)
The aim of this article
Explain the nature of the relationship between
entrepreneurship and innovation in large firms, arguing that entrepreneurship is an antecedent to innovation.
The study employs a multidimensional entrepreneurial architecture (EA) framework for the first time and tests the effect of a battery of entrepreneurship measures on innovation output, which is reflected as degree and frequency of incremental and radical innovations.
Adopting a quantitative approach, data were collected from 400 corporate firms in Oman representing various sectors of the economy.
The EA dimensions reflected
Entrepreneurial culture
The entrepreneurial culture dimension was represented through the five significant culture characteristics: team working [ECLU1], valuing people [ECLU2], time for learning [ECLU3], experimentation [ECLU4] and reward [ECLU5].
Entrepreneurial structure
These characteristics are represented in the six significant structure characteristics: risk management [ESTU1], autonomous
[ESTU2], spin-offs [ESTU3], networks [ESTU4], resources for new ventures [ESTU5] and delegated decision-making [ESTU6].
Entrepreneurial leadership
The leadership dimension reflects all the established characteristics of strategic leaders (strategic thinkers, learners and reflectors) and authentic leaders (emotional intelligence, self-awareness and self-management)
While it also reflects elements of a number of leadership paradigms, it draws particularly on the transformational and delegated leadership literatures. These characteristics are therefore well represented in the six significant leadership characteristics: openness [ELP1], environmental monitoring [ELP2], trust [ELP3], vision [ELP4], clarification of uncertainty [ELP5] and influence rather than direction [ELP6].
Entrepreneurial strategies
These characteristics are represented in the five significant strategy characteristics: customer feedback [ESTR1], crowdsourcing [ESTR2], risk taking [ESTR3], spotting opportunities [ESTR4] and resource sharing [ESTR5].
Tested through measurement and structural modelling
The results confirmed that entrepreneurship is a precursor to innovation. The EA framework, through its four dimensions, creates a collaborative and complimentary intensity that promotes innovation outputs, which may not be possible from the isolated effects of individual factors.
Keywords
Entrepreneurial architecture, entrepreneurial culture, entrepreneurial structure, entrepreneurial strategies, entrepreneurial leadership, innovation
CONCLUSION
This research supports EA measures and also supports the proposition that entrepreneurship precedes innovation. Large firms are susceptible to neglecting entrepreneurship, under pressures of growth and productivity, which can have a detrimental effect on innovation outputs.
This study shows that large firms can retain entrepreneurship or in its absence transplant entrepreneurship into its organizational architecture. Therefore, EA measures can be helpful in guiding theoretical development and professional practice. Individually, the CSSL factors can promote innovation but the aggregate measures of an EA can support and promote innovation in large firms through a collaborative and complementary force.
The EA measures weave a framework of supporting and collaborating acts of entrepreneurial behaviour resulting in enhanced innovation output. Such an entrepreneurial framework supports the implementation of innovation efforts across the organisations. It can be also concluded that there is a causal link between EA and incremental and radical innovations undertaken on a frequent basis. It supports the proposition that incremental innovation and radical innovation has varying levels of impact on customers, market and competition, since both vary in degree and frequency. The frequency of incremental and radical innovations may vary but both types of innovation provide substantial level of competitive advantage to large firms.
Finally, it is concluded that both forms of innovation are independent of each other and therefore mutually exclusive.
NURUL ASYIQIN BINTI SAIFUL BAHARI
(H18A0475)
TUTORIAL 3