Entrepreneurship and Innovation: Theory, Practice and Context (Springer Texts in Business and Economics)

✍ Scribed by Tim Mazzarol, Sophie Reboud

• Publisher: Springer
• Year: 2019
• Tongue: English
• Leaves: 529
• Edition: 4th ed. 2020
• Category: Library

✦ Synopsis

This book provides an overview of the theory, practice and context of entrepreneurship and innovation at both the industry and firm level. It provides a foundation of ideas and understandings designed to shape the reader’s thinking and behaviour to better appreciate the role of innovation and entrepreneurship in modern economies, and to recognise their own abilities in this regard. The book is aimed at students studying advanced levels of entrepreneurship, innovation and related fields as well as practitioners (for example, managers, business owners).

As entrepreneurship and innovation are largely indivisible elements and cannot be adequately understood if studied separately, the book provides the reader with an overview of these elements and how they combine to create new value in the market. This edition is updated with recent international research, including research and examples from Europe, the US, and the Asia-Pacific region.

✦ Table of Contents

Contents
List of Figures
List of Tables
1: Entrepreneurship as a Social and Economic Process
1.1 Introduction
1.2 The Benefits of Entrepreneurial Activity
1.3 Necessity and Opportunity Entrepreneurs
1.4 Attitudes Towards Entrepreneurship as a Career
1.5 The Pursuit of High-Growth Firms
1.6 Global Trends in Entrepreneurship and Innovation
1.6.1 Shift from a ‘Managed’ to an ‘Entrepreneurial Economy’
1.6.2 Rise of the ‘Knowledge Economy’
1.6.3 Strategically Networked Innovation
1.6.4 Globalisation
1.6.5 Low, Mid and High-Technology Innovation
1.6.6 Social Entrepreneurship and Innovation
1.7 What Is an Entrepreneur?
1.8 The Entrepreneurship Domain
1.9 Defining Entrepreneurship
1.10 Managers, Entrepreneurs and Entrepreneurial Managers
1.10.1 Entrepreneurs and Small Business
1.11 Defining Innovation
1.12 Types of Innovation
1.13 Innovation Lifecycles
1.14 Sources of Innovation
1.14.1 Encouraging Entrepreneurship and Innovation
1.15 National Innovation Systems
1.16 Strategies to Encourage Entrepreneurship
1.17 Strategies to Encourage Innovation
References
2: The Entrepreneur
2.1 Introduction
2.2 Common Characteristics of Entrepreneurs
2.3 Are Entrepreneurs Born or Made?
2.4 Entrepreneurial Motivation
2.5 Models of Entrepreneurial Motivation
2.6 Factors Influencing Entrepreneurial Behaviour
2.7 The Influence of Life Stage on Entrepreneurial Learning and Behaviour
2.8 Measuring Entrepreneurial Characteristics
2.9 General Enterprising Tendency (GET) Test
2.9.1 Need for Achievement
2.9.2 Creativity
2.9.3 Desire for Autonomy
2.9.4 Risk-Taking Orientation
2.9.5 Internal Locus of Control
2.10 Awakening the Entrepreneur: Application of the GET Test
2.11 Entrepreneurial Orientation
2.11.1 Measuring Entrepreneurial Orientation
2.11.2 Applying Entrepreneurial Orientation
2.12 The Dark Side of Entrepreneurship
References
3: The Entrepreneurial Process
3.1 Introduction
3.2 The Entrepreneurial Process
3.2.1 Opportunity Screening
3.2.2 Marshalling Resources
3.2.3 Building the Capability of the Team
3.3 The Theory of Effectuation
3.4 The Entrepreneurial Process Model
3.5 3M Analysis for Opportunity Screening
3.5.1 Market
3.5.2 Money
3.5.3 Management
3.6 The New Venture Creation Process
3.7 A Study of the Process of Enterprise Formation
3.7.1 Actions Taken Prior to Launch or Abandonment
3.7.2 Triggers and Barriers to New Venture Creation
3.7.3 Implications of the Study
3.8 The Importance of Creativity Management
3.8.1 The Creative Thinking Process
3.8.2 Encouraging Creativity in the Workplace
3.9 The Effects of Time Pressure on Creativity
3.10 Creating Rich Pictures
3.11 Applying Creativity Tools to Systems Thinking
3.11.1 Generators
3.11.2 Conceptualisers
3.11.3 Optimisers
3.11.4 Implementers
3.11.5 Stage 1 Initiation: Problem Finding
3.11.6 Stage 2 Testing Understanding: Fact Finding
3.11.7 Stage 3 Clarifying: Problem Definition
3.11.8 Stage 4 Ideation: Idea Finding
3.11.9 Active Divergence
3.11.10 Active Convergence
3.11.11 Stage 5 Evaluation: Solution Finding
3.11.12 Stage 6 Optimisation: Planning
3.11.13 Stage 7 Enabling Action: Acceptance Winning
3.11.14 Stage 8 Enabling Action: Implementing
References
4: Entrepreneurship and Innovation in Large Firms
4.1 Introduction
4.2 The Entrepreneurial Manager
4.3 Large Corporations as Successful Innovators
4.4 A Model of Corporate Intrapreneuring
4.5 Challenges for Senior Management
4.6 Failure Tolerant Leadership
4.7 Unleashing the Intrapreneurs
4.8 Ten Principles of Intrapreneuring
4.9 The Process of Internal Corporate Venturing
4.9.1 Vicious Circles in the Definition Process
4.9.2 Managerial Dilemmas in Impetus Process
4.9.3 Indeterminateness of Strategic Context of ICV Development
4.9.4 Perverse Selective Pressures Exerted by Structural Context on ICV Development
4.10 Advice for Intrapreneurs
4.11 Developing HR Frameworks for Intrapreneuring
4.12 Creating the Innovative Organisation
4.12.1 Market Orientation
4.12.2 Innovative Leadership
4.12.3 Non-linear Strategic Planning
4.12.4 Ambidextrous Structure
4.12.5 Innovation Culture
4.13 Balancing Culture and Structure
4.14 Open Innovation and Absorptive Capacity
4.14.1 Open Innovation
4.14.2 Absorptive Capacity
4.14.3 Managing Open Innovation
4.15 Innovation in Public Sector Organisations
4.15.1 Key Challenges Facing Public and Non-profit Sectors
4.15.2 The Role Orientations of Public Agencies
4.15.3 Fostering Innovation in Public Organisations
4.15.4 Measuring Innovation in Public Organisations
4.15.5 Lessons from Innovation Within Public Organisations
References
5: Innovation in Small Firms
5.1 Introduction
5.2 Definition of Small Firms
5.3 Characteristics of Small Firms
5.4 The “Myth” of Innovation in Small Firms
5.5 Advantages and Disadvantages of Small Firms
5.6 SMEs vs. Large Firms
5.7 Less Formality in Small Firms
5.8 The Entrepreneur and the Owner-Manager
5.9 Theories of Small Business Management
5.10 Causes of Small Business Failure and Success
5.11 The Growth Cycle of Small Firms
5.12 What Strategic Options Do Small Firms Have?
5.13 The Importance of Strategic Thinking
5.13.1 Entrepreneurship
5.13.2 Innovation
5.13.3 Strategic Networking
5.13.4 The Growth Vector
5.13.5 The Strategic Triangle
References
6: Adoption and Diffusion of Innovation
6.1 Introduction
6.2 Three Innovation Paradigms
6.3 Generation and Diffusion of Innovation
6.4 Theories of Diffusion
6.5 Why Innovations Diffuse into Markets
6.5.1 Relative Advantage
6.5.2 Complexity
6.5.3 Compatibility
6.5.4 Trial-Ability
6.5.5 Observability
6.5.6 Usefulness and Ease of Use
6.5.7 Subjective Influences
6.6 The Critical Mass of Adoption
6.7 Diffusion of Innovation in Historical Context
6.8 Diffusion Adoption Patterns
6.8.1 Venturesome Innovators
6.8.2 Respectable Early Adopters
6.8.3 The Deliberate Early Majority
6.8.4 The Sceptical Late Majority
6.8.5 Traditional Laggards
6.9 The Innovation Decision Process
6.10 Innovation Adoption in Organisations
6.10.1 Managerial Intervention
6.10.2 Subjective Norms
6.10.3 Facilitating Conditions
6.10.4 Secondary (Individual) Adoption Process
6.10.5 Assimilation
6.10.6 Consequences
6.11 Rogers Innovation Adoption Model
6.12 Innovation Diffusion as a Social Process
6.12.1 Characteristics of the Innovation
6.12.2 Characteristics of the Innovator
6.12.3 Environmental Context in Which the Diffusion Is to Occur
6.12.4 The Role of Word-of-Mouth Communication
6.13 The Failure of Innovation Diffusion
References
7: Planning, Business Models and Strategy
7.1 Introduction
7.2 The Value of the Business Plan
7.3 Do Business Plans Really Matter?
7.4 What Is Business Planning?
7.5 Types of Business Plans
7.6 Writing a Business Plan
7.7 Designing the Business Model
7.8 The ‘Business Model Canvas’ for Business Model Design
7.8.1 Customer Segments and Market Segmentation
7.8.2 The Customer Value Proposition (CVP)
7.8.3 Customer Relationships
7.8.4 Channels – Your Go to Market Mechanism
7.8.5 Revenue Stream – Capturing Value
7.8.6 Key Resources
7.8.7 Key Activities
7.8.8 Strategic Partners
7.9 The Role of Vision
7.9.1 A Vision to Align and Motivate
7.9.2 Don’t Confuse Planning for Clear Vision
7.10 How Entrepreneurs Craft Strategy
7.11 Developing Entrepreneurial Strategy
7.12 The Strategy Development Framework
7.12.1 TOWS Matrix Analysis
7.12.2 Assessing Competitive Threats
7.12.3 Assessing Market Opportunities
7.12.4 Assessing Resource Weaknesses
7.12.5 Assessing Resource Strengths
7.12.6 Dynamic Capabilities
7.13 Strategic Planning Responses
7.13.1 The Shopkeeper
7.13.2 The Salesman
7.13.3 The Administrator
7.13.4 The CEO
7.14 Use Your Common Sense
References
8: Risk Management in Innovation
8.1 Introduction
8.2 Risk Management
8.3 Risk Management in Entrepreneurial Ventures
8.3.1 Proximity Effects
8.3.2 Informality
8.3.3 Resource Scarcity
8.4 Planning and Entrepreneurial Risk Perception
8.4.1 The Notion of Risk
8.4.2 Entrepreneurial Risk Perception
8.4.3 The Impact on Planning Behaviour
8.5 Plan or Just Storm the Castle?
8.6 Absorptive Capacity and the Management of Risk
8.7 Commercialisation and the Systematic Management of Risk
8.7.1 Fuzzy Front-End
8.7.2 New Concept Development
8.8 Assessing the Technical and Market Risk
8.9 Managing Risk, General Principles and Techniques
8.9.1 Technology Project Risk Model
8.9.2 Quantifying Risks
8.9.3 Failure Mode and Effects Analysis (FMEA)
8.9.4 Anchored Scales
8.10 Portfolio Management Approach
8.10.1 Value Maximisation
8.10.2 Balance
8.10.3 Strategic Direction
8.10.4 Right Number of Projects
8.11 Real Options Reasoning and Decision Tree Analysis
8.11.1 The First Chicago Method
8.11.2 Decision Tree Analysis
8.12 Assessing the Risk-Return for an Innovation: Innovation Rent
8.12.1 The Theory of Innovation Rents
8.12.2 Typology of Innovation Rents
8.12.3 The RENT Configuration and Planning
8.13 The Risk-Return of Commercialisation Pathways
References
9: Disruptive Innovation and the Commercialisation of Technology
9.1 Introduction
9.2 Innovation as a Key Economic Driver
9.2.1 Patents, Trademarks and Productivity
9.2.2 Global Collaboration Is Critical
9.3 Defining Technological Innovation
9.4 Evolution of Strategic Technology Management
9.5 The Impact of the Fourth Industrial Revolution
9.6 The Strategic Management of Technology
9.7 Commercialisation of Disruptive Technologies
9.7.1 Consider the Readiness of the Market
9.7.2 Consider the End User
9.7.3 Beware Existing Market Players
9.7.4 Look for Market Gaps
9.8 Steps to Developing Disruptive Technologies
9.9 How NTT DoCoMo Created Japan’s G3 Network
9.10 Strategies for Disruptive Technologies
9.11 Market Adoption of Technological Innovation
9.12 Creating New Market Space
9.12.1 Blue Ocean Versus Red Ocean Strategy
9.12.2 Value Innovation
9.12.3 Creating New Market Space
9.13 New Product Development and Commercialisation
9.14 The Stage-Gate® Process
9.14.1 Spiral Development Via Stages and Gates
9.14.2 Criticism of Stage-Gate®
9.15 The Lean Start-Up Process
9.15.1 Principles of Lean Start-Up
9.15.2 The Lean Start-Up Framework
9.16 Best Practice in NPD
9.17 The Innovation Diamond
9.18 Commercialisation Pathways for Disruptive Innovation
9.18.1 Commercialisation Pathways and Innovation Rent Analysis
References
10: Screening Opportunities and Assessing Markets
10.1 Introduction
10.2 Causes of Innovation Failure
10.2.1 Neglected Strategy and Market Assessment
10.2.2 Neglected Execution and Product-Technology Road Mapping
10.2.3 Not Recognising What It Takes to Succeed
10.3 The Customer Development Process
10.3.1 Customer Discovery
10.3.2 Customer Validation
10.3.3 Developing Customer Archetypes and the Customer Analysis Process
10.4 Customer Value Proposition and Erosion Effects
10.4.1 NPD and CVP Analysis
10.4.2 CVP and Erosion Effects on the Innovation Rent
10.4.3 CVP and Erosion Effects on the Length of the Lifecycle
10.5 Listening to the Voice of the Customer
10.5.1 Quality Function Deployment
10.5.2 House of Quality Analysis
10.5.3 Kano Model Analysis
10.5.4 VOC CAGE Model
10.5.5 Techniques for VOC Research
10.5.6 Affinity Diagrams
10.6 Outcomes Based Market Research
10.6.1 Probe and Learn
10.7 From Discovery to Development
10.7.1 Defining the Product
10.7.2 Product-Technology Road-Mapping
10.8 Integrating the Customer Discovery and NPD Processes
References
11: Team Building, Company Leadership and Strategic Alliances
11.1 Introduction
11.2 Leadership in Entrepreneurial Companies
11.2.1 Leading Practices of Fast Growth Entrepreneurs
11.2.2 Building an Awesome Organisation
11.3 Developing Effective Management Boards
11.4 Blueprinting the Senior Company Leadership
11.5 Creating Entrepreneurial Teams
11.6 Leadership in Innovation
11.6.1 Transactional Leadership
11.6.2 Transformational Leadership
11.6.3 Management and Situational Leadership
11.6.4 Follower Versus Leader Directed Behaviour
11.7 Managing Growing Entrepreneurial Ventures
11.7.1 Lessons from Successful Entrepreneurs
11.8 Strategic Partnering
11.8.1 Reasons for Small Firms to Partner
11.8.2 Reasons for Large Firms to Partner
11.8.3 The Process of Strategic Partnering
11.8.4 The Risks of Strategic Partnering
11.8.5 How Small Firms Can Deal with Large Firms in Alliances
11.8.6 Getting the Best from the Alliance
11.8.7 Financial Partnering in Commercialisation
11.8.8 Leading Customers as Strategic Partners
11.9 The Decision to Partner
11.9.1 Considerations of Marketing Resources
11.9.2 Considerations of Technological Resources
11.9.3 Considerations of Financial Resources
11.10 Strategic Assets and Organisational Rent in the Context of Strategic Alliances
11.10.1 The Relationship Between Firm Strategic Assets and Strategic Industry Factors
11.10.2 Configuring the Firm’s Resources and Capabilities to Generate Organisational Rents
11.10.3 Developing Strategic Assets via Team Building, Company Leadership and Strategic Alliances
References
12: Financing the Venture
12.1 Introduction
12.2 The Financing Gap for Entrepreneurial Firms
12.3 The OECD Scoreboard of SME and Entrepreneurial Financing
12.3.1 Key Findings from the OECD Scoreboard on SME Financing
12.4 Sources of Entrepreneurial Capital
12.4.1 Bootstrap Financing
12.4.2 Benefits of Bootstrap Financing
12.4.3 Cash Flow Financing
12.4.4 Debt Financing
12.4.5 Benefits of Debt Financing
12.4.6 Short-Term Debt Financing
12.4.7 Intermediate-Term Loans
12.4.8 Long-Term Loans
12.5 Securing Debt Financing
12.5.1 Business Banks
12.5.2 Factoring, Leasing and Financing Companies
12.5.3 Insurance Companies and Merchant Banks
12.5.4 Trade Creditors
12.6 What Are Banks Seeking?
12.6.1 How to Deal with the Bank
12.6.2 What Information Should Be Presented to the Bank?
12.7 Equity Financing
12.7.1 Seed Capital Funding-Family, Friends and Fools
12.7.2 Business Angels
12.7.3 Crowdfunding
12.8 The Nature of Venture Capital
12.8.1 Formal Venture Capital Financing
12.9 The Venture Capital Process
12.9.1 The Nature of Venture Capitalists
12.9.2 The Nature of Venture Capital Investors in Australia
12.9.3 What Do Venture Capital Investors Look for?
12.9.4 Deal Structures
12.9.5 Preparing a Terms Sheet and Structuring the Deal
12.9.6 Exit Strategy
12.9.7 Due Diligence
References
13: Intellectual Property Management
13.1 Introduction
13.2 The Nature of Intellectual Property
13.3 Formal IP Rights
13.3.1 Patents
13.3.2 Trademarks
13.3.3 Designs
13.3.4 Geographical Indication
13.3.5 Plant Breeders’ Rights
13.4 Automatically Granted IP Rights
13.4.1 Copyright
13.4.2 Copyright Changes Since the Australia-US Free Trade Agreement
13.4.3 Circuit Layout Rights
13.4.4 Confidentiality and Trade Secrets
13.4.5 What Should an NDA Contract Look Like?
13.5 Developing an IP Strategy
13.5.1 IP Assets Register
13.5.2 Checklist for Protecting IP Assets
13.6 Innovation Management for Business Growth
13.7 IP Rights as an “Isolating Mechanism”
13.7.1 Causal Ambiguity
13.7.2 The Boundaries of IP Rights
13.8 How IP Rights Impact NPD Using Stage-Gate®
13.8.1 Idea Screen: From Discovery to Scoping
13.8.2 Second Screen: From Scoping to Business Case
13.8.3 Go to Develop: From Business Case to Development
13.8.4 Go to Test: From Development to Testing
13.8.5 Go to Launch: From Testing to Launch
13.9 Licencing
13.9.1 The Factors
13.9.2 Risks and Benefits of Licencing
13.10 Valuing IP Assets
13.10.1 The IP Valuation Process
13.10.2 The Measures
References
14: Social Entrepreneurship and Co-operative and Mutual Enterprise
14.1 Introduction
14.2 Social Entrepreneurship and Innovation
14.2.1 Not Just Non-profit
14.2.2 The Realm of Social Entrepreneurship
14.2.3 Social Innovation as an Emerging Concept
14.3 Developing a Social Economy
14.3.1 Economic Rationalism and the Third Way
14.3.2 Rise of the Social Economy
14.4 The Social Enterprise
14.5 The Social Entrepreneur
14.5.1 Robert Redford and the Sundance Institute
14.5.2 Muhammad Yunus and the Grameen Bank
14.5.3 Victoria Hale and the Institute for One World Health
14.6 Co-operative and Mutual Enterprise
14.6.1 Co-operative and Mutual Enterprises (CMEs): A Global Network
14.7 CMEs as a Unique Form of Enterprise
14.7.1 The Rochdale Society and Co-operative Principles
14.8 The CME Business Model
14.8.1 Purpose
14.8.2 Member Value Proposition
14.8.3 Share Structure
14.8.4 Governance
14.8.5 Membership and Community
14.8.6 Key Resources and Processes
14.8.7 Outputs: Profits and Economic and Social Performance
14.9 Social Enterprise and the Role of Co-operatives
14.9.1 Strengths of the Co-operative Enterprise
14.9.2 Blueprint for a Co-operative Decade
14.9.3 Benefits of Co-operative Membership
14.9.4 Weaknesses of the Co-operative Enterprise
14.10 The Five Generic Problems of Co-operative Enterprise
14.10.1 The Free Rider Problem
14.10.2 The Horizon Problem
14.10.3 The Portfolio Problem
14.10.4 The Control Problem
14.10.5 The Influence Cost Problem
14.11 The New Generation Co-operative
14.12 The Co-operative Lifecycle Model
14.13 The Theory of Community-Based Enterprise
14.14 Enhancing Social Enterprise and Innovation
14.15 Strategies for Enhancing Social Entrepreneurship
14.16 Strategies for Enhancing Social Innovation
References