An Entrepreneur and Leader I Dr. Zelimir William Todorovic Associate Professor in Small Business and...

An Entrepreneur and Leader

IDr. ZŽelimir William Todorovic

Associate Professor in Small Business and Entrepreneurship

Guest Editor, International Journal of Entrepreneurship and Small Business

Resource-Based View of the Firm

• Basic Assumption

• Types of resources- Tangible resources- Intangible resources- Organizational capabilities- Organizational competencies- Dynamic Capabilities

Need for Internal Allignment

Management preferences

Organization

Resources

Strategy External Environment

Continuum of Radical and Incremental Innovations

Exhibit 12.1 Continuum of Radical and Incremental Innovations

Entrepreneurial Orientation

Dimension Definition

Autonomy Independent action by an individual or team aimed at bringing forth a business concept or vision and carrying it through to completion.

Innovativeness A willingness to introduce novelty through experimentation and creative processes aimed at developing new products and services as well as new processes.

Proactiveness A forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities in anticipation of future demand.

Entrepreneurial Orientation (cont’d)

Dimension Definition

Source: J. G. Covin and D. P. Sleving, “A conceptual Model of Entrepreneurship As Firm Behavior,” Entrepreneurship Theory & Practice, Fall 1991, pp. 7-25; G. T. Lumpkin and G. G. Dess, “Clarifying the Entrepreneurial Orientation Construct and Linking It to Performance,” Academy of Management Review 21, no. 1 (1996), pp. 135-72; D. Miller, “The Correlates of Entrepreneurship in Three Types of Firms,” Management Science 29 (1983), pp. 770-91.

Competitive An intense effort to outperform industry rivals. It is characterized by a combative posture or an aggressive response aimed at improving position or overcoming a threat in a competitive marketplace.

aggressiveness

Risk taking Making decisions and taking action without certain knowledge of probable outcomes; some undertakings may also involve making substantial resource commitments in the process of venturing forward.

•Traditional control system

•Based largely on the feedback approach•Traditional approach is sequential•Strategies are formulated and top management sets goals

Ensuring Informational Control

Ensuring Informational Control

•Contemporary control system

• Interactive relationships between strategy formulation, implementation and control

• Two different types of control

Behavioral Control: Balancing Culture, Rewards, and Boundaries

•Contemporary approach- A balance between

•Culture•Rewards•Boundaries

•Traditional approach-Emphasizes comparing outcomes to predetermined strategies and fixed rules

Characteristics of Good Opportunities

AttractiveAttractive

AchievableAchievable DurableDurable

Value Value creatingcreating

Good Business Good Business OpportunityOpportunity

Before launching opportunity as a business•Consider the resources available to undertake it•Consider the characteristics of the entrepreneur pursuing it

A Leader’s Bases of Power

A Good Leader….

Successful traits Successful traits of leaders at the of leaders at the highest levelhighest level

Technical Technical skillsskills

Cognitive Cognitive abilitiesabilities

Emotional Emotional intelligenceintelligence

Accounting, business planning, etc.

Analytical reasoning, quantitative analysis, etc.

Ability to work with others, passion for work, etc.

Portfolio Management

Key

Each circle represents one of the firm’s business units

Size of circle represents the relative size of the business unit in terms of revenue

Management preferences

Organization

Resources

Strategy External Environment