ch4 entrepreneurial architecture[1]
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Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
CHAPTER 4
Entrepreneurial
Architecture
PART 1
THE ENTREPRENEURIAL
DNA
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Dominant Logic
• Managers in an organization conceptualize
the business and make important resource
allocation decisions.
• Influences behavior, routines, strategies,
structures, culture and systems.
• Take times to build- constantly be learned
and unlearned.
• Entrepreneurship can be the basis for that
dominant logic.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Entrepreneurial intensity
• One firm might produce a small number of
breakthrough developments (high on degree,
low on frequency) whilst another might
produce many small development, none of
which are breakthrough (low on degree, high
on frequency). Morris & Kuratko (2002).
• They agree that entrepreneurial Intensity is a
combination of degree and frequency.
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Innovation and Competitive Advantage
Increasing
competitive
advantage
Frequency of
Innovation
Degree of Innovation
HighLow
High
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Architecture
Architecture is the relational contracts within
and around an organisation - with customers,
suppliers and staff. It is based on trust and
underpinned by mutual self-interest.John Kay (1993)
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Architecture
• It replicates the entrepreneur’s ability to
build relationships
• It is informal
• It allows organisation to act quickly
• It creates organisational learning and
knowledge
• It is difficult to copy
• It creates barriers to entry
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Building Architecture
CULTURE
STRUCTURES
STRATEGIES
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Learning Organisation
A learning organisation is one that:
‘facilitates the learning of all its members and
continuously transforms itself….adapting,
changing, developing and transforming
themselves in response to the needs, wishes
and aspirations of people, inside and outside.’
Pedler, Burgoyne and Boydell
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Learning Organisation
Experience
Form
concepts
Reflect Test
concepts
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Learning Organisation
Experience
Form
concepts
Reflect Test
concepts
KNOW-HOW
KNOW-WHY
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
The Learning Organisation
Experience
Form
concepts
Reflect Test
concepts
KNOW-HOW
KNOW-WHY
Mental Models
Assumptions
Theories about the world
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Major concepts of the learning
organisation
• True learning is by acquiring both know-how
and know-why through the wheel of learning and
thereby understanding causality
• Mental models are shaped by & help shape
experience
• Learning happens when you share, examine &
challenge mental models
• The most effective learning is social & active –
not individual & passive
• The most important things are to learn tacit
things – intuition, judgement, expertise
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Hyper-growth companies are quintessentially learn-by-
doing organisations.
Michael Dell
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Entrepreneurial leaders
‘Entrepreneurs are ‘patient leaders, capable of
instilling tangible visions and managing for the
long haul. The entrepreneur is at once a learner
and a teacher, a doer and a visionary.’
Jeffrey Timmons (1999)
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Influences on Organisational Architecture
Culture
Structure
and size
Architecture Strategy
Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns
Influences on Organisational Architecture
Culture
Structure
and size
Architecture Strategy
Leadership
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