Strategic entrepreneurship

4 important questions on Strategic entrepreneurship

When using R&D, firms produce 2 types of internal innovations:

1) incremental innovations build on existing knowledge bases and provide small improvements (most innovations)
2) radical innovations provide significant technological breakthroughs and create new knowledge.

Two types of internal corporate venturing

- autonomous strategic behavior; bottom-up process in which product champions pursue new ideas; diffusion of tacit knowledge
- induced strategic behavior; top-down process whereby firm's current strategy and structure foster innovations that are closely associated with that strategy and structure.

2 disadvantages of cross-functional teams

- independent frames of reference of team members
- organizational politics
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2 types of strategic entrepreneurship

- start up entrepreneurship; it arises without the support of a parent company, absence of prior knowledge/experience and a steady cashflow to support emerging efforts.
- venture capital; investors that invest in companies and projects they believe will bring substantial profit

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