Repeated innovation in the Long Run
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Repeated innovation in the Long Run

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Research presentation at the Strategic Management Society Annual Conference in 2009, Washington DC

Research presentation at the Strategic Management Society Annual Conference in 2009, Washington DC

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  • 1. Repeated Innovations in the Long RunHow some Organizations Build and Maintain Intrapreneurial and Innovative Capabilities Sébastien RONTEAU ESSCA Graduate School of Management Thomas DURAND Ecole Centrale Paris
  • 2. Entrepreneurial Orientation “EO refers to the processes, practices and decision- making activities that lead to new entry. (…) It involves the intentions and actions of key players functioning in a dynamic generative process aimed at new venture creation.” (Lumpkin & Dess, 1996) Covin & Slevin (1988, 1989) Autonomy Dess & Lumpkin (1996, 2000) INTENTION Competitive Aggressiveness Dess & Lumpkin (1996, 2000) Innovativeness Miller & Friesen (1982) ; MOVEMENT Proactiveness Miller (1983) Risk Taking2 Washington DC 2009 - SMS 29th Annual International Conference
  • 3. Empirical Study  4 case studies  Companies that innovated successfully over time Name Period covered Industry Dassault Systèmes 1977-2006 3D softwares L’Oréal 1907-2008 Cosmetics Salomon Sports 1947-2001 Outdoor Sport products SEB Goup 1950-2006 Home appliances  Footprint of EO institutionalization (Elsbach, 02) Arrangement of the processes underlying the work of institutionalization3 Washington DC 2009 - SMS 29th Annual International Conference
  • 4. An example of Verbatim The founding Myth about Boeing at Dassault Systèmes (DS)4 Washington DC 2009 - SMS 29th Annual International Conference
  • 5. A descriptive approach of case studies  The story as it is told and as it spreads ◦ Legacy of the founders, success/war stories ◦ Visionary leaders, “conductors”, facilitators ◦ Stable Governance over decades  Repeated Negotiations and Interactions  The story as it is used ◦ Social consistency and socially accepted Proofs ◦ Categorization of experiences and perceptions5 Washington DC 2009 - SMS 29th Annual International Conference
  • 6. Institutionalization of EO: A theoretical frameworkInstitutionalizing Innovating Symbolic Actions Repeated Founding by Myths Negotiations and Top Management Interactions Institutionalization Dynamics Elaboration of Categorization of Socially accepted Experience and Proofs Perceptions Values Autonomy for Intrapreneurs Relatedness with existing Myths activitiesInstitutionalised Ideology Intrapreneurship Structures of Processes and Innovation Roles & & Power Protocols Nature of Support Intensity of Innovation6 Washington DC 2009 - SMS 29th Annual International Conference
  • 7. A Simplified Model : Emergence and transmission of innovative capabilities Intrapreneurship Potential Loss Entrepreurship of Intrapreneurial Cultivate, reinforce, transmit Trigger and capabilities make possible Institutionnalization Organization Processes Petit fils spirituel Culture Petit fils spirituel Values, Beliefs, Rites Petit fils spirituel Petit-fils spirituel Trigger by "Fils spirituel" Leader - Manager Founder n Eugène Schueller n François Dalle n … Innovative and Intrapreneurial n Georges Salomon n Jean-François Gautier n … Capabilities may desappear7 Washington DC 2009 - SMS 29th Annual International Conference
  • 8. Results & Discussion  Arrangement of the processes underlying the work of institutionalization  Proposal of a theoretical comprehensive framework of institutionalization of EO (Forms and Building) The ability to innovate in the long run appears to rely on resilient capacities resulting from the institutionalization Dynamics of Entrepreneurial Orientation  What if M&A’s ?  What if periods with no, or limited innovations ? How to rebuild innovative capabilities ?8 Washington DC 2009 - SMS 29th Annual International Conference