introduction to Entrepreneurship

1. TOPIC 1b
BACK GROUND OF THE
ENTREPRENEURSHIP

2. INTRODUCTION TO THE
CONCEPT OF STRATEGIC
ENTREPRENEURSHIP
DR FIRDAUS BASBETH
FACULTY OF ENTREPRENEURSHIP AND BUSINESS
UNIVERSITI MALAYSIA KELANTAN
Firdaus.b@umk.edu.my

3. Source: Small and Medium Enterprises Working Group – APEC 2016

4. Source: Small and Medium Enterprises Working Group – APEC 2016

5. Source: Small and Medium Enterprises Working Group – APEC 2016

17. Based on efficiency
& productivity
Innovation and
creativity based
entrepreneurship

18. WHAT IS INNOVATION
 Implementing new ideas that creates value” (Innovation
Network, USA)
 The development of new ideas and their economics application as
new products or processes (UK. Dept. Trade and Industry)

26. Name of Author Year Issues relate to strategic entrepreneurship
Mintzberg 1973 Introduce the notion of entrepreneurial strategy making
Schendel&Hofer 1979 Argued that the entrepreneurial choice is at the heart of the concept of strategic
Burgelman 1983 Empirically examine the interrelationship between strategic management and entrepreneurship inside a large
corporation
Covin&Slevin 1989 Posited the concept of entrepreneurial strategy posture examining a firms competitive orientation on a
spectrum from conservative to entrepreneurial
Chittipeddi&Wallett 1991 Reviewed macroscopic trend impacting business and argue that the ethos of entrepreneurship would pervade
winning firms and that ‘the organizational’ archetype of the future will be entrepreneurial . Its leadership,
strategies, and structure will reflect entrepreneurial thinking with associated traits such as flexibility,
innovativeness, and a problem solving actions orientation.
Day 1992 Examined the research linkages between entrepreneurship, strategy management, and general management
and offers one possible configuration of their interrelation.
Sandberg 1992 Investigated cross-fertilization opportunities between strategy management and entrepreneurship and posited
six fertile areas; innovation; new business creation; opportunities seeking; risk assumption; top management
teams; and group processes used in strategic decisions.
Barringer&Bluedorn 1999 Studied the relationship between entrepreneurial intensity and five strategic management practices finding
statistically significant results for the impacts of scanning intensity, planning flexibility, locus of planning and
strategic controls.
Meyer & Heppard 2000 Edited the first scholarly book addressing the interface between entrepreneurship and strategy to uncover the
components of a firm’s entrepreneurial ‘dominant logic’ independent of firm size.

27.  There are three perspectives on the marriage of strategic and entrepreneurship.
 strategic management is “dominants” over entrepreneurship (Baker and
Pollock, 2007 cited in Rensburg, 2013)
 strategic management is itself a “subset” of entrepreneurship (Browne &
Harms, 2003 cited in Rensburg, 2013)
 Strategic management “intersection” with entrepreneurship (Rensburg,
2013).
 The former indicates that the entrepreneurship concepts can be explained by the
strategic management domains while the later argues that strategic
management only the division of entrepreneurship field.
 The “intersection” perspective agrees with the overlapping of research’s areas
and suggests that the marriage should be created through combining the core
advantages of each which are the strategic and entrepreneurship.

28. The term of ‘Strategic Entrepreneurship’ was first
pointed out by Herbert & Brazeal (1998 cited in
Rensburg, 2013).
Researchers in Strategic Entrepreneurship field, studies
on board of directors’ roles, firm resources and
capabilities, and financial implications (Rensburg,2013).
Other researchers study on the combination of
opportunities seeking behaviour (exploration) and
advantages seeking behaviour (exploitation) and relates
it to wealth creation (Hitt et al. cited in (Rensburg, 2013)

29. The Implicit Strategy Model of the Past
Decade
Sustainable Competitive Advantage
• One ideal competitive position in the
industry
• Unique competitive position for the
company
• Benchmarking of all activities and
achieving best practice
• Activities tailored to strategy
• Aggressive outsourcing and partnering to
gain efficiencies
• Clear trade offs and choices vis-à-vis
competitors
• Advantages rest on a few key success
factors, critical resources and core
competencies
• Competitive advantages arises from fit
across activities
• Flexibility and rapid responses to all
competitive and market changes
• Sustainability comes from the activity
system, not the parts
• Operational effectiveness a given
Sources : Michael E.Porter, (1996 cited in Kuratko, D.
F. & Hodgetts, R. M., 2004: 532)

30. Source : Wheelen, T. L. and Hunger, J. D. (2000
cited in Kuratko, D. F. & Hodgetts, R. M., 2004:
521).

31. Entrepreneurial
actions
Strategic
actions
• Innovation
• Networks
• Internalization
• Organizational
Learning
• Top
Management
Teams and
governance
• Growth
Wealth Creation
Source : R. Duane Ireland, Micheal A.Hitt, S. Michael Camp, and Donald L.Sexton, (2001 cited in in
Kuratko, D. F. & Hodgetts, R. M., 2004: 531)

32. Strategic
Entrepreneurship
Growth
Resource Management
Dynamic capability
Opportunity
identification
Innovation
vision
Flexibility
Acceptance
of risk
Sources : Kyrgidou, L. P. And
Mathew Hughes, M. (2009:

33.  Opportunity identification - suggested to be an important source of
competitive advantage (Hitt et al., 2002), which can lead to entrepreneurial
opportunity creation.
 Innovation or the ability to innovate - one of the distinctive competencies of
entrepreneurial firms (Kirby, 2003). Sonfield and Luccier (1997) expand on
this concept proposing that the most effective way to position an
entrepreneurial firm is to use risk and innovation.
 Risk - referring to perceived environment (Smircich and Stubbart, 1985).
The entrepreneur does not make a conscious decision to engage in highly
risky projects, but rather their perception of that situation is of moderate
rather than of high risk (Busenitz and Barney, 1997).
UNIVERSITI MALAYSIA KELANTAN

34.  Flexibility- firms should be able to respond to change quickly, independent
of their current strategy (Eisenhardt et al., 2000). Flexibility refers to
balancing structure with the freedom to implement and change strategy
(Eisenhardt et al., 2000), which in turn will facilitate quick response to
change (Bhide, 1994).
 Vision- Establishing a clear vision and developing strategy that focuses
both on opportunity and advantage within that vision (Hitt et al., 2001)
enhance opportunity identification
 Growth is related not only to innovative and creative ideas, but also to the
structure and strategy to turn such ideas into profitable ventures resources
and dynamic capabilities appear
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35. Strategy entrepreneurship is the use and/or stimulation of
entrepreneurial activity to achieve strategic goals, (Kuratko
& Audretsch, 2009 cited in Rensburg, 2013).
In addition, strategic entrepreneurship is still mainly a
rather loose amalgam of a number of insights from strategy
and entrepreneurship (Foss & Lyngsie, 2011, p. 16).
Strategic entrepreneurship describing an input-process-
output model that entails: organizational resources,
individual knowledge, and skills, and environmental factors
as inputs.

36. Guth & Ginsberg (1990), they replace strategic renewal with
strategic entrepreneurship relegating strategic renewal to sub
strategy of strategic entrepreneurship. Moreover, strategic
entrepreneurship can be enacted within small medium size
enterprise as well as within large established corporations
(Resburg, 2013).
The existences of entrepreneurial behaviour in large frim is
either the result of a deliberate or an emergent strategy or as
Burgelman (1993b) described it the result of induced strategy
behaviour or autonomous strategy behaviour.

37. Sources : Kyrgidou, L. P. And Mathew
Hughes, M. (2009: 53)

38.  Entrepreneurs do not use strategic planning for many reasons because:
scarcity of time
lack of knowledge about how to plan
lack of expertise in the planning process,
lack of trust in others.
 Benefits to strategic entrepreneurs are:
have better financial performance
more efficient resource allocation
improved competitive position
higher employee morale
more rapid decision making
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39.  Rensburg, D.J.V. (2013). Is Strategic Entrepreneurship a Pleonasm?. Journal of Management and Strategy, 4, 1, 15-27.
 Kuratko, D. F., & Hodgetts, R. M. (2004). Entrepreneurship: Theory, process, practice. Mason, Ohio: Thomson/South-Western
 Kyrgidou, L. P., & Hughes, M. (2010). Strategic entrepreneurship: Origins, core elements and research directions. European Business
Review, 22, 1, 43-63
 Dollinger, M, J. (2008). “ENTREPRENEURSHIP: Strategies and Resources Fourth Edition”, Kelley School of Business, Indiana University. MARSH
publications, pp. 33-40.
 Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2009). Entrepreneurship. New York: McGraw-Hill Higher Education.
 Lieberman, M. B., & Montgomery, D. B. (1988). First‐mover advantages. Strategic management journal, 9(S1), 41-58.
 Zimmerer, T., Scarborough, N. M., & Wilson, D. (2002). Essentials of entrepreneurship and small business management (Vol. 2). Upper Saddle River,
NJ: Prentice Hall.
 Barringer, B and Ireland, D (2012) Entrepreneurship – Successfully Launching New Ventures (4th Ed.). Pearson Education, Global Edition. (B1)
 Dollinger, Marc J., (2003) Entrepreneurship: Strategies and Resources, 3rd Edition, Prentice Hall International Edition. (B2)
 Wickham, P. A. (2006) Strategic Entrepreneurship. (4th. Ed.). England: Pearson Education Ltd. (B3)
 Timmons J, Spinelli S, (2007) New Venture Creation: Entrepreneurship for the 21st Century, 7th. Edition, McGraw Hill International Edition.
 Roberts,M, Stevenson, H., Shalman, W., Marshall, P., and Hamemesh, (2007) New Business Venture and The Entrepreneur, 6th. Edition, McGraw Hill
International Edition.