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BusinessReviewAnalyzing & Showcasingthe Thoughts of Tomorrow’sBusiness LeadersAN INSIGHT INTOORGANIZATIONALSTRUCTURESAND BEHAVIORSTHAT reneurship

EMBR04ESADE MBA BUSINESS REVIEW4 WELCOME LETTER6 ‘WELCOME TO THE SECOND EDITION OF THEESADE MBA BUSINESS REVIEW’01. CORPORATE ENTREPRENEURSHIPHow are tomorrow’s business leaders i.e. today’sMBAs thinking?10 EDITORIALBy Eugenia Bieto12 STRATEGIC HARMONY24 INDIAN INSTITUTE OF MANAGEMENT, BANGALOREThe 4E Model: Designing an incentive system forinternal venturesBy Viswanathan RJ, Gowri Shankar Nagarajan32 MCGILL UNIVERSITY, FACULTY OF MANAGEMENT,CANADAInnovative Tension for Present and Future Success:Encouraging Corporate Entrepreneurship in theModern OrganizationBy Dave Purewal, Russell SeidleBy Eugenia Bieto, Pedro Parada y Marcel Planellas02. SHOWCASING THEIR THOUGHTS ONCORPORATE ENTREPRENEURSHIP WITH ANINSIGHT INTO THE ORGANIZATIONAL STRUCTURESAND BEHAVIORS THAT ENCOURAGE AN INTERNALENTREPRENEURIAL CULTUREBEST ENTRY OF THE YEAR16 JOSEPH L. ROTMAN SCHOOL OF MANAGEMENTUNIVERSITY OF TORONTOThe Age of Entrepreneurial Turbulence: CreatingSustainable Advantage for Individuals, Organizations,and Societies in the New CenturyBy Elizabeth W. McBeth, Tomislav Rimac2PLEASE NOTE THE 7 ENTRIES BELOW ARENOT RANKED AND ARE AMONGST THE TOP 10ENTRIES RECEIVED. THEY ARE ARRANGED INALPHABETICAL ORDER.40 GRADUATE SCHOOL OF BUSINESS, UNIVERSITY OFCAPE TOWNTurning managers into leaders: A South Africanperspective on corporate entrepreneurshipBy Sharon Nicholson-Herbert, S’ne Mkhize, Anwynne Schroder

CONTENTSESADE MBA BUSINESS REVIEW46 HONG KONG UNIVERSITY OF SCIENCE &TECHNOLOGYThe Internal Growth Engine: New Strategies forPromoting and Exploiting Corporate EntrepreneurshipBy Boisset Guillaume, Liu Bing, Luo Chi52 INDIAN INSTITUTE OF MANAGEMENT, AHMEDABADFostering corporate entrepreneurship : Exploringfour enabling structural forms and aligning HumanResource Management ProcessesBy Gurunathan L, Sandeep Krishnan, Vijay Pasupathy58 INDIAN INSTITUTE OF MANAGEMENT, BANGALOREOrganizational condiitons and processesBy Paritosh Srivastava Deepak Singla Madhur Chaturvedi66 MARSHALL SCHOOL OF BUSINESS, UNIVERSITY OFSOUTHERN CALIFORNIABeyond Two Guys In A GarageBy Anne Gaw, Steve Liu78 WHARTON SCHOOL, UNIVERSITY OF PENNSYLVANIACorporate Venture Capital and a Network of Allianceswith Venture Capital firms as a source of radicalinnovationsBy Natalie Kulik, Patrice Molinari03. PARTICIPANTS, ABOUT ESADE BUSINESSSCHOOL , ESADE MBA AND THE TEAM86 PARTICIPANTS OF THE ESADE MBA BUSINESSREVIEW 2004List of all the 42 Business Schools whose studentsparticipated88 ABOUT ESADE BUSINESS SCHOOLA glimpse into one of Europe’s finest BusinessSchools89 ABOUT ESADE MBA90 TEAM OF THE ESADE MBA BUSINESS REVIEWFind out about the 6 MBA students behind this project70 SDA BOCCONICorporate EntrepreneurshipChristos Kontos, Philippe leuenberger, Gabriele Allegri3

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ESADE MBA BUSINESS REVIEWWelcome LetterIt gives us great pleasure to welcome you to the second edition of the annual ESADE MBA BusinessReview (EMBR).EMBR has been recognised by Business Week (October 18, 2004) as the “first-ever journal that publishes [MBA] student research from around the world”. Three distinguishing characteristics make thispublication unique: its innovative nature, its global reach and the fact that it is thoroughly promotedand led by a group of enthusiastic ESADE MBA students.At ESADE we try to nurture innovation and entrepreneurship, and the EMBR is a great reflection ofthese values. Two years ago, when we held our Christmas party, an enterprising 1st Year student fromIndia came up to us and spoke passionately about an innovative idea he was working on; an idea toanalyze and showcase the thoughts, values and beliefs of tomorrow’s business leaders– that is, today’sMBA students. That talk was the kick off of the EMBR: a project born global.The topic of this second annual issue is Corporate Entrepreneurship. Almost 200 teams from 42 international business schools located in 17 countries have participated in this competition. What thereader has in his/her hands is a selection of the best papers presented.The ESADE MBA Business Review is an ambitious yet humble attempt to showcase to the world thethinking of MBA students globally, and we hope that you will enjoy reading it as much as our studentsenjoyed working on it during the last ten months.Xavier MendozaDeanExecutive DirectorGloria BatlloriExecutive DirectorESADE MBA programs5

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ESADE MBA BUSINESS REVIEW‘Welcome to the second edition ofthe ESADE MBA Business Review’Sergi TomàsESADE MBA Business [email protected] still remember that evening in Barcelona a few weeks before I began my MBA studies at ESADE.Some of the new candidates who happened to be around had been invited by the welcoming committee to a dinner with some Second Year students. During the dinner the conversation turned to thevarious clubs and activities at ESADE, and a chap a few seats away from me caught my attention witha project that sounded particularly interesting – one in which MBA students from all over the worldwould voice their thoughts, values and beliefs on an issue currently facing the business community.That person was Darpan Sanghvi, the founder of an extraordinary initiative, now the ESADE MBABusiness Review, and soon-to-be my collaborator on the second edition of the project. After attendingthe EMBR’s inaugural event, I was sure this was something I wanted to be a part of.The project began last September. After lengthy consideration of scores of subjects, the EMBR team,together with students and teachers, plumped for Corporate Entrepreneurship (CE) as the topic forthe 2004 edition. It was an inspired choice because CE is a burning issue of global relevance. Professional and scholarly interest in Corporate Entrepreneurship stems from the quest to harness innovation and creativity, both factors of vital importance in today’s competitive business environment. Wefelt that focusing future business leaders’ attention on this topic would provide a unique opportunityto gain insights in this field. The response was overwhelming - over 400 MBA students representing 42business schools accepted our invitation to take part in the second edition of the ESADE MBA Business Review.We were particularly struck by the depth of insight and quality of the papers submitted. This made theevaluation panel’s job of selecting papers for publication a particularly hard one. I would personallylike to draw attention to the brilliant and diverse range of ideas on how corporations should tackle CE.These included the need for decentralized organizations allowing staff to make decisions, and longterm reward and evaluation systems. Other insights included the belief that visionary leadership andmanagement support for risk-taking are key factors to success in promoting entrepreneurial behaviour. Others drew attention to the need to link corporate culture and strategy in a vision that promotesinnovation as fundamental for value creation.Ubuntu, a Zulu word for interdependence, was cited in a paper submitted from South Africa. It literally means “people are people because of others”, a concept which, when considered in the context ofmodern corporations, reflects the need to create innovative team-based structures, especially whenattempting to foster Corporate Entrepreneurship. The presence of a rich variety of concepts, such as“Ubuntu” highlights the rewards of conducting a global journal that is capable of capturing a diversityof ideas that would otherwise be lost. Accordingly, I am sure you find the Top 10 Papers published inthis journal very enlightening.Finally, on behalf of the EMBR team, I would like to take this opportunity to thank ESADE management, teaching staff, and all those who contributed to the project’s success. It has been a long andchallenging first year in the MBA programme but I can honestly say that it was worth every minute wededicated to the EMBR. The project has made giant strides over the last year and it is likely that it willremain a lively forum for MBA students for years to come.7

EMBR04ESADE MBA BUSINESS REVIEW01“Entrepreneurshipis the successfulimplementation ofcreative ideas thatresults in new customervalues”Jay Rao, Associate Professor,Management Division, Babson College

CORPORATEENTREPRENEURSHIP

UNIVERSITY PARTICIPANTS10Nº. ARTICLESIndian Institute of Management, Bangalore17Indian Institute of Management, Lucknow9National University of SingaporeMarshall School of Business, University of California4ITAM, MexicoRotman School Of Management, University of TorontoGoizueta Business School, Emory UniversityNanyang Business School, SingaporeWeatherhead School of Management, Case Western Reserve UniversityWharton School, University of Pennsylvania3F.W. School of Business, Babson CollegeStern School of Business, New YorkSDA BocconiRed McCombs School of Business, The University of TexasDarden Graduate School of Business Administration. University of VirginiaGraduate School of Business, University of Cape TownMcGill University, Faculty of Management2INCAE, Costa RicaAustralian Graduate School of ManagementSouth WHU- KoblenzThe University of Edinburgh Management SchoolUniversidad Adolfo Ibañez, GuatemalaKellogg School of Management, Northwestern UniversityIndian Institute of Management, Ahmedabad1

01. CORPORATE ENTREPRENEURSHIPEditorialBY EUGÈNIABIETO, DIRECTOR OF ENTREPRENEURSHIP CENTER OF ESADEThe magazine MBA Business Review, an initiative promoted bythe MBA 2003-04 students, chose the subject of Corporate Entrepreneurship for its 2nd issue. The editors, aware that this isa phenomenon that can be analyzed from several perspectives,made the following Call for Papers:Corporate Entrepreneurship. An insight to the structures andbehaviours in organizations that encourage an internal entrepreneurial culture as a key competitive advantage.Corporate Entrepreneurship can be considered as the set ofactivities that a company encompasses to create an entrepreneurial culture in order to foster the entrepreneurial behaviourof employees. This phenomenon, described in the literatureof strategy, innovation, entrepreneurship and change management, is attracting the interest of companies which need to findnew and innovative ways to ensure their competitive position ina complex environment.The interest in the subject was reflected in the quantity andquality of articles received for publication: more than 400 MBAstudents representing 42 business schools wanted to take partof this second edition of the ESADE MBA Business Review. Theevaluation process completed by the Panel of Experts in thefinal stage, analyzed the papers of 75 teams of authors from 24universities. This study focused on the important and innovativeaspects of Corporate Entrepreneurship in their work.The Indian Institute of Management in Bangalore, and the IndianInstitute of Management in Lucknow stand out, with a total of26 articles sent.The table shows a list of the universities whose students answered the Call for Papers, and the number of articles sent byeach of them.From among all the articles, the magazine had to choose TheBest Entry of the Year and select 10 articles for publication. Thecommittee entrusted with this double selection process wascomposed of lecturers and Academic Assistants from ESADE’sDepartment of Business Policy: Eugenia Bieto, Alberto Gimeno,Laura Lamolla, Montse Ollé, Pedro Parada, Marcel Planellas, Carlos D. López and José Luis Marín.The articles finally selected come from India, Italy, Canada, SouthAfrica, Switzerland, United States and Hong Kong and offer anoverall, multicultural perspective of the Corporate Entrepreneurship phenomenon.They moreover provide innovative answers to the following questions, at the same time as proposing models that are easy toimplement in companies: How can a business promote entrepreneurial behaviourinternally? What kind of organizational structures and/or mechanisms cansuccessfully harness entrepreneurial activity for the benefit ofthe business? How can these structures be implemented and the benefits tothe organization be measured?The article selected as “The Best Entry of the Year” is “The ageof entrepreneurial turbulence”; its authors, Elizabeth W. McBethand Tomislav Rimac, from the Rotman School of Management,Toronto, define the Entrepreneurial Orientation of companiesthrough 7 dimensions and propose a future model to be followedby all kinds of organizations that want to become more entrepreneurial.The 2nd issue of the MBA Business Review undoubtedly represents an important contribution to the debate on why companiesneed to promote Corporate Entrepreneurship, and on how theycan do so.11

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01. CORPORATE ENTREPRENEURSHIPStrategic HarmonyThe fit between corporate entrepreneurship and parentingBY :EUGÈNIA BIETO, DIRECTOR OF ENTREPRENEURSHIP CENTER OF ESADEPEDRO PARADA, PROFESSOR OF BUSINESS POLICY DEPARTMENT OF ESADEMARCEL PLANELLAS, PROFESSOR OF BUSINESS POLICY DEPARTMENT OF ESADEShould companies be cautious entrepreneurs or should they embracea dynamic force? This is how the European Business Forum presentedthe debate between Andrew Campbell and Robert Burgelman. On onehand, Campbell was advocating for its Parenting Advantage frameworkand Burgelman for its Corporate Entrepreneurship framework. Yet,what’s the difference? Do they fit together in Corporate Strategy?Corporate Strategy is about defining where to compete. Thus, it isabout establishing the scope of the corporation, about redefiningbusiness boundaries. Then, is the scope of the corporation modifiedin a different way when using Campbell’s or Burgelman’s model?Corporate Entrepreneurship suggests that corporate strategy isshaped by viable internal entrepreneurial initiatives that drive valuecreation. In this framework there are several processes from theinital product championing which starts by linking technology andneeds, to the selecting stage in which the corporate center designs anstructural and cultural context that allows the intrapreneurial initiativesto develop. In this complex set of processes, local line leaders, middlemanagers and corporate managers play an important role. Eventhough there are feedback loops in middle stages of the CorporateEntrepreneurship process, the drive comes from below, from frontline people. Thus, Corporate Entrepreneurship involves a bottom-upapproach to corporate strategy. In this view the key for the developmentof the company is “to let a thousand flowers bloom”. The challenge isto generate as many new ideas as possible. Therefore, the parentingrole is simply to create the conditions to make it happen.The parenting framework suggests that corporate strategyinvolves corporate parenting. That is, that the corporate centeradds value to strategic business units by exerting its influence onthem. Indeed, according to this framework value creation occurswhen parent characteristics fit with key success factors on eachunit’s industry and with its needs for improvement, which theycall parenting opportunities. Furthermore, parenting influenceexerted when parenting characteristics do not fit with key sucessfactors and parenting opportunities might destroy value. Thus, theparenting framework involves a top-down approach to corporatestrategy. In this view, parenting dictates corporate strategy. Whatmatters is the business insight of the corporate center. The centerenvisions and the organization follows.Our approach is that corporate strategy is not solely driven bycorporate entrepreneurship nor only by the parenting influence.Indeed, corporate strategy is shaped by a simultaneous process ofmutual adjustment that takes place in the interaction of corporatemanagement and intrapreneurs. In this sense, both strong corporateentrepreneurship and strong parenting are required for creatingvalue in the corporation. Consequently, corporate value creationappears when parenting fits with entrepreneurial initiatives atstrategic business unit level. We could say that this is a situation ofStrategic Harmony.Our proposal is different from Burgelman’s and Campbell’s views.In the original corporate entrepreneurship model, the organizationalprocesses are key for modifying the scope of the corporation andto facilitate growth. In this approach corporate strategy wouldbe equivalent to the aggregate of new ventures coming fromintrapreneurial behaviour of insiders.On the other hand, in the original parenting framework, the key issueis how to control the development of the organization. Parentingstyle might vary from financial control to strategic control. In anycase, strategic business units whose strategic logic does not fitwith parent characteristics are candidates for divestment and thusintrapreneurial projects would be rejected.In our view strategy is key. Parent organization should establish aclear strategy for the company and allow corporate entrepreneurs todevelop intrapreneurial initiatives. Even more, a lack of such long termstrategy creates confusion and might reduce the development of newinitiatives and consequently the ability of the company to renew itself.In summary, a company that intends to foster corporateentrepreneurship should first establish a clear long term strategyin order to create a framework for new intrapreneurial initiatives todevelop. Indeed, strategy should identify key vectors for developmentamong which corporate entrepreneurs might choose and contribute.Corporate resources would be available for specific vectors ofdevelopment. New ideas would compete for them. Then, if ideasdo not match strategies, they do not get resources. This approachwould represent a reconciliation of two substantive schools ofthought in strategic management: the corporate entrepreneurshiptradition and the parenting one.13

EMBR04ESADE MBA BUSINESS REVIEW02How are tomorrow’sbusiness leaders i.e.today’s MBAs thinking?

SHOWCASINGTHEIR THOUGHTSON CORPORATEENTREPRENEURSHIP

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BEST ENTRY OF THE YEARJOSEPH L. ROTMAN SCHOOL OF MANAGEMENT, UNIVERSITY OF TORONTOBY ELIZABETH W. MCBETH, TOMISLAV RIMACThe Age ofEntrepreneurial TurbulenceCreating Sustainable Advantage for Individuals,Organizations, and Societies in the New Century“Familiar habit makes for indolence.We must prepare for parting and leave-takingOr else remain the slaves of permanence.”Hermann Hesse, “Stages”, Magister Ludi (The Glass Bead Game)“Creativity can solve almost any problem. The creative act, the defeat of habit by originality,overcomes everything.” George Lois“ your business won’t survive without creativity.” Michael PorterINTRODUCTIONIn these turbulent times, sustainable advantage will increasinglydepend on our capacity – as individuals, organizations, andsocieties – for innovation. Innovation is the development ofsomething new and ultimately depends on the knowledge, skills,and creativity of individuals. Entrepreneurship is an opportunityfocused approach to venturing that requires “a creative state ofmind that can see a way around impossible barriers and [ ] reactto unexpected problems and opportunities along the way.”1In the current, hypercompetitive business environment, anycompetitive advantage will be short-lived. Only by adopting a deepcommitment to ongoing innovation and self-renewal, fostered andmanaged through Entrepreneurship, will organizations match thepace of change and ensure their long-term sustainability andsurvival in the new century.In this paper, we begin by considering how the pace of changeimpacts learning in the knowledge economy and by developing aprofile for a new generation of entrepreneurial professional. Wethen offer insight into how the transformation from a traditionalto an entrepreneurial orientation can be achieved withinorganizations. Finally, we briefly consider how Entrepreneurshipin a social context offers organizations on both sides of the profitdivide the potential for ‘doing good’ while ‘doing well’.THE ENTREPRENEURIAL PROFESSIONALIntegrative LearningWhile technology facilitates knowledge transfer and communication,individuals remain at the core of the global, knowledge economy asboth the source of new knowledge and its principal users. As therate of knowledge obsolescence increases, learning challengeswill become more demanding. Knowledge will no longer serve asan end or even a foundation to build upon, but as a continualpoint of departure. Learning must therefore become an ongoingprocess that continues throughout adulthood.17

ESADE MBA BUSINESS REVIEWWhile continual learning is not an easy path for individuals,we should stress that it does not imply continually ‘rolling thestone back up the hill.’ Quite the opposite, continual learningensures self-renewal and greater self-determination – presentingindividuals with an enormous challenge and an opportunity tomanage their own careers and development.Future professionals will have to balance the tension betweensubject mastery and innovation and creativity, demonstratedthrough integrative thinking and the creation of self-enablingand self-correcting models. Since intellectual cross-pollinationfosters creativity, and the widest possible variety of knowledge isgained through collaboration and networking, the most intensiveand valuable learning will take place in multidisciplinary teams.This style of integrative learning will become the model for bothindividual and organizational learning in the new century.THE CORPORATE ENTREPRENEURThe most sought-after professionals in the 21st century economywill be a new breed of corporate entrepreneur, or intrapreneur(Pinchot: 1976): individuals whose education and experienceare both broad and deep and who have the requisite skills foridentifying and exploiting opportunities; fostering team-basedinnovation, or intercreativity; and managing change.We reject the notion of an innate entrepreneurial personality,at least not in the commonly accepted sense that equates torisk-takers. Entrepreneurs are people who tend to systematicallyanalyze opportunities, detect risk, and try to minimize it as muchas possible. While this might be described as a conservativepersonality, we refer to it as risk-aware and opportunity-focusedand believe that it can be taught and fostered in a properlystructured environment.TABLE1. THE GENERATIONAL DIVIDETraditionalists(Born 1922-1945) ganizationRelationshipwithcolleaguesWork styleBaby Boomers(Born 1946-1964) Challenge Unimpressed Desire Competence Loyalto the organization.your dues”. Climb the corporate ladder. Career opportunity. Understands the volatilenature of employment. Formal relationship withsupervisors. Loyalto the team.to work”.Career self worth. Wants job security. Personal relationships withsupervisors. Loyal “Liveto the manager.to live”. Career one part of me. Expects to be downsized. Informal relationships withsuperiors. “Tell me what you can do forme”. Loyal “Pay “Work “Work Formal Personal Colleagues Casual When Avoid Open Workhard- “Get it done”.on process and rules. Don’t rock the boat. Follow the leader. Linear work style. Learn from elders/moreexperienced. Dislike change. Bendthe rules.in teams. Focus on people not numbers. Structured work style. Cautious of change. Focus Workon results.the rules. Work independently with littlesupervision and informalteam structure. Multi-task. Flexible work style. At ease with change. Focus Focus Change Command Participative. Fair. Demand Decisions Straightforward. Personal. Flexible. Opinionated. Brutally Stilland control.respect. “Do what I say, not what I do”.Management Micro-management. Dictatorial.style Rigid.relationships.conflict.by consensus. Open-minded. “Flavour of the month”. Desire alternative management styles but face difficultyin implementing. Political.Source: N GEN PEOPLE PERFORMANCE INC.The Globe and mail, march 31, 2004, C6, “The generational Divide”, Virginia galt18by authority.and skills arerespected over seniority.Gen Y(Born 1981-2000)for authority andhierarchical system. Seniority and job titles arerespected.relationships.in conflict, defer toseniority.authority.flat, democraticsystem.Gen Xers(Born 1965-1980)are friends.dialogue to resolveconflict.honest. Not political. Respectfor authority whodemostrate competence andadvanced skills. Flip traditional roles on theirhead by teaching superiorshow to use technology.to colleagues.to contribute” Career opportunity to addvalue. Very casual relation-ship withsuperiors. “Show me what you can do forme right now”.and social relationships. Debate and challenge eachother to achieve compromise.on quickest solutionusing technology. Challenge the rules. Work independently withsupervision and direction. Fluid work style. Desire change.Inclusive.to be determined.

THE AGE OF ENTREPRENEURIAL TURBULENCESuccessful intrapreneurs will be highly opportunity-focused,results-driven, calculated risk-takers. They will work collaborativelyand expect flexibility, autonomy, and rewards commensuratewith the level of responsibility they assume and the resultsthey achieve. Given the accelerated pace of change, completedevelopment and commercialization requires the competenciesand knowledge of a team, and above all, new intrapreneurswho recognize the value of collective effort. Individual skills andknowledge will fuse with broad organizational skills, and a groupcapacity to innovate will emerge. This powerful synergism iscollective Entrepreneurship (Reich: 1987).THE NEXT GENERATIONAs the “baby boomer” generation retires over the next decade,generations “X” and “Y” will become dominant players in theworkforce. Their values, as outlined in the table below, differsignificantly from those of previous generations, and companieswill face the challenge of attracting and retaining these talentedbut fiercely independent creative thinkers who are least likelyto desire to work in traditional organizations. We argue thatthe generation shift will instigate a major change toward anorganizational culture that supports experimentation andself-actualization in order to achieve superior performance.Indications of this shift can already be observed in numerousIT, design, and other organizations whose success dependsheavily on the creativity of their workforce. This irreversibletrend will permeate all sectors of the economy and adjusting toit by adopting an entrepreneurial orientation will be crucial to thelong-term survival of every organization.THE ENTREPRENEURIAL ORGANIZATION“The things we fear most in organizations– fluctuations, disturbances, imbalances –are the primary sources of creativity.”Margaret J. WheatleyEntrepreneurship and innovation are not naturally occurringin organizations. They are designed capacities and it ismanagement’s responsibility to determine the appropriatedegree of Entrepreneurship for individual departments and for theorganization as a whole, as well as to design an environment thatchannels innovation and promotes entrepreneurial activity. Ourcomparison of the entrepreneurial orientation to the traditionalorientation across seven of its dimensions is summarized inTable 2, below.Dimension 1: Strategy (Commit)Increasingly, the very survival of organizations dependson whether or not they employ entrepreneurial (proactive)rather than Darwinian (adaptive) strategies to address theturbulence in their operating environments. Rapidly changingtechnology, consumer demands, and societal values areforcing organizations to be opportunity-focused rather thanresource-driven. The challenge for managers in entrepreneurialTABLE 2. SEVEN DIMENSIONS OF AN ENTREPRENEURIAL ORIENTATIONLow (traditional)Risk-averse and resource-drivenAdaptive Short-term orientation (1-5 years) Complete commitment of resources at outset Match opportunity to avaliable resources Predictability, resistance to changeExtrinsic motivation Experience Stability and centralized control Hierarchical, departmental, silos Bureaucratic, rigidProcedural focus Command and control Based on responsibility and seniority“One-size-fits-all” rewards Promote safe, efficient behavior SpecializedTask and role-orientedDimensionsHigh (Entrepreneurial)Risk-aware and opportunity-focusedProactive Long-term orientation (5-15 years)StrategyCommit RiskManagementBalance CorporateCultureAttract OrganizationalStructureEmpower SystemsConnect RewardPhilosophyMotivate LearningIntegrate Stepwise commitment of resources with minimalexposure at each stage Attract resources to potential opportunityAcceptance of changeIntrinsic motivation Experiences Flexibility and autonomyFlat, team-based, people-centeredOpen, networked, flexible, interconnectedResults focus, self-correction Communication and coordination Based on value creation, team-basedIndividualized rewards Promote creativity and innovation Integrative, ongoing, and experientialFocused on individual growth19

ESADE MBA BUSINESS REVIEWorganizations is to remain open to opportunity and focuson the long term while striking the right balance betweenproactiveness, innovativeness, and risk (Morris: 1988) today.Maintaining this balance in turbulent times requires continualmonitoring and reinforcement. Companies that fail to doso will not survive into the future; yet those that do greatlyincrease the level of uncertainty they are exposed to, givingrise to the need for new approaches to risk management.Dimension 2: Risk Management (Balance)In an entrepreneurial organization, the strategic commitmentto opportunity and focus on the longer term must be balancedby appropriate risk management practices. Entrepreneurialorganizations successfully manage risk by committing smallamounts of resources to new ventures in a stepwise manner,affording them greater flexibility to respond to unanticipatedc

The ESADE MBA Business Review is an ambitious yet humble attempt to showcase to the world the . I still remember that evening in Barcelona a few weeks before I began my MBA studies at ESADE. . Babson College. EMBR04 ESADE MBA BUSINESS REVIEW 01 CORPORATE ENTREPRENEUR