The Effects of Organizational Culture on Corporate Entrepreneurship
The author begins the article by accepting the fact that corporate venturing (also known as corporate entrepreneurship) has become a critical element in every organization. Established businesses are currently embracing the power of corporate entrepreneurship in an attempt to realize their goals. Positive corporate entrepreneurship has the potential to promote business performance and survival.
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The researcher conducted a powerful study to understand how the major dimensions proposed by Hofstede promoted or inhibited corporate entrepreneurship. As well, the researcher wanted to investigate the relationship between corporate entrepreneurship and organizational culture (Leyla 35). The major aspects of organizational culture considered during the study included uncertainty avoidance, masculinity, and power distance. Such aspects are defined under the famous Hofstede’s model.
After completing the study, the author observed that such aspects of organizational culture have significant implications on the performance of every business firm (Leyla 37). The study indicated that power distance could dictate the innovative dimension of every business organization. This feature of organizational culture encourages more workers to focus on the best practices and eventually become more productive.
The study indicated that masculinity affected the business processes of a company negatively. It also produced negative effects on corporate entrepreneurship. To achieve every targeted objective, companies should create new strategies founded on the positive aspects of organizational culture. These cultural dimensions should, therefore, be reconsidered to ensure the targeted organization becomes successful. Corporate entrepreneurship is something that should be supported using the most appropriate cultural dimensions. The strategic benefit of organizational culture is critical towards promoting a positive relationship between corporate entrepreneurship and the major cultural dimensions (Leyla 35).
A powerful research methodology was used to conduct the study. The targeted study field was a multinational company in the automobile industry. The targeted company was based in Turkey. A study sample was identified from the company and supplied with questionnaires. The study targeted 60 respondents whereby 54 managed to return their questionnaires. The selected control variables included company age and firm size (Leyla 38). The questionnaires “used 7-point rating scales for the study” (Leyla 39). The four factors considered during the study included masculinity vs. femininity, power distance, individualism vs. collectivism, and uncertainty avoidance.
Evaluation and Analysis of the Article
After completing the study, the researcher observed clearly that Hofstede’s culture dimensions were closely related to corporate entrepreneurial initiatives. The article indicates that “increased levels of power distance were observed to control the law of entropy” (Leyla 42). This law is associated with the issue of disorder in an organization. The author observed that power distance was a powerful force that influenced organizational innovativeness and performance.
Masculinity was observed to affect the level of business venturing. Managers in feminine cultures will find it easier to make their decisions carefully. The article indicates that “a firm that increases the level of tolerance for uncertainty developments will decrease the level of corporate entrepreneurship” (Leyla 42). This means that uncertainty avoidance might affect business venturing negatively.
The findings presented in the article highlighted the importance of organizational culture towards promoting the level of corporate entrepreneurship. This development makes it possible for many firms to achieve their goals and record positive growth patterns. The article goes further to treat organizational culture as a powerful condition for promoting a wide range of entrepreneurial activities. This fact explains why the culture embraced in a specific nation influences the level of entrepreneurial activities (Leyla 43). That being the case, organizational culture should be reconsidered by companies that want to meet their business potentials.
The findings and ideas presented in this article are agreeable because they support the concepts argued by Hofstede. Managers should always consider the influence and role of organizational culture towards promoting new entrepreneurial ideas. A proper understanding of the major cultural dimensions is something that can make a difference for many business organizations. However, I strongly believe that different companies have recorded varied results while at the same time promoting similar cultural dimensions. This article fails to support this fact. Instead, the author has generalized the findings thereby making the arguments debatable.
This is the case because some cultures associated with power distances tend to record positive business outcomes (Leyla 42). That being the case, business managers should be aware of the cultural factors capable of affecting their goals. They should use culturally-informed decisions depending on the expectations of the targeted workers. This approach will ensure every cultural dimension is applied accordingly depending on the expectations of the members of the specific community (Leyla 42). The approach will make it possible for many companies to realize their goals and objectives.
Conclusion: Five Things Learned from the Article
Despite the above weakness associated with this article, the author has managed to present powerful lessons that can make a difference for every business manager. Business organizations should be aware of the major aspects and practices that have the potential to improve the level of performance (Leyla 38). The five key lessons gained from the article are presented below. These five lessons will make every manager successful and eventually transform the level of corporate entrepreneurship.
- Corporate entrepreneurship is a powerful process that has gained strategic relevance in many business organizations. This is true because the process can determine the performance and survival of every profit-making firm (Leyla 35).
- Organizational culture is a powerful variable capable of dictating the nature and level of a company’s corporate entrepreneurship (Leyla 42).
- The power distance developed between managers and their subordinates in different hierarchies will have significant implications for the level and nature of creativity (Leyla 35).
- Companies that display masculine business values and reject profit-orientation strategies will affect their entrepreneurial activities and eventually minimize the level of creativity. This means that a masculine culture in an organization might have negative effects on the level of business venturing (Leyla 42).
- The last lesson is that managers should never ignore the influence of organizational culture on the entrepreneurial tendencies of their respective business organizations (Leyla 42). This approach will ensure every cultural element is redesigned to promote the most desirable practices.
Cross-Functional Teams for Corporate Entrepreneurship Practices
The article begins by acknowledging the fact that corporate entrepreneurship has become a fundamental concept for business growth and competitiveness. The approach has made it possible for many companies to address the challenge of competition. To achieve this goal, the author argues that many leaders have been levering the skills and knowledge existing in their firms. The concept of cross-functional teams is something that has over the past few years been associated with increased productivity and innovation.
After considering different theorems and past studies, the author observed that there were “various aspects that determined the success of every cross-functional corporate entrepreneurship team” (Ferdousi 1). For instance, the team members should embrace various practices such as positive communication, problem-solving, collaboration, decision-making, and openness to achieve their potentials.
On top of that, the team should receive constant guidelines and advice from their leaders. The senior managers in an organization have a major role in creating the most desirable environment for such cross-functional teams to operate smoothly. The leaders should provide the most desirable resources and inputs in an attempt to address the ever-changing needs of their followers. The members of every team should be guided and allowed to make shared decisions (Ferdousi 2).
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Senior managers must guide their followers to ensure such teams are successful. Properly-developed cross-functional groups within an organization will make a difference and eventually deliver positive results (Ferdousi 4). The level of creativity will increase thereby improving profitability. However, the author goes further to explain why the concept of cross-functional teams should not be considered as a panacea for addressing various challenges associated with entrepreneurial activities (Ferdousi 1).
The scholar used a simple research method to complete the study. The author focused on a systematic review and analysis of past literature. The researcher began by providing a detailed analysis of cross-functional teams and corporate entrepreneurship. The method made it easier for the scholar to describe the major issues and theoretical frameworks associated with cross-functional teams (Ferdousi 2).
The next step was to describe the major conceptual frameworks defining corporate entrepreneurship and team building. Various models for implementing cross-functional groups and teams were consulted during the study process. The author considered the major dimensions and perspectives used whenever developing operational teams in different business organizations (Ferdousi 2). The researcher went ahead to analyze the major obstacles and success factors associated with the creation of cross-functional teams.
Evaluation and Analysis of the Article
The article is founded on the premise that corporate entrepreneurship is one of the fundamental factors determining the long-term performance and competitiveness of every business organization. With this in mind, cross-functional teams can play a positive role in ensuring the level of innovation increases significantly (Ferdousi 16). Many scholars and business management theorists have been analyzing the role of such teams in different companies.
The outstanding argument is that such teams can contribute a lot to the corporate entrepreneurship in every large organization. Corporations that use cross-functional teams will find it easier to drive its competitiveness agenda and innovation (Ferdousi 17). Although some challenges and obstacles make it impossible for cross-functional to realize their potentials, proper approaches can be reconsidered to promote the best practices.
The effectiveness and success of every corporate entrepreneurship team are determined by the competencies possesses by the top management. Top managers in large organizations should support their cross-functional teams using the required resources. The managers should offer the best support and a reliable environment for innovative ideas. Some of the important issues to consider whenever developing cross-functional teams include self-governance, autonomy, and effective communication (Ferdousi 17). These strategies will ensure the level of organic participation increases. By so doing, the managers will find it easier to institutionalize corporate practices and entrepreneurial tendencies across the business organization (Ferdousi 17).
The information presented by the author is agreeable because it has the potential to promote the performance of many multinational corporations. The writer has used numerous concepts and theoretical arguments to support the position of cross-functional groups in many organizations. The article also outlines the major roles that should be played by different corporate managers. They should present the best ideas, inputs, and concepts.
They should dictate the organizational politics of the targeted organization. The masterpiece goes further to explain why the use of cross-functional teams should be treated as the best strategy for dealing with various challenges faced in large corporations (Ferdousi 12). The use of cross-functional teams is therefore something that has the potential to complement competitive and innovative initiatives in every business organization. When managed and empowered in a positive manner, members of such teams will promote the most desirable practices and eventually deliver tangible results.
The arguments presented by the author are relevant because they will encourage future researchers to identify new ideas that have the potential to improve the effectiveness of cross-functional teams. Managers in an organization should use their skills to create an enviable environment capable of supporting the functions of such teams. Members of the teams can be equipped with the major values that are capable of promoting the level of performance (Ferdousi 18).
Conclusion: Five Things Learned from the Article
This article delivers many lessons to the reader. If used and applied diligently, such lessons can make it possible for different corporations to realize their potentials and eventually become successful. The five things learned from the article are presented below.
- The adoption of corporate entrepreneurship activities and practices is something that is currently making it possible for many business firms to achieve growth and deal with the increasing level of competition (Ferdousi 12).
- A cross-functional team can make it easier for companies to develop new corporate entrepreneurship practices and eventually improve the level of innovation (Ferdousi 12). The approach has the potential to increase and improve the products of a given organization.
- To ensure such cross-functional teams are fruitful, senior managers in different organizations should offer the most desirable resources and create positive working environments. This move will ensure the teammates cooperate and work hard to achieve every targeted goal (Ferdousi 13).
- The success of such teams is dictated by several factors such as the ability to identify tangible goals and the level of communication. Some other relevant characteristics include the availability of resources, equal participation, the inclusion of members from diverse backgrounds, and the ability to select the best team leader (Ferdousi 17).
- The author goes further to argue that the use of cross-functional teams should not be treated as the panacea for addressing specific challenges that might affect the corporate entrepreneurial strategies embraced by a given corporation (Ferdousi 18).
Conditioning Factors for Corporate Entrepreneurship: An In(ex)ternal Approach
The entrepreneurial activities undertaken in many business organizations are issues that have been analyzed by many researchers in the recent past. Businesses that have positive corporate entrepreneurship practices find it easier to realize their potentials. The researchers, therefore, wanted to examine the role played by external and internal forces towards conditioning the level of corporate entrepreneurship in different business corporations (Urbano and Turro 379).
To come up with the best arguments, the authors used two theoretical frameworks. These included Institutional Economics for analyzing various environmental forces and Resource-Based Theory for the internal factors (Urbano and Turro 379). The researchers observed that both internal and external forces have the potential to influence the level of corporate entrepreneurship.
Companies that are characterized by extensive knowledge and personal networks find it easier to identify new business goals and opportunities. The workers in such a firm create positive personal networks thereby being able to realize various business goals. Internal factors should always be considered by companies that want to achieve their business potentials. The authors have argued that “education level, knowing other entrepreneurs, and being able to identify new business opportunities positively affect corporate performance” (Urbano and Turro 391).
As well, the study showed conclusively that “environmental forces such as the effect of the different media platforms, fear of failure, and the number of days required to start a business were less significant” (Urbano and Turro 391). This knowledge guides business leaders to consider the major internal forces in their respective companies and use them to deliver the most desirable results. The identification of such factors will make it possible for different managers to implement the most desirable projects and eventually realize every targeted business objective.
The researchers used the Global Entrepreneurship Monitor (GEM) database to execute the study. The database contains information from Denmark, Finland, France, Spain, Ireland, Italy, the United Kingdom, and the Netherlands (Urbano and Turro 386). The “dependent variable used was corporate entrepreneurial activity” (386). The independent variables include institutional factors and resources. The control variables included the economic sector and socio-demographic factors. The authors used “negative binomial regression to analyze the data gained from the GEM for the period 2004-2008” (Urbano and Turro 379).
Evaluation and Analysis of the Article
After conducting the study, the researchers observed that corporate entrepreneurship depended greatly on several factors. The outlined internal factors were observed to determine the nature of corporate entrepreneurship in many organizations. The education level and ability to identify new business opportunities is something that influences corporate venturing positively. The study indicated that certain environmental factors had minimal impacts on corporate entrepreneurship. Some of these factors influence the effect of various media platforms and fear of stoppage (Urbano and Turro 380). The information presented by the authors is relevant because it offers powerful insights that can be used by companies to achieve their business potentials.
Business leaders should identify the major factors that have the potential to affect various entrepreneurial practices and activities. Business administrators should use such insights to create innovative plans and projects for their companies. The use of internal forces can help business leaders outline new practices and eventually make their organizational profitable. Successful companies are the ones that understand the power of corporate entrepreneurship.
To achieve every targeted goal, it is appropriate for firms to identify the best knowledge that can deliver results (Urbano and Turro 387). Personal networks within an organization will present new ideas and concepts. Such ideas will eventually support a wide range of entrepreneurial practices. Business managers should empower their followers to identify innovative opportunities within their respective industries. These approaches will make it possible for many organizations to realize their business potentials.
The debatable issue discussed in this article is the influence of environmental forces on corporate entrepreneurship. The authors observed that there was a non-significant relationship between corporate entrepreneurship and environmental factors (Urbano and Turro 389). This observation is questionable because some environmental forces might have significant implications on the entrepreneurial approaches and innovative ideas associated with a given business firm. Future studies should, therefore, reconsider this relationship to encourage more firms to promote their corporate entrepreneurship goals.
Conclusion: Five Things Learned from the Article
Within the past decade, many organizations and business leaders have been focusing on the issue of corporate entrepreneurship. Companies that embrace the most desirable corporate entrepreneurship strategies record commendable results (Urbano and Turro 383). This fact explains why strategic managers consider the role of various forces towards promoting the concept of corporate entrepreneurship. The article “Conditioning factors for corporate entrepreneurship: an in(ex)ternal approach” therefore offers numerous concepts that can make a difference for many business corporations. The five major lessons gained from this article are presented below.
- The first lesson is that there are various factors that dictate the level of corporate entrepreneurship in every industry. These factors can either be external or factors. It is the duty of senior managers to consider the most appropriate factors towards improving the level of innovation in their respective firms (Urbano and Turro 384).
- After conducting the research, the scholars observed that various internal factors were critical towards conditioning corporate entrepreneurship in many companies. Some of these factors might include personal networks, identification of new business prospects, and the ability to develop positive personal networks (Urbano and Turro 379).
- The authors indicate that external factors tend to have minimal impacts on the level of corporate entrepreneurship in a given business organization. Some of these forces include the impact of the media, procedures required to start a new business firm, and the fear of failing (Urbano and Turro 379).
- The next lesson is that companies interested in corporate entrepreneurship should consider a wide range of areas and factors to achieve positive results. Various theoretical underpinnings and frameworks can be used to identify the major forces that can make a difference in a corporation (Urbano and Turro 379).
- Future scholars should analyze the factors influencing corporate entrepreneurship from the individual, organizational, and environmental levels to come up with better entrepreneurial ideas. This approach will present new arguments that can be used by companies that want to realize their entrepreneurial goals (Urbano and Turro 380). This means that the current literature on the factors conditioning the process of corporate entrepreneurship is insufficient thereby requiring new studies.
Ferdousi, Shawkat. “Cross-Functional Teams for Corporate Entrepreneurship Practices.” The ISM Journal of International Business 1.4 (2012): 1-25. Print.
Leyla, Muge. “The Effects of Organizational Culture on Corporate Entrepreneurship.” International Journal of Business and Social Science 5.5 (2014): 35-44. Print.
Urbano, David and Andreu Turro. “Conditioning Factors for Corporate Entrepreneurship: An In(ex)ternal Approach.” International Entrepreneurship and Management Journal 9.1 (2013): 379-396. Print.