Introduction: Entering the New World of Economic Possibilities
The world has entered a new stage of development, which has also affected the economical aspect of many countries. In the today world, the key principle of successful business venture lies mostly in whether the product is well-promoted and recognizable enough. The latter can be achieved by the cooperation of several partners, which the corporate entrepreneurship presupposes. Making the product or the services famous worldwide and at the same time enlarging the company to the size of an international venture, corporate entrepreneurship helps an enterprise strive in the new business and economical environment.
However, the impact of the corporate entrepreneurship on the development a new products or services is still not quite obvious, and the effects of the new approach are yet to be seen. Therefore, analyzing the basic features of the theory and checking the results of its practical application, one can offer certain suggestions about the effect of globalization on the development of new products and services.
The New Definition of Globalization and What It Means for Entrepreneurship
Globalization is quite a complicated phenomenon. It is rather hard to nail it down with one hundred percent accuracy. According to Myint, “There is no universally agreed upon definition of globalization. However, it is generally understood that globalization is one of the major forces shaping the future of nation-states, as well as the future of a state-centric world order” (Myint, 2011, p. 396).
Globalization embraces a lot of other issues. The latter fact makes globalization a complex phenomenon. Moreover, it is impossible to understand globalization process without knowing its every aspect. As Myint explains, every single issue of globalization must be embraced to give a full-fledged definition:
It conveys different meanings in different contexts because the fundamental ideas of globalization are not born out of theory or philosophy; they are rooted in the evolutional and historical events and aspirations of the people of the world (Myint, 2011, p. 397).
Thus, it is necessary to incorporate several issues. First, as Myint assures, “globalization denotes a process of denationalization” (Myint, 2011, p. 397). It is necessary to add that “causes and consequences of globalization are motivated by and associated with the common good and bad of humanity and human aspiration” (Myint, 2011, p. 398).
Key Factors of a Global Product Success: Putting Some Effort
When dealing with the globalization issues, one has to take account of all the possible factors that make the economical mechanism going, as well as all of those which prevent the economical growth. In the given case, there are a number of globalization-induced factors which stimulate the economic growth and the ones which slacken it. Pointing to each of these, one can figure out whether the offered strategy of the corporate entrepreneurship helps develop the company or, on the contrary, slows it down.
Although the above-mentioned factor contributes to the success of a new venture considerably there are other equally essential elements that enhance the company efficiency and lead to the top. According to what Wind & Mahajan (1997) claim, these factors are: the different strategic orientations of a company, organizational memory, “integration among marketing and R&D, managerial controls, and relational norms influences new product success” (Wind a& Mahajan, 1997, p. 2). Indeed, the company must be ready to undertake certain steps and make important decisions, which different strategic orientations allow to do. With the help of organizational memory, more efficient distribution of responsibilities among the staff becomes possible. As for the integration between the research and development staff and the marketing team and managerial controls, these help to make the business run more smoothly. Finally, the relational norms help make the new product up to the existing standards.
Globalization, Corporate Entrepreneurship Theory and Changes in the Product Development
One of the key effects which globalization has had of the new products and services development is the invention and application of the corporate entrepreneurship theory. The corporate entrepreneurs have reinvented a number of elements to make the process more efficient and the result more prominent. Thus, it can be clearly seen that the theory of the corporate entrepreneurship changes the landscape of business and economics, slowly turning it into a more cohesive, integrated mechanism.
However, there are certain differences in the development ofnew products and new services. Products are less apt to changes, which is why the theory does not work as efficiently with the latter. As Shleimer & Shulman (2011) noticed,
Whilst in NSD there is a constant need for modified and new organizational routines and communication investments as old ones become quickly obsolete, in NPD product features are not as easily changed due to the characteristics of a product, such as its physical nature (p. 523).
The globalization process triggers a change in the corporate policy. Thus, it can be assumed that the services are going to be changed irreversibly, while products development will stay the same in its core. Only the insignificant elements of goods production are going to be changed. Meanwhile, the concepts are going to stay the same.
Key Innovations in Product Development
Like any other trend in the field of economy, the corporate entrepreneurship ideas and concepts are groundbreaking milestones for the further progress to begin. Outlining the main innovations which the given strategy brings into the world of economics, one can understand the significance of the phenomenon and figure out its potential.
It is worth keeping in mind, though that taking the track of solely the positive aspects will bring little to no result. For a full observation of the phenomenon of corporate economics as it is, a more detailed examination of innovations is required. Thus, not only the positive, but also the negative aspects of corporate economics are going to be brought up. With the help of the further analysis of the drawbacks and the advantages of the suggested system, it will become possible to fully evaluate the corporate entrepreneurship system and figure out if it is going to help develop business.
The positive innovations: running enterprise like clockwork
As for the positive aspects of the new method of developing the company and promoting new products during the globalization, the “ability to develop and introduce new products in a timely manner” (Bong Lee & Wong, 2010, p. 28) must be mentioned. Indeed, assigning certain parts of the job to the corresponding company affiliates and departments, one can manage the time more efficiently and produce new services without considerable delays.
In addition, as Bong Lee and Wong assert, the production proficiency is bound to rise considerably, since the responsibilities are distributed more evenly. According to the latter, “Successful new products emerge from a combination of the firm’s existing capabilities, skills, and resources” (Bong Lee & Wong, 2010, p. 31).
It is also important that the given theory provides the foil for professional growth. Offering people to develop their abilities and acquire new skills, the theory makes both the corporation development and staff growth possible: “Policymakers can encourage entrepreneurship in firms by providing training and development entrepreneurial behaviour workshops. Education and training plans are integral components of a socioeconomic infrastructure that encourages organisations and their members to become more entrepreneurial” (Gomez-Haro, Aragon-Correa & Cordon-Pozo, 2011, p. 168).
The negative elements: when the new theory backfires
However, like any other innovative system, the corporate entrepreneurship idea also has its flaws. Among the existing negative aspects, the one concerning the development speed shows up in a too obvious manner. As Chen, Reilly and Lynn (2012) pointed out, this is the case of “too much of a good thing” (p. 288). Ion the one hand, producing new services and objects at a fast pace is a seeming advantage. On the other hand, when the process turns into overproduction, certain reasons for concern appear. As the authors explain, “However, faster may not always be better. In fact, there are different views of the effects of speed” (Chen, Reilly & Lynn, 2012, p. 288).
The newly developed system is not tested well enough. As time passes, one can offer certain conclusions about the corporate economics efficiency, yet right now this is mostly a theory, with a few exceptions of practical application. As Chen, Reilly & Lynn (2012) claim, the key reason why the development must be slowed down is the fact that corporate workers might not be ready for the rapid change: “The limits of information-processing capability also occur at the organizational level.” (p. 291). Nevertheless, compared to its benefits, the drawbacks of the offered system are rather insignificant.
The Impact of Corporate Entrepreneurship on the Economics
Like any other innovations, corporate entrepreneurship must have both the positive and the negative effects on the world economics and on the economics of a certain state, as Shleimer & Shulman (2011) have proven. According to the latter, “The intensity levels along each of the dimensions of collaboration have different impacts on innovation outcomes and these impacts vary depending on the innovative context (NSD versus NDP) in which they occur” (p. 532).
It is also worth mentioning that the effects of collaborative entrepreneurship are quite hard to predict, since there is an element of uncertainty in the new strategy. As Chen, Reilly & Lynn (2012) assume, uncertainty is the natural element of the new product development in the environment of the corporate entrepreneurship:
Uncertainty is defined as unpredictability of the environment, inability to predict the impact of environmental change, and inability to predict the consequence of a response […] Therefore, uncertainty is highly linked to the amount of information related to decision making and the constraints of the absorptive capacity of individuals, teams, or organizations (Chen, Reilly & Lynn, 2012, p. 292)
As Kuratko, Montagno and Hornsby (1990) explained, the implementation of the corporate entrepreneurship ideas will demand that companies move to a different level of responsibility. Therein lies the impact of corporate entrepreneurship – it sets the relationships between companies and their affiliates to a different level.
Conclusion: The New Opportunities and the Issues to Be Explored
It can be concluded that the globalization is both a promising and a challenging environment for the products and services. Globalization brings both the benefits and the drawbacks to the sphere of product and services development. Knowing the positive and the negative about the globalization, one can improve the product/service development considerably.
For the product development, globalization is more significant. Since globalization does not presuppose the change of the procedure, it is only the speed that changes. Thus, for a product development, globalization processes are the most favorable. With globalization, the amount of the produced goods will grow. Thus, globalization will boost product development.
However, globalization also plays a great role in the service development. In contrast to product development, the development of services is unlikely to change greatly. Also aimed at satisfying the customer, the service development will presumably stay the same. With several minor changes, service development will remain mostly as it used to be.
When dealing with the product/service development at the time of globalization, one has to remember about the new forms of managing the products and the business. With the new forms of entrepreneurship, the procedures of product/service development are going to change. As for the product development, it is going to be more coordinated from within the organization. As for the service development, it will be better coordinated from the company affiliates. Thus, the era of corporate entrepreneurship means new approaches to the product/service development.
Reference List
Bong Lee, K & Wong, V 2010, ‘New product development proficiency and multi-country product rollout timeliness’, International Marketing Review, vol. 27 no. 1, pp. 28-54.
Chen, J, Reilly, R R & Lynn, G S 2012, ‘New product development speed: too much of a good thing?’ Journal of Product Innovation and Management, vol. 229 no. 2, pp. 288-303.
Gomez-Haro, S, Aragon-Correa, J A & Cordon-Pozo, E 2011, ‘Differentiating the effects of the institutional environment on corporate entrepreneurship’, Management Decision, vol. 49 no. 10, pp. 1677-1693.
Kuratko, D F, Montagno, RV & Hornsby, J S 1990, ‘Developing an intrapreneurial assessment instrument for an effective corporate entrepreneurial environment’, Strategic Management Journal, vol. 11, pp. 49-58.
Myint, T 2011, ‘Globalization and the institutional dynamics of global environmental governance’, Indiana Journal of Global Legal Studies, vol. 18 no. 1, pp. 395-420.
Shleimer, S C & Shulman, A D 2011, ‘A comparison of new service versus new product development: configurations of collaborative intensity as predictors of performance’, Journal of Product Innovation Management, vol. 28, no. 4, pp. 521-535.
Wind, J & Mahajan, V 1997, ‘Issues and opportunities in new product development: an introduction to the special issue’, Journal of Marketing Research, vol. 34 no. 1, pp. 1-12.