Business Studies

Strategic Management Topic 6 Q4 What is the difference between strategic entrepreneurship and corporate entrepreneurship? How does the former help create value for a firm? What are entrepreneurship opportunities and why are they valuable to the strategic management process?

ANSWER

Strategic and Corporate Entrepreneurship

Overview to Strategic and Corporate Entrepreneurship

Strategic entrepreneurship is the practice of taking strategic actions when making organizational decisions. Its key aim is to ensure that businesses can raise their performance and achieve a competitive advantage in the market. As Ziyae and Sadeghi (2020) state, strategic entrepreneurship accelerates a firm’s competitive advantage. This is based on the innovation tactics adopted in the organization. On the other hand, corporate entrepreneurship is the use of entrepreneurial skills in an established organizational environment.

The Impact of Strategic Entrepreneurship in Advancing a Firm’s Value

Strategic entrepreneurship exposes companies to various innovative and other opportunity-seeking advantages capable of accelerating their value. It concentrates on combining opportunities and advantage-seeking behaviors (Mazzei, 2018). Corporate leaders focus on innovative ideas and business approaches capable of improving their growth. Companies should assess key strategic actions at their disposal and focus on one that offers optimal benefits. They adopt activities that raise their performance and open the opportunity to achieve a competitive advantage. For instance, a business might decide to expand its product to become more competitive. This is a form of strategic entrepreneurship as it is committed to strengthening its value.

Entrepreneurship Opportunities and their Value to the Strategic Management Process

Entrepreneurship opportunities are occurring growth situations that firms can tap and invest into as a way of building their value. They exist as actions opening more room for making massive profits and revenue. For example, a company might have an opportunity to sell its products at a higher price in the market. This is a key investment decision that stands to advance its growth and productivity. Entrepreneurship opportunities create an advanced value to the strategic management process because organizational leaders have to make strategic decisions that safeguard a firm’s welfare. Not all opportunities are capable of providing the desired outcomes. Thus, it is the responsibility of the management to assess opportunities and consider ones likely to provide positive outcomes depending on the circumstances and conditions.

References

Mazzei, M. J. (2018). Strategic Entrepreneurship: Content, process, context, and outcomes. International Entrepreneurship and Management Journal, 14(3), 657-670.

Ziyae, B., & Sadeghi, H. (2020). Exploring the relationship between corporate entrepreneurship and firm performance: The mediating effect of strategic entrepreneurship. Baltic Journal of Management, 16(1): 113-133. https://doi.org/10.1108/BJM-04-2020-0124