BSS057-6 Corporate Innovation and Entrepreneurship Assignment Sample

Module code and Title: BSS057-6 Corporate Innovation and Entrepreneurship Assignment Sample

Introduction

Corporate innovation is considered as an international fostering of thinking that is different from others within corporate environments. Achieving corporate innovation, the majority of organisations have been setting up satellite offices in co working with start-up businesses in particular industry to scope of potential market and collaboration.

The purpose of this study is to highlight corporate innovation effectiveness in entrepreneurship for effectively thinking to solve problems and spot market trends to achieve better business profitability. Study has provided a concept of “corporate innovation and entrepreneurship (CIE)” for better understanding about topic. Study also explored theories that were related to CIE and different crisis situations.

Critical Analysis

Concept of Corporate Innovation and Entrepreneurial Architecture

Corporate innovation and entrepreneurship are considered as a major design that helps in developing creative thinking and problem-solving skills to spot trends in market and explore opportunities for business. Corporate innovation and entrepreneurship (CIE) are recognised as a strategic approach that develops plans according to needs of business conditions to capitalise on high potential ideas and maximise profit of an organisation.

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This process is mostly visible in short and medium sized enterprises (SMEs) where innovative managers and entrepreneurs focus on scaling their business at a larger scale. It is executed through strategies such as effective communication and stabilising good relationships with employees. This factor is often mistaken by individuals as a concept of starting a new business which is not adequate.

In recent times, most organisations are facing major changes due to implementation of technological advancements and new methods and leadership approaches for business management. These factors are bringing dramatic changes within business which is increasing competition among companies. This competition is caused by factors such as changing demographic needs, consumption patterns and technological inclusion. Idea of corporate innovation and entrepreneurship is not solely for startup organisations, but it is also mandatory for larger companies that are operating their business globally.

Currently, companies are shifting their view from conventional methods of sustainability and growth and focusing more on promoting social and environmental values through “Corporate Social Relationship” practices. Sukumaret al.(2020) studied that firms are required to enhance their innovative capacities through implementing corporate innovation strategies in context of increasing tough competition within marketplace.

In simple terms, corporate innovation and entrepreneurship is referred to as an application of effective solutions for meeting new requirements, consumer needs and unarticulated needs through strategic business models, procedures, products and technologies. Corporate innovation and entrepreneurship not only helps in providing better opportunities for organisations, but also offers those to achieve corporate competitiveness in a certain market.

Importance of Corporate Innovation and Entrepreneurship (CIE)

Corporate innovation and entrepreneurship is mainly referencing international forecasting of “out of the box” thinking within a certain corporate environment to achieve profit and business objectives. This factor helps in owning a successful business especially for new professionals and entrepreneurs who are intended to scale their business at a higher level.

As studied by Tohãneanet al. (2020) corporate innovation helps in growing business, achieving competitive advantages, implementing new technologies and identifying and mitigating risks associated with development of business. Through risk identification and management, organisations also focus on developing strategy for crisis management to deal with future issues that often become a threat for a sustainable future.

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Growing and scaling up of business

Corporate innovations helps in scaling up of business for achieving profit and higher return on investment through promoting and implementing innovative ideas within business. Innovation helps in identifying current market trends and mindset of consumers before purchasing a product. In currency business scenario, most organisations are implementing innovative ideas to scale up their business and expand rapidly (Fountaineet al. 2019).

Marketing has been adopted as an innovative approach that enables entrepreneurs and business managers to increase profit and financial growth. For effective marketing strategy, creative managers and entrepreneurs are implementing attractive content while marketing their products. This help in incorporating digital business strategies such as push notifications, search engine optimization and influencer marketing to scale up their business.

Achieving competitive advantages within a tough corporate competition

In recent times most organisations have implemented equal business management strategies such as “digital marketing, machine learning and artificial intelligence technologies” that are enabling these organisations to obtain equal opportunities in market. As a result of this, competition is becoming tough within globalisation of business. Entrepreneurship and innovative techniques of business help in predicting market situations and changing needs of consumers to satisfy their demands.

For instance, clothing and apparel industry in UK has identified that consumers are willing to purchase sustainable and green products which is leading this industry to manufacture goods by engaging eco-friendly raw materials. This way, corporate innovation helps in identifying consumer needs and developing products and services accordingly.

Implementing new technologies for enhancing firm performance and efficiency

In this era of industrial revolution 4.0, technology has become an integral part in managing business performance of firms for delivering value added services to consumers. Simaet al. (2020) discussed that technological advancements through innovation have given organisations a better opportunity for understanding consumer mindset and influencing their purchasing decisions by offering value added services. Among all technological approaches, “Artificial Intelligence” (AI) and “Virtual Reality” methods are becoming more acknowledged and praised by consumers due to its user-friendly approach.

AI is being used for developing virtual showroom to display products for acquiring a better consumer base. Besides that, machine learning is another important technological advancement that is being used for storing consumer data and using those for offering customised services. Digital payment methods including “quick response” (QR) codes are making payment easier for consumers for obtaining cashless transactions.

Theories Associated with Corporate Innovation and Entrepreneurship (CIE)

Rogers’ Innovation Diffusion Theory

BSS057-6 Corporate Innovation and Entrepreneurship pic 1Figure 1: Rogers’ Innovation Diffusion Theory (Source: As inspired by Räisänen and Tuovinen, 2020)

Innovation is primarily known as implementing something new for which can be an idea, a process or a thought that helps in maximising profit by reducing efforts. Considering this idea of innovation, Everett Rogers introduced an significant theory associated with innovation which is known as “Innovation Diffusion Theory” (IDT).

As asserted by Räisänen and Tuovinen (2020) innovation diffusion theory has four main components including “innovation, communication, social systems and required time”. According to this theory, interactions among these components help in understanding whether it is essential for an individual to accept innovation strategies or not.

In respect to current business scenario, communication channels, which is the second factor of this theory, includes methods of establishing communication with consumers such as broadcasting information and marketing of products. This theory not only helps in understanding consumer demands but also enables companies and entrepreneurs to identify ways through which innovation can be executed. First stage of this process is to seek knowledge about innovation and its importance.

Second stage is known as persuasion where an opinion is formulated regarding implementation of innovation. During third stage, entrepreneurs and individuals decide where idea of innovation is required to be included or excluded and in fourth and last stage, innovation is adopted. This theory helps in developing structural; methods for identifying needs of innovation and executing changes accordingly.

Hall’s Concerns-Based Adoption Model

BSS057-6 Corporate Innovation and Entrepreneurship pic 2Figure 2: Hall’s Concerns-Based Adoption Model (Source: As inspired by Hakalaet al. 2022)

Concerns Based Adoption Model” (CBAM) is regarded as a top-down approach for implementing changes within a business to achieve better profit and business advantages. This theory was developed by Hall for adopting innovation from the perspective of consequences after adopting that innovation within a certain environment. Hakalaet al. (2020) inferred that concerns based adoption model includes six major assumptions.

It claims, “change is a process and is adopted by individuals which change is personal and involves growth”.It further states that “change is understood in operational terms and focus on facilitation is required to be based on innovations, individuals and contexts”. This CABM theory also includes three diagnostic situations including “innovation configurations, stages of concern and levels of use”. Innovation configurations help in providing a transparent picture of factors that are responsible for high quality implementation of innovation.

Stages of concern is considered as a process that includes questionnaires and interviews regarding identifying attitude of employees for implementing innovative ideas through new initiatives. Third is level of use that combines innovation configuration and first hand observations. This strategy is more oriented with staff and employees and understanding their attitude for incorporating changes with business.

Hall’s Concerns-Based Adoption Model theory was first applied for students to identify their mindset of learning something new. Currently this theory is being used for understanding employee perspective and their attitude for adopting innovation and executing changes within organisation (Trapani and Annunziato, 2018). Following this theory, staff aim at moving beyond personal concerns and focus on developing a desired outcome for enhancing growth of organisation.

Comparing both these theories it can be stated that Rogers’ Innovation Diffusion Theory is more beneficial and advantageous for implementing innovation within business. Hall’s Concerns-Based Adoption Model has its own potential, but it is mostly associated with educational sector and applied to students. On the contrary, innovation diffusion model is more applicable to employees within a corporate business scenario and helps in providing a structural demonstration for implementing innovation within business.

In entrepreneurship, individuals act as leaders and aim at making consumers aware of their services and products. Through innovation diffusion theory entrepreneurs understand consumer mindset and develop innovative strategies accordingly.

Lewin’s Change Approach Theory

BSS057-6 Corporate Innovation and Entrepreneurship pic 3Figure 3: Lewin’s Change Approach Theory (Source: As inspired by Burnes, 2020)

Lewin’s change management model is considered as a simple and strategic approach that aims at humanizing change management process and it consists of three main strategies such as “unfreeze, change and refreeze”. Primary objective of this theory is to plan and implement required changes within an organisation by providing adequate flexibility to employees and organisational culture (Burnes, 2020).

Organisational culture is compact and it requires flexibility before implementing a change and this flexibility stage is considered as unfreezing. In this stage managers and leaders identify dissatisfaction and survival anxiety among employees and implement forces against anxiety to promote strategic learning. Transitional stage of this theory primarily aims at examining things that have happened in past and its relevance in new state.

In this stage managers seek new solutions for organisational development through creating new attitudes and implement right solution through trial and error methods. Final stage of this theory is refreezing where a new state of crystallised ownership is developed by locking in new habits, ideas, behaviour and skills of employees. This theory involves an adequate change management process and it is aligned with leadership, entrepreneurship and cultural framework ideas to implement adequate changes and fight crisis situations.

Kotter’s Dual Operating System Theory

 

BSS057-6 Corporate Innovation and Entrepreneurship pic 4Figure 4: Kotter’s Dual Operating System Theory (Source: As inspired by Valtiner and Reidl, 2021)

Kotter’s dual operation theory involves two different systems in business management including “strategy system” and “operating system” and these systems are essential for everyday business and agile business management. Valtiner and Reidl (2021) asserted that Kotter’s Dual Operating System Theory aims at exploring different opportunities and demands of future that are required to manage changes and enhance efficiency of employees to promote sustainability.

Strategy system involves flexibility and agility, different networks and dynamic and innovative creative forces. On the contrary, operating system involves structure and regulation, hierarchies and control effectiveness and predictability.  In this theory changer has been considered as a significant part that is multi-layered and multivariable and changes occur simultaneously since it has strong impact on different variables.

Change Management through Kaleidoscope

Patchwork of change requires change identification and change management tools for diagnosing possible factors responsible for changes and its outcome. As per the views of Rohlin et al. (2020) a Kaleidoscope helps in managing changes within organisation and it has three rings including outer, middle and inner. Outer ring involves organisational change context and analyse reasons for implementing a change. Middle ring involves contextual features and things that are required for change implementation. Inner ring involves an implementation option that enables managers to understand approaches of change implementation.

Significance of Corporate Innovation and Entrepreneurship (CIE) in Crisis Situation

Internal Crisis Situation

Internal communication refers to a combination of two fields: crisis communication and change communication. Both of these fields highlight highly complex situations that involve stakeholder and co-workers ambiguity and confusion. Crisis has been created through different situations in an organisation that affects it in a long term period. Crisis communication is an extensive field, which is a corporate innovation approach for developing new managerial expertises for handling different situations. “International crisis communication (ICC)” can be understood in different ways.

In recent times, there is growing consensus that employees and co-workers play an important role as communicators during an internal crisis period (EMERALD, 2021). There was a tendency among managers to focus on the top down information distribution process. This indicates that employees were playing a role on the receiver of instruction, orders and updates that comes from upper level management. Lower communication between upper level management and employees create higher communication gap that impact performance of businesses.

Lack of communication between managers and employees, upper level management were unable to provide necessary information to complete work within a limited time period. Employees are also unable to solve problems during their work because of lower communication. Therefore, CIE assist in developing ideas to reduce internal challenges in organisation.

CIE assist in developing ideas such as using co-worker as communicator provide effectiveness in business operations. Using this assist employee to become information senders and not only receiving information from top level management. Therefore, employees in an organisation are able to become active communicators during and after crises. Compared to other managers, co-workers work more close to core business and stakeholders.

Therefore, they would be able to achieve better understanding about business activities and communication with stakeholders. Co-workers are involved in boundary spanning activities so they are able to gather information about business activities and are able influence better brand image (EMERALD, 2021). However, communication roles as co-workers not only cover internal crisis situations. It also covers external crises. Co-workers play an important part in the pre-crisis phase in order to detect weak signals and organisational risks that turn into crisis.

External Crisis Situation

COVID-19 impact has been considered as external crisis for organisations that has created higher challenges for business to achieve competitive advantage. COVID-19 has created national restrictions that shape economical landscapes which create higher challenges for entrepreneurs (NCBI, 2020). Mitigating this crisis period business resilience assisted in surviving businesses in critical times. However, entrepreneurship has assisted in might move from survival to create new opportunities by including innovation and revenue generating action during crisis periods.

Higher amount of challenges has occurred for organisations to achieve better profitability. In this crisis, corporate innovation has assisted business continuity in their core. Organisational managers were able to cut costs, driving productivity and implementing safety measures in order to support growth. However, in this period investment in innovation has been highly suffered.

This situation has created a situation for adopting innovation in organisational work. In case of achieving higher innovation, CIE provides better effectiveness to organisations. CIE would be able to provide better ideas for organisations to make necessary changes to achieve better business resilience in crisis situations.

There are some actions that CIE has taken during the external crisis period to achieve higher benefits in business activities. CIE assisted in adapting core business activities to provide customer needs. An entrepreneur has to always focus on customer needs to provide better satisfaction so the organisation is able to achieve customer loyalty. Providing customer satisfaction, entrepreneurs would include products and services related to customer requirements. Moreover, identification of better opportunities is also a necessary action for corporate entrepreneurship.

During, COVID-19 crisis majority for entrepreneurship has able identify digitalisation as better marketing trend (NCBI, 2020). Restriction such as national lockdown has restricted business to achieve higher profitability. However, using market trends organisation able to achieve better marketing opportunities and target a higher amount of customers toward organisation. Therefore, CIE plays an important role in mitigating internal and external crises within organisations.

Synthesis

Change management and dealing with crisis situations enhances potential for achieving organisational objectives and increasing employee and firm performances. These change management theories and Kaleidoscope can be aligned with change management framework, leadership and organisational culture for increasing productivity within an organisation.

Since patchwork involves different aspects with different properties, managers and leaders aim at including different theories and tools of change management for making organisations future ready to deal with crisis situations. Considering change patchwork, it is essential for entrepreneurs and leaders to trace crisis situations and implement change management strategies through theoretical framework and change diagnosing tools.

Stitching Correlation between Factors for Developing Patchwork

Corporate innovation and entrepreneurship involves different approaches such as leadership, culture, cultural innovation, change process and crisis management that are essential for enhancing firm performance. Mehmood et al. (2021) studied that it is necessary for corporate leaders and entrepreneurs to demonstrate the correlation between these factors through a patchwork to achieve organisational goals and objectives.

This patchwork is necessary for demonstrating internal and external crisis situations and identifying ways through which can be dealt with to manage resources and employees of an organisation. In simple terms, patchwork can be defined as something that is composed of incongruous or miscellaneous parts of a particular matter just like a cover that is stitched of clothes of different shapes and colours.

As per the views of Christoph (2022) patchwork in reflection and academic research is defining a subject that consists of several facts and variables that resembles a “patchwork of fields”. Patchwork design is considered as a technique that aims at sewing small pieces of fabric with various shapes, textures and patterns for creating a larger geometric design.

In this paper, “corporate innovation and entrepreneurship” (CIE) is defined as a broader consent that consists of different smaller concepts such as innovation, organisational culture, technological advancements and leadership theories. From this study it has been identified that crisis situations can occur at a time that affect organisation growth which is required to be restricted for increasing firm performance.

For instance, here two crisis situations have been identified that involve an internal crisis situation and an external crisis situation that plays a significant role in corporate innovation and entrepreneurship. This study has enabled me to learn internal crisis situation is a combination of two factors that are crisis communication and change communication.

Crisis communication is recognised as an extensive field that aims at enhancing efficiency of leadership for managing employees and ensuring achievement of company objectives. From internal crisis situation it has been identified that lack of collaborative approach between coworkers is a major crisis that evolves as a major challenge for organisational growth. Thus, it is important to implement effective leadership strategies and organisational culture for dealing with this issue and reduce chances of internal crisis situations.

This internal crisis can be stitched and aligned with corporate innovation and entrepreneurship as entrepreneurship ideas and innovation helps in developing an effective organisational culture and promotes strong collaboration among workers and employees. Leadership approach consists of different leadership theories such as situational leadership, autocratic leadership and democratic leadership.

Considering needs of situation leaders implement adequate leadership strategies for managing employees and boosting their performance and enhance chances for achieving organisational goals. Paais and Pattiruhu (2020) studied that an effective organisational culture is created when employees feel more encouraged and motivated while performing their roles and responsibilities. Since innovation is one of the most important factors in corporate culture, leaders focus on incorporating “situational leadership” for defining needs of situations and implement innovation strategies accordingly.

Situational leadership can be best aligned with Hall’s Concerns-Based Adoption Model as it defines ability of employees to adopt innovation and changes within an organisation. Following this theory and situational leadership approach, leaders and entrepreneurs are able to understand whether an internal change or innovation is needed within an organisation and employees approach to adopt such changes. For dealing with internal crisis situations, Hall’s Concerns-Based Adoption Model and situational leadership can be stitched together for enhancing organisational performance with corporate innovation and entrepreneurship theory.

In terms of external crisis situations, it has been identified that COVID-19 has had a major negative impact on organisational performance. This is because business related operations such as inventory and supply chain management were totally disrupted by extended lockdowns. Due to this pandemic situation, most businesses are implementing innovative strategies for running their business online and reaching out to maximum number of consumers.

Currently technological advancements are being incorporated as innovative strategies for expanding business and achieving organisational success (Jafari-Sadeghi et al. 2021). This technological advancement includes digital marketing strategies such as internet marketing and social media marketing through push notifications and search engine optimisation (SEO) strategies. From the given theory of “Rogers’ Innovation Diffusion Theory” it can be aligned that understanding needs of consumers is most important for understanding changing consumer needs.

Due to implementation of innovation most companies are offering equal services to consumers which are increasing competition within market. Under this competitive situation within market, entrepreneurs focus on tracking changing patterns of consumer demands and identifying strategies for attracting consumers to their products through developing an emotional connect with consumers.

This emotional connect is formulated by organising strong marketing strategies by improving and developing attractive content and push notifications for making people aware of their products. This patchwork analysis has enabled me to understand correlation between factors and variables associated with corporate innovation, leadership, crisis management, correlation between employees and entrepreneurial ideas.

Recommendations for Corporate Innovation and Entrepreneurship (CIE)

Setting up a diverse team

In current business scenario, most organisations are involving different business approaches such as research and development, information and technology and marketing and advertising. It is quite obvious that a single team is not able to perform all these responsibilities and for that it is necessary for leaders and entrepreneurs to implement a diverse team that involves professionals of different fields. This diversification would help in exploring business opportunities by following adequate innovation, research and development and marketing and advertising campaign ideas.

Creating culture of openness

Organisational culture, especially a culture of openness is most important in corporate innovation and entrepreneurship that involves transparency within communication for increasing performance of employees. This culture of openness can be created by receiving feedback about mistakes and missteps that are often created by leaders and entrepreneurs.

In terms of developing a culture of openness, involvement among employees and managers is required to be improved for developing strong interpersonal relationships between them. Developing this culture of openness would help in encouraging employees to interact across an organisation and promote peer to peer learning activities to make organisations more creative and innovative.

Being prepared for change and managing change process

Change management ability is necessary for leaders and entrepreneurs for dealing with unnatural situations such as internal or external crises which may disrupt smooth flow of business strategies. Entrepreneurs are required to develop change management ability for managing change processes within an organisation by engaging employees. For effective change management leaders are required to organise training and development programmes for employees.

This training and development programmes would make employees aware of technological advancements and innovative processes that would help in enhancing skills and knowledge of employees for dealing with internal and external crisis situations.    

Establishing strong communication between management and employees

Communication between employees and managers is most essential for enhancing firm performance and dealing with crisis situations by establishing strong interrelation between leaders and employees. In order to strengthen communication especially during external crisis situations such as pandemic, entrepreneurs and leaders need to incorporate technological advancements within communication systems such as communicating through virtual communication such as video calling and communicating through artificial intelligence.

Establishing communication between employees and management would also help in developing collaborative approaches among employees to enhance firm performance. These recommendations are beneficial for developing a crisis management system within an organisation and achieve business objectives within a competitive business situation.

Conclusion

In the above study, it has been acknowledged that CIE has a higher importance to achieve better business operations. It provides higher assistance for developing innovative ideas for developing business activities. Study has highlighted that CIE provides a higher strategic approach for organisations for developing plans according to the needs in business conditions for maximising profit. In case of SME, CIE is mostly visible and managers are able to focus on expanding their business in the market.

Strategic implementation such as communication and stabilising good relationships between employees are effective. It has identified that communication plays an important role in information distribution from top level management to employees. Decision has been developed by top level management and shared to employees for effectively working and achieving their goals. However, lack of communication is an internal crisis for organisations that CIE requires to effectively maintain.

Providing employees the ability to share information with top level management assists in developing better relationships that provide higher impact in developing business. CIE assists organisation to achieve better competitive advantage within higher competitor’s availability. CIE was able to provide effective business trends and decisions to achieve better competitive advantage. Study has mentioned about “Rogers’ Innovation Diffusion Theory” that has relation with CIE. Internal and external crisis mitigation CIE plays an important role. COVID-19 was of the external crisis for organisation that has created higher business issues.

References

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Jafari-Sadeghi, V., Garcia-Perez, A., Candelo, E. and Couturier, J., (2021). Exploring the impact of digital transformation on technology entrepreneurship and technological market expansion: The role of technology readiness, exploration and exploitation. Journal of Business Research, 124, pp.100-111.

Mehmood, M.S., Jian, Z., Akram, U. and Tariq, A., (2021). Entrepreneurial leadership: The key to develop creativity in organizations. Leadership & Organization Development Journal.

NCBI (2020). Expanding entrepreneurial solution spaces in times of crisis: Business model experimentation amongst packaged food and beverage ventures. Available at: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7516375/ [Accessed on: 26th August 2022]

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