Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

CHAPTER 4

Entrepreneurial

Architecture

PART 1

THE ENTREPRENEURIAL

DNA

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Dominant Logic

• Managers in an organization conceptualize

the business and make important resource

allocation decisions.

• Influences behavior, routines, strategies,

structures, culture and systems.

• Take times to build- constantly be learned

and unlearned.

• Entrepreneurship can be the basis for that

dominant logic.

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Entrepreneurial intensity

• One firm might produce a small number of

breakthrough developments (high on degree,

low on frequency) whilst another might

produce many small development, none of

which are breakthrough (low on degree, high

on frequency). Morris & Kuratko (2002).

• They agree that entrepreneurial Intensity is a

combination of degree and frequency.

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Innovation and Competitive Advantage

Increasing

competitive

advantage

Frequency of

Innovation

Degree of Innovation

HighLow

High

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Architecture

Architecture is the relational contracts within

and around an organisation - with customers,

suppliers and staff. It is based on trust and

underpinned by mutual self-interest.John Kay (1993)

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Architecture

• It replicates the entrepreneur’s ability to

build relationships

• It is informal

• It allows organisation to act quickly

• It creates organisational learning and

knowledge

• It is difficult to copy

• It creates barriers to entry

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Building Architecture

CULTURE

STRUCTURES

STRATEGIES

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

The Learning Organisation

A learning organisation is one that:

‘facilitates the learning of all its members and

continuously transforms itself….adapting,

changing, developing and transforming

themselves in response to the needs, wishes

and aspirations of people, inside and outside.’

Pedler, Burgoyne and Boydell

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

The Learning Organisation

Experience

Form

concepts

Reflect Test

concepts

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

The Learning Organisation

Experience

Form

concepts

Reflect Test

concepts

KNOW-HOW

KNOW-WHY

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

The Learning Organisation

Experience

Form

concepts

Reflect Test

concepts

KNOW-HOW

KNOW-WHY

Mental Models

Assumptions

Theories about the world

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Major concepts of the learning

organisation

• True learning is by acquiring both know-how

and know-why through the wheel of learning and

thereby understanding causality

• Mental models are shaped by & help shape

experience

• Learning happens when you share, examine &

challenge mental models

• The most effective learning is social & active –

not individual & passive

• The most important things are to learn tacit

things – intuition, judgement, expertise

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Hyper-growth companies are quintessentially learn-by-

doing organisations.

Michael Dell

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Entrepreneurial leaders

‘Entrepreneurs are ‘patient leaders, capable of

instilling tangible visions and managing for the

long haul. The entrepreneur is at once a learner

and a teacher, a doer and a visionary.’

Jeffrey Timmons (1999)

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Influences on Organisational Architecture

Culture

Structure

and size

Architecture Strategy

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Influences on Organisational Architecture

Culture

Structure

and size

Architecture Strategy

Leadership

Corporate Entrepreneurship: Building the Entrepreneurial Organization by Paul Burns

Influences on Organisational Architecture

Culture

Structure

and size

Architecture Strategy

Leadership

Environment