The Entrepreneurial Culture

Published February 27, 2013 by Mayrbear's Lair

oc-Entrepreneurship

Research reveals that more and more companies are embracing an entrepreneurial culture in the innovation process within their organizations. Firms have begun to comprehend that the nature of innovation is transforming the workplace and have developed policies to accommodate this paradigm shift.  The field of innovation now expands beyond the traditional arenas of science and technology.  Organizations have done this by instigating innovation in ways that also address new components to include: 1) co-creation, 2) user involvement, and 3) environmental and social challenges (Prahalad, 2010). The Lego Corporation, for example has emerged as a company that incorporates a visible entrepreneurial culture.

lego-mindstorm-nxt

In 2006, innovators at Lego decided to involve users in the early stages of the development process for the next generation of a popular product called Mindstorms.  They picked four advanced users from an online community to help develop new features. This strategic union between users and non-users from the in-house production staff turned out to be quite successful and a contribution to Lego’s culture toward a better organizational experience. The experience and insight users offered were a valuable asset for the engineers who could now develop a new product directly with the feedback of the operators. It was so successful, they eventually became a part of the Lego Innovation team and the new version of Mindstorms NXT went on to garner two achievement awards within the first few months of its release. MacDonald (2008) purports that working for a huge corporation can hinder productivity due to the bureaucratic nature.  In other words there is less freedom to engage in creativity that can help individuals fully realize their potential (MacDonald, 2008, pp. 4-6). The Lego corporation has found a way to break some of these bureaucratic barriers by incorporating innovative entrepreneurial techniques.

economic-crisis

Economic crisis and high unemployment rates forced some out of the world of bureaumania and into the world of entrepreneurship. It forced some individuals to find solutions outside the box for employment. For example, one person began offering marketing and social media production services to a select corporate executives as an independent contractor.  The venture is still in the infancy stages as they continue to learn from their experiences and work out the bugs from the structures that hinder the process which include the expansion of a client base and the resources to support it. Badal (2013) suggests that creating the right environment which includes: (a) being open to risk, (b) developing trusting relationships, (c) building skills and knowledge, (d) offering support, (e) obtaining access to resources, (f) maintaining a supportive organizational structure, and (g) setting realistic goals, is pivotal for the innovation process that is emerging in the entrepreneurial sector (Badal, 2013).

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References:

Badal, S. (2013). Building corporate entrepreneurship is hard work. Retrieved February 13, 2013, from Gallup Business Journal: http://businessjournal.gallup.com/content/157604/building-corporate-entrepreneurship-hard-work.aspx

MacDonald, R. (2008). Beat the system: 11 secrets to building an entrepreneurial culture in a bureaucratic world. Hoboken, NJ: John Wiley & Sons, Inc.

Prahalad, C. K. (2010). The new nature of innovation. Ann Arbor, MI: OECD.

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