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About this book

This book provides an overview of the theory, practice and context of entrepreneurship and innovation at both the industry and firm level. It provides a foundation of ideas and understandings designed to shape the reader’s thinking and behaviour to better appreciate the role of innovation and entrepreneurship in modern economies, and to recognise their own abilities in this regard. The book is aimed at students studying advanced levels of entrepreneurship, innovation and related fields as well as practitioners (for example, managers, business owners).

As entrepreneurship and innovation are largely indivisible elements and cannot be adequately understood if studied separately, the book provides the reader with an overview of these elements and how they combine to create new value in the market. This edition is updated with recent international research, including research and examples from Europe, the US, and the Asia-Pacific region.

Table of Contents

Frontmatter

1. Entrepreneurship as a Social and Economic Process

Abstract
This chapter examines the social and economic process underpinning entrepreneurship activity and the impacts of entrepreneurial activity on global, national and local economies. In particular, it focuses on defining key concepts such as enterprise, entrepreneurship, entrepreneurs and innovation. Entrepreneurship and innovation are now recognised as being among the key elements in the process of economic development and vital to the ability of a nation’s economy to maintain competitiveness. According to the Organisation for Economic Co-operation and Development (OECD) entrepreneurship and innovation are the essential tools for dealing with many of the world’s social and economic challenges.Government interest in entrepreneurship and innovation is driven by the desire to maintain economic growth and the creation of jobs. The Global Financial Crisis (GFC) of 2007–2009, like the Great Depression of 1929–1939, impacted most of the world’s economies, triggering negative GDP growth, high rates of unemployment, the collapse of companies and the failure of banks (OEDC 2016). However, even without these traumatic economic crises, the overall trend in the late twentieth and early twenty-first centuries has been a steady decline in full-time employment within large organisations, and their replacement with new jobs created by self-employment and small, high-growth gazelle firms (Brännback et al. 2014).
Tim Mazzarol, Sophie Reboud

2. The Entrepreneur

Abstract
This chapter examines some of the psychological and social trait theories of entrepreneurship as well as environmental factors likely to trigger enterprising behaviour. Also examined are the roles of creativity and achievement drive, plus concepts for evaluating individual entrepreneurial traits. The chapter also overviews the concept of entrepreneurial orientation.
Tim Mazzarol, Sophie Reboud

3. The Entrepreneurial Process

Abstract
This chapter examines creativity and its links to enterprise. This includes the three-stage process of entrepreneurship: opportunity screening; acquiring resources and building capability. Within this examination, the chapter reviews innovation and competitive advantage, financing ventures, team building and entrepreneurial growth. The process of entrepreneurship has been viewed as resting on four cornerstones. The first of these is the ability to impact your personal environment. Second is to possess a high degree of self-confidence. Next is the ability to create support networks that the entrepreneur can call upon for assistance, advice and resources. The final element is the ability to create a linkage from vision to action (Johannisson 1988). In this chapter, the role of creativity and the need to develop sound networks to support entrepreneurial activities are examined.
Tim Mazzarol, Sophie Reboud

4. Entrepreneurship and Innovation in Large Firms

Abstract
This chapter examines: new venture creation in established organisations, the intrapreneurial process, the middle manager as an entrepreneur, the roles of sponsors, and climate makers. The infusion of entrepreneurial thinking into large corporate organisational structures has emerged as a key area of management attention since the 1990s. As levels of competition have accelerated, the creative and innovative nature of entrepreneurship has come to be seen as a way of enhancing the competitiveness of organisations and encouraging employees to view themselves as owners. This has seen organisations attempting to encourage employees to tap into their creative and innovative talents, and seeking to promote innovation.
Tim Mazzarol, Sophie Reboud

5. Innovation in Small Firms

Abstract
This chapter examines the small business sector and the differences that exist between entrepreneurs and small business owner-managers. The “myth” of small business innovation and the entrepreneurial growth cycle of small firms are also explored along with the need for small firms to establish collaborative support networks. The importance of small business entrepreneurs being able to develop strategic thinking skills is highlighted along with the need for them to learn how to balance strategy, structure and resources.
Tim Mazzarol, Sophie Reboud

6. Adoption and Diffusion of Innovation

Abstract
This chapter examines theories of the adoption and diffusion of innovation. It explores the issue of whether innovation diffusion is a social or economic process, and the importance of initial customer selection. Also discussed are the need to identify clear pathways to market, the barriers to market entry, and substitution threats. The need for the formation of strategic alliances is also considered.
Tim Mazzarol, Sophie Reboud

7. Planning, Business Models and Strategy

Abstract
This chapter examines the relationship between the entrepreneur’s vision and the need for strategic planning. It recognises that flexibility is critical in the development of entrepreneurial ventures and that the planning process must be non-linear in nature if it is to be responsive to the opportunities that market or product innovation offer. While the discipline of formal business planning is highly important to the development of a successful venture, the plan is only a manifestation of the business case or model that underlies the venture. The chapter explores the nature of planning and strategy, business model design and offers both a theoretical and applied view of these areas.
Tim Mazzarol, Sophie Reboud

8. Risk Management in Innovation

Abstract
This chapter examines the issue of how to manage risk in the process of innovation. By its very nature, innovation is inherently risky. The more radical and disruptive the innovation, the more uncertainty and potential risk is created. However, the management of risk remains an important issue for any manager or organisation seeking to engage in the commercialisation of innovation. Risk management, or enterprise risk management (Brustbauer 2016; Reboud and Séville 2016), is viewed as a major concern for managers today and the number of large companies having a risk manager is growing. However, within the context of new entrepreneurial ventures the dynamics are different, because such businesses are particularly risky, and face greater uncertainty. This is particularly the case in innovation where structured, systematic approaches are necessary.
Tim Mazzarol, Sophie Reboud

9. Disruptive Innovation and the Commercialisation of Technology

Abstract
This chapter examines the role of innovation as a key economic driver and the nature of radical or disruptive innovations as a major source of new technological products and processes. It examines the theory and practice of strategic management of innovation, and the generation of innovation value through the adoption of a Blue Ocean strategy. The chapter also provides an overview of new product development processes such as Stage-Gate® and Lean Start-Up, plus the process of assessing innovation rent.
Tim Mazzarol, Sophie Reboud

10. Screening Opportunities and Assessing Markets

Abstract
This chapter examines the process of screening opportunities for new product development (NPD), and the importance of undertaking detailed market assessments of the customers’ needs and wants. It discusses the use of a range techniques and associated concepts including voice of customer, quality function deployment (QFD), Kano analysis, CAGE modelling, customer archetyping, product concept development, and product-technology road mapping. The chapter also provides an overview of how this screening and market assessment process can be undertaken with reference to many of the concepts covered in Chaps. 7, 8, and 9.
Tim Mazzarol, Sophie Reboud

11. Team Building, Company Leadership and Strategic Alliances

Abstract
This chapter examines the nature of corporate structure and governance for high-growth firms as well as the process of team building both in early stage and in more mature ventures. The importance of getting the right team and the need to ensure that the team is balanced and effective are also considered. It also examines some of the issues associated with the management of strategic partnering through joint ventures and alliances.
Tim Mazzarol, Sophie Reboud

12. Financing the Venture

Abstract
This chapter examines the financing options available to entrepreneurs from initial start-up through growth and expansion. It examines the key sources of finance with attention to debt, equity and retained profit. While much of the popular focus of entrepreneurial financing has been placed on venture capital, this is only one of many options available to entrepreneurs, and it is not always the most appropriate or popular. Furthermore, as we will show, securing venture capital financing is quite difficult and most new ventures will not be eligible for such financing.
Tim Mazzarol, Sophie Reboud

13. Intellectual Property Management

Abstract
Commercialisation has been described as the process of preparing and taking an established product, process or service to market (DITR 2003). The process ends when the product, process or service is finally marketed successfully to the customer. It is typically the costliest part of the innovation process, requires the most entrepreneurial effort and involves the most commercial risk. At the heart of the commercialisation process is the development and economic leverage of IP, which is the ability of creative ideas to be identified and protected for future commercial benefit. In this chapter, we explore the nature of IP and IP rights as well as how such IP can be brought to market via the commercialisation process. The chapter examines the role of intellectual property (IP) in the innovation process including: types of IP, the protection of IP, and how to assess the technical feasibility of an innovation. Also considered is the process of licensing and the valuation of IP in the commercialisation of an innovation.
Tim Mazzarol, Sophie Reboud

14. Social Entrepreneurship and Co-operative and Mutual Enterprise

Abstract
This chapter provides an overview of the emerging field of social entrepreneurship and innovation, with a specific focus on co-operative enterprise as a distinct business model. While entrepreneurship has been viewed as a process of self-directed, individualistic and profit maximising opportunism, the reality is that many entrepreneurs and innovators are not totally focused on personal wealth creation. Money is just a necessary tool that can be used to purchase assets with which to develop new products or services and deliver value to customers.
Tim Mazzarol, Sophie Reboud
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