Organizational Culture and Corporate Entrepreneurship in Company
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Organizational Culture and Corporate Entrepreneurship
Whether an organizational culture and context is promising corporate entrepreneurship can only be achieved by internal efficiencies and performance of a company (Burns, 2005). Corporate entrepreneurship is considered as factor driving the productivity, innovation, economic growth and personnel absorption of an organization. For organizational performance and competitiveness, organization culture must be favorable to corporate entrepreneurship to achieve parity. The practice by which team within an established company conceive, foster, launch and manage new processes and activities distinct from the primary company leveraging its assets, market position, capabilities or other resources is described as corporate strategy. The value is added to companies through acquisitions, innovations in services, channels, brands in innovative manner to fit the business functions in place (Phelps & Zoega, 2010). Organizational culture is essentially to be the total of the attitudes, behaviors, beliefs, and traditions of an organization. It describes the situation and the way in which workers relate with each other and the market.
An organizational culture is favorable to corporate entrepreneurship. There are two different organizational processes, spontaneous and induced; the automatic process creates productive ventures with established firms in spite of them to match the corporate needs. On the other hand, induced processes encourage adoption of entrepreneurial behavior by set up of other programs, systems or organizations (Salama, 2011). Structure, systems, processes, and culture compose organization, and people are imperative to implement strategy thus the group processes must meet employees needs to access the resources within the corporate. The failure barrier is managing an effectiveness team, due to the gaps between performances, thus build up a well developed and envision goals can fuel success and help firm through to a new level of aspiration and alignment. The discussions in class that lack clear structure may devitalize organization.
There is a need for the clear transition from corporate culture to meet the needs of the people within an organization to allow for the sharing of resources to satisfy the needs of the ever-increasing number of employees.Organizational culture enables a firm to align its business strategy, and operational practices that would promote entrepreneurship through encouraging innovation, growth, market leadership. Despite its influence on performance in many of the firms culture is rooted how people within abusiness interact and coordinate to accomplish their work. Every organization needs continued innovation within its existing processes and systems, and the company entrepreneurship relies on whether the culture is bureaucratic or entrepreneurial.
Corporate entrepreneurship is directly linked with the culture of the organization and the firms that continue to achieve growth and success because of their systems and processes. The resources of the companies must be brought together in combination in order to be accessible to the workers of that group (Frederking, 2004). Employees’ attitude is critical for firm progress and performance just as the culture is to the entrepreneurial environment of an organization. The corporate must be able to take some level of risk to achieve the extent of innovativeness and profits within a market and must be able to deal with such risks as encountered (Salama, (2011).
A firm can explore its ability through inventions and launching new products while exploiting its available knowledge to enable its survival in the rapid environment. The leadership and the staff of such companies need skills as well to operate the entrepreneurial environment keeping keen observation of the markets and producing to meet the market needs. The personnel and the leadership must accept the changes from innovation and commit to their implementations in an appropriate manner (Burns, 2005). The ideas should be welcome from any level of the organization and incorporated into the strategy. Innovation can be encouraged across organizations though hard to create with companies undertaking to construct continually active corporate cultures and ensuring all resources are shared with all of the employees (Phelps & Zoega, 2010). Sharing resources and all organizational units encourages aculture of equality and reduces the bureaucracy that impedes entrepreneurship and the progress of other company core elements such as factuality, passion, and innovation. China is a country given as an example that encourages corporate enterprise. Typically, a company based in China has an eliminate hierarchy and embrace flat organization structure. The reforms in the economic and market segments are giving rise to state-owned enterprises, private domestic companies, and foreign-invested firms.
Application to Last Work Environment - AirMedia
AirMedia Group Inc. (Nasdaq: AMCN) one of the notable and successful operator of out-of-home Chinese advertising avenue target on mid-to-high-end customers (AirMedia, n.d.). The company runs a very diverse digital media platform in China that focus in particular all air travel advertising and produces digital TV in 37 major airports, including 25 out of the 30 largest airports in China. In other 32 airports, AirMedia manages digital frames with the inclusiveness of 15 most major airports in China Republic. The firm on the other hand trade on advertisements that of the routes operated by eight airlines, including the three largest airlines in China.
In selected major airports, AirMedia also runs indigenous media platforms that include but not limited to the billboards and light boxes together with other digital media and the LED screens. The company has obtained contractual concession rights exclusively to come up with and run outdoor advertising boards at the major airports in China. In a state economy such as that of China, the government always controls economic activities by the markets and the enterprises (AirMedia, n.d.). In accordance with Deng’s theory, the government started to roll expansionary policies for encouraging private business development (Huggins, & Thompson, 2014). At that time, there were no success methods to teach on how to build efficient organizational structure.
They are the people influenced by the Mao Zedong’ theory, thus in the beginning of the company, the structure of Airmedia as simple as straight hierarchy as government’s and trying to survive and grow successful in China. When cultural capitalism came to China in early 2000, after few acquisition and expansion, the companies become public under U.S. NASDAQ in 2006. The mission of it is becoming a one-stop service provider in the advertising industry (AirMedia, n.d.). Recently, the company innovates on this technique; launch in different field of marketing, acquisition and merger its competitors. Innovation executed contributes the company to become public list stock in NASQ (Covin, Kuratko, & Morris, 2011). The core component, the organizational structure of Airmedia whether decentralization or not, can contribute to success or failure innovation in the projects undertaken. The facts are represented, and the success or failure illustrated. Successes of the change project done by the company are from traditional TV screen transfer to LED in 2003 that made the company buy the Largest LED technology into China.
The launch changes the display from one – display at atime to Multi-display at atime in 2003, in order to triple the revenue of the company. The company set up the first system to control the displays in all of the airports in advertising in China in the year 2004 and the first company successful integrating resources of outdoor media by the capital market. Lastly, the setup and Wi-Fi wireless network on all express railways in China, in 2013, create a department, hiring experts and recruit top sales in advertising. The failure of the firm is then in their approach to luxury online e-commerce in an airplane, where passengers could shop during the flight in 2012. The unclear internal organizational structure also made a dispute sending half of senior managers out, setting their company, and getting access to the customer’s information in the year 2009.
Airmedia is better definite in the induced process of corporate entrepreneurship. It has to motivate the employee by setting up the program and envision goals because the sprite of an entrepreneur is not deep into the Chinese mindset. The company outsourcing the training programs in a different department and set up comprehensive individual performance evaluation criteria is another critical aspect the company undertook. Most of Chinese business is operating under hierarchical management. It has two sides: management of the relatively homogeneous competencies make its census implementing the strategy. However, the repetitive processes make it take the longer process of pass through on each stage and make it hard to reform the developing strategy that against what mother’s company has been doing. Due to the small royalty of employee, companies train the staffs and provide an entrepreneur opportunity for them as another way to keep well performance employees in the business (AirMedia, n.d.).
Was this environment favorable to Corporate Entrepreneurship?
Incorporate entrepreneurship, firms must respond to environmental signals on all the resources and opportunities available combined with their significance. The share of resources and organizational knowledge within an organization and the acceptance of innovative ideas can be considered effective for entrepreneurship. The environment of the company was favorable for corporate enterprise, and all Chinese enterprises are facing a transformation stage due to the Chinese market being dynamic and competitive, based on the amount of population, innovation as the priority to the companies. To Airmedia, it is behind what they should do at the beginning of Internet booming. They stayed in a comfortable zone for long time due to being already the leader in this industry. However, in recent the company started hiring expertise in new project and thinks out of the box on the new industry with balanced risk and reward to its employees.
The companies are connected with a global perspective, enhancing the vision of its comprehensive point of view with World Trade Organization aroused their entrepreneurship. The environment allows for successful innovation interactive across over and to corporate enterprise and evens its hierarchy organizational business. Ostensibly, now the employees’ are permittedto propose on their company plan to the manager, and manager evaluates its feasibility and then suggest to senior manager. Once the company plan is accepted, a maximum of two projects is allowed to develop per year. The company will establish an all exclusive department, hiring or select the best candidate for the new project; the team has the right to direct reporting to the board of directors (Burns, 2005). The aim of an entrepreneurial organization is to first launch, advantage revenue to promote transparency, accessible project evaluation will full success, and the good communication abundant information that do not block the freedom of opinion of staff.
Coordinating all the resources across all the stages of the project, integrate resources and allows for sufficient entrepreneurial activity. The staff and the leadership must also be coherent with the literature and knowledge existing within the organization. Learning is essential for the realizing innovation and new ideas and resultant entrepreneurship orientation that together with the learning process proves useful and aids in achieving the company performance. Learning orientation should then focus on the attention to environmental changes and prompt response based on the values of the business. It is critical that to achieve innovative ways; processes, structures, systems, models should be challenged in response to the changes in the environment. The existing innovative practices and the entrepreneurial activities of the company should be integrated with the new ones as per the changes in the environment and the needed response.
The trend in the global economy ignites changes for organizations and industries globally that thus make business and organizations to reevaluate their purpose to ensure that all their strategies are in place, or newer once are needed. This has seen companies restructure all their processes and resources in a more useful way beneficial to them and in line with the trends of the global market (Salama, 2011). The technical and skilled labor, corporate structure and any of the knowledge available within the organization are important in promoting entrepreneurship. The complexities and uncertainties revolving around the business environments should be dealt with strategically in order to avoid any harm to the enterprise or disruption of the operations.
Making the Environment More Favorable to Corporate Entrepreneurship
The environmental factors in place should be able to influence positively corporate entrepreneurship. There must be atransformation in the processes and the resources and knowledge belonging to the corporate organization must be made available to the staff. To achieve a favorable environment for corporate entrepreneurship, the knowledge sharing aspect must encompass the whole body, and the traditional norms must be challenged (Foley & Klyver, 2012). The management and the top leadership must be able to accept changes, take ideas from every level of the organization irrespectively, and make strategic moves in order to make the organization entrepreneurial and not bureaucratic (Covin, Kuratko, &Morris, 2011).
In the matrix between resource authority and organizational ownership, Airmedia identifies into the producer if the company seeks to conquer the new growth domains, discover break between the advocate and the opportunist section. For successful companies to achieve favorable environment, it should start with a small, credible team and a mandate from senior management team and the leader of the new corporate entrepreneurship project initiatives then collaborate between the top board and the team is mandatory. Communication and knowledge sharing are necessary as they are essential in achieving census vision of the project
The steps to enhance the entrepreneurial mindset instead of creating a system or setting explicit goals consistently gives help and connections by stopping their enthusiasm, evolved quick response and manage it in their way. It is important to establish an innovative environment for the corporate entrepreneurship in order to achieve success and avoid any failure. Persistence on the census of the original idea to bring into the market also enhances a company performance and position in the competitive line. The process of selecting the people who to involve in the project experts, experienced, or functional, oriented to projects have to be under an efficient evaluation if the desired outcomes are to be achieved for the company (Burns, 2005). People, leadership, and their attitudes play a critical role in the organizational entrepreneurship, and just as the attitudes are to the people, so is entrepreneurship is to an organization. Active leveled communication within an organization and the rate of providing feedback and response to changes is critical in providing favorable conditions for corporate entrepreneurship. The fact that authentic and new ideas can be generated and absorbed shows the company innovativeness.
The only way to achieving favorable environment is by approaching the matter in a sound manner and encouraging people performance and giving room for innovativeness. Learning orientation and entrepreneurship are interconnected and thus for companies to achieve stronger entrepreneurial grounds, they must ensure continued learning the process and sharing of corporate knowledge in an efficient manner. Challenging the processes and learning and sharing knowledge in a company is a sure way to realizing innovation and organizational leadership. It is also essential that a corporation uncover the underlying dimensions of an efficient environment and the factors that can impede corporate entrepreneurship (Foley & Klyver, 2012). Design the strategy focus of any of the organizations should be towards innovation and achieving company enterprise and all the people in the organization should be involved and appreciated.
The current global trends force companies to base on innovation and entrepreneurship thinking, with the focus onbusiness strategies based on the same. The focus is on the capacity of the firms to compete in the global markets on equal grounds and to allow challenging of systems and structures and systems of a company. The factors of innovation and competitiveness are expected to influence entrepreneurship all through. Being entrepreneurial, companies can comprehensively compete in the environment full of rivalry with the realities in place having the strategic decision of its own processes and structures. Irrespective of the firm size, focus on entrepreneurship aids a company in competing efficiently and having a clear focus on purpose while at the same time encouraging the workforce commitment and effective performance.
Environmental dynamism effects change in the corporate environment, which relates to other forces that impact returns of a firm (Burns, 2005). The change in the general economic environment is progressive and inevitable, companies, therefore, need to focus on dynamics to survive and maintain or improve their performances. Technological availability is yet another aspect that affects the entrepreneurial status of a business, as it is capable of directly influencing the innovative processes within the organization (Covin, Kuratko, & Morris, 2011). New technologies can expand organizational boundaries and encourage new ideas that in return present advancement of ideas at different levels. Complexities of the environment and the demand for newer products are as well pivotal for organizational entrepreneurship.
The factors initiate companies to come up with new ways to deal with the challenges presented to them in order to stand the transformations occurring in the global platform (Salama, 2011). Increased demands for new products on the other hand subject firms to the intensive reorganization of activities and processes that at the same time increase entrepreneurial activities while meeting customer needs. Renewal of strategies should, therefore, be undertaken with a consideration to every aspect that contributes to the advancement of corporate entrepreneurship. With a focus to maintain performances and keep clear focus while transforming the processes and activities of any particular organization desired results and outcomes could be achieved.