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Licensed Unlicensed Requires Authentication Published by De Gruyter August 6, 2021

Corporate Entrepreneurship as a Learning Process: Development of New Capabilities

  • Mahshid Tootoonchy ORCID logo EMAIL logo and Seyed Mojtaba Sajadi

Abstract

Corporate entrepreneurship (CE) seems as an insurance against environmental dynamics to let the organization grow by seeking opportunities. The main purpose of this study is to offer a conceptual framework evaluating how the individual level opportunity recognition links to firm-level integration and institutionalization of knowledge bases. This study proposes a conceptualization of CE as a learning process to develop new Dynamic Capabilities (DC) that enables firms to reinvent themselves through innovative ideas. Dynamic capabilities contribute to the managerial cognition to explore new entrepreneurial opportunities; however, no former research has investigated the development of DC through CE process. Building from our analysis of the mechanisms through which the corporate entrepreneurship could influence the development of dynamic capabilities, we apply a multiple case study design to address the research gap. To investigate the research question, four case studies have been selected, through which we examine: a) the association of managerial cognition, as the knowledge foundation of opportunity exploration, to capability development; b) the mechanism of corporate entrepreneurship learning process through discovery, engagement, and transformation; c) the reasons behind ignorance of some entrepreneurial opportunities; and d) the effect of capability development on the corporate entrepreneurship outcomes. We conclude that dynamic capabilities are most beneficial for entrepreneurs to make drastic change by moving further away from sense-making of opportunities to institutionalization of new capabilities. However, our proposed conceptual framework is general and needs to address the deeper interdependencies and complexities. As a result, the proposed framework calls for empirical astuteness and further theoretical development. Derived from two interrelated fields of corporate entrepreneurship and dynamic capability, this study contributes with a novel model addressing how managerial cognition links to entrepreneurial outcomes. By adopting organizational learning view, the proposed framework seeks to capture corporate entrepreneurship as a dynamic ongoing process.


Corresponding author: Mahshid Tootoonchy, University of Tehran, Tehran, Iran, E-mail:

Funding source: Iran’s National Elites Foundation

Award Identifier / Grant number: 140/90167

Appendix A

The structure of the semi-structured interviews (Protocol)

Section one (venturing):

  • Who are the main entrepreneurs?

  • What is the story behind the formation of your company?

  • What was the source of this innovative idea?

  • Did you need specific resources or skills that you did not have at that time?

  • How did you utilize this innovative idea into execution?

  • How confident were you to start the venture? (Please rank from 1 to 7)

Section two (new product, process, structure, or service):

  • How did the idea of the new product/service/process come to your mind? Was it a requirement or a complimentary product to your portfolio?

  • What resources or skills were enquired that you did not have them at the moment?

  • How did you plan to execute your idea?

  • Did you run any risk analysis before execution?

  • How confident were you for this new development? (Please rank from 1 to 7)

Section three (best practice to develop new capabilities):

  • Based on your experience in development of the new product, what are your company’s strengths and weaknesses?

  • Was your original plan changed during group practice? Did you receive any feed backs from your team?

  • If you would have the chance to go back, what would you do or don’t?

  • Do you prefer to sell your idea or execute it yourself?

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Received: 2020-11-19
Accepted: 2021-07-25
Published Online: 2021-08-06

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