STRATEGIC ENTREPRENEURSHIP

Development of Strategic Entrepreneurship

Strategic Entrepreneurship has been increasingly recognized and emphasized as an

important priority for organizations, particularly for established businesses that strive to
develop a more entrepreneurial orientation in their quest for sustained competitive
advantage.

Both as a discipline and business practice, strategic entrepreneurship has attracted much
attention and acceptance since its introduction about 10 years ago (2001). As a field of
study, strategic entrepreneurship involves the integration of strategy (strategic
management) and entrepreneurship.
Defining Strategic Entrepreneurship

Strategic Entrepreneurship can be defined as a process for making changes in

established operations, where the integration of entrepreneurial opportunity seeking
and strategic advantage seeking actions is a key characteristic and an enabler for
innovation, firm growth and wealth creation (Hitt et. al., 2001).
Definitions of Strategic Management

Strategic management means managing for the present as well as creating change so
that the firm continues to prosper in a global, uncertain world.

Fitzroy and Hulbert (2005) viewed strategic management as a process involves in

creating organizations that generate value in a turbulent world over a sustained
period of time. It is management task that involves leadership, creativity, passion, and
analysis—building an organization that both generates and responds to change,
developing compensation systems to reward staff, devising appropriate structures and
systems, competing for funds in global financial markets, and ensuring that
necessary resources are developed and allocated to worthwhile opportunities.

Hashim (2008) defined strategic management as the entrepreneurial process by which

a firm accomplishes its objectives through the formulation and implementation of
effective strategies based on its distinctive capabilities and business environment.
Definitions of Entrepreneurship

Entrepreneurship is the process of doing something new and/or something different

for the purpose of creating wealth for the individual and adding value to society
(Raymond Kao, 1993).

Entrepreneurship is the creation of an innovative economic organization (or network

of organizations) for the purpose of gain or growth under conditions of risk and
uncertainty (Dollinger, 1995).

Entrepreneurship is a process of innovation and new venture creation through four

major dimensions; individual, organization, environment, process, and aided by
collaborative networks in government, education, and institutions (Kuratko and
Hodgetts, 2001).
According to Drucker (1998), there has been much confusion about the proper
definition of entrepreneurship. Some use the term to refer to all small businesses
and others to all new businesses.

However, in practice, a great many well-established businesses engaged in highly

successful entrepreneurship. The term then refers not to an enterprise’s size or
age but to certain kind of activity.

At the heart of that activity is innovation, the effort to create purposeful, focused
change in an enterprise’s economic or social potential.
Importance of Strategic Entrepreneurship

Strategic entrepreneurship can help organizations to become more creative and innovative
in creating values and to gain as well as to maintain a competitive advantage. Exploiting
an entrepreneurial opportunity is often necessary to sustain a competitive advantage.

Focus of Strategic Entrepreneurship

Strategic entrepreneurship is a big picture course. Its focus and scope include the
following:

1. the total organization;

2. the industry/market;
3. the competitive environment in which it operates;
4. its long term direction;
5. its strategy;
6. its resources;
7. its competitive capabilities;
8. its business opportunities;
9. its prospect for growth and success.