Entrepreneurial Strategy Stimulating Value Creation: Conceptual Findings and Some Empirical Tests

Abstract

Objective: The objective of this article is to offer arguments for the strategic support of entrepreneurial processes that stimulate value creation. Recent findings show that firms concentrate mostly on outcomes and performance, neglecting the primary sources of value creation. As value is created largely from generating innovative ideas, it is important that firms strategically support the process of idea generation with the help of organisational design stimulating innovations, as well as strategic leadership.

Research Design & Methods: The quantitative research using classical theory testing was adopted. Data was collected from organisations in Poland with a questionnaire and PAPI interviews. The data was assessed with descriptive statistics, factor analysis and correlation analysis.

Findings: The research carried out identified four dimensions of the entrepreneurial strategy supporting value creation. The research indicated low but positive relations between strategic dimensions and subjective, non-financial measures of value creation and performance.

Implications & Recommendations: For a higher level of new idea generation and innovativeness it is important to focus on innovation-friendly organisational design and on strategic leadership that stimulates network building for the use of external resources.

Contribution & Value Added: The article offers arguments for the strategic support of innovativeness, it identifies empirical elements of entrepreneurial strategy, and indicates relations between them and non-financial assessment of value creation.

Keywords

Entrepreneurial strategy, Value creation, Innovativeness

References

1. Afuah, A. (2000). How much do your co-opetitors’ capabilities matter in the face of technological change? Strategic Management Journal, 21(3), 397-404.
2. Ahola, T., Laitinen, E., Kujala, J., & Wikström, K. (2008). Purchasing strategies and value creation in industrial turnkey projects. International Journal of Project Management, 26 (1), 87-94.
3. Alsaaty, F.M. (2011). A model for building innovation capabilities in small entrepreneurial firms. Academy of Entrepreneurship Journal, 17(1), 1-21.
4. Antoncic, B., & Hisrich, R.D. (2003). Privatization, Corporate Entrepreneurship and Performance: Testing a Normative Model. Journal of Developmental Entrepreneurship, 8(3), 197-218.
5. Band, W. (1991). Creating Value for Customers. New York: John Wiley.
6. Bilton, C., & Cummings, S. (2010). Creative strategy. Reconnecting business and innovation. Chich-ester: John Wiley and Sons.
7. Blyler, M., & Coff, R. (2003). Dynamic capabilities, social capital and rent appropriation: ties that split pies. Strategic Management Journal, 24(7), 677-686.
8. Boal, K.B., & Hooijberg, R. (2000). Strategic Leadership research: Moving on. Leadership Quarterly, 11(4), 515-549.
9. Brock-Smith, J., & Colgate, M. (2007). Customer Value Creation: A Practical Framework. Journal of Marketing Theory and Practice, 15(1), 7-23.
10. Cannella (Jr.), A.A., & Monroe, M.J. (1997). Contrasting Perspectives on Strategic Leaders: Toward
11. a More Realistic View of Top Managers. Journal of Management, 23, 213-237.
12. Charlton, G. (2000). Human habits of highly effective organizations. Pretoria: Van Schaik Publishers.
13. Chatain, O. (2010). Value Creation, Competition, and Performance in Buyer-Supplier Relationships. Strategic Management Journal, 32, 76-102.
14. Christensen, C.M. (1999). Innovation and the General Manager. Boston, MA: Irwin McGraw-Hill.
15. Gomes-Casseres, B. (1994). Group Versus Group: How Alliance Networks Compete. Harvard Busi-ness Review, July-August, 62-74.
16. Graetz, F. (2002). Strategic Thinking and Strategic Planning. Management Decision, 40(5/6), 456-462.
17. Guillot, W.M. (2003). Strategic leadership: Defining the challenge. Air and Space Power Journal, Winter, 67-75.
18. Hackney, R., Burn J., & Salazar, A. (2004). Strategies for value creation in electronic markets: to-wards a framework for managing evolutionary change. The Journal of Strategic Information Systems, 13(2), 91-103.
19. Hitt, M.A., Ireland, R.D., Sirmon, G., & Trahms, Ch.A. (2011). Strategic Entrepreneurship: Creating Value for Individuals, Organizations and Society. Academy of Management Perspectives, May, 57-75.
20. Hitt, M.A., Ireland, R.D., Camp, S.M., & Sexton, D.L. (2001). Strategic entrepreneurship: entrepre-neurial strategies for wealth creation. Strategic Management. Journal, 22, 479-491.
21. Ireland, R.D., & Hitt, M.A. (1999). Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. The Academy of Management Executive, 13(1), 43-57.
22. Johnston Jr., R.E., & Bate, D. (2007). The Power of Strategy Innovation: A New Way of Linking Crea-tivity and Strategic Planning to Discover Great Business Opportunities. New York: Amacom.
23. Kuhn, R.L. (1989). Creativity and Strategy in Mid-Sized Firms. New Yersey: Prentice-Hall.
24. Leigh, K.E. (2011). Organizational creativity: The relationship between creativity, values, and per-formance in architectural practice. UMI, ProQuest, Ann Arbor.
25. Louw, L., & Venter, P. (2006). Strategic Management: Winning in the Southern African workplace. Cape Town: Oxford University Press.
26. Lubik, S., Garnsey, E., Minshall, T., & Platts, K. (2013). Value creation from the innovation environ-ment. R&D Management, 43(2), 136-150. https://doi.org/10.1111/radm.12006
27. Miller, D. (1983). The Correlates of Entrepreneurship in three types of firms. Management Science, 29.
28. Morris, M.H., Kuratko, D.F., & Covin, J.G. (2008). Corporate entrepreneurship and innovation (2nd ed). Mason: Thomson South-Western.
29. Pavitt, K. (1991). Key Characteristics of the Large Innovating Firms. British Journal of Management, 2(1), 41-50.
30. Powell, W.W. (1990). Neither Market nor Hierarchy: Network Forms of Organization. Research in Organizational Behavior, 12, 295-336.
31. Priem, R.L. (2007). A Consumer Perspective on Value Creation. Academy of Management Review, 32(1), 219-235.
32. Pycraft, M., Singh H., & Phihlela K. (1997). Operations Management. Southern African Edition. South Africa: Pearson Education.
33. Ritala, P., & Tidström, A. (2014). Untangling the value-creation and value-appropriation elements of coopetition strategy: A longitudinal analysis on the firm and relational levels. Scandinavian Journal of Management, 30(4), 498-515.
34. Ronda-Pupo, G.A., & Guerras-Martin, L.A. (2012). Dynamics of the evolution of strategy concept 1962-2008: A co-word analysis. Strategic Management Journal, 33, 162-188.
35. Ryall, M.D. (2013). The New Dynamics of Competition. Harvard Business Review, June, 13-17.
36. Ryall, M.D., & Sorenson O. (2008). Brokers and competitive advantage. Management Science, 53(4), 566-583.
37. Shane, S. (2003). A General Theory of Entrepreneurship. The Individual-Opportunity Nexus. North-ampton: Edward Elgar Publishing..
38. Tantalo, C., & Priem, R.L. (2016). Value creation through stakeholder synergy. Strategic Manage-ment Journal, 37, 314-329.
39. Teti, E., Perrini, F., & Tirapelle, L. (2014). Competitive strategies and value creation: a twofold perspective analysis. Journal of Management Development, 33(10), 949-976.
40. Tushman, M.L., Anderson, P.C., & O’Reilly, C. (1997). Technology cycles, innovation streams, and ambidextrous organizations: organizational renewal through innovation streams and strategic change. In M.L. Tushman, & P.C. Anderson (Eds.), Managing strategic Innovation and Change. Oxford: Oxford University Press.
41. Van de Ven, A.H. (1988). Central problems in the management of innovation. In: M.L. Tushman, & W.L. Moore (Eds.), Readings in the Management of Innovation. Cambridge, MA: Ballinger.
42. Woodall, T. (2003). Conceptualization ‘Value for the Customer’: An Attributional, Structural and Dispositional Analysis. Academy of Marketing Science Review, 12.
43. Woodruff, R. (1997). Customer Value: The Next Source for Competitive Advantage. Journal of the Academy of Marketing Science, 25(2), 139-153.