Innovation Strategies for Firms and Entrepreneurs:
Podcast 1: Try to Know Our Names!
Lead song: You Know My Name – Chris Cornell
Summary Article 1: the innovation journey: you can't control it, but you can learn to manoeuvre it
- Andrew H. Van de Ven
Innovation is about taking risks; it is important to notice that no innovation process has a certain outcome.
Success factors of companies:
Choice of strategies (46%)
Choice of industries (8%)
Parent companies (<1%)
LUCK!
Cycling of the innovation journey
- A set of seemingly random coincidental events occur for an innovation direction.
- After developing the venture in a planned convergent direction, the process proliferates into a
divergent cycle.
- Problems, mistakes, and resource lead innovators into a convergent cycle.
- This cycle of convergent behavior may diverge again with further exploration of a chosen direction.
- The innovation journey ends either in a convergent pattern of innovation implementation or the
divergent behavior is terminated when resources run out or when political opposition prevails to
terminate the developmental effort.
Constraining factors
External rules and mandates
Internal focus and self-organizing
Divergent behaviour < Convergent behaviour >
A branching & expanding process of exploring new An integrating & narrowing process of exploiting a
directions given direction
Creating ideas & strategies Implementing ideas & strategies
Learning by discovery Learning by testing
Pluralistic leadership Unitary leadership
Building relationships and porous networks Executing relationships in established networks
Creating infrastructure for collective advantage Operating within infrastructure for competitive
advantage
Enabling factors
Resource investments
Unit restructuring
Innovation development journey: random > transitions to chaotic > ends in orderly patterns of behaviour.
1
,Stage gate model:
Non-linear: divergent and convergent activities that may repeat in unpredictable ways over time
Linear: as if the desired result has been achieved step by step
Maneuvering transitions between divergent and convergent flows are particularly problematic:
1. Transition between convergent and divergent patterns requires different management skills
2. Transitions are unpredictable and out of control
It is primarily through repeated trials and the accumulation of learning experiences across these trials that an
organization can build its repertoire of competencies to progressively increase its odds of innovation success.
Develop ways to let managers practice innovation skills in relatively safe environments. Management educators
could act on this
2
,Podcast 2: You Can’t Always Get What You Want!
Lead song: You Can’t Always Get What You Want – Rolling Stones
Summary Article 1: you can't always get what you want: How entrepreneur's perceived resource needs affect
the incubator's assertiveness
- Marijn van Weele, Frank J. van Rijnsoever, Frans Nauta
Start-up: young innovative firm (team of entrepreneurs form a start-up)
Often seen to contribute economic growth and disrupt the market
Also known as new technology-based firms (can be argued that some new forms do not have new
technology for example the many platforms that are upcoming now)
Relatively small and do something new
Business Incubators: programmes and organizations that primarily support new technology-based start ups
Try to help new start-ups that have early ideas to become actual successful businesses
Others distinguish between incubators, accelerators, ventures builders and some form of supporting
co-working spaces. They mostly do the same, but the difference is in the marketing.
Resource’s perspective (Barney, 1991): include all assets, capabilities, organisational processes, firm attributes,
information, knowledge, etc. controlled by a firm that enable the firm to conceive of and implement strategies
that improve its efficiency and effectiveness (Daft, 1983). In the language of traditional strategic analysis, firm
resources are strengths that firms can use to conceive of and implement their strategies.
Resource needs Incubator support to fulfil resource needs
Physical capital Office space
University equipment and library
Financial capital Seed capital in exchange for equity
Access to investors
Knowledge Provide technological knowledge through proximity to university
groups and laboratories
Provide business knowledge through coaching and training
Social capital Facilitate the creation of external networks by organizing events,
creating partnerships, and making introductions
Facilitate the creation of a community through co-location, social
events, and introductions
Legitimacy Association with an established incubator
Two categories of resources:
1. Intangible/immaterial resources: knowledge, legitimacy, and social capital
2. Tangible/material resources: physical and financial capital
It is not always clear how or if the resources incubators provide help the start-up:
Resources offered by incubators are sometimes of poor quality, and do not fit the needs of start-ups.
Many entrepreneurs might not know what resources they need or how to use them.
This has implications for how the incubator operates.
Which resources, provided by the incubator, do entrepreneurs and incubator staff perceive as important, and
why do their perceptions differ?
The explanation for these differences in perceptions had important implications for incubators. If the
incubator’s resources are of insufficient quality or not in line with the needs of start-ups, then incubators need
to focus on developing their resources and listen more carefully to the needs of entrepreneurs. On the other
hand, if entrepreneurs are insufficiently aware of the needs of their start-up, then merely providing resources
on the request of entrepreneurs is not sufficient for incubators. Incubators should then actively identify the
needs of start-ups and stimulate entrepreneurs to make use of the incubator’s resources that fit these needs.
3
, What do these differences in perceptions imply for the incubator’s assertiveness?
Entrepreneurs initially did not perceive business knowledge to be important and were not willing to develop
this resource because they were hesitant to step out of their comfort zone and primarily short term oriented.
Incubators supporting early-stage start-ups with first-time entrepreneurs were therefore highly assertive, using
various practices to stimulate entrepreneurs to develop resources.
Perceptions of resource importance
Perceptions can be different to the incubator and entrepreneur. The incubator could make the entrepreneur
aware of its needs (different approaches: how assertive or relax should they need to be). Many entrepreneurs
join an incubator for the tangible resources, like office space. Later start-ups realize that intangible resources
are more important. This aligns with the view of incubator staff; incubator staff consistently identified business
knowledge as the main resource need of start-ups. Incubators felt that, while entrepreneurs had a solid
technological knowledgebase, they did not know how to do sales, marketing, fundraising, pitching, etc.
Explanations on low usage of incubator’s resources
Resources and their quality did not always meet the needs of the start-ups. Incubators do not
sufficiently take the needs of the incubated start- ups into account, which results in a mismatch
between the resources provided by incubators and the resources needed by start-ups.
Start-ups are often focused on technology. They are often:
o “Unconsciously incompetent”: technological background and little entrepreneurial
experience, entrepreneurs not only lacked business knowledge, but they were also not aware
of its importance.
o Short term oriented and focused on day-to-day business: they prioritized activities that yield
immediate rewards
o Unwilling to leave their comfort zone: as going to business seminars, workshops or writing a
business plan. Therefore, there is a difference between entrepreneurs expected and
experienced resource constraints
Consequences for incubators (incubator’s assertiveness)
For inexperienced “incompetent” entrepreneurs
Strong intervention approach:
o Aggressive coaching
o Mandatory participation
o Fixed milestones
o Recruit additional (experienced) entrepreneurs
For experienced “competent” entrepreneurs
Laissez-faire/let it go approach:
o Demand driven support
If you want to be rich, sometimes you must give up some control (when you are more inexperienced). It is rare
to have enough money yourself for the investments.
“You can’t always get what you want but if you try some time, you just might find
You get what you need”
“We recommend incubators to provide entrepreneurs with the resources they need, which may be different
from the resources entrepreneurs want”
4
Podcast 1: Try to Know Our Names!
Lead song: You Know My Name – Chris Cornell
Summary Article 1: the innovation journey: you can't control it, but you can learn to manoeuvre it
- Andrew H. Van de Ven
Innovation is about taking risks; it is important to notice that no innovation process has a certain outcome.
Success factors of companies:
Choice of strategies (46%)
Choice of industries (8%)
Parent companies (<1%)
LUCK!
Cycling of the innovation journey
- A set of seemingly random coincidental events occur for an innovation direction.
- After developing the venture in a planned convergent direction, the process proliferates into a
divergent cycle.
- Problems, mistakes, and resource lead innovators into a convergent cycle.
- This cycle of convergent behavior may diverge again with further exploration of a chosen direction.
- The innovation journey ends either in a convergent pattern of innovation implementation or the
divergent behavior is terminated when resources run out or when political opposition prevails to
terminate the developmental effort.
Constraining factors
External rules and mandates
Internal focus and self-organizing
Divergent behaviour < Convergent behaviour >
A branching & expanding process of exploring new An integrating & narrowing process of exploiting a
directions given direction
Creating ideas & strategies Implementing ideas & strategies
Learning by discovery Learning by testing
Pluralistic leadership Unitary leadership
Building relationships and porous networks Executing relationships in established networks
Creating infrastructure for collective advantage Operating within infrastructure for competitive
advantage
Enabling factors
Resource investments
Unit restructuring
Innovation development journey: random > transitions to chaotic > ends in orderly patterns of behaviour.
1
,Stage gate model:
Non-linear: divergent and convergent activities that may repeat in unpredictable ways over time
Linear: as if the desired result has been achieved step by step
Maneuvering transitions between divergent and convergent flows are particularly problematic:
1. Transition between convergent and divergent patterns requires different management skills
2. Transitions are unpredictable and out of control
It is primarily through repeated trials and the accumulation of learning experiences across these trials that an
organization can build its repertoire of competencies to progressively increase its odds of innovation success.
Develop ways to let managers practice innovation skills in relatively safe environments. Management educators
could act on this
2
,Podcast 2: You Can’t Always Get What You Want!
Lead song: You Can’t Always Get What You Want – Rolling Stones
Summary Article 1: you can't always get what you want: How entrepreneur's perceived resource needs affect
the incubator's assertiveness
- Marijn van Weele, Frank J. van Rijnsoever, Frans Nauta
Start-up: young innovative firm (team of entrepreneurs form a start-up)
Often seen to contribute economic growth and disrupt the market
Also known as new technology-based firms (can be argued that some new forms do not have new
technology for example the many platforms that are upcoming now)
Relatively small and do something new
Business Incubators: programmes and organizations that primarily support new technology-based start ups
Try to help new start-ups that have early ideas to become actual successful businesses
Others distinguish between incubators, accelerators, ventures builders and some form of supporting
co-working spaces. They mostly do the same, but the difference is in the marketing.
Resource’s perspective (Barney, 1991): include all assets, capabilities, organisational processes, firm attributes,
information, knowledge, etc. controlled by a firm that enable the firm to conceive of and implement strategies
that improve its efficiency and effectiveness (Daft, 1983). In the language of traditional strategic analysis, firm
resources are strengths that firms can use to conceive of and implement their strategies.
Resource needs Incubator support to fulfil resource needs
Physical capital Office space
University equipment and library
Financial capital Seed capital in exchange for equity
Access to investors
Knowledge Provide technological knowledge through proximity to university
groups and laboratories
Provide business knowledge through coaching and training
Social capital Facilitate the creation of external networks by organizing events,
creating partnerships, and making introductions
Facilitate the creation of a community through co-location, social
events, and introductions
Legitimacy Association with an established incubator
Two categories of resources:
1. Intangible/immaterial resources: knowledge, legitimacy, and social capital
2. Tangible/material resources: physical and financial capital
It is not always clear how or if the resources incubators provide help the start-up:
Resources offered by incubators are sometimes of poor quality, and do not fit the needs of start-ups.
Many entrepreneurs might not know what resources they need or how to use them.
This has implications for how the incubator operates.
Which resources, provided by the incubator, do entrepreneurs and incubator staff perceive as important, and
why do their perceptions differ?
The explanation for these differences in perceptions had important implications for incubators. If the
incubator’s resources are of insufficient quality or not in line with the needs of start-ups, then incubators need
to focus on developing their resources and listen more carefully to the needs of entrepreneurs. On the other
hand, if entrepreneurs are insufficiently aware of the needs of their start-up, then merely providing resources
on the request of entrepreneurs is not sufficient for incubators. Incubators should then actively identify the
needs of start-ups and stimulate entrepreneurs to make use of the incubator’s resources that fit these needs.
3
, What do these differences in perceptions imply for the incubator’s assertiveness?
Entrepreneurs initially did not perceive business knowledge to be important and were not willing to develop
this resource because they were hesitant to step out of their comfort zone and primarily short term oriented.
Incubators supporting early-stage start-ups with first-time entrepreneurs were therefore highly assertive, using
various practices to stimulate entrepreneurs to develop resources.
Perceptions of resource importance
Perceptions can be different to the incubator and entrepreneur. The incubator could make the entrepreneur
aware of its needs (different approaches: how assertive or relax should they need to be). Many entrepreneurs
join an incubator for the tangible resources, like office space. Later start-ups realize that intangible resources
are more important. This aligns with the view of incubator staff; incubator staff consistently identified business
knowledge as the main resource need of start-ups. Incubators felt that, while entrepreneurs had a solid
technological knowledgebase, they did not know how to do sales, marketing, fundraising, pitching, etc.
Explanations on low usage of incubator’s resources
Resources and their quality did not always meet the needs of the start-ups. Incubators do not
sufficiently take the needs of the incubated start- ups into account, which results in a mismatch
between the resources provided by incubators and the resources needed by start-ups.
Start-ups are often focused on technology. They are often:
o “Unconsciously incompetent”: technological background and little entrepreneurial
experience, entrepreneurs not only lacked business knowledge, but they were also not aware
of its importance.
o Short term oriented and focused on day-to-day business: they prioritized activities that yield
immediate rewards
o Unwilling to leave their comfort zone: as going to business seminars, workshops or writing a
business plan. Therefore, there is a difference between entrepreneurs expected and
experienced resource constraints
Consequences for incubators (incubator’s assertiveness)
For inexperienced “incompetent” entrepreneurs
Strong intervention approach:
o Aggressive coaching
o Mandatory participation
o Fixed milestones
o Recruit additional (experienced) entrepreneurs
For experienced “competent” entrepreneurs
Laissez-faire/let it go approach:
o Demand driven support
If you want to be rich, sometimes you must give up some control (when you are more inexperienced). It is rare
to have enough money yourself for the investments.
“You can’t always get what you want but if you try some time, you just might find
You get what you need”
“We recommend incubators to provide entrepreneurs with the resources they need, which may be different
from the resources entrepreneurs want”
4
