Corporate Entrepreneurship
Table of contents:
Week 5 3
Lecture 1: Innovator’s Dilemma 3
The innovator’s dilemma – Introduction (Christensen 1997) 8
Week 6 9
Readings 9
He & Wong, 2004 9
Moore, 2004 12
Quiz week 6 15
Lecture 2: Corporate Entrepreneurship: properties of balance 17
Week 8 21
Readings 21
Turro et al 2014 21
Ling et al 2008 24
Quiz week 8 27
Lecture 3: Entrepreneurial Leadership & Culture 29
Week 9 33
Readings 33
Birkinshaw & Gibson 2004 33
Fourne et al 2019 36
Lecture 4: Organizing for Corporate Entrepreneurship 39
Quiz 43
Week 10 45
Readings 45
Green 2023 45
Kim & Mauborgne 2004 45
Kim & Mauborgne 2005 47
Lecture 5: Strategic Corporate Entrepreneurship - Blue Ocean Strategy 52
Quiz 55
Week 11 57
Readings: 57
AIContentfy (2023) 57
Chesbrough & Bogers (2014) 58
Stadler et al. (2021) 62
Quiz readings 64
1
, Lecture 6: emerging technologies and open innovation 66
Week 12 69
Readings 69
De Man & Duysters (2005) 69
KPMG (2017) 73
Boudreau & Lakhani 2009 (case article) 76
Tutorial 78
Hollensen 2013 78
Lecture 7: M&As and Alliances 79
Quiz 86
Week 15 88
Readings 88
Burgelman & Välikangas 2005 88
Chesbrough 2002 90
Sauvage et al (2022) 91
Lecture 8: Corporate Venturing 92
Quiz 98
Mock Exam 100
Course structure:
- Good notes on the slides and read the cases
● Final Exams (70%)
- CE–MCQ with guessing correction(40%) → 30 questions
- Stats– open questions(30%)
- Minimum 5.0 on each exam to pass
● Group Case Analysis (30%)
- 3 tutorial cases(3x5%)
● no re-sit
- Final case(15%)
- Free-riding?
- No minimum grade
● Extra credit
- 7in-class reading quizzes
(above 75% = +0.5 grade to CE exam)
- nore-sit
2
,Week 5
Lecture 1: Innovator’s Dilemma
After this lecture you’ll be able to:
- Define disruptive innovation
- Explain the difference between disruptive and sustaining innovation
- Explain the innovator’s dilemma
- Name principles of disruptive innovation
● The Mortality of Companies
The life cycle of a company tends to follow much more that of an organism, increasing at
the beginning & then turning over & becoming static (...) dominated by (...) economy of
scale
- The average lifespan is 40-50 years The Half-life is only 10 years
● Average Lifespan is DecreasinG
An S&P 500 company is being replaced about once every two weeks.
In 2027, 75% of the companies currently quoted on the S&P 500 will disappear.
● Why Do Big Companies Fail?
- Victims of their success
- Focus on the parts that generate the biggest profit, emphasizing efficiency
- Neglecting the newer parts and potential innovations
"Cities tolerate crazy people. Companies don’t.”
● “Good Management Itself Was the Root Cause”
- Managers are not blind!
- They just play their game:
- Stay close to customers
- Track competitors
- Improve the performance of existing products
- Yield greater profits from high-margin markets
● Disruptive innovation
A process by which a product or service initially takes root in simple applications at the bottom of
a market—typically by being less expensive and more accessible— and then relentlessly moves
upmarket, eventually displacing established competitors.
- Better radios: first transistor radio (inexpensive, not very good quality sound), and now
furniture radio (very good quality sound)
3
, - Tomtom → Google Maps: is disruptive because it was for free, they were not competing,
they disrupted the whole market.
● Sustaining innovation
- From desktop to laptop: also radical according to portability
● Disruptive vs. radical innovation
- Radical innovation: from horse to the first car
- Disruptive innovation: The Ford Model T is a new business model and an affordable car
● Disruptive Innovation Characteristics
- Offers inferior performance
→ more defects, less speed, lower power
- Brings new value
→ cheaper, simpler, more reliable, and convenient
- Rejected by high-end customers
- Can only be sold in niche markets (at first)
→ low-end customers or non-consumers
- Does not offer high margins
- Undervalued by big companies
It’s Irrational to Invest in It
● Inferior performance: from bookstore to Amazon
● New entrants
- Have nothing to lose, start-ups
- Initially no threat
→ Niche markets, with low margins
→Nimbleness and low-cost structure
● Sustaining vs Disruptive Innovation
4
Table of contents:
Week 5 3
Lecture 1: Innovator’s Dilemma 3
The innovator’s dilemma – Introduction (Christensen 1997) 8
Week 6 9
Readings 9
He & Wong, 2004 9
Moore, 2004 12
Quiz week 6 15
Lecture 2: Corporate Entrepreneurship: properties of balance 17
Week 8 21
Readings 21
Turro et al 2014 21
Ling et al 2008 24
Quiz week 8 27
Lecture 3: Entrepreneurial Leadership & Culture 29
Week 9 33
Readings 33
Birkinshaw & Gibson 2004 33
Fourne et al 2019 36
Lecture 4: Organizing for Corporate Entrepreneurship 39
Quiz 43
Week 10 45
Readings 45
Green 2023 45
Kim & Mauborgne 2004 45
Kim & Mauborgne 2005 47
Lecture 5: Strategic Corporate Entrepreneurship - Blue Ocean Strategy 52
Quiz 55
Week 11 57
Readings: 57
AIContentfy (2023) 57
Chesbrough & Bogers (2014) 58
Stadler et al. (2021) 62
Quiz readings 64
1
, Lecture 6: emerging technologies and open innovation 66
Week 12 69
Readings 69
De Man & Duysters (2005) 69
KPMG (2017) 73
Boudreau & Lakhani 2009 (case article) 76
Tutorial 78
Hollensen 2013 78
Lecture 7: M&As and Alliances 79
Quiz 86
Week 15 88
Readings 88
Burgelman & Välikangas 2005 88
Chesbrough 2002 90
Sauvage et al (2022) 91
Lecture 8: Corporate Venturing 92
Quiz 98
Mock Exam 100
Course structure:
- Good notes on the slides and read the cases
● Final Exams (70%)
- CE–MCQ with guessing correction(40%) → 30 questions
- Stats– open questions(30%)
- Minimum 5.0 on each exam to pass
● Group Case Analysis (30%)
- 3 tutorial cases(3x5%)
● no re-sit
- Final case(15%)
- Free-riding?
- No minimum grade
● Extra credit
- 7in-class reading quizzes
(above 75% = +0.5 grade to CE exam)
- nore-sit
2
,Week 5
Lecture 1: Innovator’s Dilemma
After this lecture you’ll be able to:
- Define disruptive innovation
- Explain the difference between disruptive and sustaining innovation
- Explain the innovator’s dilemma
- Name principles of disruptive innovation
● The Mortality of Companies
The life cycle of a company tends to follow much more that of an organism, increasing at
the beginning & then turning over & becoming static (...) dominated by (...) economy of
scale
- The average lifespan is 40-50 years The Half-life is only 10 years
● Average Lifespan is DecreasinG
An S&P 500 company is being replaced about once every two weeks.
In 2027, 75% of the companies currently quoted on the S&P 500 will disappear.
● Why Do Big Companies Fail?
- Victims of their success
- Focus on the parts that generate the biggest profit, emphasizing efficiency
- Neglecting the newer parts and potential innovations
"Cities tolerate crazy people. Companies don’t.”
● “Good Management Itself Was the Root Cause”
- Managers are not blind!
- They just play their game:
- Stay close to customers
- Track competitors
- Improve the performance of existing products
- Yield greater profits from high-margin markets
● Disruptive innovation
A process by which a product or service initially takes root in simple applications at the bottom of
a market—typically by being less expensive and more accessible— and then relentlessly moves
upmarket, eventually displacing established competitors.
- Better radios: first transistor radio (inexpensive, not very good quality sound), and now
furniture radio (very good quality sound)
3
, - Tomtom → Google Maps: is disruptive because it was for free, they were not competing,
they disrupted the whole market.
● Sustaining innovation
- From desktop to laptop: also radical according to portability
● Disruptive vs. radical innovation
- Radical innovation: from horse to the first car
- Disruptive innovation: The Ford Model T is a new business model and an affordable car
● Disruptive Innovation Characteristics
- Offers inferior performance
→ more defects, less speed, lower power
- Brings new value
→ cheaper, simpler, more reliable, and convenient
- Rejected by high-end customers
- Can only be sold in niche markets (at first)
→ low-end customers or non-consumers
- Does not offer high margins
- Undervalued by big companies
It’s Irrational to Invest in It
● Inferior performance: from bookstore to Amazon
● New entrants
- Have nothing to lose, start-ups
- Initially no threat
→ Niche markets, with low margins
→Nimbleness and low-cost structure
● Sustaining vs Disruptive Innovation
4
