Creation Entrepreneurs

Fairly recently, an alternative theory of how businesses opportunities are formed has been proposed in the field of entrepreneurship. Labeled creation theory by Alvarez and Barney this new perspective suggests that business opportunities are not just triggered and formed by exogenous shocks in an industry or market as embraced by discover theory but also created endogenously by those that seek to generate economic wealth and engage in actions to create it. For those who seek to exploit them, these opportunities then do not appear as real and observable phenomena that may be discovered but rather come into being by the actions set forth by those seeking to generate profit.

Think of Steven Sasson at Kodak, who in the early 1970s, in the analog age, has born the idea of digital photography he then translated into a tangible camera. We look at corporate entrepreneurs to investigate the individual and sociological processes associated with the creation and mediation of radical new ideas in large, complex organizations. 2013 we continue our research at Kodak US

Opportunity Discovery (Case Nike + Ipod)

Research on creation theory or design thinking contribute much to our understanding of how new business opportunities are created. However, by large scholarly work remain on the individual level, the person that enacts in entrepreneurial actions; that is to say, findings say little about how to move  radical new ideas or concepts into  entrepreneurial initiatives in large organizations. We know little about how radical new and endogenously created ideas gain credibility in organizations. Thus, existing theory leaves several important questions unanswered.

Opportunity Creation (Case Kodak Digital Camera)

Creation theory in entrepreneurship encompasses many issues that have been debated lately under the tag design thinking in various disciplines.

We hold the view that opportunity creation processes (in contrast to opportunity discovery processes) render corporate entrepreneurship difficult on the ground of social exchange and leadership:  How do corporate entrepreneurs achieve credibility for new ideas within an established social system when likely outcomes cannot be tested until they have come into being? How are corporate entrepreneurs able to acquire resources to bring their new concepts into reality, even as experimental trials or prototypes, when these new concept cannot be verified in the real world? How are entrepreneurial initiatives incorporated into the existing set of organizational capabilities?

To address these questions, we build upon ecological process descriptions of CE suggesting a variation-selection-retention framework where entrepreneurial ideas and initiatives compete within an intra-organizational ecology. Perspectives taken are from organizational learning and knowledge creation as well as from CE leadership as a system of social exchanges. Particular focus is given to the elaboration of individual and social processes associated with the generation and validation of entrepreneurial knowledge in creation processes. The purpose of our research is to identify strategies and criteria that support intra-organizational acceptance of endogenously created ideas.