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Shrestha Nishan Article Review 1
Shrestha Nishan Article Review 1
Shrestha Nishan Article Review 1
Through their literature review the authors have attempted to answer why the corporate
entrepreneurship is of crucial importance for future sustainable performances and identify the
key challenges of this context. The article describes corporate entrepreneurship as different
types of entrepreneurial behavior in existing, large organizations (corporations) aimed at
achieving through encouraging innovation competitive advantage at all levels: corporate,
divisional, business unit, business functions and project teams. It differentiates corporate
entrepreneurship based on the nature and capability of corporation to invest in start-up venture
and management of new small firms independently from its core business. The concept of
corporate entrepreneurship is targeted on readiness of employees to break barriers of large
bureaucratic organization in order to breakthrough and develop of new products and service. It
requires incremental and sometimes radical change to complete the complex, transformational
process. The articles outline the current business challenges as: degree of resistance because of
past success, erosion of leadership and entrepreneurship, sense of complacency and selfconfidence that interfere the organizational changes, the lack of competences of the management
team to create an entrepreneurial architecture that can efficiently support the future
organizational growth and so forth. This process has to drive through many layers Business
Process Reengineering(BPI) from revitalizing products to training individuals and building
entrepreneurial teams. Even if organization managed to achieve this transformation once, the
major challenge is continuous iteration of the highly intricate, dynamic and agile process.
The article explains how positive organizational culture helps in shaping employee attitude,
minimizing conflicts, creates the sense of belonging and makes decision making more efficient.
It suggests that a process should be developed that motivates employees toward an
entrepreneurial mindset irrespective of their position. It recommends on fostering ecosystem
where individuals feel empowered and incentivized to take risks, make their own decisions, and
experiment, even if it means failing. A culture where informal, spontaneous, and nonbureaucratic decisions characterize the typical patterns of problem-solving and interaction
between employees and teams. As companies develop such culture, it can translate to practical
innovation and unleash creative power of human capital. This competitive advantage gained
from the new and dynamic approach evolves business towards growth and success, solving realworld problems, including those which had not yet been identified while making world a better
place. It further explains the role of team work, collaboration and communication in building the
entrepreneurial cultural. Communication between the employees helps to solve the existing
problems and create new environment for the interaction with business entities. Such team work
and collaboration builds up synergy, shape new ideas and increase productivity. The article
elaborates tangible and intangible motivational factors imperative to develop commitment and
sense of belonging in the organizations. Further the article emphasizes commitment and sense of
belonging as the key determinants of entrepreneurial organizational culture.
The authors effectually articulates the roles of referent values of entrepreneurial culture and
motivational factors that support effective implementation of such values in corporate
entrepreneurship model, and this gives support to the authors key claim that corporate
entrepreneurship has become necessary prerequisite for sustainable business development and it
should comprise coordinated changes of organizational structure and organizational culture as
well as encourage entrepreneurial behavior of employees at all levels as the engine of economic
growth and future business performances.
To recapitulate, I believe that the authors Dr. Paunovic and Dr. Dima have effectively supported
their position that business organizations must be prepared for proactive changes of their