Strategic Entrepreneurship, Collaborative Essay

10161 WordsNov 15, 201441 Pages
Strategic Entrepreneurship Journal Strat. Entrepreneurship J., 1: 371–385 (2007) Published online in Wiley InterScience (www.interscience.wiley.com). DOI: 10.1002/sej.20 STRATEGIC ENTREPRENEURSHIP, COLLABORATIVE INNOVATION, AND WEALTH CREATION DAVID J. KETCHEN, JR.,1* R. DUANE IRELAND,2 and CHARLES C. SNOW3 Department of Management, College of Business, Auburn University, Auburn Alabama, U.S.A. 2 Department of Management, Mays Business School, Texas A&M University, College Station, Texas, U.S.A. 3 Department of Management and Organization, Smeal College of Business, The Pennsylvania State University, University Park, Pennsylvania, U.S.A. 1 Strategic entrepreneurship refers to firms’ pursuit of superior performance via simultaneous opportunity-seeking and advantage-seeking activities. Both small and large firms face impediments while pursuing strategic entrepreneurship. While small firms’ opportunity-seeking skills may be strong, their limited knowledge stocks and lack of market power inhibit their ability to enact the competitive advantages necessary to appropriate value from opportunities the firms choose to pursue. In contrast, large firms are skilled at establishing competitive advantages, but their heavy emphasis on the efficiency of their existing businesses often undermines their ability to continuously explore for additional opportunities. Building on a variety of theories, including network, learning, resource-based, and real options, we suggest that collaborative innovation can enable both types of firms to overcome their respective challenges. Collaborative innovation is the pursuit of innovations across firm boundaries through the sharing of ideas, knowledge, expertise, and opportunities. For small firms, we contend that pursuing entrepreneurship collaboratively allows them to preserve their creativity and flexibility while mitigating the inherent liabilities of

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