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Uncovering Strategic Entrepreneurship: an Examination of Theory and Practice

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Uncovering Strategic Entrepreneurship: an Examination of Theory and Practice Uncovering strategic entrepreneurship: An examination of theory and practice Thesis submitted to Auckland University of Technology in partial fulfilment of a Masters of Business degree Belinda Luke 2005 Table of Contents Table of Contents ii List of Tables vii List of Figures viii List of Appendices ix Research publications to date arising from the study xi Acknowledgements xiii Abstract xiv Chapter 1 1 1. Introduction 2 1.1 Introduction 2 1.2 Background 3 1.3 Problem orientation 5 1.4 Research question 6 1.5 Research Method 8 1.6 Structure of thesis 9 Chapter 2 11 2. Literature review 12 2. 1 Introduction 12 2.2 Examining entrepreneurship 12 2.2.1 Economic perspective of entrepreneurship theory 13 2.2.2 Alternative views of entrepreneurship theory 15 2.2.3 What an entrepreneur is not 18 2.2.4 Proposed view of entrepreneurship 20 2.3 The evolution of strategic entrepreneurship 21 2.3.1 The concept of strategy 21 2.3.2 Strategic management 25 2.3.3 Identifying the relationship between strategy and entrepreneurship 29 2.4 The concept of strategic entrepreneurship 34 2.4.1 Fundamental elements of strategic entrepreneurship 40 2.4.2 Limitations of existing research 44 2.5 Strategic entrepreneurship in a public sector context 46 2.5.1 Strategic entrepreneurship and government policy 47 2.5.2 Strategic entrepreneurship and government practice 50 ii 2.6 Summary 55 Chapter 3 57 3. A preliminary framework of strategic entrepreneurship 58 3.1 Introduction 58 3.2 Strategic entrepreneurship: a proposed framework 58 3.3 Fundamental elements of the proposed framework 59 3.4 Scope of strategic entrepreneurship 60 3.5 Circle of strategic entrepreneurship 62 3.6 Balance of the fundamental elements 64 3.7 Maintaining the framework 65 3.8 Summary 66 Chapter 4 67 4. Research method 68 4.1 Introduction 68 4.2 Research approach 68 4.2.1 A qualitative design 70 4.2.2 Deductive versus inductive research 72 4.3 Case study analysis 74 4.4 Data sources 78 4.4.1 Analysis of documents 78 4.4.2 Interviews 80 4.4.3 Observation 84 4.5 Data analysis 86 4.6 Reliability and validity 88 4.7 The issue of ethics 90 4.8 Participant selection 91 4.8.1 Contextual background: Government organisations in New Zealand 93 4.9 Summary 96 Chapter 5 98 5. Findings: MetService case study 99 5.1 Introduction 99 5.2 MetService 100 5.3 Overview of MetService 100 iii 5.4 Overview of strategic entrepreneurship in practice: Weatherscape XT 103 5.5 Examining Weatherscape XT in the context of the proposed framework 105 5.5.1 Core elements of Weatherscape XT 105 5.5.2 Key aspects of Weatherscape XT 114 5.6 Examining Weatherscape XT: beyond the scope of the proposed framework 117 5.6.1 Strategy 117 5.6.2 Culture 118 5.6.3 Branding 120 5.7 Developments in Weatherscape XT 121 5.8 Summary of Weatherscape XT 122 Chapter 6 123 6. Findings: New Zealand Post case study 124 6.1 Introduction 124 6.2 New Zealand Post 124 6.3 Overview of New Zealand Post 125 6.4 Overview of strategic entrepreneurship in practice: Kiwibank 128 6.5 Examining Kiwibank in the context of the proposed framework 131 6.5.1 Core elements of Kiwibank 131 6.5.2 Key aspects of Kiwibank 138 6.6 Examining Kiwibank: beyond the scope of the proposed framework 140 6.6.1 Strategy 140 6.6.2 Culture 141 6.6.3 Branding 143 6.7 Developments in Kiwibank 144 6.8 Summary of Kiwibank 145 Chapter 7 146 7. Findings: Quotable Value case study 147 7.1 Introduction 147 7.2 Quotable Value 147 7.3 Overview of Quotable Value 148 7.4 Overview of strategic entrepreneurship in practice: E-valuer 151 7.5 Examining E-valuer in the context of the proposed framework 153 7.5.1 Core elements of strategic entrepreneurship 153 7.5.2 Key aspects of E-Valuer 162 7.6 Examining E-valuer: beyond the scope of the proposed framework 165 7.6.1 Strategy 165 iv 7.6.2 Culture 166 7.6.3 Branding 169 7.7 Developments in E-valuer 170 7.8 Summary of E-valuer 171 Chapter 8 173 8. Discussion 174 8.1 Introduction 174 8.2 Core elements of strategic entrepreneurship 174 8.2.1 Opportunity identification 175 8.2.2 Innovation 179 8.2.3 Acceptance of Risk 182 8.2.4 Flexibility 184 8.2.5 Vision 186 8.2.6 Growth 188 8.3 Supporting elements of strategic entrepreneurship 192 8.3.1 Strategy 192 8.3.2 Culture 193 8.3.3 Branding 197 8.3.4 Operational excellence 198 8.3.5 Cost efficiency 199 8.3.6 Transfer and application of knowledge 201 8.4 Re-examining the literature on strategic entrepreneurship 203 8.4.1 Networks and alliances 204 8.4.2 Internationalisation 205 8.4.3 Organisational learning 206 8.4.4 Top management teams and governance 207 8.4.5 Resources 208 8.4.6 Other elements and issues within the literature 209 8.5 Scope of strategic entrepreneurship 212 8.6 Operation of strategic entrepreneurship 214 8.7 Function of strategic entrepreneurship 217 8.8 Summary 220 Chapter 9 222 9. Conclusion 223 9.1 Overview of the study 223 9.2 Significant findings 224 9.2.1 Defining strategic entrepreneurship: practical support for the proposed framework 224 9.2.2 Extensions to the preliminary framework: supporting concepts 226 v 9.2.3 Refinement of existing concepts 227 9.2.4 Scope of strategic entrepreneurship 229 9.3 Contributions from the study 230 9.3.1 Implications for theory 231 9.3.2 Implications for practice 234 9.4 Limitations of the study 236 9.5 Areas for further research 238 References 241 Appendices 259 vi List of Tables Table 2.1 Evolution of strategic entrepreneurship 34 Table 2.2 Comparison of 3 models of strategic entrepreneurship 36 Table 2.3 Ireland et al.’s (2003) model of strategic entrepreneurship 39 Table 2.4 Fundamental elements of strategic entrepreneurship 43 Table 5.1 Proposed framework of strategic entrepreneurship in the context of Weatherscape XT 114 Table 5.2 Additional elements relevant to strategic entrepreneurship in the context of Weatherscape XT 120 Table 6.2 Additional elements relevant to strategic entrepreneurship in the context of Kiwibank 144 Table 7.1 Proposed framework of strategic entrepreneurship in the context of E-Valuer 162 Table 7.2 Additional elements relevant to strategic entrepreneurship in the context of E-Valuer 170 Table 8.1 Core elements of strategic entrepreneurship 191 Table 8.2 Supporting elements of strategic entrepreneurship 202 Table 8.5 Integration of elements central to strategic entrepreneurship 215 Table 9.1 Refinement and clarification of themes identified within the literature 228 Table 9.3 Central aspects of core and supporting elements within SE 233 vii List of Figures Figure 2.1 Different perspectives and emphasis within entrepreneurship literature 16 Figure 2.2 Elements within entrepreneurial strategy 25 Figure 2.3 Continuum of entrepreneurial activity 29 Figure 2.4 The development of entrepreneurship within the discipline of strategy 33 Figure 3.1 The circle of strategic entrepreneurship 63 Figure 3.2 Open system of entrepreneurial elements 63 Figure 4.1 Triangulation of data collection 76 Figure 9.1 Continuums relevant to strategic entrepreneurship activity 230 Figure 9.2 Conceptual levels of strategic entrepreneurship 231 viii List of Appendices Appendix A Interview protocols 260 Appendix B Ethics approval 263 Appendix C Participant information sheet 264 Appendix D Participant consent form 266 Appendix E New Zealand State-owned enterprises 267 Appendix F Strengths and limitations of the research methods used in this study 268 Appendix G Research protocol 270 Appendix H Definition and description of terms relevant to MetService’s operations 277 Appendix I Definition and description of terms relevant to NZ Post’s operations 278 Appendix J Subsidiary and associated companies of NZ Post as at June 2004 279 Appendix K Definition and description of terms relevant to Quotable Value’s operations 280 Appendix L The Auction 281 ix List of Abbreviations ANZ Australia and New Zealand Banking Group Limited BBC British Broadcasting Corporation GEM Global Entrepreneurship Monitor Kiwibank Kiwibank Limited MetService Meteorological Service of New Zealand Limited NZ Post New Zealand Post Limited OECD Organisation for Economic Co-operation and Development Qantas Qantas Airways Limited Quotable Value Quotable Value New Zealand Limited SOE State-Owned Enterprise TVNZ Television New Zealand Limited x Research outputs to date arising from this study Luke, B., & Verreynne, M. (2005). Exploring entrepreneurship in the public sector: Examining the application of strategic entrepreneurship to SOEs. Enterprise and Innovation (Research paper series of Faculty of Business, AUT), 22-2005, December. Luke, B., & Verreynne, M. (2005). New Zealand Post: Banking on growth. In M. Wilson (Ed.), Case in Point (pp. 67-83). Auckland: GSE Publications. Luke, B., & Verreynne, M. (2005). Modelling strategic entrepreneurship. Paper presented at the Australian Graduate School of Entrepreneurship 2nd International Research Exchange, Melbourne. Luke, B., & Verreynne, M. (2005, 30 Aug - 2 Sept). New Zealand Post: Banking on growth. Paper presented at the International Case Study Conference on Teaching and Learning, Auckland. Luke, B., & Verreynne, M. (2005, 30 Aug - 2 Sept). Teaching note on New Zealand Post: Banking on growth. Paper presented at the International Conference on Case Study Teaching and Learning, Auckland. Luke, B., & Verreynne, M. (2005). A study in public sector management. MetService: Thinking beyond the weather, Australian & New Zealand Academy of Management.
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