Toward Entrepreneurial Organizations: Meeting Ambiguity with Engagement

Abstract

Entrepreneurial activities fit poorly with traditional organizational approaches–-the rules, procedures and structure to delimit members’ response that seek to constrain behavior to a predetermined program. Nevertheless, in response to increasing competition, organizations have emerged to support broad entrepreneurial activity. Three interrelated elements appear necessary to support organizational entrepreneurship: pervasive sharing of managerial tasks and responsibilities, mindful alertness to anomalies, and ambiguity absorption by means of mutual support and information sharing. These elements render organizations more flexible, but also increase ambiguity, requiring further action incompatible with traditional organizational approaches. Entrepreneurship is not only inconsistent with traditional organizations, but with traditional organization theory. To effectively analyze entrepreneurial organizations requires a shift from the static, deterministic paradigm of traditional organization and theory to a cognitive paradigm which focuses on individual sensemaking and collective decision processes, and on the organizational context that shapes and influences them. This article outlines basic elements of an emerging cognitive paradigm to describe organizational entrepreneurship in theoretical and pragmatic terms, contrasting with traditional theory and practice. Benefits and hazards of entrepreneurial approaches are discussed. The Implications for research and management practice are also suggested.

Job satisfaction and commitment in the entrepreneurial SME

“…Internal Entrepreneurship is not limited to work teams (Imai 1986;Nonaka 1988;Jelinek and Litterer 1995;Haskins et al 1998). Studies by Reich (1987) and Stewart (1989), but especially the ethnographic study by Stewart, reflect on Internal Entrepreneurship in the context of a work team whose main function is to offer products and services which respond to the urgent ever-changing demands of markets.…”

“…This shows that the source of Kaizen's success would be the collaborative attitude among team and organizational members. Jelinek and Litterer (1995) proposed a model of organizational entrepreneurship. Nonaka (1988) and Mourdoukoutas (1999) extended the notion of Internal Entrepreneurship to the level of a network in the workplace, which means the collective business capability of a network of organizations (in the workplace).…”

Evaluation of the effects of corporate entrepreneurship

“…Drugim rečima, potrebno je da postoji tzv. sistemska fleksibilnost (Jelinek & Litterer, 1995). Svrha merenja se značajno razlikuje u preduzetničkim organizacijama u odnosu na ostale.…”

Entrepreneurial Thinking and Small Business performance: The Case of Beneficiary Companies of Jordanian Erada Program

“…Ambiguity can be mitigated through planning and an entrepreneur often embraces ambiguity and considers it as an opportunity, as it created an unexpected challenge to the opportunities bringing about change in the context of traditional organizations. Contrastingly, traditional organizations are created to generate a stable, predictable performance through the elimination of unexpected and unauthorized behavior (Jelinek & Litterer, 1995). According to Jelinek & Litterer (1995), there are three central interrelated properties in organizations namely shared management, mindful alertness to ambiguities, and effective absorption of ambiguities.…”

“…Contrastingly, traditional organizations are created to generate a stable, predictable performance through the elimination of unexpected and unauthorized behavior (Jelinek & Litterer, 1995). According to Jelinek & Litterer (1995), there are three central interrelated properties in organizations namely shared management, mindful alertness to ambiguities, and effective absorption of ambiguities. A major portion of entrepreneurial decisions may also entail ambiguity as such decisions lead to innovative and authentic actions.…”