Technological Entrepreneurship A Balanced Scorecard Perspective Commerce Essay

The paper aims to show the most of import characteristics of technological entrepreneurship, both in industrial and non-industrial administrations, and its of import function in organizational development. The conceptual theoretical account used to depict our attack is The Balanced Scorecard, with a focal point on acquisition and growing position. Within this position, a set of specific indexs is proposed in order to measure the public presentation of technological entrepreneurship and intrapreneurship. The consequence will reflect enterpriser ‘s position, internal advanced procedures, invention and growing of an organisation.

Introduction

The development of planetary economic system led to the increasing of modern concern patterns. The entrepreneurial accomplishments have contributed to better the concern environment, through spread outing the enterpriser ‘s skylines and by presuming a well higher hazard in determination devising.

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The development of entrepreneurship led to its variegation depending on the industry, societal and economic context, entrepnreneurs’skills and aims, and other factors. In the survey of these signifiers a particular attending was given to technological, societal and green entrepreneurship.

This research is taking to specify technological entrepreneurship as one signifier of entrepreneurship, presently in full development. Harmonizing to Byers ( 2008 ) “ engineering entrepreneurship is a manner of concern leading based on the procedure of placing high-voltage, technology-intensive concern chances, garnering resources such as endowment and hard currency, and pull offing rapid growing utilizing principled, real-time decision-making accomplishments. ” [ 2 ]

The conceptual theoretical account which can supply a new point of position about technological entrepreneurship is Balanced Scorecard ( BSC ) . Harmonizing to Kaplan and Norton in 1992, BSC was designed as a direction tool for public presentation measurings. It took several old ages for the writers to redefine Balanced Scorecard. At the terminal, the writers defined BSC as a tool for interpreting organisational scheme into specific actions through the development of public presentation aims and steps [ 10 ] .

The Balanced Scorecard has emerged as a proved tool in run intoing the many challenges faced by the modern organisation [ 14 ] . In Gupta ‘s work since 2004 it has been shown that BSC is of import from a point of position that enables connexions between organisational aims in footings of four positions: fiscal, client, internal procedures and larning and growing [ 8 ] .

The current research develops a new definition of technological entrepreneurship, utilizing the Balanced Scorecard conceptual theoretical account as a nucleus method for specifying this construct.

Although multiple steps of entrepreneurship exist, the usage of cardinal public presentation indexs ( KPIs ) , common for industrial and nonindustrial companies, can foreground the Learning and Growth ( L & A ; G ) principles from the invention point of position.

The chief end of the current research is to separate technological entrepreneurship from the other types of entrepreneurship utilizing internationally comparable indexs used for larning and growing position of an administration.

The chief features OF Technological ENTREPRENEURSHIP

Technological entrepreneurship is defined as an of import mode to commercialize proficient innovations [ 23 ] , as a span between technological development and commercial development, which includes all activities linked to the designation of possible entrepreneurial chances, originating from technological development, and, similarly, linked to the development of these chances through the success of advanced merchandises.

Technological entrepreneurship was interpreted in different ways and at different degrees of analysis, as a system [ 1 ] , as a policy [ 20 ] , as a scheme [ 7 ] , as a procedure [ 16 ] or as an single attitude [ 5 ] .

Within the context of technological alterations, the involvement for the ecological sphere and societal dimension is of import to depict several types of entrepreneurship. As mentioned before, within this model, there were selected to depict three types of entrepreneurship: technological, green and societal. This comparing can supply a better apprehension of the chief features of entrepreneurship sphere and it is presented in table 1.

Balanced Scorecard Perspectives

A new signifier of Balanced Scorecard was developed in 1996 by Kaplan and Norton [ 10 ] . The new theoretical account, realized for interpreting the scheme into specific actions, engaged 4 interconnected positions: fiscal, client, internal procedures and larning and growing. In fact, these 4 positions represent a balance between long and short term organisational aims, between slowdown and lead public presentation steps [ 15 ] .

Differences and similarities between the three types of entrepreneurship

Type of

Entrepreneurship

Differences

Similarities

Social

Specific to societal organisations

Involve societal aims for each activity [ 19 ]

The accent is more on single than on corporate theoretical accounts [ 5 ]

Invention

Private concern sector

Business orientation on specific spheres

Learn & A ; Growth

Long term investings

Green

Has the environment as cardinal aim

Environmental inventions [ 11 ]

Promotes corporate societal duty and sustainability

Technologic

Emphasise technological alterations

Learning and growing in technological invention field

Fiscal position

Harmonizing to Kaplan and Norton ‘s conceptual theoretical account, this position offers an overview of fiscal public presentation steps. In clip, this position evolved and was materialized through specific public presentation measurings. It is of import to mensurate organisational success and fiscal development of an organisation, besides this position offers a new point of position on organisational fiscal aims [ 12 ] . This position aims to supply information about fiscal and non-financial public presentation indexs and necessary informations for analyzing procedure of organisational success [ 6 ] .

Customer position

It is based more on organisational and market histrions. Michalska J. in 2005 [ 13 ] presented this position, through the organisational effectivity, as an overview of all available beginnings of fiscal success, such as market place and client satisfaction. In fact, this position should react to the inquiry: “ How should be a house perceived in eyes of clients? ” When Kaplan and Norton ( 1992 ) first clip introduced the Balanced Scorecard, this position was evaluated merely from the client ‘s point of position.

Internal Procedures

This position reflects director ‘s point of position on its ain concern procedures. The chief inquiry of this position is: what direction procedure a company should follow to be more efficient? In fact it will utilize client ‘s demands to bring forth new merchandises and obtain better result [ 3 ] .

Learning and growing position

Kaplan and Norton in 1996 defined this position through three chief dimensions: people, systems and organisational processs. As research workers went farther, this position became an of import portion of public presentation analysis. In fact, this position is about the ability of each company to accommodate to the market ‘s status, to new challenges, to alter [ 13 ] or to be in the same line with new engineering.

Besides this position aims to supply the analysis of the most of import aims, harmonizing to chief thought of technological alteration and development of human resources of each company.

Indexs and research method DESIGN

In order to supply a better apprehension of public presentation measurings for technological entrepreneurship, we made a

digest of public presentation indexs for each dimensions from Balanced Scorecard ‘s position of Learning and Growth ( Table 2 ) .

Harmonizing to the chief thought of this survey, it aims to supply non merely a new definition of technological entrepreneurship, but besides to supply a new flexible method to accommodate this construct for each company depending of public presentation indexs. The method was structured in four stairss.

First step – specifying choice standards

Establish the chief standards for choosing the public presentation indexs which can be used for measuring the dimensions of the Learn and Growth position of BSC. In this instance, the standard used was the construction in three dimensions, given as “ beginnings ” of this position by Kaplan and Norton in 1996.

Measure two – choosing the indexs

Establish dependable sample of KPIs for companies / organisations from different types of industries, or different types of activities ( table 2 ) .

The KPIs were chosen from a big available list which aims to supply information ‘s about invention. To cognize which KPI ‘s are of import and appropriate for larning and growing position, it was agreed to rate them utilizing a graduated table from 1 to 10 ( 1 – the less of import, 10 – the most of import ) . These notes will reflect the child or major involvement of enterpriser for innovation portion of Balanced Scorecard ‘s Perspective of Learn and Growth ( table 3 ) .

The notation which will be used is:

P1-6 – KPIs for the first dimension: Peoples

S1-6 – indexs for the 2nd dimension: System

OP1-6 – indexs for the 3rd dimension: organisational processs.

Measure three – specifying the construction of the public presentation indexs system

Translate the administration attack of the Learning and Growth perspective into dealingss between public presentation indexs from each of the three dimensions: people, systems and organizational processs. The chief aim is to recognize the best combination of indexs. An illustration is shown in Figure 1.

KPIs particular for three beginnings of Learning and Growth perspective from Balanced Scorecard

( beginning: www.indicatorideperformanta.ro )

Learn and growing position

Peoples

Systems

Organizational processs

Education, preparation, reding plans for employees

New engineering engagement

Investing understandings procedure

Cross preparation of work quality

Low output of equipment

Stakeholder engagement

Management accomplishments and life-long acquisition

Equipment handiness

Investings of geographic expedition of new markets

Employees implicated in invention procedures

Performance systems

Dedicated resources for inventions

Research and development employees

Internal platforms for cognition exchanges

Optimized processs

Customer satisfaction

Arrested development trials

Innovation Pipeline Strength

Notation of indexs

Peoples

Systems

Organizational processs

P1

3

S1

10

OP1

4

P2

5

S2

7

OP2

5

P3

3

S3

7

OP3

8

P4

10

S4

7

OP4

10

P5

9

S5

10

OP5

9

P6

7

S6

8

OP6

9

Employees implicated in invention procedures

Research and development employees

Internal platforms for cognition exchanges

Optimized processs

Dedicated resources for inventions

Example of grouping indexs from different classs

In this instance, the best combination was established based on Markss 9 and 10.

This combination was chosen because we aim to specify foremost invention and describe it through public presentation indexs. So, we chose from our list ( Table 2 ) the KPIs for invention, based on the best Markss that are shown in Table 3.

Step four – specifying the administration ‘ customized attack of technological entrepreneurship

Formulate definition of technological entrepreneurship harmonizing to indexs which were used and which match the activity of organisation. To better understand this measure and to execute scenarios analysis, we proposed 4 new indexs that are calculated by expressions:

= , ( 1 )

= , ( 2 )

= , ( 3 )

where GP, GS and GOP are related classs for each dimension.

where ten, Y and omega represents class ‘s weight from each dimension: people, systems and organizational processs, calculated by expression 4.

{ ten, Y, omega } = , ( 4 )

where G represents classs for each type of dimension ;

S – maximal class of the used graduated table and

Ni is figure of indexs from each dimension.

= , ( 5 )

IP, IS and IOP represents leaden mean of classs from each type of dimensions: people, system and organizational processs.

ILG is a composite index, which represents Learning and Growth Perspective, calculated as arithmetic norm of leaden agencies of each type of dimension.

SCENARIOS FOR IMPLEMENTING THE RESEARCH METHOD

At this point, there will be listed all possible ensuing combinations of indexs, based on taging procedure.

Case 1:

This instance it is an ideal one. It means that this instance describe the technological entrepreneurship through all public presentation indexs with 9 and 10 Markss.

P4

P5

S1

S5

OP4

OP5

OP6

Figure 2. First instance construction

Basically it is presented informations flow among the full organisation. From this point of position, the technological entrepreneurship could be defined as a information flow through and among the organisation, between employees and systems in friendly environment, which describe technological alterations and invention procedures in the organisation.

Case 2:

P4

S1

S5

OP4

Figure 3. Second instance index combination

In this instance, of major involvements, are the indexs with 10 Markss. Like in the old instance, there are bilateral dealingss between indexs. The difference is that we can non talk about informations flow, but we bring in front organisational beginnings.

Case 3:

P5

OP5

OP6

Figure 4. Third instance index combination

It involves the inquiry: “ how people can act upon or be influenced by organisational processs? ” . It means that future invention undertakings depend on R & A ; D employees and good and optimized organisational procedures.

Case 4:

This instance presents a state of affairs in which all indexs, from KPI ‘s database, are used. It means that there is no restriction about importance classs.

In order to execute scenarios analysis, there were calculated: weight and specific indexs ( table 4 and table 5 ) . Harmonizing to the consequences from table 5, the most valuable scenario for implementing the proposed method is instance 2, which is based wholly on Learning and Growth Perspective ( 100 % ) . Although instance 1 provides important consequence ( 96,2 % ) , we can detect that the influence of organizational processs decreases. The consequence from instance 3 indicates that the absence of a dimension causes an inappropriate attack of Learning and Growth Perspective.

The last scenario indicates that Learning and Growth Perspective is influenced by systems and organizational processs indexs more than people ‘s KPIs.

Table 4: Calculating weights

Peoples

Class

Weight

System

Class

Weight

Organizational Procedures

Class

Weight

P1

3

5

S1

10

16.67

OP1

4

6.67

P2

5

8.33

S2

7

11.67

OP2

5

8.33

P3

3

5

S3

7

11.67

OP3

8

13.33

P4

10

16.67

S4

7

11.67

OP4

10

16.67

P5

9

15

S5

10

16.67

OP5

9

15

P6

7

11.67

S6

8

13.33

OP6

9

15

Table 5: Calculating specific indexs

Information science

IS

Intraocular pressure

ILG

Case 1

9.52

10

9.35

9.62

Case 2

10

10

10

10

Case 3

9

0

9

6

Case 4

7.37

8.38

8.15

7.97

Decisions

Although it was already defined, the technological entrepreneurship, this conceptual method provides a new type of definition, based on concrete indexs.

If in the beginning of this survey, technological entrepreneurship was defined as a scheme, a procedure, a system or attitude, than harmonizing to proposed method, it is more about informations aggregation, employee engagement, cognition database and organisational beginnings.

Basically Learning and Growth perspective from Balanced Scorecard provide for this survey information about employees involvement, information and informational systems between organisational sections and organisational environment.

Based on instance constructions, the of import characteristics of technological entrepreneurship are:

a ) Reflects enterpriser ‘s position

B ) Employees engagement in invention procedures

degree Celsiuss ) Provide cognition “ database ” for directors

vitamin D ) Establishing bilateral dealingss between public presentation indexs

vitamin E ) Using the designed method for those three positions of BSC: people, systems and organizational processs

The advantage of this proposed method is that technological entrepreneurship gets to be defined from different point of position ( research workers, directors, etc. ) . It seems to go more specific and it could be illustrated in several waies.

The primary KPI database can be besides defined by the company, and after that it can be structured harmonizing to the proposed method.

The designed method can be applied for different types of administrations from different industries, including educational establishments, public disposal and NGOs besides.

The restriction is that by utilizing this method it could non be known if the public presentation indexs are chosen right or if selection standards are fiting the purposes of those who want to specify this construct