Architectural Innovation and Entrepreneurship

Architectural innovation focuses on changes in product architecture and their advantages/disadvantages for incumbents and new entrants (Henderson and Clark, 1990), where many of those new entrants are going to be entrepreneurs and their startups. The bottom line of the theory for entrepreneurs is that "architectural innovation" is a promising avenue for new entrants to go after because it is difficult for incumbent to pursue such innovations. Architectural innovation is usually competence-destroying for incumbents to follow. By contrast, other types of innovations benefit incumbents, such as incremental innovations (improving components), modular innovations (swapping components) and even radical innovations (developing new capabilities in areas without legacy products). Theory basics The theory starts with the idea that a product or service is made up of components that fit together according to a type of design called "product architecture", which is either modula

Competence Destruction Theory of Entrepreneurship

Competence destroying innovations are expected to be brought to market more successfully by new entrants than competence enhancing innovations (Tushman & Anderson, 1986). Competence = Abilities + Resources An incumbent firm's competence is destroyed when a technological innovation obsolesces the abilities and or resources that previously composed the competences of the firm. For instance, Blockbuster's retail competence was undermined by Netflix's online model. The theory goes that incumbents are reluctant to adopt competence destroying innovations because they prefer to preserve and enhance their existing competences. Besides, developing new competences often means shedding the old and that can involved painful layoffs or divestitures. These difficult organizational changes and the coalitions that form within organizations to try to stop them, create a friction that impairs adoption. Instead, the new entrant benefits from adopting competence-destroying innovations beca

Actor-Network Theory

Actor-network theory was created by Bruno Latour, Michel Callon, and John Law. It describes a “material-semiotic" method of analysis that is distinct from mainstream network analysis in that it includes non-human objects in networks as nearly equally important as human actors. According to Latour (1999): “You are different with the gun in your hand; the gun is different with you holding it. You are another subject because you hold the gun; the gun is another object because it has entered into a relationship with you.” According to Korsgaard (2011), Latour’s point is that neither the gun nor the person kills alone, but the combination of person and gun can execute the sinful act. The conclusion is that human agency is not merely a human phenomenon, because it relies on non-human elements too be executable. Korsgaard applied actor-network theory (ANT) to entrepreneurship. He argues that ANT is superior to the older ‘ discovery theories ’ that have dominated the entrepreneurship li

Serial Entrepreneurship

  Serial entrepreneurship refers to the repeated behaviours of entrepreneur.     “There are two types of entrepreneurs: novice entrepreneurs, who launch a business for the first time, and habitual entrepreneurs, which include serial entrepreneurs, who launch businesses sequentially, and portfolio entrepreneurs, who run multiple businesses concurrently.” ( Plehn-Dujowich, 2010)   Plehn-Dujowich suggests that serial entrepreneurs differ substantially from first time entrepreneurs. They argue that the serial entrepreneurs develop new capabilities over time that makes them more effective entrepreneurs. For instance, they may develop heuristics that guide their decision processes that reduce the analysis task needed to assess risks. These types of advantage lead to equal or higher success rates for serial entrepreneurs and a higher likelihood of sticking to entrepreneurship as a career choice. Serial entrepreneurship theory starts with the idea that entrepreneurs need to decide wh

Physiological Theory

Could your physiology make you more entrepreneurial? Research examining the physiology of entrepreneurs is rather new and underdeveloped. Very little is known about how our physiology can affect our propensity for entrepreneurship. One study examined how testosterone level experienced in the womb can affect us. Testosterone exposure in utero is linked to competitiveness, aggressiveness, and other traits that have been linked to some extend with entrepreneurs.[1]   The researchers used a technique of measuring finger length ratios that are markers of testosterone exposure. Survey respondents where supplied with rulers and instructions and self-reported the lengths of their index and ring fingers. To calculate the ratio (2D:4D), one divides the length of the index finger by the length of the ring finger on the same hand. A higher ratio (i.e., relatively long index finger) is associated with many different traits including sexuality, aggressiveness, assertiveness, unprovoked violence, etc

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