Discuss three major ways in which managerial and entrepreneurial decision making differs.
What will be an ideal response?
Eight areas of difference students can choose from:
1. strategic orientation
2. commitment to opportunity
3. commitment of resources
4. control of resources
5. management structure
6. reward philosophy
7. growth orientation
8. entrepreneurial culture
Basic differences in each dimension:
TABLE 2.1 Distinguishing Entreprenuerially from Traditionally Managed Firms
| Entreprenuerial Focus ? | Conceptual Dimension ? | Administrative Focus ? |
| Driven by perception of opportunity ? | Strategic orientation ? | Driven by controlled resources ? |
| Revolutionary with short duration ? | Commitment to opportunity ? | Evolutionary with long duration ? |
| Many stages with minimal exposure ? | Commitment of resources ? | A single stage with complete commitment out of decision ? |
| Episodic use or rent of required resoures ? | Control of resources ? | Owndership or eo\mployment of required resources ? |
| Flat with multiple informal networks ? | Management structure ? | Hierarchy ? |
| Based on value creation ? | Reward philosophy ? | Based on responsibility and seniority ? |
| Rapid growth is top priority; risk accepted to achieve growth ? | Growth orientation ? | Safe, slow, and steady ? |
| Promoting broad search for opportunities ? | Entrepreneurial culture ? | Opportunity search restricted by controlled resources; failure punished |
Source: This table is taken from T. Brown, P. Davidsson, and J. Wiklund, "An Operationalization of Stevenson's Conceptualization of Entrepreneurship as Opportunity-Based Firm Behavior," Strategic Management Journal 22 (2001), p. 955.
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