Workbook for entrepreneurship and innovation

Tim Mazzarol

Sophie Reboud

Springer Texts in Business and Economics

Workbook for

Entrepreneurship

and Innovation

Theory, Practice and Context

Fourth Edition

Springer Texts in Business and Economics

More information about this series at http://www.springer.com/series/10099

Tim Mazzarol • Sophie Reboud

Workbook for

Entrepreneurship

and Innovation

Theory, Practice and Context

Fourth Edition

Tim Mazzarol

University of Western Australia

Crawley, WA, Australia

Sophie Reboud

Burgundy School of Business

Dijon, France

ISSN 2192-4333 ISSN 2192-4341 (electronic)

Springer Texts in Business and Economics

ISBN 978-981-13-9415-7 ISBN 978-981-13-9416-4 (eBook)

https://doi.org/10.1007/978-981-13-9416-4

© Springer Nature Singapore Pte Ltd. 2020

This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of

the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,

broadcasting, reproduction on microfilms or in any other physical way, and transmission or information

storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology

now known or hereafter developed.

The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication

does not imply, even in the absence of a specific statement, that such names are exempt from the relevant

protective laws and regulations and therefore free for general use.

The publisher, the authors, and the editors are safe to assume that the advice and information in this book

are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the

editors give a warranty, expressed or implied, with respect to the material contained herein or for any

errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional

claims in published maps and institutional affiliations.

This Springer imprint is published by the registered company Springer Nature Singapore Pte Ltd.

The registered company address is: 152 Beach Road, #21-01/04 Gateway East, Singapore 189721,

Singapore

3rd edition: © Tilde Publishing and Distribution 2017

v

Contents

1 Work Book: Entrepreneurship as a Social and Economic Process . . . 1

1.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1.3 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.4 Key Lessons from the Chapter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1.5 Exercise: Profiling Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1.7 Case Study: Small Entrepreneurial Firms in the Asia-Pacific

Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Unirex Kabushiki Gaisha, Japan . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Boots Online, Australia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Electrical Components, Malaysia . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Vjandep Pastel Bakeries, Philippines. . . . . . . . . . . . . . . . . . . . . . . . 7

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

2 Work Book: The Entrepreneur . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

2.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

2.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.5 Exercise – Profiling Activity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

2.6 Creativity Journal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Creativity Journal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

2.7 Individual Assignment – Am I an Entrepreneur? . . . . . . . . . . . . . . . . 13

Writing the Assignment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

2.8 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

2.9 Case Study: Lessons from Entrepreneurs . . . . . . . . . . . . . . . . . . . . . 15

Case Study: Brian . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Case Study: Andrew . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Case Study: Jim . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Case Study: Peter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

vi

3 Work Book: The Entrepreneurial Process . . . . . . . . . . . . . . . . . . . . . . . 21

3.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

3.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

3.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

3.5 Group Exercise: Creating Jobs and Economic Growth . . . . . . . . . . . 24

The Problem Outlined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Your Task Explained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

3.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

3.7 Case Studies of Nascent and Novice Entrepreneurs . . . . . . . . . . . . . 26

Case Study: Malcolm (Non-Starter): The Nascent Entrepreneur . . 26

Case Study: Richard (Starter): The Novice Entrepreneur . . . . . . . . 28

Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

4 Work Book: Entrepreneurship and Innovation in Large Firms . . . . . 31

4.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

4.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

4.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

4.5 Creativity Journal Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

4.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

4.7 Case Study: Belmont ‘City of Opportunity’ . . . . . . . . . . . . . . . . . . . 35

History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Facing a Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Seeking Help . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Researching the Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Changing Perceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

Setting a New Direction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Imbedding the Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

Empowering Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Launching the Brand . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Implementing the Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

5 Work Book: Innovation in Small Firms . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

5.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

5.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

5.5 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

5.6 Case Study: The Stillroom; When Love Is Not Enough . . . . . . . . . . 48

Love Grows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

From Little Acorns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

A Small Business Blossoms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Contents

vii

Corporate Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

Financial Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

The First Agency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Success: Gift Fairs and Exports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

New Commercial Premises and Production Methods . . . . . . . . . . . 52

Mother’s Private Investment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Factoring to Finance Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

The Age of Discontent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

History Repeats Itself . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Taxation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Accounting Alternatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Partners’ Drawings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Finance for the New House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Business Improvement Program . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Change from Fixed to Variable Costs . . . . . . . . . . . . . . . . . . . . . . . 57

Accounting Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Export Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Investor Sought . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Business Valuation and Possible Sale . . . . . . . . . . . . . . . . . . . . . . . 58

Direct Marketing and Franchising . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Business Management Pressures . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Repayment of Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

Accusations and Mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

The Final Cut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61

6 Work Book: Adoption and Diffusion of Innovation . . . . . . . . . . . . . . . . 63

6.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

6.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

6.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

6.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

6.5 Creativity Journal Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

6.6 Group Exercise: GENCO and RENKA . . . . . . . . . . . . . . . . . . . . . . . 66

The Problem Outlined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66

Your Task Explained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

6.7 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

6.8 Case Study: The Owen Gun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

The Australian Patent System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

War Breaks Out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

Submachine Guns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Evelyn Nearly Gives Up . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

A Second Chance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Trial by Fire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

Owen Gun Versus the STEN Gun . . . . . . . . . . . . . . . . . . . . . . . . . . 72

Contents

viii

The STEN Arrives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73

Going Political . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Production Problems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Into the Field and Fame . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

7 Work Book: Planning, Business Models and Strategy . . . . . . . . . . . . . 77

7.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

7.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77

7.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

7.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

7.5 Individual Research Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

7.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80

7.7 Case Study: Comfort Homes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Old Hands, New Roles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81

Slow and Steady . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Minimise Overheads . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Home from Home . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Better Building, Reducing Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Window of Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Marketing and Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Four Factors for Financial Success . . . . . . . . . . . . . . . . . . . . . . . . . 84

Quality Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Future Directions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

Reference . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85

8 Work Book: Risk Management in Innovation . . . . . . . . . . . . . . . . . . . . 87

8.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

8.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

8.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

8.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

8.5 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

8.6 Case Study: Robotics Pty Ltd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Humble Birth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Dealer Network . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Extended Credit Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91

Vertical Expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Cash Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

Enhanced Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92

New Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Intellectual Property Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Body with No Brain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93

Systems Lagged Behind Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Contents

ix

Decreasing Liquidity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

Product Profitability Re-examined. . . . . . . . . . . . . . . . . . . . . . . . . 94

Inefficiencies and Lost Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

Search for Extra Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

A New Beginning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95

9 Work Book: Disruptive Innovations and the Commercialisation of

Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

9.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

9.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97

9.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98

9.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

9.5 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100

9.6 Case Study: Davies Craig EWP . . . . . . . . . . . . . . . . . . . . . . . . . . . 101

Solving the Problem of Engine Overheating . . . . . . . . . . . . . . . . . 101

The EWP as an After-Market Solution . . . . . . . . . . . . . . . . . . . . . 102

Racing Cars as an Initial Early Adopter . . . . . . . . . . . . . . . . . . . . 102

Vintage Cars as Another Niche Customer . . . . . . . . . . . . . . . . . . . 102

Offering Superior Performance . . . . . . . . . . . . . . . . . . . . . . . . . . . 103

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104

10 Work Book: Screening Opportunities and Assessing Markets . . . . . . . 105

10.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

10.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105

10.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106

10.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

10.5 Individual Research Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

10.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

10.7 Case Study: Nokia Sells Out: The Rise and Fall of Nokia Mobile

Communications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109

Nokia’s Rise to Global Dominance . . . . . . . . . . . . . . . . . . . . . . . . 109

Life Goes Mobile . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

Enter the iPhone . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112

Enter Microsoft . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 113

Exit Nokia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114

11 Work Book: Team Building, Company Leadership and Strategic

Alliances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

11.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

11.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

11.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118

11.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

Contents

x

11.5 Creativity Journal Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120

11.6 Case Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

11.7 Case Study: AQ2 Smartaflow . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121

Going Beyond a Good Idea . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123

Recognising an Opportunity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124

Proving the Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125

Protecting and Leveraging Intellectual Property . . . . . . . . . . . . . . 127

The Outcomes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128

The Role of Design in Commercialisation . . . . . . . . . . . . . . . . . . 129

The Organisation of Design and Product Development . . . . . . . . 131

Planning for Product Development . . . . . . . . . . . . . . . . . . . . . . . . 132

The Evolution of a New Product Development Process . . . . . . . . 133

The Use of External Design Services . . . . . . . . . . . . . . . . . . . . . . 134

Strategic Partnering: Baker’s Junction Machinery . . . . . . . . . . . . 135

Outsourcing Graphic Design Services . . . . . . . . . . . . . . . . . . . . . . 137

12 Work Book: Financing the Venture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

12.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

12.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139

12.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140

12.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

12.5 Creativity Journal Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

12.6 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

Questions/Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

12.7 Case Study: Mt. Romance Australia Ltd . . . . . . . . . . . . . . . . . . . . . 143

The Beginning of a Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . 144

Structure and Process of the Investment . . . . . . . . . . . . . . . . . . . . 145

How the Venture Capital Process Shaped Mt. Romance . . . . . . . . 147

Lessons Learnt from Both Sides . . . . . . . . . . . . . . . . . . . . . . . . . . 148

Issues for a Regional Business. . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

13 Work Book: Intellectual Property Management . . . . . . . . . . . . . . . . . . 153

13.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

13.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153

13.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154

13.4 Learning Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155

13.5 Creativity Journal Entry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

13.6 Group Exercise: Professor M’s Dilemma . . . . . . . . . . . . . . . . . . . . 156

The Problem Outlined . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

Your Task Explained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

13.7 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158

Contents

xi

14 Work Book: Social Innovation and Enterprise . . . . . . . . . . . . . . . . . . . 159

14.1 Learning Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

14.2 Chapter Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 159

14.3 Key Lessons . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 160

14.4 Individual Research Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

14.5 Case Study Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 162

Questions/tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

14.6 Case Study: Bendigo Bank, Tambellup and Cranbrook . . . . . . . . . 163

A Brief History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 164

The Bendigo Community Banking Model . . . . . . . . . . . . . . . . . . 164

Getting It Going . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165

Working Together . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

A Painful Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166

The First Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168

Four Years of successful Operation . . . . . . . . . . . . . . . . . . . . . . . . 168

Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Appendix A – Work Book: General Measure of Enterprising

Tendency (Version 2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Instructions for Completing Test . . . . . . . . . . . . . . . . . . . . . . . . . . 171

Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

Answer and Scoring Sheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

How to Score Your Responses . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174

What Scores Measure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Calculating Your Score . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Interpreting Your Score . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 176

Appendix B – Work Book: Diagnosing Your Innovation

Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182

The Nature of Innovation Within Your Firm . . . . . . . . . . . . . . . . . 183

Appendix C – Work Book: Action Learning Project in 

Commercialisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

The Action Learning Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . 191

Recruiting the Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 192

Assessing the Project – The Innovation Diagnostic Report . . . . . . 194

Action Learning Task 1: Assessing the Strategy

and Market Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 204

Developing the Business Model – A Check List . . . . . . . . . . . . . . 204

Developing the Market Strategy – A Check List . . . . . . . . . . . . . . 206

Action Learning Task 2: Assessing the Resources

and Innovation Case . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213

Developing an IP Strategy – A Check List . . . . . . . . . . . . . . . . . . 214

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 215

Contents

© Springer Nature Singapore Pte Ltd. 2020 1

T. Mazzarol, S. Reboud, Workbook for Entrepreneurship and Innovation,

Springer Texts in Business and Economics,

https://doi.org/10.1007/978-981-13-9416-4_1

1 Work Book: Entrepreneurship as a Social

and Economic Process

1.1 Learning Objectives

1.2 Chapter Review

This chapter has examined the nature of entrepreneurship and innovation, providing

definitions for both and placing them into context. Note that entrepreneurship is a

major driver of employment and economic growth throughout the world.

Entrepreneurship operates at the individual, organisational and environmental level,

and is a process associated with self-evaluation, opportunity recognition, the active

management of resources, and the capacity to reassess and change. Unlike manag￾ers, the entrepreneur is willing to assume the risk associated with ownership of a

venture, but also enjoys the rewards of success. Innovation is an integral part of

entrepreneurship and involves either product or process innovations that can be

incremental, synthetic or discontinuous in nature. Innovation is a major source of

competitiveness for firms and is essential to success in modern economies.

After completing this chapter, you should be able to:

• Appreciate the importance of entrepreneurship and innovation to a healthy

economy.

• Define the key terms: entrepreneur, entrepreneurship and innovation.

• Understand the difference between managers, entrepreneurs and entrepre￾neurial managers.

• Understand the concepts and key theories relating to entrepreneurship.

• Understand policy tools employed to encourage entrepreneurial activity.

2

1.3 Learning Activities

1. Using examples, explain why entrepreneurship and innovation are considered

important to a healthy and growing economy.

2. Define the terms enterprise, entrepreneur, entrepreneurship and innovation, pro￾viding a brief example of each from your own experience.

3. Explain the difference between an entrepreneur and a manager. Is it possible for

there to be such a thing as an entrepreneurial manager? What characteristics

might such a person have?

4. If you were to provide advice to the government about how to foster more entre￾preneurial behaviour and innovation within the economy, what strategies would

you suggest?

1.4 Key Lessons from the Chapter

• Entrepreneurship and innovation are now recognised as being among the key

elements in the process of economic development.

• Necessity entrepreneurs are those who enter self-employment out of a lack of

choice, by contrast, the opportunity entrepreneur is a person who follows a spe￾cific idea or opportunity out of choice that they have identified as delivering

benefits. The opportunity entrepreneur is more likely to be found in developed

economies.

• An entrepreneur exhibits four characteristics:

1. An entrepreneur is an agent of change bringing new ideas or products to mar￾ket with the ability to create wealth and employment.

2. An entrepreneur has individual motivation and the capacity to identify an

opportunity and pursue it to economic success regardless of the resources that

are under their control.

3. An entrepreneur converts opportunities into marketable ideas, often assuming

risks, implementing the idea and realising any rewards.

4. An entrepreneur is often found starting a company of their own (entrepreneur)

or working in an organisation on a new project (intrapreneur).

• The domain of entrepreneurship comprises at least seven elements. The first

three involve the recognition, exploration and exploitation of future opportuni￾ties. The next four comprise the creation of new ventures, the creation of new

products or components, the creation of new markets or even industries, and the

creation of wealth.

• Sources of innovation can come from some or all of the following: unexpected

occurrences, incongruities, process needs, industry and market changes, demo￾graphic changes, changes in perception, new knowledge (Drucker 1985).

• Most National Innovation Systems comprise two broad elements. The first is a

common innovation infrastructure. The second is the cluster specific environ￾1 Work Book: Entrepreneurship as a Social and Economic Process

3

ment for innovation with five distinct functions: the creation of new knowledge;

focusing of research processes within the national scientific community;

facilitating access to resources and funding; facilitating the development of posi￾tive externalities; and facilitating market creation and development.

• The OECD (2010) suggests that innovation is a potential key to solving many of

the world’s problems, including climate change, poverty and economic

stagnation.

1.5 Exercise: Profiling Activity

Profile an entrepreneur that interests or inspires you. Many high-profile entrepre￾neurs feature prominently in the media, and you can often find out a lot about them

from published sources. Where possible you might also make direct contact with

them or their business venture and seek information. Consider the personal charac￾teristics of the individual, their background in terms of family, education and expe￾rience, the business environment when they launched their venture, the type of

venture, and their current management style. Your profile should be no longer than

2×A4 pages in length (approximately 400 words).

1.6 Case Study Analysis

Read the following case studies of small entrepreneurial firms within the Asia

Pacific region, and then address the questions that follow.

Questions/Tasks

1. What are the common lessons emerging from these four entrepreneurial cases?

(a) Analyse their respective success factors and develop a composite list.

2. Can you identify any common barriers to success within these firms?

(a) Consider how many of these are related to managerial, market, regulatory,

financial, cultural, and physical or other factors.

3. What are the differences between these firms and are they based on country,

industry or some other factors?

4. What is the role of the entrepreneur in each of these cases?

5. What do these cases suggest may be a role for government?

6. What do these cases suggest as to the use of technology to assist small firms to

engage in global markets?

1.6 Case Study Analysis