Strategic Management And Entrepreneurship Case Study

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The connection that exists between ‘Strategic Management’ and ‘Entrepreneurship’ cannot be overlooked in today’s corporate world as most companies are integrating the two disciplines in their quest for sustained competitive advantage. One can be termed a subset of the other and vice versa.
In an attempt to show ‘the relationship between corporate entrepreneurship and strategic management’, Barringer and Bluedorn (1999) administered a study on a sample count of 169 manufacturing firms in the US using five specific strategic management practices. These five areas, namely: planning flexibility, planning horizon, scanning intensity, locus of planning and control attributes, were chosen on the basis of their influence on entrepreneurial behavior
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Firms with well-developed flexible planning systems can easily re-adjust their strategic plans to go after opportunities when they arise, and maintain pace with changing environmental trends (Stevenson and Jarrillo-Mossi, 1986). Therefore, entrepreneurial firms benefit better from this as they are innovative and can easily adapt to changes, unlike the rigid change structure of conservative firms, where such flexibility of plans can alter their processes and …show more content…
Control systems are usually setup to ensure corporate strategies align with the pre-set goals and objectives of the firm. Two forms of ‘Control Attributes’ discussed were ‘strategic controls’ and ‘financial controls’, which can exist at the same time in an organization (Hitt, Hoskisson, and Ireland, 1990; Hoskisson and Hitt, 1988).
Strategic controls are guided by strategic control measures e.g. customer satisfaction while financial controls are guided by quantifiable or objective financial data e.g. return on sales. As a result, two hypothesis were derived from the study with both being valid.
“Hypothesis 5a: A positive relationship exists between the degree of emphasis on strategic controls and corporate entrepreneurship intensity.”
“Hypothesis 5b: A negative relationship exists between the degree of emphasis on financial controls and corporate entrepreneurship

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