A System Dynamic Perspective of Organizational Entrepreneurship

Abstract

Collective understanding of corporate and organizational entrepreneurship has significantly matured in recent years; however, prior research has lacked a comprehensive theoretical framework of organizational entrepreneurship. We propose a system dynamic perspective, using a process-based framework, that helps to explain how entrepreneurship occurs within organizations and provides theoretical justifications for the interaction of the six critical processes involved in organizational entrepreneurship: (1) entrepreneurial insight, (2) idea assessment, (3) idea legitimization, (4) idea implementation, (5) strategic assessment, and (6) entrepreneurial renewal. This model integrates a variety of perspectives that have been utilized in the literature and allows for activation at any point in the system dynamic process. In this paper, we provide theoretical background for our model, discuss our contributions to the literature, and suggest how scholars may implement and enhance this framework in future research efforts.