**3. Culture to support corporate entrepreneurship**

Successful innovation requires the ability to gather ideas and competencies from a large number of sources. If the company is closed within its own internal reality, it will be unable to discover and exploit opportunities outside its existing business or beyond its current operational or technical capabilities. On this basis, the exposure of teams or firms to external technological knowledge is a valuable component in the innovation process [12]. On the other hand, innovative organizations adopt a style of participatory management with "empowerment." Empowerment means empowering employees. This represents a high commitment in decision-making and increased accountability in organizational results. Empowerment aims, on the one hand, to extract the creative energy of all the individuals in the company and, on the other hand, to assign them management responsibilities accompanied by resources in order to assert their leadership within the spheres of competence envisaged. In a word, the ultimate goal of empowerment is self-management, that is, workers are expected to have a responsible initiative based on monitoring their own work and accessing the support of

Ultimately, highly qualified human resources are the main source of competitive advantage for organizations through the implementation of action plans where they can play multiple roles and introduce continuous improvements in product quality and service to the consumer. Innovators tend to be dissatisfied and sometimes ignore or violate organizational rules when

As we have seen, centralization and formalization must be reduced to provide continuous learning and organizational change. In other words, everything, at all organizational levels, at all times, must be improved. As information sharing throughout the organization is critical, timely, consistent, and accurate movement expedites the organizational response to rapidly changing according to the consumer desires. In this way, anyone who contributes with an idea to a new product or service can count with an internal feedback in a way that it is appropriated and incorporated into the production process. All ideas must receive clear attention to awaken creative discussion. This is initiated at the lower hierarchical level and terminated by efficient decision-making by managers, being important in this process the possession of useful information available in the operational circuit. Such a process places more emphasis

In short, we can say that the "culture of innovation" consists of a set of operational factors (e.g., organizational leadership, structure, and climate) that influence the organization's continuous learning and entrepreneurial process. In this perspective, we can understand entrepreneurship as a subsequent phenomenon of innovation. For example, the creation of a new product and its commercialization in the market is an entrepreneurial practice triggered by

Drucker [13] noted that entrepreneurship operates through the 'instrument' of innovation. But to encourage corporate entrepreneurship, it is necessary to identify the conditions required for it to occur in organizations. More specifically, several authors point out that the innovative and entrepreneurial behaviors of individuals and firms depend on cultural factors [14, 15].

In this alignment, the following question arises: who needs a culture of innovation?

on relationships in horizontal rather than vertical functional systems.

specialized knowledge managers as mentors.

this is indispensable.

78 Globalization

an innovation process.

By "culture of support for corporate entrepreneurship" we mean a set of operational standards, shared by individuals, which can be shaped, altered, or preserved through individual interaction under the accumulated influence of three types of culture. *Professional culture* and *national culture* represent more values (invisible, implicit) relative to the individual, while the *culture of the company* concerns rules and practices (visible, explicit) more related to its functioning.

Thus, it seems to be a logical step to conceptualize the culture of support for corporate entrepreneurship as a series of procedures based on professional, national, and company cultures that indicate a pattern of action. The culture of support for corporate entrepreneurship refers to a set of norms, values, attitudes, and perceptions shared by a group of individuals (e.g., the R&D department and new entrepreneurship teams). Next, we will analyze each of the components of the culture of support to corporate entrepreneurship.

The "national culture" is composed of five dimensions:


The culture of the profession originates in the characteristics of the people who practice it and in the skills used in its practice. Professional cultures are specially formed by "work styles" performed by individuals in the execution of their routines. Sirmon and Lane [17] consider that there is a professional culture when a group of people, in a similar profession, functionally shares a series of norms, values, and beliefs. In these terms, we can say that "professional culture" develops through the socialization to which individuals are subjected during their education, training and professional exercise. It should be noted that professional culture does not only interact with the national culture, but also with the culture of the company in a certain work context, influencing the personal experiences and interpretations of organizational practices.

Company culture (i.e., organizational culture) is anything holistic, historically determined, socially constructed, and difficult to change, that is, it is something the organization has, but it can also be understood as what the organization is. Basically, we can define "company culture" as the personality evidenced by the company as a result of operating rules and assumptions, values, and behaviors of its employees. In short, company culture translates the way its employees think, talk, and work.

Underlying the culture of innovation, it is important to add that individuals develop their innovation activities in an institutional context conditioned by organizational, professional, and national cultures. Still, Shane [18] emphasizes national culture as a decisive element in organizations' output of innovation and performance. It should not be forgotten that the professionals admitted to the organization carry with them a repertoire of cultural knowledge obtained in society and in the previous professional exercise.

amendment, and deliberation of sectoral measures based on feedback deployed to all the

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Leaders (CEOs, top managers) can play a driving role in shaping an innovative atmosphere by walking steadily through the organization's aisles to hear and ask questions in order to stay informed, find the unexpected, and encourage employees to pursue your new ideas. Consequently, the decision-making structure must be decentralized, that is, decision-making capacity must be based on (informal, occasional) networks of contacts at the places where it is to take effect. These operational dynamics will mobilize individuals, allow direct access to resources, unlock problem solving, evidence emerging entrepreneurial behavior, and spark

This means that authority (i.e., decision-making) must be shared across the organization, rather than in hierarchical positions, thereby aiming to foster a real sense of delegation of responsibilities to employees as an incentive for innovation culture. More specifically, the perception that people have the support of top management is central in establishing a climate of confidence conducive to innovation, given the possibility to take risks without fear of penalty for any failure of the experiments carried out. This helps to signal the confidence of individuals, accelerates their active participation in finding viable competitive solutions or

In short, the culture of support for corporate entrepreneurship lies in (i) small distance to power supported by horizontal hierarchies, (ii) decentralized power and values of equality in order to facilitate communication, and (iii) individual interaction in the various levels of organization. Despite this, the organizational hierarchy will be inevitable in large companies, although there is still a need for decision makers to be close to the field that is the subject of

Innovation has an implicit uncertainty. The way in which uncertainty is addressed (i.e., its rejection or acceptance) has implications for the nature of the innovations undertaken—high risk versus low risk, radical versus incremental. Uncertainty can disrupt people by placing ambiguity and doubts in the future. Therefore, individuals who reject uncertainty in principle have anxiety of safety and prefer planned activities to reduce risk accordingly. On the contrary, in the accepting culture of uncertainty, the employees are more flexible, the rules are dispensable, and the decision-making is pragmatic and situational (i.e., emerges from the circumstances). For Bingham [21], the survival of any organization depends on the culture that promotes risk investment in new technologies and products for unexplored applications or unfamiliar markets. Therefore, the process of developing new ideas is based on capturing and pursuing

The willingness of individuals to accept risk and face uncertainty is a key aspect of the culture of supporting innovation. In addition, sponsorship of top management for research and development (R&D) projects and the commitment of intermediate management in order to

reduce perceived risk are vital for the materialization of large-scale innovation.

alternatives in the market, and stimulates their interest in achieving results.

company's management levels.

an imitation effect among others.

their resolutions.

**3.2. Controlled uncertainty**

recent consumption trends in the global marketplace.

Even in companies with a strong culture, the differences in national culture are reflected, for example, in how problems are solved in the same company in different countries. Different national cultures have varied models of organizational structuring and employee motivation. It should be emphasized that company culture is both the determining factor and the result of structures, processes, and practices in support of innovation. Hofstede and colleagues [19] consider that the perceptions apprehended in the sharing of routines imply a less individual rooting and, therefore, a greater ease of change of the organizational culture in comparison with the professional and national cultures.

As we have seen, the culture of support for corporate entrepreneurship is formed through the interaction of national, professional and organizational cultures, since people are born in a context of national culture, acquire a certain professional culture, and are exposed to the culture of the organization where they work.

However, there is a set of factors that constitute the organizational reality on which the culture of support for corporate entrepreneurship is based, which are discussed in the following sections.

#### **3.1. "Flat" power structure (hierarchical)**

In cultures with a "high power distance," conception and decision-making emerge from the reality for which they are intended. The emphasis of functioning is on the values of "equality," that is, one chooses democratic leadership, cooperative strategies and consensus efforts. In contrast, in cultures with a "tiny power distance," operational solutions are imposed without physical proximity between the means of their design and application. It is accepted that power is not equally distributed, decision-making is centralized in authoritarian leadership, and labor relations are guided by obedience to hierarchical superiors.

However, innovation depends heavily on the sharing of information and open debate between people without regard to hierarchies. Along the same lines, McDermott [20] emphasizes that it is essential to develop communities of organizational knowledge without formalizing them, that is, organizations have to create conditions conducive to personal interaction and communication as an operational mode. The culture of support for corporate entrepreneurship is built on policies and practices that maximize people's ability to (i) contact each other, (ii) communicate openly (without rivalry between departments), (iii) share ideas and information, (iv) learn from each other, and (v) establish mutual support and trust mechanisms.

Innovation requires a broad base of support in the organization, that is, it must be a crossdepartmental process in order to involve its members in a common goal with which they identify. Otherwise, innovation efforts fail manifestly when they are bureaucratic. That is, the definition of the objectives and the preparation of the operations are only limited to top management with subsequent transmission (from top to bottom) for execution. In other words, innovation must be based on a multidisciplinary process based on the discussion, amendment, and deliberation of sectoral measures based on feedback deployed to all the company's management levels.

Leaders (CEOs, top managers) can play a driving role in shaping an innovative atmosphere by walking steadily through the organization's aisles to hear and ask questions in order to stay informed, find the unexpected, and encourage employees to pursue your new ideas. Consequently, the decision-making structure must be decentralized, that is, decision-making capacity must be based on (informal, occasional) networks of contacts at the places where it is to take effect. These operational dynamics will mobilize individuals, allow direct access to resources, unlock problem solving, evidence emerging entrepreneurial behavior, and spark an imitation effect among others.

This means that authority (i.e., decision-making) must be shared across the organization, rather than in hierarchical positions, thereby aiming to foster a real sense of delegation of responsibilities to employees as an incentive for innovation culture. More specifically, the perception that people have the support of top management is central in establishing a climate of confidence conducive to innovation, given the possibility to take risks without fear of penalty for any failure of the experiments carried out. This helps to signal the confidence of individuals, accelerates their active participation in finding viable competitive solutions or alternatives in the market, and stimulates their interest in achieving results.

In short, the culture of support for corporate entrepreneurship lies in (i) small distance to power supported by horizontal hierarchies, (ii) decentralized power and values of equality in order to facilitate communication, and (iii) individual interaction in the various levels of organization. Despite this, the organizational hierarchy will be inevitable in large companies, although there is still a need for decision makers to be close to the field that is the subject of their resolutions.
