Entrepreneurial Transformation: A Descriptive Theory
This paper is an initial attempt to develop a descriptive theory of the process of transforming a company from a traditional corporation to an entrepreneurial one. There has been a considerable outcry by those within and without corporations for a change the way corporations operate and considerable effort is being put into their transformation. In both the cry and corporate response thereto, there has been an increasing focus on making organizations more entrepreneurial, that is, opportunity seeking. The authors have identified a small group of companies which have recognized the need for transformation, but rather than simply correcting their problems they have set their goal of creating companies that better able to adapt and seize opportunity on a sustained basis. Beginning with a summary of the authors' understanding of the entrepreneurial corporation and the transformation process, they develop a series of propositions which describe the end state that is being sought, the characteristics, processes and people involved in these entrepreneurial transformations, close by showing how that, when once transformed, the organization become self-regenerating.