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Dimensions |
ENTREPRENEURIAL CULTURE |
ADMINISTRATIVE CULTURE |
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Characteristics |
Prospects |
Characteristics |
Prospects |
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| 1.   Strategic Orientation | Driven by perception of opportunity | Diminishing opportunities, rapidly changing technology, consumer economies, social values and political rules | Driven by controlled resources | Social contacts, performance measurement criteria, planning system and cycles |
| 2.   Commitment to seize opportunities | Revolutionary with short duration | Action orientation, narrow dimensions, windows acceptance of resources risks, few dimension constituencies | Evolutionary with long duration | Acknowledgement of multiple constituencies, negotiation about strategic course, risk reduction coordination with existing resource base |
| 3.   Commitment of resources | Many stages with minimal exposure at each stage | Lack of predictable resources needs lack of control over the environment. Social demands for appropriate use of resources. Foreign competition. Demand for more efficient resource use. | A single stage with complete commitment out of decision, | Need to reduce risk incentive, compensation turnover in manager’s capital budgeting system, formal planning system |
| 4.   Control of resources | Rent of required resources | Increased resource specialization, long resource life compared with need, risk of obsolescence, risk inherent in the identified opportunity, inflexibility of permanent commitment of resources | Ownership or employment of required resources | Power, status and financial rewards, coordination of activity, efficiency measures, inaction and cost of changed industry structures |
| 5.   Management structure | Flat, with multiple informal networks | Coordination of key non-controlled resources, challenge to hierarchy, employees desire for independence | Hierarchy | Need for clearly defined authorities and responsibility organizational culture reward system management theory |
Distinguish between Entrepreneurial culture and administrative culture
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