Research presentation at the Strategic Management Society Annual Conference in 2009, Washington DC

1. Repeated Innovations
in the Long Run
How some Organizations Build and Maintain
Intrapreneurial and Innovative Capabilities
Sébastien RONTEAU
ESSCA Graduate School of Management
Thomas DURAND
Ecole Centrale Paris

2. Entrepreneurial Orientation
“EO refers to the processes, practices and decision-
making activities that lead to new entry. (…) It
involves the intentions and actions of key players
functioning in a dynamic generative process aimed at new
venture creation.” (Lumpkin & Dess, 1996)
Covin & Slevin (1988, 1989)
Autonomy
Dess & Lumpkin (1996, 2000)
INTENTION
Competitive Aggressiveness Dess & Lumpkin (1996, 2000)
Innovativeness
Miller & Friesen (1982) ;
MOVEMENT Proactiveness
Miller (1983)
Risk Taking
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3. Empirical Study
 4 case studies
 Companies that innovated successfully over time
Name Period covered Industry
Dassault Systèmes 1977-2006 3D softwares
L’Oréal 1907-2008 Cosmetics
Salomon Sports 1947-2001 Outdoor Sport products
SEB Goup 1950-2006 Home appliances
 Footprint of EO institutionalization (Elsbach, 02)
Arrangement of the processes underlying
the work of institutionalization
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4. An example of Verbatim
The founding Myth about Boeing at Dassault Systèmes (DS)
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5. A descriptive approach of case studies
 The story as it is told and as it spreads
◦ Legacy of the founders, success/war stories
◦ Visionary leaders, “conductors”, facilitators
◦ Stable Governance over decades
 Repeated Negotiations and Interactions
 The story as it is used
◦ Social consistency and socially accepted Proofs
◦ Categorization of experiences and perceptions
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6. Institutionalization of EO:
A theoretical framework
Institutionalizing Innovating
Symbolic Actions Repeated
Founding by
Myths Negotiations and
Top Management Interactions
Institutionalization
Dynamics Elaboration of Categorization of
Socially accepted Experience and
Proofs Perceptions
Values Autonomy for Intrapreneurs Relatedness with existing
Myths activities
Institutionalised Ideology
Intrapreneurship
Structures of Processes and Innovation
Roles &
& Power Protocols
Nature of Support Intensity of Innovation
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7. A Simplified Model :
Emergence and transmission of innovative capabilities
Intrapreneurship Potential Loss
Entrepreurship of Intrapreneurial
Cultivate, reinforce, transmit
Trigger and capabilities
make possible Institutionnalization
Organization
Processes
Petit fils spirituel
Culture Petit fils spirituel
Values, Beliefs, Rites Petit fils spirituel
Petit-fils spirituel
Trigger
by "Fils spirituel" Leader - Manager
Founder
n Eugène Schueller n François Dalle n … Innovative and
Intrapreneurial
n Georges Salomon n Jean-François Gautier n …
Capabilities may
desappear
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8. Results & Discussion
 Arrangement of the processes underlying the work of
institutionalization
 Proposal of a theoretical comprehensive framework of
institutionalization of EO (Forms and Building)
The ability to innovate in the long run appears
to rely on resilient capacities resulting from
the institutionalization Dynamics
of Entrepreneurial Orientation
 What if M&A’s ?
 What if periods with no, or limited innovations ?
How to rebuild innovative capabilities ?
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