CSGB 6305 Entrepreneurship

Article Review : Cognition, Creativity and Entrepreneurship

Thomas B. Ward Journal of Business Venturing 19 (2003) 173-158

Norrizma Niza (CGD11007) Rafidah (CGD11006) Syahrum (CGD1100X)

PRESENTATION OVERVIEW
Introduction The Entrepreneurial Challenge Literature Review Discussion

Broader Perspective Entrepreneurs in Our World

Conclusion

Conceptual Combination

Terminologies

Creative Paradox

Transformational Processes Origins of Novel Ideas

Abstraction What is entrepreneurial cognition?

Cognitive Perspective

Problem Formulation

Originality

INTRODUCTION TERMINOLOGY
Cognition
The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses. A result of this; a perception, sensation, or intuition. Synonyms : knowledge - cognizance acquaintance

Entrepreneurial cognition has been defined as knowledge structures that people use to make assessments, judgments or decisions involving opportunity evaluation and venture creation and growth (Mitchell et al., 2002a)

Creativity
The use of the imagination or original ideas, esp. in the production of an artistic work

Entrepreneurship
(entrepreneur) someone who organizes a business venture and assumes the risk for it.

COGNITION, CREATIVITY, AND ENTREPRENEURSHIP

Cognitive Approach

creativity novel and useful ideas Enhance or restrain creativity

Knowledge

Selected Set of Process

Originality Newly generated ideas

COGNITION, CREATIVITY, AND ENTREPRENEURSHIP

Novelty and familiarity

New and different

Successful ideas Capture consumers attention Familiar enough to not be misunderstood or rejected out of hand as too radically different. Creative cognition approach serve as guide to more effective idea development

COGNITION, CREATIVITY, AND ENTREPRENEURSHIP

Process
Conceptual combination Analogy
Two previously separate Mapping of knowledge from a concepts or images are familiar knowledge to a less merged into a single new unit familiar one Novel properties can emerge Creative developments in that were not obviously present science, art, music and in either of the separate literature components Eg. washing machine is similar Effect is particularly strong for to a dishwasher dissimilar or divergent concepts. Exploited to develop new product ideas or market niches

Initial Problem Formulation

Influences the approaches people adopt to solving problems and success in solving the problem. Eg. develop a new disc brake system versus develop a new device for transforming the kinetic energy of a moving vehicle

Challengers
Generate valuable ideas for new goods or services that will appeal to some identifiable market Figure out how to bring the project to fruition Develop new venture depending on the need for capital

Craft ideas to convince others of the value of the project

How to access and manipulate the knowlegde

A Creative Paradox And A Cognitive Perspective

Example of creativity Barker (1993) has claimed that Sony nearly missed a golden opportunity when they temporarily abandoned work on developing CDs Humans have the capacity in the mid-1970s to move beyond what WHY??? currently exists to generate and implement new ideas.

A Creative Paradox And A Cognitive Perspective

18 hours of music Size and shape of LP record albums (12in. Diameter circles)

Problems??? Limitations??? Knowledge on LPs

Sometimes knowledge provides a bridge to the next new development and sometimes it becomes a fence that blocks the path. By examining cognitive processes and structures, individuals and groups can better understand how to access and use existing knowledge in more creative way.

A Creative Paradox And A Cognitive Perspective

Runco and Chand (1994, 1995)

Geneplore Model

Runco and Chand (1994, 1995) have described a model that includes processes of problem finding, ideation, and evaluation that interact with one another and with knowledge and motivation to determine creative outcomes.

Finke et al., 1992; Ward et al. 1999b characterizes creative endeavors as interplay between generative processes that produce candidate ideas possessing varying degrees of creative potential, and exploratory processes that extend or modify those initially generated ideas judged to be most promising.

Conceptual Combination

Analogical Reasoning And Other Processes

Abstration, Problem Formulation And Originality

A Broader Perspective

motivation

Personality factors

Knowledge, cognitive processes & skills

Environmental influences

Complete theoretical account

There is no less true for entrepreneurial creativity than for artistic or scientific creativity. Entrepreneurs must be able to: Generate ideas and recognize opportunities High levels of intrinsic motivation Belief enough in their ideas to push them even in the face of negative feedback Some expectation of external rewards Capacity to persuade others of their worth

Entrepreneurs in Our World

Tan Sri Syed Mokhtar Shah bin Syed Nor Al-Bukhary born in 1952 is the richest Bumiputra corporate figure in Malaysia. With involvement in diversified business areas which include transportation and logistics,plantations, property development, defense and armory as well as engineering and power generation, he has a net worth estimated to be US$3.3 billion. A whole lot of his knowledge and experience was gained through his own entrepreneurship experience during his youth time. He never attended university but he was also smart to use the experience he had gained from helping his father, as reference in his own business. Due in part his family's mediocre-to-poor background, Syed Mokhtar al Bukhary had to step into the working world in his early life, while pursuing his primary and secondary studies. Syed Mokhtar helped his mother planting and selling vegetables in the market and also selling roti canai. His numeric knowledge was used to help his father in doing daily book keeping.

Individuals who identify opportunities and start new companies to develop them (Baron, 2000, p.15)

Entrepreneurs in Our World

After finishing school, Syed Mokhtar helped his father in breeding cow business but only to see the business washed away by foot and mouth disease. Nevertheless, he took over the business and start over by selling meats. He then move on to packaging the meats and start selling them wholesale. A beneficiary of the New Economic Policy (NEP), the government's affirmative action programme to build up bumiputera entrepreneurs, Syed Mokhtar made full use of the opportunities available to him. But he refused to adopt the Ali-Baba approach to doing business with successful Chinese traders. Not content to be a passive investor, he insisted that he be taught the ropes and become fully involved in running the business. His gratitude towards the NEP kept him from selling off his shares, even in times of crisis. But it was his insistence on being a true businessman, rather than a rentier, that allowed him to weather the tough times and emerge as one of the biggest names in Malaysia's corporate landscape today.

Entreprenuers in Our World

For anyone who loves shopping, the brand Ms Read gives the impression that it is a brand from overseas. In fact, the misconception is that Ms Read is a British brand but it is actually a Malaysian born brand because Ms Helen Elizabeth Read is the founder and owner of the Ms Read brand as well as the DELIcious Caf chain. Helen stated that in her life, she was exposed to various books which contributed to her learning. Her passion for business made her The generation and implementation determined to succeed as an of novel, appropriate ideas to entrepreneur.

establish a new venture (Amabile, 1997, p.20)

Entrepreneurs in Our World

The Ms Read brand was set up in 1997 and has since grown by leaps and bounds. It was intended to offer apparel for women who are looking for the larger sizes between 12 to 24 which will not compromise on the beauty of the person. The mission of Ms Read is to allow them to be comfortable with themselves regardless of what size they are and to allow them to walk tall and feel good about themselves. There are 3 main lines available from Ms Read which are Career, Casual and After 5 which offers a wholesome range for Malaysian women.In 2004, the One Utama Shopping Center saw the opening of the first DELIcious Caf inside the Ms Read signature store. Less than a year later, a second branch opened in Bangsar Village in Kuala Lumpur and to date there are more than 10 Ms Read outlets in Kuala Lumpur, Johor and in Penang.

Conclusion

References
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Ward, TB, 2004. Cognition, creativity, and entrepreneurship, Journal of Business Venturing 19, 173-188 http://en.wikipedia.org/wiki/Syed_Mokhtar_Al-Bukhary http://thestar.com.my/lifestyle/story.asp?file=/2011/4/21/lifeliving/8469519 Luftans, F,Stajkovic, DA, Ibrayeva, E, 2000, Environmental and psychological challenges facing entrepreneurial development in transitional economies, Journal of World Business Vol 35, Issue 1, 95-110 Christopher P. Neck, Heidi M. Neck, Charles C. Manz, Jeffrey Godwin, (1999) "I think I can; I think I can: A self-leadership perspective toward enhancing entrepreneur thought patterns, selfefficacy, and performance", Journal of Managerial Psychology, Vol. 14 Iss: 6, pp.477 - 501