1. Induced strategic action entails various initiatives on the different roles of middle level and operational management that fit the idea of corporate plans and leverage the corporate learning that it symbolizes. The induced strategic process is concerned with attaining and maintaining control of the principal business activities of the corporation ( Garrett Jr & Covin, 2015) . It takes place in light of the company's corporate strategy in relation to the external environment. An example would be the development of a new airframe for next-generation aircrafts
2. Autonomous strategic actions entail different small groups or initiatives which do not fall within the scope of corporate strategy. They involve various unique combinations of innovations which are recognized to be essential to the company. They may be substitutes or complements from the standpoint of the core business, they often emerge fortuitously, and they are difficult to predict. They involve the middle-level management in developing broader strategies for the creativities of inside entrepreneurs and acting as corporate champs to persuade the top management to support these creativities ( Garrett Jr & Covin, 2015) . An example is the development of personal computers by Steve Jobs.
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3. The five dimensions of fundamental uncertainty include; (i) innovations of technology exist in primitive environments with characteristics whose significance cannot be immediately appreciated. For example, the laser in the telecommunication industry was not an apparent substitute for something which was already in existence. (ii). The effects of innovations of technology frequently depend on advancements in complementary innovations. For example, the laser in the telecommunications industry relied on fiber optics availability. (iii). Principal innovations of technology frequently constitute wholly innovative technological systems; however, it may be challenging in conceptualizing such systems. For example, the telephone was initially conceptualized as primarily a business element. (iv). Primary innovations of technology were originated to attempt to solve specific issues and let to unforeseen uses. For example, the steam engine was initially intended for pumping water out of water-logged mines. (v). The definitive effect of innovations of the technology relied on the capacity to relate them to particular types of human needs successfully. For example, it was David Sarnoff who related the prospect of wireless communication to the stretched needs of individuals.
4. There are various challenges of the autonomous strategic initiatives, and they include; (i) the initiatives limit the extent of strategic changes which the management can absorb. (ii). The initiatives lack a clear diversification plan. (iii). Lead to cultural and administrative frictions, which include employees transfer issues and rigidness coming from the management systems. (iv). The initiatives may negatively affect the corporate image, which may affect implementation strategies for the management. (v). such initiatives cause strategic interferences.
5. The nine designs alternatives for internal entrepreneurial activity include;
Direct integration: they are mostly required in highly integrated corporations where fundamental changes in product aspect may threaten the strategic process of the company.
New product department: this may be achieved when partial operational relatedness or high strategic importance requires strong administrative relationships ( Kuratko, Hornsby, & Hayton, 2015) . Hence, there may be a need for a distinct department where the potential for sharing skills and abilities is essential.
Special business units: these may be created due to operational relatedness and high strategic concern. Therefore, the need for special business units is vital in ensuring the achievement of explicit strategic objectives.
Micro new venture department: this design is suitable in establishing a new department to ensure relationships to take advantage of current skills and abilities.
New venture Division: it is applicable in circumstances of maximum uncertainty in the evaluation framework.
Independent business units: the arrangement is suitable in situations of negligible operational relatedness and ambiguous strategic importance.
Nurturing and contracting: the design is suitable where the business needs to transfer some of its skills and abilities to entrepreneurs
Contracting: involves licensing agreements for learning about improved and innovative skills and abilities via means of operational linkage.
Complete spin-off: it is appropriate when operational relatedness and strategic importance are low.
Questions: R‐III‐13
1. Monitoring and authorizing in top-level management: the top managerial level cannot evaluate the merits of particular innovative measures plans for company development. Managers have limited capacities to deal with problems of creative business opportunities, and their expectations regarding what is to be achieved in the short-term are somewhat unrealistic.
Coaching stewardship and strategic building for middle-level managers: the middle-level management are not in a position to coach ICV project initiators. In innovative business, they find it hard to balance their capacity of coaching new ventures and efforts of strategic building ( Kuratko et al., 2015). Thus, there is a tension between coaching and stewardship responsibilities.
Technical and need thinking and strategic forcing for operational managers: the project initiators cannot persuasively determine in time which resources will be utilized effectively. The venture managers find it challenging to establish a balance between strategic forcing efforts and developing the managerial approach for innovative ventures.
2. The process of selecting middle management based on business knowledge and technical expertise is effective and easy to implement. This is because it requires minimum resources to implement. Top managers have experience in organizational championing and hence are useful for the evaluation of the progress of innovative ventures.
3. The process of project initiators is effective but problematic to implement. Project initiator is required to integrate business and technical perspectives. There are other ways of rewarding project initiators rather than making them venture managers. This is because they are vital for new venture development ( Wadhwa , Phelps, & Kotha, 2016) . The venture managers have involved in the development of functional capabilities for innovative ventures. The process is useful as such managers are crucial for identifying and pursuing new venture opportunities.
References
Garrett Jr, R. P., & Covin, J. G. (2015). Internal corporate venture operations independence and performance: A knowledge–based perspective. Entrepreneurship Theory and Practice , 39 (4), 763-790.
Kuratko, D. F., Hornsby, J. S., & Hayton, J. (2015). Corporate entrepreneurship: the innovative challenge for a new global economic reality. Small Business Economics , 45 (2), 245-253.
Wadhwa, A., Phelps, C., & Kotha, S. (2016). Corporate venture capital portfolios and firm innovation. Journal of Business Venturing , 31 (1), 95-112.
