PAUNOVIC, SVETISLAV, and IOAN CONSTANTIN DIMA.

"Organizational Culture and

Corporate Entrepreneurship." Annals of The University of Petrosani Economics 14.1 (2014):
269-276. Business Source Complete. Web. 14 Sept. 2016.
This article titled Organizational culture and corporate entrepreneurship, written by professor
Svetislav Paunovic, and professor Ioan Constantin Dima, analyzes the role of referent values of
entrepreneurial culture and motivational factors that support effective implementation of such
values in corporate entrepreneurship model. The author presents a rationale to establish and
incorporate values of entrepreneurial organizational culture into the corporate environment. The
author is keen to point out that corporate entrepreneurship has become necessary precondition
for sustainable business development and it should encompass coordinated changes of
organizational structure and organizational culture as well as encourage entrepreneurial behavior
of employees at all levels as the engine of economic growth and future business performances.
My overall impression is that the authors have documented the line of argument in a competent
way whilst employing a tidy, relevant and logical methodology. I believe that this article would
be very useful for many people that are interested in this topic and overall, I would rate it as a
great read of high merit.
Corporate employees and small business owners will find this article useful for understanding
the importance of entrepreneurial culture, how they can initiate changes of organizational
structure and organizational culture and encourage entrepreneurial behavior of employees. As
would management students and business intenders who would benefit from the insights as they
undertake the challenging journey of working for themselves. Though lacking informative depth
in any particular area, the article does clearly define the business challenges and roles of attitude,

knowledge, innovation, creativity, communication, collaboration, human resource development,

risk-management, motivation and reward system in building entrepreneurial culture.
In this article, the authors have relied on the qualitative and exploratory research of the
underlying literature of management, entrepreneurship and organization behavior, their own
hands-on insights gleaned from the establishments of their own, and their years of coaching
experience to provide insights into the problem and develop ideas or hypotheses for potential
quantitative research. The author contends that organizations must be prepared not only for
changes of organizational model and structure but for changes of existing organizational culture
to lead and achieve success as Innovations and technology have become major determinants of
the new business era. Globalization has created a baffling nexus where constant change if paced
down, impacts multiple business at the same time. The increasing rate of flow of businesses
entering and exiting the market has given consumers a privilege to expand their range of choices.
While this might sound appealing to consumers, it certainly cautions businesses of intimidating
competitions. Businesses today have an obligation to invest on research and development more
than ever in order to secure their market positions. Changing preferences of the consumers
should not go unnoticed by the businesses. They must not only act accordingly but also quickly.
Recently, the business world has seen numerous acquisitions, investment in start-up venture and
management of new small firms by a large company independently from its core business which
resulted from visible incompetency of the acquired companies. The authors stress that knowledge
is the key element for entrepreneurial process and emphasize on structural, behavioral and
cultural change stirred by agile learning and development as the basis for keeping organizational
systems efficient and competitive.

Through their literature review the authors have attempted to answer why the corporate
entrepreneurship is of crucial importance for future sustainable performances and identify the
key challenges of this context. The article describes corporate entrepreneurship as different
types of entrepreneurial behavior in existing, large organizations (corporations) aimed at
achieving through encouraging innovation competitive advantage at all levels: corporate,
divisional, business unit, business functions and project teams. It differentiates corporate
entrepreneurship based on the nature and capability of corporation to invest in start-up venture
and management of new small firms independently from its core business. The concept of
corporate entrepreneurship is targeted on readiness of employees to break barriers of large
bureaucratic organization in order to breakthrough and develop of new products and service. It
requires incremental and sometimes radical change to complete the complex, transformational
process. The articles outline the current business challenges as: degree of resistance because of
past success, erosion of leadership and entrepreneurship, sense of complacency and selfconfidence that interfere the organizational changes, the lack of competences of the management
team to create an entrepreneurial architecture that can efficiently support the future
organizational growth and so forth. This process has to drive through many layers Business
Process Reengineering(BPI) from revitalizing products to training individuals and building
entrepreneurial teams. Even if organization managed to achieve this transformation once, the
major challenge is continuous iteration of the highly intricate, dynamic and agile process.
The article explains how positive organizational culture helps in shaping employee attitude,
minimizing conflicts, creates the sense of belonging and makes decision making more efficient.
It suggests that a process should be developed that motivates employees toward an
entrepreneurial mindset irrespective of their position. It recommends on fostering ecosystem

where individuals feel empowered and incentivized to take risks, make their own decisions, and
experiment, even if it means failing. A culture where informal, spontaneous, and nonbureaucratic decisions characterize the typical patterns of problem-solving and interaction
between employees and teams. As companies develop such culture, it can translate to practical
innovation and unleash creative power of human capital. This competitive advantage gained
from the new and dynamic approach evolves business towards growth and success, solving realworld problems, including those which had not yet been identified while making world a better
place. It further explains the role of team work, collaboration and communication in building the
entrepreneurial cultural. Communication between the employees helps to solve the existing
problems and create new environment for the interaction with business entities. Such team work
and collaboration builds up synergy, shape new ideas and increase productivity. The article
elaborates tangible and intangible motivational factors imperative to develop commitment and
sense of belonging in the organizations. Further the article emphasizes commitment and sense of
belonging as the key determinants of entrepreneurial organizational culture.
The authors effectually articulates the roles of referent values of entrepreneurial culture and
motivational factors that support effective implementation of such values in corporate
entrepreneurship model, and this gives support to the authors key claim that corporate
entrepreneurship has become necessary prerequisite for sustainable business development and it
should comprise coordinated changes of organizational structure and organizational culture as
well as encourage entrepreneurial behavior of employees at all levels as the engine of economic
growth and future business performances.
To recapitulate, I believe that the authors Dr. Paunovic and Dr. Dima have effectively supported
their position that business organizations must be prepared for proactive changes of their

organizational model, structure and organizational culture in order to promote the

entrepreneurship values and to encourage entrepreneurial behavior through an appropriate
system of motivation. Their qualitative and exploratory research have laid foundation for future
quantitative and descriptive research. Corporate employers, small business owners and intenders
may be encouraged to prioritize incorporating the values of entrepreneurial organizational culture
into their business environment after reading and understanding this article.