Theory E²: Working with Entrepreneurs in Closely-Held Enterprises X: Interplay between Entrepreneurship and Organizational Structures and Operations, and Organizational Culture
The idea-rich culture tends to honor and encourage people who are very skillful and knowledgeable in specific area(s) of expertise. Task-related competence is critical in this culture. This culture also supports those people who possess and make effective use of the technical competencies that are needed to perform their appointed functions. When this culture is successful, employees want to be effectively supervised by the formal management of their group. Managers are formally designated and they, in turn, delegate appropriate responsibility with a comparable amount of authority to members of their work group. With regard to commitment and priorities, people working in a culture of ideas want to be clear about the goals, purposes and aspirations that have been assigned to their group. They also want to be compensated fairly and appropriately for their accomplishment of assigned tasks. Ideally, timely rewards and promotions are given for both individual and group achievements.
In general, the culture of ideas is most closely aligned with the assertive approach to entrepreneurship. The assertive leader encourages risk-taking and the generation of innovation practices. When trusted (with regard to intentions, competencies and perspective), the assertive entrepreneurial leader provides a safe holding environment that encourages the generation and enactment of new ideas.
Culture of Diversity
In addition to the three distinctive cultures just identified, there is a fourth culture that blends the other three cultures. The culture of diversity is one in which all three perspectives are honored. Information flows throughout the organization, intentions are given serious and ongoing consideration, and ideas are generated and actions are taken at all levels of the organization. A participating approach to entrepreneurship is clearly needed if a culture of diversity is to flourish, for diversity inherently requires the emergence of entrepreneurship at all levels of the organization.