ABSTRACT
This chapter considers what capabilities an organisation has for entrepreneurship and whether it should extend or change those capabilities. It suggests that traditional strategic planning, as taught in business schools for many years, is actually less useful when one are aiming to innovate and especially if you are seeking radical innovation because this approach places greater emphasis upon a more stable strategic environment. The first test for a core competence is whether the skill sets are able to deliver customer value. The second test is competitive differentiation; here, an organisation has a skill set that may not be exclusive to it, but its level of performance is superior to its rivals. The final test for core competence is the idea of extendibility. The chapter proposes that there is no optimal strategic approach; rather, there are just different ways of considering and choosing entrepreneurial strategies.
