
IN THE dynamic landscape of entrepreneurship, the pursuit of innovation reigns supreme, steering the course of economic growth and societal progress.
At the helm of this pursuit stands Professor Michael Frese, a luminary figure renowned for his groundbreaking research at the Asia School of Business.
Delving deep into the complexities of innovation management, Frese unravels the intricacies of transforming visionary ideas into tangible market realities.
The Varied Faces of Innovation
Hailing from a background in psychology, Frese’s journey transcends conventional academia.
As a visiting professor in Africa, his reflections on poverty mitigation ignited a profound inquiry: What role can psychologists play in fostering entrepreneurship and equipping individuals with the requisite skills to navigate the complexities of the business landscape?
Frese believed that among all countries, the question of how to innovate is one of the most important issues.
He said it is not just about generating innovative ideas but also about managing innovation effectively.
“Innovation management involves not only coming up with good ideas that can be implemented in prototypes but also knowing how to manage and ensuring these innovations thrive within companies.
“The approach to innovation varies across different countries. Currently, our research focuses on innovation in five Asian countries namely India, China, Indonesia, Singapore and Japan. Unfortunately, Malaysia is not included in our research as I was not here at that time,” he told The Malaysian Reserve (TMR).
He added that the main question is how Asian countries handle innovation and how they transform innovative ideas into marketable products and services.
Frese found it interesting to observe the differences between India and China where in the former, there is a lot of creativity and a simple approach to creative thinking, but often, ideas do not get implemented.
In contrast, implementation is prioritised over creativity in China. “If you ask about preferences, Indians would say they prefer to see their ideas implemented, whereas the Chinese prefer to become more creative.
“This preference for cooperation, which is not explicitly stated, emerges from our research,” he added.
He explained that Malaysia is in a favourable position due to its diverse population, including Chinese and Indians.
“ This research could be utilised for cross-cultural innovation initiatives.
“ Generally, the question of what needs to be done remains,” he said.
Frese noted that there is concern about rapid pace of innovation and the need to strike a balance between embracing innovation and not blindly following every new trend.
He opined that the best strategy for innovation is to employ a two-pronged approach which is to focus on what is already known and excelled at, while also exploring new ideas and areas where expertise may be lacking.
“This approach, known as ambidexterity strategy in innovation research, involves combining what you are good at with new ideas.
“However, there are challenges, especially in countries like Germany, Malaysia and many parts of Asia, where it is often difficult to challenge authority or tell a CEO that they are wrong,” he said.
Nevertheless, he added, this approach is necessary for progress. A common learning approach that involves individuals at all levels of the organisation must be adopted.
Frese said it is essential to be open to learning from younger employees and not just relying on experts in the field and that cultural changes may be necessary to facilitate this shift.
Cultivating Personal Initiative
Frese focuses on teaching personal initiative, which consists of three key components: Self-starting, future orientation and overcoming barriers along the way.
Self-starting entails taking initiative without relying solely on external factors or following trends blindly.
It is about doing what is right rather than simply conforming to popular opinion or industry norms.
“People often get caught up in fashionable trends or adopt the latest consultant styles, but true self-starting means being open to new ideas while also drawing from one’s knowledge and experience,” he said.
Besides, he added that future orientation involves navigating the complexities of an ever-changing landscape, particularly in rapidly ageing societies like Japan and Europe.
He noted that it is crucial to anticipate future challenges and opportunities, as well as to recognise the limitations of human prediction.
“We must balance planning for the future with the understanding that our predictions may be flawed, leading to a paradoxical need for both preplanning and experimentation,” he commented.
He also told TMR that overcoming barriers is essential for both individuals and organisations, especially in the entrepreneurial realm where obstacles abound. It requires a collective effort to address challenges effectively, with a focus on continuous improvement and innovation.
Frese emphasised the importance of personal initiative in overcoming barriers, teaching this concept in Africa and within companies, as it is integral to fostering entrepreneurship and driving growth in both small and large enterprises.
His approach to teaching is evidence-based, drawing on research and real-world insights to inform practice.
By providing tangible evidence of the effectiveness of my methods, Frese aims to empower entrepreneurs and decision-makers to make informed choices and drive positive change in their respective fields.
This commitment to evidence-based entrepreneurship is one of the reasons why he has been recognised with awards and why many see value in adopting this approach to policymaking and business strategy.
Frese has also conducted extensive research on various aspects of psychology and entrepreneurship.
“We have examined personality traits, how individuals perceive entrepreneurship and the long-term effects of these factors.
“One particular aspect of interest is the concept of mindset. Personality certainly plays a role, but it is not the sole determinant of entrepreneurial success,” TMR was told.
He argues that relying solely on personality when selecting entrepreneurs is inadequate.
“While personality may influence success to some extent, it is essential to focus on other attributes crucial for entrepreneurship,” he said.
Frese explained that in Africa, for example, individuals may present themselves effectively to banks to secure microcredit, showcasing how personality becomes useful after the fact.
He said when discussing entrepreneurship with individuals, it is important to inquire about their personality but equally crucial to address how they manage their personality.
Managing one’s personality, he noted, involves surrounding oneself with supportive individuals, addressing weaknesses and developing strategies for adaptation and confidence building.
These factors, rather than personality alone, contribute significantly to entrepreneurial success.
Cultivating Entrepreneurial Action and Training
The second aspect revolves around individuals who express a desire to become entrepreneurs and take steps to fulfil that aspiration.
“The key here is action, merely expressing a desire to be an entrepreneur is insufficient. True entrepreneurship requires the development and implementation of a well-thought-out action plan,” he said.
He explained that lastly, there is the question of how to effectively train entrepreneurs.
Frese offers two training programmes which are one for MBA students in development and another for existing entrepreneurs.
Both programmes focus on cultivating a psychological mindset, emphasising personal initiative.
He said while these programmes are effective, it is important to acknowledge that they are not the sole solution, emphasising that entrepreneurship encompasses various factors, but the essence lies in self-starting, future orientation and overcoming barriers.
In addition, he stressed that he was unsure where Malaysia stood on the entrepreneurship initiatives and certainly, nobody ever feels they have enough.
Based on impressions rather than extensive research, Frese believed that Malaysia has the potential to achieve much more.
He said there is a need for individuals to push themselves further and that being pushed into entrepreneurship due to necessity is not inherently negative.
“I understand the need to provide for one’s family and fulfil obligations, it is essential to have an action plan.
“External training can be beneficial in this regard. However, a mere push to act may not always suffice,” he explained.
According to Frese, it is crucial to improve the opportunities available and not just follow the path of others.
Finding a niche and exploring different avenues is key. When teaching entrepreneurship, Frese always encourages students to look for unique niches to explore, an aspect that is perhaps not emphasised enough.
Frese advocates for entrepreneurship as a starting point for many individuals.
He said starting with something small, such as gig work, is perfectly acceptable.
Whether delivering food or providing services, these endeavours can serve as a foundation.
However, it is essential to recognise when it is time to move on to something more aligned with one’s passions and skills.
Elaborating further, he believed the first challenge lies within oneself.
“For example, they should ask whether they are willing to learn and adapt or do they allow themselves to become frustrated when things do not go as planned,” he said, adding that entrepreneurship encompasses a wide range of responsibilities, from accounting to marketing, innovation and networking.
It requires being prepared for tasks one may not anticipate such as tax considerations and various administrative duties.
The key question is whether they truly want to learn and grow as not everyone is suited for every aspect of entrepreneurship, and recognising one’s strengths and weaknesses is crucial.
Frese added that social networking extends beyond professional contacts to include family, spouses or children.
Balancing personal and professional relationships can be challenging, especially considering the demanding nature of entrepreneurship compared to conventional employment.
Being present and open to new ideas is essential for entrepreneurial success. Actively seeking opportunities for improvement, both in one’s ventures and in the broader market, is vital.
“Networking is valuable, but its importance can be overstated. While it is beneficial, success ultimately depends on individual effort and competence.
“In some contexts, such as rural areas, structured networking may be less critical compared to urban environments, where access to resources is more centralised,” he said.
Frese said before embarking on a journey into a personal initiative, he conducted numerous studies to understand its nuances and implications fully.
This process involved pilot studies, smaller-scale investigations, and finally, large-scale research projects with randomised group designs.
He is wary of individuals who hastily adopt ideas without proper research or consideration.
“Research is not just about generating ideas, it is about rigorously testing and analysing them to gain meaningful insights,” he noted.
Navigating The Nexus of Entrepreneurship and AI
Frese opined that entrepreneurs often regard artificial intelligence (AI) as a key component of their endeavours.
He said it is crucial to understand how to effectively utilise these technologies and the possibility of leapfrogging certain stages of development.
“Could an entrepreneur or an individual with limited education and access to just a mobile phone start a complex company with the assistance of AI?
“This is a question that warrants exploration. We need to understand how AI functions in such contexts and how we can teach people to leverage it effectively,” he said.
He noted that currently, research suggests that AI is beneficial in certain job roles, particularly in service-oriented environments.
It tends to assist individuals who struggle with their tasks rather than those who are already proficient.
However, there are still many unanswered questions regarding why this is the case and what specific tasks AI can effectively aid with.
“We need to delve deeper into understanding why certain individuals benefit from AI while others do not,” he stressed.
Furthermore, he said the integration of AI into the workplace presents challenges.
While automation can streamline certain tasks, it is essential to recognise that human involvement is still necessary in many instances.
He also recognised the opportunity to innovate in the AI space by creating new solutions that complement its technologies.
Charting A Course for Personal and Professional Fulfilment
There is a need to consider how training programmes can be tailored to support entrepreneurs in utilising AI effectively.
Frese said entrepreneurs must explore whether face-to-face training can be combined with other methods to enhance learning outcomes and that it is crucial to remain humble and acknowledge that not every approach will work for everyone.
Conducting research with large sample sizes and employing skilled trainers is essential in this regard.
“In conclusion, as researchers and entrepreneurs, we must continue to explore the potential of AI and adapt our strategies accordingly.
“By remaining open to new ideas and approaches, we can ensure that our efforts are guided by evidence and aimed at maximising impact,” he said.
He added that people need to understand that they should not fear conflict.
Instead, they should express their needs assertively and strive to maintain a balance.
“One of the challenges for humans in general is to understand who they are, recognise their strengths and focus on improving themselves.
“It is essential to embrace complexity and acknowledge the importance of leadership in both personal and professional life,” he said.
Source: https://themalaysianreserve.com/2024/04/05/unveiling-the-entrepreneurial-odyssey/