Why are large businesses with an entrepreneurial orientation more likely to be innovative or entrepreneurial?
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Entrepreneurial orientation entails the executive’s draft of strategies to exploit and bring about opportunities whereby no organization can exploit it. In Entrepreneurial orientation, there must be processes, practices, and decision making styles of an organization to be entrepreneurial. The success of a business depends on the strategies and innovations that are put into consideration. In connection to that, this paper discusses the reasons why large businesses with an entrepreneurial orientation are more likely to be innovative or entrepreneurial.
One of the main reasons large businesses tend to be innovative is to create a space for the company’s growth. The goal of innovation is to create a business mindset that helps in the support and growth company. The management is supposed to make sure there is a conducive environment for all stakeholders to implement on factors regarding the business’s growth. The stallholders should be motivated intrinsically or extrinsically to make sure they work towards the business (Tho, 2017). Motivating the workers helps in creating conditions whereby the workers do a great job under minimum supervision.
The success of any business or organization depends on the leadership skills implemented. According to the research, leadership is the key factor in the innovation and performance of any business. The CEOs of any business should be people with leadership skills and have the capabilities to achieve the set goals. The leader should have the skills to balance the expenditure and profits by making sure the workers are satisfied, and at the same time, the business is making a profit. The leader should encourage networking as part of the management. It helps in coming up with ideas that favor the producing products that are customers’ choices. Again comparing the prices of different products in the market to avoid making losses.
Engagement is one of the key factors for the growth and innovation of any business. When a business employs disengaged workers, the chances of making losses are very high and vice versa. Lack of engagement translates to low growth or the making of losses, which is against the law of innovation. Entrepreneurship has to provide a conducive environment that engages the employees to achieve their goals that innovation and make the rapid growth of the business. The research shows that for many businesses that have experienced rapid growth, entrepreneurship issues have been embraced. Entrepreneurship brings about more innovation, higher employee engagement levels, and an increase in productivity, and higher financial returns.
The success of any business depends on the plans and strategies that are put into considerations. Change is a discipline that brings about an alternative way of doing things. The business should have laid down plans and strategies to achieve its goals. The research states most of the entrepreneurs fail not because they do it try but because they fail to emphasize the change in their plans. Any business’s greatness is associated with risk-taking, which is associated with change hence resulting in an organization’s ability to grow (Linton, 2019). Risk-taking applies in a situation whereby the out should be high as compared to input by the end of the day. Consequently, in developmental psychology and moral, political, and bioethical logic, the autonomous institution should always be self-governing for the progress of a business. It helps calculate the profits and the losses made by the institutions within a given period and the decision that should be put into practice to overcome such a situation.
The entrepreneurial success of the business depends on the caution taken by the management. For instance, the management should be able to act in advance on issues that might be hard to achieve over a short period. The short terms and long terms goals for any business should be set in advance to avoid mismanagement. On the other hand, the leaders are supposed to motivate workers to bring about innovation, working differently from other businesses to bring differences from other business enterprises. The marketing of any business ideology should among the short-term plan of any business (Razavi & Aziz, 2017). It helps in the early establishment of the business and the type of quality it will offer the customers. Consequently, a new business should be in apposition to differentiate itself from other business in term of the services its offering. The difference is brought about by the business’s strategic plans of understanding what customers and the means of delivery. The form of advertisement should be made so that customers do not struggle to locate their product of choice. The law of willing buyers and will sellers depends on the strategy of advertisement of the product.
In conclusion, innovative or entrepreneurial is very important in a business setup because it sets standards on how the business will perform. The leadership made by management is one of the key factors that determine the performance of the business. The workers should be proactive so that they are in a situation to complete the current market situation. When the demand for certain products goes down, the management should be in a situation to change with market waves by balancing their inputs and outputs.
References
Linton, G. (2019). Innovativeness, risk-taking, and proactiveness in startups: a case study and conceptual development. Journal of Global Entrepreneurship Research, 9(1), 1-21.
Razavi, S. H., & Ab Aziz, K. (2017). The dynamics between entrepreneurial orientation, transformational leadership, and entrepreneurial intention in the Iranian R&D sector. International Journal of Entrepreneurial Behavior & Research.
Tho, N. D. (2017). Knowledge transfer from business schools to business organizations: the roles absorptive capacity, learning motivation, acquired knowledge, and job autonomy. Journal of Knowledge Management.