Innovation constitutes introducing a new concept or an intervention. This action occurs in different sectors; however, emphasis will be on the business sector. Regarding the business sector, innovation is evident in distinct forms, including new products and business models. Innovation is coined from various sources, such as new markets and changes in the economic state of a country. Furthermore, there is a relationship between entrepreneurship and innovation. The latter mainly begins with innovation, as the entrepreneur has to be willing to risk developing business opportunities from new market concepts (Bappayaya et al., 2020). This paper summarizes, lists, and defines four reasons why entrepreneurial organizations seek opportunities for innovation.
Entrepreneurial organizations seek opportunities for innovation because of various reasons. First, to increase the competitive advantage that the organization has against its competitors. In the modern world, competition is high, and the only way for a business to withstand competition is by incorporating new concepts into its daily operations. However, to withstand the high competition, an entrepreneur ought to be creative and innovative, which will help him coin new goods and services that will fascinate societal people, thus increasing the purchasing power of consumers. Through this, the organization increases its profitability since people will prefer their products to others in the market. Secondly, these opportunities help businesses adapt to market dynamics. Changes occur in the market and influence the operations of different organizations. Therefore, organizations that formulate innovative interventions can coin ways to help them work effectively toward the changing times. Hence, having an advantage in the market compared to businesses that do not have a flexible organizational culture.
Third, innovation opportunities help an organization in its growth and development. Innovation primarily exists in distinct forms, like the mechanization of organizational operations. Hence, using up-to-date technology in daily operations results in positive implications like an increase in the sales of products and the number of clients. For instance, organizations such as Amazon and Apple Inc. have incorporated technology into their operations, enabling the companies to advertise their products on online platforms like Facebook (Roggeveen & Sethuraman, 2020). Also, these companies have created websites where clients can view and purchase different products being sold. Lastly, customer satisfaction is enhanced through innovation since entrepreneurs have to ensure the production of their products according to the preferences of their loyal and potential customers. Customers in the modern world need products that portray creativity compared to customers in the traditional world who are comfortable with any product regardless of the specifications. Hence, entrepreneurs that gain these opportunities get to satisfy the needs of different customers aiming to maintain their high number of customers in the nation.
In summary, innovation entails coining new ideas and methods of performing different activities. In the business world, innovation is evident in distinct forms, like introducing new business models that will positively change the organizational culture. Innovation is closely related to entrepreneurship as the two aspects work hand in hand. Therefore, entrepreneurial organizations seek innovation opportunities for different reasons, including helping businesses to be flexible in accordance with the market dynamics. Through this, the organizations can formulate interventions that will fulfill clients’ changing needs. Additionally, the opportunities enhance the growth and development of these organizations since innovation introduces technology that propels the success of the organization. Also, innovation opportunities develop customer satisfaction as products are created based on customer preferences.
References
Bappayaya, A., Ahmed, I., Dahiru, F., & Lawan, A. M. (2020). Mediating Effect of Knowledge Management Capacity in The Relationship Between Innovation and Entrepreneurship Development. Ilorin Journal of Human Resource Management, 4(2), 40-49.
Roggeveen, A. L., & Sethuraman, R. (2020). Customer-interfacing retail technologies in 2020 & beyond: An integrative framework and research directions. Journal of Retailing, 96(3), 299-309.
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