Abstract
Innovation is one of the most critical aspects of most entrepreneurial undertakings. It complements entrepreneurship in several ways that ensure organizations attain successes in their operations inside the current business environment that is constantly changing. It is important to note that innovation is not constrained to the inceptive stages of a new venture; but is instead a holistic process in organizations that embrace the entrepreneurial culture. The culture and management styles of organizations are vital in affecting innovative behavior. Businesses understand its importance and know that innovation is a dynamic process that they must embrace the culture to retain relevance in the market.
The Justification for Entrepreneurial Organizations Seeking Opportunities for Innovation
When innovation is used to support entrepreneurship, businesses can survive in the long run even as market dynamics evolve rapidly. With innovation, organizations can include new products, services, processes, new markets, new skills and talents, and new ways of management. Therefore, innovation is the particular tool entrepreneurs use to adapt to the opportunities to forward new and unique solutions needed in the market and eventually reap lucrative benefits. The success of organizations such as Netflix, Nike, Twitter, and IBM can be attributed to a series of significant innovations. With innovation, the companies surfaced in the market with new ideas, which strengthened their competition, guaranteed exponential growth, and greatly improved the customer approval and attraction of the best workforce.
- Competition
With innovation in place, organizations can compete favorably in the market. Murswieck et al. (2020) affirm that creating new products and engineering new ways of the production processes that are cost-effective ensures that a business entity stands out in the market. Innovations will better position an organization to increase its revenue and output. The companies mentioned above dominate their industries due to a tremendous competitive edge of investing heavily in innovation.
- Business Growth
Small and medium enterprises seek opportunities for innovation to grow their ventures. Although it is not the only way for a business to grow, finding innovation gaps and embracing them ensures the establishments reach new heights. It helps firms grow by contributing to the number and variety of goods and services that businesses can provide hence covering the needs of a more extensive customer base (Cosenz & Bivona, 2021). Buying existing products and improving them is also an innovation strategy that guarantees business growth due to the addition of output from the business.
- Customer Approval
Entrepreneurial organizations strive to meet the expectations of their customers. According to Stephan (2022), the customers’ needs constantly change from time to time, creating the need to change business ways. Innovation helps companies invent new ways that match the customers’ unique needs, hence catering to the dynamism displayed in the market. The high responsive ability maintains the relevance of an establishment and eventually cement the approval of customers, which is excellent for business.
- Attraction and Retention of Employees
Every organization desires to have the best talents inside its workforce to have the most refined output for the market. When a firm is innovative, it becomes the destination for the most competent and highly qualified employees. Creative employees prefer to work in business environments that support their abilities to create and actualize new ideas. Therefore, organizations with entrepreneurial cultures seek opportunities for innovation to woo the top-ranking and highly talented employees in the market.
References
Cosenz, F., & Bivona, E. (2021). Fostering growth patterns of SMEs through business model innovation. A tailored dynamic business modeling approach. Journal of Business Research, 130, 658-669.
Murswieck, R., Drăgan, M., Maftei, M., Ivana, D., & Fortmüller, A. (2020). A study on the relationship between cultural dimensions and innovation performance in the European Union countries. Applied Economics, 52(22), 2377-2391.
Stephan, U. (2022). Cross-Cultural Innovation and Entrepreneurship. Annual Review of Organizational Psychology and Organizational Behavior, 9, 277-308.
write