Entrepreneurial Organizations
Opportunities for innovation are essential because of the underlying benefits that necessitate their adoption in entrepreneurial organizations. Many enterprises have embraced entrepreneurship as a core factor in their efforts to realize productivity and growth. The need to spur growth, creation of new business opportunities, improve the quality of employees’ life, enforce change, and remain competitive are fundamental goals for every entrepreneurial organization. Contemporary entrepreneurial organizations’ pursuit of innovation opportunities cannot be overemphasized. Many businesses dedicate immense resources to identify and implement innovative ideas. Creativity among company employees is key to recognizing and formulating new ways of doing things. This paper explores the different reasons that drive the need for innovation
opportunities in entrepreneurial organizations.
The Need to Increase Profitability
Entrepreneurial
organizations seek to increase their profits to enhance
sustainability for business operations. Innovation opportunities are imperative because they promote efficiency and effective management of resources (Maritz & Donovan, 2015). In light of this perspective, the entrepreneurial desire for innovation prospects is driven by the need to lower the cost of operations and shorten the time taken during the production process. Petkovska (2015) opines that long lead time in the production process could affect product delivery to customers and, therefore, loss of many clients. Innovation, therefore, is
integral in fostering customer satisfaction to increase profitability.
The Need Adapt to Market Changes
The contemporary business environment is increasingly changing, which makes many organizations to adopt novel strategies. Entrepreneurial organizations’ pursuit of innovation is significantly vital to their survival in the turbulent business environment (Crumpton, 2012). These organizations seek innovations to allow them to compete effectively in their respective markets or industries. Market changes often lead to the introduction of new products making the already existing ones obsolete (Piperopoulos, 2016). Organizations that do not prioritize innovation enterprises would find it challenging to cope in the new business environment or experience a possible lack of market. The entrepreneurial
organization, therefore, focuses on new ideas that could spur the development of new ways to meet customers’ demands and expectations.
To Embrace Technological Advancement
The internet of things (IoT) continues to disrupt business platforms in different ways. IoT is changing the way people and businesses share and access information in real-time (Piperopoulos, 2016). Clients and customers no longer need to move to physical stores to compare different products because most items and services could be accessed through online platforms. Entrepreneurial organizations understand the importance of remaining abreast of technological changes. In response to the technological advancements, executives of most organizations pursue innovation opportunities to ensure their products are appropriately marketed and accessed by their targeted customers. Online education is crucial in creating awareness and responding to customers’ questions (Maritz & Donovan, 2015). The entrepreneurial organization seeks innovation chances to satisfy its customers by providing information.
Maximize Globalization Connectivity
Globalization has rendered both local and international markets accessible to nearly all business entities. Many governments are enforcing free-market regulations that increase the potential for productivity in international trade. According to Petkovska (2015), entrepreneurial organizations seek innovation opportunities to ensure
they maximize their potential to exploit and leverage the new market opportunities created by globalization. Innovation opportunities, therefore, would ensure they access information, supply products, and meet global market demands.
Indeed, entrepreneurial organizations need to explore innovation opportunities continuously. The business environment is increasingly changing as governments adopt new policies that support globalization connectivity. Markets are expanding, and consumer needs and expectations are changing. Entrepreneurial organizations have to identify new prospects through which they could meet the market changes and consumer requirements. Managing operational costs is critical towards realizing higher and sustainable profitability levels. This aspect is attainable if organizations invest in new ideas.
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