Reasons Entrepreneurial Organizations Seek Opportunities for Innovation (Essay Sample)

Reasons Entrepreneurial Organizations Seek Opportunities for Innovation
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Reasons Entrepreneurial Organizations Seek Opportunities for Innovation
In the contemporary world, many entrepreneurs form organizations and establish an entrepreneurial culture to exploit innovation opportunities. The success of multinational corporations such as Apple, Tesla, Amazon, and Google shows management implications for product and business innovation. An influential entrepreneurial culture inspires entrepreneurs and employees to develop innovations. In e-commerce, for example, a combination of entrepreneurship and innovation is an essential element for e-business growth and sustainability. Kuratko (2017) opines that entrepreneurship and innovation are primary determinants of the long-run growth of entrepreneurial organizations.
Entrepreneurial organizations seek innovation opportunities to remain relevant, keeping abreast with the times. The changing market conditions push companies to be innovative. For example, the internet laptops, smartphones, and tablets have become an indispensable part of everyday lives. Many consumers are increasingly transacting via their smartphones, and companies have to adapt to this trend by having mobile phone-friendly applications and websites. Wikhamn (2019) conducted a study on the impact of innovation on customer satisfaction and found a positive and significant relationship between innovation and customer satisfaction. Some companies are committed to maintaining a solid objective towards innovation. Entrepreneurial organizations such as 3M have a clear innovation culture rule that new products five years old or less should account for 25-30% of annual sales (3M, 2020). Commitment to innovation would help a company to uphold a positive brand image. Consequently, innovation helps entrepreneurial organizations to keep pace with the time and satisfy customer needs