Reasons Why Entrepreneurial Organizations Seek Opportunities for Innovation (Essay Sample)

Reasons Why Entrepreneurial Organizations Seek Opportunities for Innovation
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Reasons Why Entrepreneurial Organizations Seek Opportunities for Innovation
The success of any organization in the current economic situation lies in its ability to aggressively identify, evaluate, and exploit business opportunities in a highly volatile environment. Therefore, the top management puts entrepreneurial innovation as an enabling tool to execute its business processes. Application of technological innovation in an organization is an essential component because it helps in: identifying and managing various risks, achieving competitive advantage, meeting customer expectations and needs, improving manufacturing processes and procedures, and attracting a pool of expertise workforceCITATION Raj18 \l 1033 (Rajapathirana & Hui, 2018).
To achieve a competitive advantage.
The ease in doing business and transacting around the globe has resulted in increasing competition even as the companies try to fit in and offer the best possible product and services in the market. For an organization to identify a market where competition is intense, there is a need to adopt correct strategic tools innovatively CITATION Der15 \l 1033 (Dereli, 2015). The competition, to an extent, has forced many organizations to create similar commodities or sometimes counterfeits as they strive to find their space in the industry. Being innovative in this regard will enable organizations to conquer competitors and achieve a healthy competitive advantage.
Meet customer’s specifications
Organizations should continuously study dynamic consumer behavior to satisfy what they require. Firms need to be innovative in predicting such changes in the market and avail appropriate goods and services before their competitors can realize ( Dereli 2015). This strategy of developing new and creative ideas to meet customers' needs is essential for business success.
To improve processes and procedures.
The application of technological innovation is necessary to improve inefficiencies of processes and procedures in manufacturing. Carrying out continuous research and development and ensuring total funding is vital in achieving optimum methods. The implication of this can be capital intensive; however, the company can realize high-profit margins and earn customer confidence CITATION Raj18 \l 1033 (Rajapathirana & Hui, 2018). Continuous innovation is therefore essential to improve the efficiency of production at the lowest cost possible.
To attract and maintain the best personnel.
Individuals with a high need for achievement often wish to work in innovative companies. Companies, therefore, carry and maintains continuous innovation trends to attract and maintain this personnel. In addition, organizations leverage innovative strategies in information technology to motivate and manage employees (Alves et al., 2019). The technological revolution has compelled many companies to leverage creative ways to recruit and supervise their human resource. Innovation, therefore, is critical for the success of human resource management and performance.
To identify and manage risk.
Innovative opportunities enable organizations to competently identify, list, evaluate, and respond to unforeseen events. It is important to have risk managers be analytical and creative for the organi