Implications For Innovation in Entrepreneurial Organizations (Research Paper Sample)

Implications For Innovation in Entrepreneurial Organizations
Organizations that foresee and act upon emerging opportunities for change through innovation have a competitive advantage (Lehoux et al., 2021). Entrepreneurship entails the identification of business ideas and integration of these ideas into actionable processes to create unique products and services that meet consumer needs (Guttentag & Smith, 2017). This paper identifies four major factors driving entrepreneurial organizations toward seeking innovative opportunities.
1 Customer Satisfaction
Businesses that seek innovative opportunities remain relevant by satisfying customer needs. Customer needs are rapidly changing, especially in the current technologically driven world. For instance, Honda began manufacturing cars for the United States market in the twentieth century (Muniandy et al., 2020). The company standardized its assembly of pick-up trucks to more innovative and flexible production of fuel-efficient 4-cylinder engines in 2008 to meet the consumer demands for fuel-economical cars (Muniandy et al., 2020). As a result, the Honda Civic sedan has emerged as one of the most popular selling cars today in America (Muniandy et al., 2020). Keeping up with consumer needs for fuel-efficient cars through innovation enabled Honda to remain relevant in the market.
2 Product Positioning
Globalization has made the current market more dynamic for businesses. Survival in the current globalized market relies on market positioning and the ability to attract customers consistently. According to Mthembu & Barnard (2019), managers keep up with globalization by improving their market positioning. Product differentiation leads to good Market positioning. Organizations strategically position themselves to attract more consistent customers by producing new products (Lehoux et al., 2021). Improving the quality of existing products through innovations makes the products more cost-effective and differentiates the products in the market.