Innovativeness in entrepreneurship

Brazilian Scientific Impact Spell. Purpose: Identify the influence of relationships with support institutions on innovativeness and organizational performance. Theoretical framework: The innovation intermediaries are organizations that act as a link between those involved in the innovation process and whose purpose is to develop the innovative aspects of organizations. Although studies have pointed out the importance of relationships with support institutions for the development of innovation, the present study investigated the role of these institutions as intermediary actors in the innovation process.

The Methodi Ordinatio Index was used as a protocol.

innovativeness in entrepreneurship

In order to identify the most central theoretical approaches in the studies, as well to map the interactions between these approaches, the Social Network Analysis - SNA technique was used. Findings: The relationship with support institutions increases access to non-redundant contacts; these, in its turn, influence innovativeness.

The performance of these actors as intermediaries will only influence innovativeness in the circumstances in which the idiosyncrasy of these institutions does not prevent or makes impossible access to non-redundant contacts. Aarikka-Stenroos, L. How to manage innovation processes in extensive networks: A longitudinal study. Industrial Marketing Management, 67 September88— Adler, P. Sloan Management Review, 32 125— Ahuja, G. Administrative Science Quarterly, 45 3— Alaaraj, S.

External growth strategies and organizational performance in emerging markets: The mediating role of inter-organizational trust. Review of International Business and Strategy, 28 2— Aldrich, H. Entrepreneurship through social networks. Smilor Eds.

Cambridge, MA: Ballinger Publishing. Ali, M. Direct and configurational paths of absorptive capacity and organizational innovation to successful organizational performance. Journal of Business Research, 69 11— Balestrin, A.

The Value of Hard Work in Entrepreneurship

Porto Alegre: Bookman. Battor, M. The impact of customer relationship management capability on innovation and performance advantages: Testing a mediated model. Journal of Marketing Management, 26 9—10— Baum, J.

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Strategic Management Journal, 21 3— Beck, T. Journal of Financial Economics, 1— Dynamics of brokerage positions in clusters: Evidence from the Spanish foodstuffs industry.To browse Academia. Skip to main content. Log In Sign Up. Download Free PDF. Amany Hamza. Download PDF. A short summary of this paper. In this context, entrepreneurial opportunity serves as the backbone for the existence of entrepreneurship and entrepreneurial activities Shane et al, Thereof, the notion of opportunity occupies a central place in entrepreneurship literature, wherein researchers in their attempt to tap on the perception of the entrepreneurial opportunity have identified creativity and innovativeness as key attributes Heinonen et al, In this sense, research literature depicts an entrepreneur as an individual with innovative and creative traits that tie up to solve a problem, to search for new ideas or to create new information Kirzner, Given the inherent interrelatedness between entrepreneurship, innovation, and creativity, this research tries to shed the light on the entrepreneurial opportunity to capture this interrelatedness between these premises.

Hence, this study is an attempt to answer the proposed question: What is the role of creativity and innovation as a source of the entrepreneurial opportunity? In this paper, we will demonstrate a framework for understanding how creativity and innovation impact on the entrepreneurial opportunity perception -identifying, recognising, and discovery activities.

The following section reviews some literature on the subject. In the penultimate section, we discuss the contribution of the study and the proposed model.

Finally, a summary the study is presented. Opportunity has been viewed from different perspectives; on one hand, it could be a phenomenon that is derived from external environmental conditions such as market demands and demographics changes. On the other hand, it could be driven by the individual's cognition to discover new ideas. Often, the definition of the opportunity emanates from its context Renko et al, Creativity is the evolution of this opportunity by generating new ideas and novel solutions that fit with it whereas innovation is the successful exploitation of these new ideas Stokes et al, Given the fact that new business creation is a key issue in entrepreneurship, navigating these strands can help unveil the entrepreneurial construct and give a better understanding of the entrepreneurship field.

The neoclassical economic theory is based on the notion of equilibrium mechanisms of the market demand and supply. In this context, entrepreneurial opportunities spring from under-employed resources, market inefficiencies and temporary gaps.

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Furthermore, Joseph Schumpeter -one of the pioneering entrepreneurship theorists -has argued that opportunities are driven by temporary innovation that destabilizes the economic equilibrium, referring to 'creative destruction' theory Renko, On the other hand, drawing from the ideas of the neo-Austrian economists, Shane andVenkataramancited in Carter et al, argue that disequilibrium is the dominated premise where not all market participants know about these opportunities.

In addition, Gaglio cited in Hansen, suggests, based on Kirzner work, that an idea is considered as an opportunity when it creates a value. Thereof, she conceives an opportunity as an entity that evolves out of an idea. This view suggests that an opportunity is an outcome of the opportunity recognition process.

Once the idea is recognized to be both possible and having some potential value, it becomes an opportunity. Noticeably, Hansen argues that identification of the opportunity is fragmented. On the other hand, opportunity is also viewed as a subjective phenomenon that is created and incorporated from the entrepreneur's creative cognition and actions. Thus, it is left to the reader to unfold the perceived interpretation of the scholars.

Whatever the typology of the opportunity construct is, it must be recognized, discovered, identified, or crafted in order to form an entrepreneurial venture Hansen et al, In this sense, entrepreneurs need to generate valuable ideas for new products and services that will appeal to an identifiable market and they must figure out how to bring their projects to fruition Chen et al, Timmons further argues that the dominant thrust behind a highly dynamic entrepreneurial process is the opportunity force by which entrepreneurs can creatively identify opportunities and deploy appropriate resources.

Consequently, the subjectivist view of the entrepreneurial opportunity is linked to the creative attributes of the enterprising individuals. This is driven by the entrepreneurial act of discovering and exploiting profitable opportunities Shane et al, Moreover, Schumpeter and Kirzner cited in Hansen, agree that entrepreneurial opportunity recognition is a creativity-based process.

Further, de Bono claims that this process employs a creative thinking which is 'thinking out of the box.Creativity is one of the things that every leader and entrepreneur need. In fact, people rarely laud entrepreneurs for their creativity in problem-solving processes. Creativity is often seen as the forte of those in both the writing and design domain.

innovativeness in entrepreneurship

Creativity eliminates the limits to the mindset and skill set of an investor. However, a lot of people associate creativity with lack of restraint and believe it can cause chaos.

Conversely, leadership is all about control and order. As such, entrepreneurship and creativity form a perfect combination.

It no longer takes number-crunching skills and practicality to run a successful business. Over time, creativity has become an integral component of good business acumen. Lack of creativity could easily drag your business into the stagnation mode. There is a misconception that people only needs intelligence to achieve everything they need in life. However, it takes time for aspiring entrepreneurs to realize that creativity plays an integral role as well.

Unfortunately, a lot of learning institutions stress more on intelligence than creative thinking. It could perhaps be because intellectual knowledge is measurable whereas creativity can be challenging to spot.

Nonetheless, dynamics are changing, and entrepreneurs are beginning to realize the importance of bringing creative people on board. Creative workers can be a game changer in your company if you harness and shape their skills adequately. Creativity allows an entrepreneur to disconnect from the accustomed and move into uncharted territories with an aim to discern unique and useful solutions.

It has, therefore, become essential for both leaders and employees to develop creative skills.

innovativeness in entrepreneurship

Entrepreneurs are providing the necessary technological resources such as visual collaborationwhich is often confused with video conferencing to help their workers discover innovative solutions and ideas. In fact, this is an extremely cost-effective strategy to increase workplace productivity.

What is Entrepreneurship

Innovation and creativity bring an entrepreneur to the success path. Fortunately, entrepreneurs increasingly realize the ocean of creative ideas that remain untapped and dormant.

Tapping all these opportunities can result in improved financial strategies, increased profitability, and quick decision making. Creativity also enables an enterprise to stay ahead of the curve.

Creativity enables entrepreneurs to find some of the path-breaking discoveries. Creativity lets an entrepreneur connect distinct aspects and extrapolate feasible solutions from unrelated concepts. Problem-solving works best when coupled with highly disciplined and focused thinking. Entrepreneurs can think in either divergent or convergent thinking mode. Convergent thinking involves in-depth analysis and enables an entrepreneur to find the most feasible solution to a managerial or financial problem.

It allows entrepreneurs to use various data sources such as accounting software and computer systems.Ninety-three percent of executives surveyed by global professional services company Accenture stated that innovation is critical to their company's long-term success.

In the same survey, only 18 percent of executives felt their company's innovation efforts were providing them with an advantage. That means leaders know they need to innovate, but they don't have the strategies in place to get the results they want.

Unlike some other business strategies, innovation does not come with a clear-cut blueprint.

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You cannot simply go from point A to B to C and then come up with a new or improved idea. Instead, you need to learn the rules of innovation to get the results you want. Many people think of innovation in the form of a "Eureka! Someone has an amazing idea, it changes the world, and that's that.

True innovation is actually much more complex. Innovation comes in several steps. First, there is the idea. This might come in a brilliant flash, and it provides the foundation for the innovation. Finally, there is the transformation.

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This is when the solution transforms a business or industry. This can take several years to achieve. In some cases, it even takes several decades. You need to keep going after you come up with the idea.

Importance of Creativity and Innovation in Entrepreneurship

That is just the beginning of what could be your greatest innovation yet. Albert Einstein is one of the greatest innovators of all time. Many people believe he spent all of his days working, but much of his time was spent in thought.

He's attributed as saying, "If I had 20 days to solve a problem, I would spend 19 days to define it.Hard work is a very important ploy to use in order to achieve impressive results. With so many businesses emerging daily and regularly worldwide, this is a competitive business environment.

And as such, you need to make sure your business has unique and distinct features in more ways than none in order to capture market-share away from your competitors. This has been a tactic and strategy employed by some of the most successful entrepreneurs of a generation.

Leaders and titans of industry have been able to accomplish so much in the way of creativity and innovation, and used that as a building block for success. Ken Kurson has written extensively of the importance of challenging the status quo no matter the industry one might be operating in. And this is a principal that many entrepreneurs should take to heart no matter the service offering they may be providing their clients and consumers.

If you challenge the status quo effectively, success will undoubtedly follow you like a shadow.

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This is a principle that has much merit to itas indicated by the fact that so many successful entrepreneurs are folks who created business models that challenged the norms and conformity of their respective industries. When you look at the way the hospitality industry works for instance. Or the gaming industry for example.

Few visionaries had the foresight that titans like Steve Wynn had in forging together the two aspects to create consolidated facilities that had a casino and hotel component.

Entrepreneurial ties and innovativeness in the start-up decision

Add to that a convention center; and you have an opportunity for generating revenue from three different streams. In the hospitality industry especially in Las Vegas for this reason, this model has worked very efficiently.

Companies are able to use their resorts for the purpose of diversifying the traditional model. According to Ken Kurson who prides himself on diversification, this is a prime example of a business where conformity was challenged, which translated into success and prosperity.

This ultimate equation is one that is being replicated across many different industries. When you consider the hospitality industry, the level of success that companies have had who have pursued this diversification model has been tremendous. The reason is that they have maximized the opportunity of their space in the most myriad of ways imaginable.

Innovativeness, risk-taking, and proactiveness in startups: a case study and conceptual development

They are using their space for purposes of convention centers, which allows them to generate revenue by renting out space for the purpose of hosting events and the like. On the hotel side, they are able to continue generating monies by renting out rooms to their guests. The hotel side also includes an entertainment component, that ensures that hotel guests stay within the facility and are therefore more inclined to use the casino component of their spaces.

Beyond that, many of these companies have ensured that the hotel facility is a venue that has many different facets of entertainment incorporated into it. This includes restaurants; bars; and the like. For the casino aspect, this is known to be the single biggest profit generator for these facilities, and for good reason.

We all know what the reasons and logic of this are.To browse Academia. Skip to main content. Log In Sign Up. Download Free PDF. Entrepreneurial ties and innovativeness in the start-up decision International Journal of Entrepreneurship and Innovation, Kim Klyver.

Download PDF. A short summary of this paper. Entrepreneurial ties and innovativeness in the start-up decision. Email: kkl sam. Box 88, SE 53 Alnarp, Sweden. Email: erik. Email: torgeir. Based on data collected from 45 countries and 7, nascent entrepreneurs, our results indicate that knowing someone who has started a business within the last two years entrepreneurial ties has a significant impact on the intended level of innovativeness during the start-up process.

Specifically, entrepreneurial ties positively impact the expected level of competition, intended newness to customers, newness of technology, and the intended level of export and growth.

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Our study contributes to the entrepreneurial network literature by changing the focus from the influence ties have on the start-up decision per see to the influence they have on the innovative nature of the start-up process.

In this paper, we focus on the innovativeness of entrepreneurial activity by investigating the degree of innovativeness in the start-up process rather than the start-up decision per se. Accordingly, we add important insight to the literature on entrepreneurial networks. This study has found that not only do entrepreneurial ties increase the likelihood that an individual will become an entrepreneur; it also makes them more likely to innovate. Innovativeness is important both on the societal level as well as on the individual level.

There is a strong body of research going back to Birch showing that innovative and growth oriented start-ups account for a significantly high proportion of economic growth and job creation in society Wennekers and Thurik ; Wong, Ho and Autio ; Alstrom On the individual level, researchers have in parallel demonstrated that innovation and growth impact entrepreneurial performance e.

Capon, Farley and Hoenig ; Utsch and Rauch, Simpson, Siguaw and Enz found in their qualitative study that innovation-oriented firms through market advantages, employee advantages, and operational excellence, and other innovation-related positive outputs outperform less innovation-oriented firms. Thus, understanding innovative start-up processes and how entrepreneurial ties might influence them is important for society, policy makers and entrepreneurs.

Drawing on the resource perspective developed by Wernerfeltwe argue that entrepreneurs are more prone to act innovatively if they have access to resources through contacts with other entrepreneurs.

innovativeness in entrepreneurship

We continue this tradition contributing specifically to the entrepreneurial network literature by offering a tie argument. Arguably, an entrepreneurial tie provides nascent entrepreneurs with access to resources that helps them innovate their process development, research, product design and promotion e.

Shaw, ; Hansen, ; Ripolles and Blesa, This happens both directly and indirectly. The resources obtained from the social environment are expected to directly and positively affect innovativeness regarding the discovery of opportunities Davidsson and Honig ; Singh and the innovativeness regarding the evaluation and exploitation of opportunities Lee and Tsang ; Hansen during the early stages of the entrepreneurial process.

Indirectly, we expect innovativeness to increase given research findings showing networks enhance entrepreneurial activity in interplay with cognitive mechanisms such as self-efficacy Boyd and Vozikis ; Ozgen and Baronself-reliance Lee and Tsangentrepreneurial alertness Ardichvili, Cardozo and Ray ; Klyver, Hindle and Meyer,opportunity recognition SinghArenius and De Clercqand ambiguity Minniti By observing others, our potential entrepreneur acquires information and skills.

She meets other individuals who have similar or complementary expertise. She learns the ropes of how to find competent employees, inputs at affordable prices, financial support and, most important, potential buyers.

If as implied by Minniti the cognitive energy normally used for discovery and exploitation is freed up by ties, it stands to reason that more human capital can be directed towards business development and innovation.

Some clues about the types of resources one can expect from network ties are found in the literature and support our claim that they lead to innovation during start-up.Whether they subscribe to design thinking, lean startup, agile, or a similar school of thought, the argument goes that the only way you will know if you are creating something that people will end up paying money for is by asking them.

Makes sense, right? Well, yes and no. Advocates of involving customers are correct in claiming that only the customer knows what she truly wants, so asking them seems like a no-brainer. Of course, not all of that knowledge is readily communicable as some of it often lies in the subconscious. In this way, customer involvement de-risks product development.

While each school of thought is right about the value of involving the customer during this process, they generally ignore at least four other risks that can cause a startup to fail even if it has developed or is on the verge of developing the next big thing. Here, I highlight these risks and provide some hopefully useful ways to balance the costs and benefits of involving customers.

The two resources that are most essential to any startup are knowledge and cash. Both are at risk when you involve customers. First, loose lips sink ships, and the same goes for startups. Any time you engage customers in product development, you risk losing sole ownership of that knowledge.

Yes, you can have your customers sign nondisclosure agreements, but they are hard to enforce. So, consider how proprietary the knowledge underlying your product is before involving outsiders.

Second, involving customers takes time, and time is money. If you are flush with cash, then go for it, but if money is tight, you may want to scale back your customer involvement efforts. Like most lucrative opportunities, it is unlikely that you will be the only one trying to exploit yours.

In most and perhaps all cases, several startups will be chasing the same golden goose. Windows of opportunity are constantly opening and closing due to myriad factors, the most important of which is customer demand. On the other hand, you might believe that significant market growth is a ways off, allowing you more time to interact with customers and refine your product.

Yes, there are areas for improvement that customers can help identify for all products at least on the marginsbut for most run-of-the-mill products and services, we pretty much know what people want.


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