Influence of Entrepreneurship and Innovation on Organisation Development - Case Study Example

Influence of Entrepreneurship and Innovation on organisation development By: Introduction Entrepreneurship is a key factor in every business that later grew into an organisation after a particular period. The management creates room for strategy and thus the need for ensuring that all the needs within an organisation are addressed with an appropriate plan that is connected to a new idea in order for them to survive within the market. The management, therefore, will have to be innovative and form an appropriate method of managing significant challenges posed by their competitors. The entrepreneurial skills of the management will come into use to create room for the management of major issues and challenges that they face within the firm. Thus, the application of various business ideas so that the company can overcome the challenges within a particular market (Szirmai et al. 2011 p 62). This paper, therefore, seeks to address the means innovation and entrepreneurship hinder or support the development of the organisation by applying resonant concepts and theories associated with innovation and entrepreneurship with a concentration on Wal-Mart Company. Influence of Entrepreneurship on Wal-Mart’s development Entrepreneurship helps an organisation spot new opportunities within the market because of the new business ideas that can be adopted within the firm and used to enhance further a high level of interaction and operation within the firm. The new ideas presented help the management view the organisation differently once they understand the concept being introduced to them. In as much as the idea is convincing and worth trying, the heads of the organisation will be worried about the capital they will invest on the same proposed idea (Szirmai et al. 2011 p 40). In the event, they invest in the proposed design and get no returns; they will be reluctant to invest more on the same since there was no development obtained from the previous plan. The development of new firms will animate rivalry in a specific business sector, which builds the benefit of the business overall. To place it in an alternate route, as there seem even more new passages, to reinforce the competitiveness of the organisation, the build in the proficiency of asset utilization is needed. In the meantime, if existing organisations have some difficulty matching the gainfulness of new-established firms, then they are either required to passageway the business or their piece of the pie will decrease forcefully (Baumol 2010 p 20). Therefore, the management of Wal-Mart had to come up with better-entrepreneurial skills that would help in creating an appropriate strategy that help them operate in the effectively. Thus helps the company in retaining their clients and contributes to the long run development of the company. The same view is shared by the theory of creative personality where the various members of the team have to come up with appropriate means whereby they get to develop products that enable them stay relevant in the market. Their creativity also gives them a chance to be capable of attracting more clients and therefore leads to a rise in the development of the organisation. They will also be capable of attracting more investors to the company because they care capable of surviving and recovering whenever faced with any form of competition within the market. Investors also believe investing their in a company whereby they can be capable of getting good returns by the end of the company’s financial year (Baumol 2010 p 25). On the other hand, the investors may hesitate to put their money in the company because of the hesitation of losing their money when the firm invests in a product that they believe may end up failing to earn the company some profit in the long run. Thus may lead to a decline in the level of development because the company may not be capable of meeting its goals without an appropriate amount of investment in the company. Investments help Wal-Mart get more funds for undertaking various operations within the firm. An investor always looks at the environment they operate in so that they can get to know the means through which it effectively helps improvement of the processes within the company. High levels of understanding of the operations that take place within the market determine if the new products developed will succeed in the target markets or not. Likewise, if they are not convinced of the success, they are likely to restrain the investment of their funds within the company and thus Wal-Mart ends up losing big on the investment in a new market thus decrease in development (‎Audretsch & Link 2012 p 23). The entrepreneurship strategy adopted by Wal-Mart mainly includes may lead to some level of danger in view of the vulnerability, thereby to the development of the company. The proposed approach may be connected to a high, extensive level of risks that may lead to a slower rate of dissemination and a high level of consumers’ safety. Typically, the risk is termed as advancement attributes, however contends that more often than not, hazard is noticeably a view of the purchaser than just a normal for a development (‎Audretsch & Link 2012 p 23) Taking a gander at the overwhelming writing, we have included saw hazard in advancement attribute. A client may thereby get to consider all the various issues that may affect them and thus ensuring all the major issues affecting are adequately addressed before they adopt the new products that are being proposed to them. This, therefore, leads to a great influence on the way a company will get to operate within the firm. The company has to consider a high level of interaction model in the promotion of safety, inhibitory impact on the reception of other innovations ‘‘is one of components that influence advancement safety. In a number of cases, the reception of ones development items may have an inhibitory impact on the appropriation of different advancements. The entrepreneurial ideas of the business development managers are also useful as they help in coming up with a suitable product used to address the needs of the clients and thus an appropriate business idea helps in meeting the needs of the customers. In the event that an individual buys a creative item, for example, lavish high determination advanced Polaroid, and the person is not prone to buy an alternate new computerized Polaroid with enhanced execution and more peculiarities inside a brief time of time (‎Audretsch et al. 2011 p 26). The individual is deferring ones purchase. The reason being that on the off chance that one holds up, superior item with a lower sticker will soon be in the business. The clients and Wal-Mart investors may be opposed to the changes in the operation of the business and at the same time, it may be considered as less effecting in meeting the needs of the clients effectively within the market they operate. In addition, they may not be interested in the changes being made because of the same (‎Audretsch et al. 2011 p 26). Thus, it lowers the performance of the organisation and resulting to decrease in the success of the company and thus the loss in performance. Wal-Mart’s entrepreneurial advancements in the market lead to a rise in the level of technological advancement that comes at a cost. This results to a decrease in the amount of profits the company makes and a further challenge to the firm. In as much as there are people who may identify with the product, they find it hard to keep up with the same. There are investors who may not step up to the degree of growth within the firm and thus the need for enhancing the level of purchase within the company (‎Audretsch et al. 2011 p 34). Entrepreneurship also leads to a rise in the level of demand among the customers and thus increasing profits gathered. It occurs in the event that the products produced and thus leading to a high level of product differentiation to meet the needs of the customers impress them. The management ensures that they keep in touch with the clients, to ensure that the all the needs of the clients are adequately addressed. Thus, it goes hand in hand with Hagens theory that addresses the needs for creative personality and thus the need for ensuring that the employee’s needs are effectively addressed (Drucker 2012 p 56). This notwithstanding the interests of the investors also has to be considered by investing in products that they have an interest. Influence of Innovation on Wal-Mart’s development Prior to the delineation of the relationship between innovation and the development of the organisation, consideration ought to be set on the two classifications of innovation; continuous progress and discrete innovation. Continuous innovation alludes to the ceaseless changes of a particular item or methodology and the result after modification is nearly associated with the previous form (Drucker 2012 p 58). Discrete innovation, then again, is the key step change and is an acceptable break from existing made engineering and methodology. The organisation development of these two sorts of development is that steady advancement, which just concerns incremental change, does not constitute business development. In addition, innovation comes with different ways of doing things within the firm and thus the need for ensuring that the organisation addresses adequately the interests of the clients. According to the theory of Schumpeter, an entrepreneur will be willing to innovate to come up with a unique idea. The same applies to the management of an organisation who has to come up with something unique they identified with. In the same way, the management at Wal-Mart ensures that it produces unique products that will help them identify with their consumers effectively (Weiermair et al. 2010 p 23). The company also has to align the various innovation plans with the strategies within the firm thereby, increasing the concerns by various stakeholders that have invested in the firm thus a direct influence to an organisation’s development. An organisation’s development is also solely dependent on the relationship with the customers. Thus, in the event the clients are not impressed with the new product developments; they may end up rejecting the same and thus the possibility of a decline in the sales of the company unless they are convinced otherwise. The management of Wal-Mart also keeps in touch with the shareholders and convinces them on the growth of their investments (Kuratko 2013 p 45). They may be reluctant in investing on the innovative ideas because of the risks that come with the start of a new invest within a market that Wal-Mart has been in existence for a long time. The development of the company, therefore, declines and thus leading to a high level of decline in the company’s development. The fact that continuous innovation has a positive effect on the organisation development in a number of markets that it operates while it also helps in the develop of the organisation in other small markets in its area of operation. In other words, since the opposition in exceptional nations is extreme, and numerous firms are now delivering on the creation conceivable outcomes boondocks, any broken change may create a high capability of business disappointment. Along these lines, the continuous development, which concerns less business danger, may bring about a maintaining development (Hitt 2014 p 15). It also raises a hypothesis that respects the organisation development handle a concurrence of slow advancement and discrete development. Case in point, Wal-Mart is a sort of overall recognized advanced in clothing within the United States for an extended period. The development of Wal-Mart under innovation goes through diverse stages where sorts and degrees of development differ. As per Acz and Szerb (2009), the progress might be separated into three inaccessible stages and the stages, from the most essential to the most progressive, are element driven stage, effectiveness driven stage and development driven stage. The rate advancement plays in financial exercises build along the rank of improvement stages (Acz and Szerb, 2009 p 15). The company has to invest in technology in a bid to ensure that the operations effectively help in the development of the company. Similarly, the department of R & D is involved and oversees the proposed innovations being implemented within the firm to ensure growth of the so intended products and to ensure that the products fulfil the needs of the target customers within the market. Wal-Mart investors may be opposed to the proposed innovations and at the same time it may be interfering with the needs of the clients within the market because all of them may not be interested in the changes being made. In the end, it will lower the performance of the organisation thereby leading to a decline in the level of success in the firm and thus the loss in performance of the company and thus leading to a decline in the level of development within the company (Morris et al. 2010 p 45). There are also technological advancements in the market where companies operate and therefore they have to adopt the same type of technology. This makes the competition within the stiff and thus making it hard for the Wal-Mart to maintain a level of concentration within the market (Morris et al. 2010 p 52). Some investors may, therefore, find it hard to stick with the company due to the challenges faced within the within the market and thus makes it hard for the company to succeed because of high competition within the company. Therefore, it results to a high level of loss within the company thereby leading to a decline in the level of development of the organisation. The qualities of innovation are identified with the conclusion and the influence of new items on purchasers, which focus the safety measure, created and can anticipate customer selection and expected safety. A few scientists have found that development qualities give more noteworthy clarification to purchasers conduct towards innovation (Morris et al. 2010 p 78). Advancement attributes exploration depicts the relationship between the qualities or aspects of advancement and the selection or execution of that innovation. Based on the theory of high need for achievement, the management has to come up with an appropriate strategy that meets the demands of the employees within the firm and at the same time satisfies all their needs within the market. The qualities of clients are the mental aspects of customers, for example, the manner they view the creativity concerning that particular item. Innovation safety is subject to the mental aspects of the purchaser. The essential elements that have been distinguished as applicable to customers conduct in developments connection are: Personality, Attitudes, Value Orientation, Previous Creative Experience, Perception, and Motivation. These are important to the clients within the organisation and thus the need for ensuring that clients needs are met effectively within the firm (Morris et al. 2010 p 120). In the event that innovation takes place, and these matters are not addressed, the clients end up hesitating purchasing the products and thus reducing demand within the market. The qualities of innovation can be put into two connections, first is the shopper autonomous setting and second is shoppers subordinate. The variables of shopper independent setting might be relied upon to make the same kind of protection over all purchasers, and is, therefore, out of the extent of this study. Then again, the influences of Consumer-ward elements change crosswise over distinctive shoppers. Development aspects (customer subordinate) elements impact consumers‟ choice making to embrace another item, these variables are; relative playing point, similarity, danger, multifaceted nature, and desires for better items, inhibitory impact on the selection of different developments (Aidis & Welter 2008 p 58). Understanding these components and their influence on purchasers safety is essential for expanding the possibilities of advancement achievement. This is also a great challenge to the organisation because it may have difficulty in creating an appropriate means of ensuring that the company meets the various demands of the clients. Thus, decline in the level of profits, which result to a significant decrease in development of the organisation. Compatibility of a particular product is also observed during innovation. It is the degree to which prospective customers accept that the new item fits with their socio-social standards or is steady with existing qualities, past encounters, style, conduct examples, and needs. It has been viewed as a paramount part included in disposition improvement and was of exceptional vitality in innovative markets (Aidis & Welter 2008 p 85). A general reason communicated by diverse customers for standing up to, on the other hand, not embracing new item is "no need," despite the fact that all mechanical developments regularly achieve different profits or preferences for various purchasers. Compatibility has a vast and immediate positive impact on purchase intentions; as though an improvement is seen perfect, it is most likely that shoppers will learn and get data about the advancement. Then again, the old or existing items influence the selection rate. The more complete the old or existing items are, the fewer buyers aim to embrace new items and thus increasingly purchasers safety. Similarity (or "harmoniousness"), innovation is a critical component than can anticipate buyers appropriation and safety conduct. This, therefore, keeps the head of the management guessing the possibility of the products being accepted by the customers. The firm needs to invest many resources without which it would be difficult to satisfy the clients needs. In view of this fact, it may be hard for the company to meet the demands for their clients and thus a further loss for profits earned by the company (Venuvinod 2011 p 122). The effect of similarity on different variables has not been considered exactly, yet it is relied upon to decide on the influence at a relative playing point and adversely influence the hazard within the company’s operation. Case in point, if another item is seen as incongruent with purchasers work or lifestyle, it may not be conceivable to perceive all its favorable circumstances. Additionally, if another item is seen as good with experience, standards, and life-style, the company will be mindful of the past things and consequently much capable of judging the advancement regarding its predominance over existing or old items (Venuvinod 2011 p 75). The risk associated with innovation decreases, in the event that innovation is perceived as highly compatible with to a client’s lifestyle. It eases clients relationship with the new product, thereby making it simpler for the firm to increase the level of development because it has met the clients needs effectively (Aidis & Welter 2008 p 100). This is according to the theory of McClelland that advocates high need for achievement because the company has succeeded in effectively meeting the demand of the clients that seek their services. The complexity of the level of innovation also determines whether the company will succeed and thus a great influence in the level of the company’s development either negatively or positively. Diverse specialists have discovered unpredictability as contrarily identified with the development dissemination and thoroughly identified with advancement safety. Earlier research has demonstrated that; an imaginative piece with respectable intricacy request more abilities and deliberations (to actualize and utilization advancement) to expand its selection and decline the likelihood of purchasers safety (Acs & Audretsch 2010 p 59). It is accepted widely that shoppers effortlessly embrace inventive items that are less mind-boggling. There exists a negative relationship between intricacy and relative playing point, as though an item is seen as intricate, it will be troublesome for buyers to attempt it and thus cannot be used for its favourable circumstances. Intricacy as an element of customers attributes is required to change buyers proposition and lead towards appropriation through relative focal point, risk, furthermore sufficiency toward oneself. Grave danger has contended it is connected with the development that is seen as more perplexing. Thus, there is a positive relationship in the middle of many-sided quality and saw hazard. Many-sided quality impact buyers selection in a roundabout way through seen risks that influence the achievement of organisation goals based on the level of interaction among the clients (Aidis & Welter 2008 p 116). The risks as an extra measurement in the dispersion and appropriation of development, which is then included by an alternate variable influencing purchaser’s safety. In this case, there is a danger connected with embracing & utilizing development. It is accepted as identified with shoppers’ safety and contrarily identified with selection. The high level of risk within the firm leads to a great influence on the ability of the company to succeed in all the operations within the firm. Thus leading to instances whereby the company may have a difficult time convincing the clients to adopt the new products because of the possibility of the high level of risks within the firm and thus the hesitation of buying the product. This is greatly influenced by the Moreover, buyers may see the current innovations as more unsafe. Research has demonstrated that the apparent danger is a fundamental determinant of a consumer’s eagerness to receive development. As it is extremely hard to catch hazard as a goal reality, it is seen as a "consumer’s subjective desire of anguish a misfortune in quest for a craved conclusion"(Morris et al. 2010 p 125). Thought for the outcomes of the activity, including the saw danger, are discriminating viewpoints that form demeanour towards that activity, in this manner saw danger may upgrade customers safety from the production of a unique product. The customers, therefore, will hesitate to buy the products and thus it leads to a decline in the level of purchase because they do not trust the products produced within the firm (Venuvinod 2011 p 79). This has thus led to a decline in the level of profits obtained within the company thereby, having various effect on the development of the organisation. This is also expressed through the theory of Hagen that advocates for creative personality based on the development of new products within the firm that it seeks to produce for the clients. Conclusion In conclusion, the overall impact of innovation on economic development is positive. Both gradual and discrete change contributes to commercial activities and how importance innovation is depends on the stages of the development. Entrepreneurship is also key in helping a business manoeuvre in an environment when there is a lot of competition faced within the company and thus the need for ensuring that the various challenges are adequately addressed by coming up with an appropriate strategy within the company. Reference List Acs, Z. and Szerb, L. The Global Entrepreneurship Index (GEINDEX). 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