A Note on Entrepreneurial Orientation

Martin William^*
*Correspondence: Martin William, Centre for Management Studies, Rowlin Institute of Business, UK, Email:

Editorial

Intrapreneurship is the term used to describe entrepreneurship within a company. Companies frequently expand by introducing new services or goods. They create it themselves as opposed to buying a business that already offers that good or service. This is the internal development approach of strategy implementation. Companies require personnel with a high entrepreneurial mindset if they are to exploit prospects for intrapreneurship. Career advancement is another benefit of thinking and acting entrepreneurially. By spotting and seizing fresh chances, some enterprising people can successfully traverse the surroundings of their different businesses and maximize their own career potential. When executives are creating plans in the hopes of trying something new and taking advantage of chances that other organizations cannot take advantage of, entrepreneurial orientation (EO) is a significant notion. The processes, procedures, and modes of decision-making used by organizations that operate entrepreneurially are referred to as EO (Lumpkin & Dess, 1996). Any organization's level of EO may be determined by looking at how it compares to three different criteria: innovation, proactivity, and risktaking. Additionally important to individuals are these dimensions.

Entrepreneurial orientation (EO) is assessed on an individual and an organizational level. People with a higher EO and more success in beginning a business tend to be less risk-averse, innovative thinkers, and competitive. For people who want to examine their EO, there are online resources available. It's crucial to remember that EO is not just relevant to high-tech start-ups. Starting a beauty parlor or lawn care firm are both extremely legitimate and important entrepreneurial endeavors, and they will have a better chance of success if the entrepreneur has a higher EO. The propensity to explore innovation and experimentation is known as innovativeness. While more radical innovations necessitate brand-new talents and may render existing skills obsolete, some innovations build on existing skills to produce gradual improvements. In either case, innovation aims to create new goods, services, and procedures. Organizations that are successful at innovating typically fare better than those that fail to do so. Being proactive is the propensity to foresee and respond to future needs rather than responding to situations as they arise. An organization that has an opportunity-seeking mindset is proactive. Such businesses act ahead of changing market demand and frequently pioneer new markets or function as "quick followers" who build on the work of pioneers [1-3].

Research reveals that, contrary to popular assumption, entrepreneurs do not view their actions as dangerous; rather, they wait to act until they have reduced uncertainty through planning and forecasting. Uncertainty, however, is rarely completely eradicated. Executives can take measures to strengthen the entrepreneurial orientation within a company, and people can take steps to increase their own entrepreneurialism. Designing organizational processes and policies to reflect the three elements of EO is crucial for leaders. Consideration should be given to, as an illustration, how a company's remuneration plans encourage or discourage these aspects. Executives can evaluate EO within their firms with the use of an examination of specific performance measures. Top executives can, for instance, conduct employee satisfaction surveys and keep an eye on staff turnover rates to gain insight into how the firm fosters and supports autonomy. Businesses that successfully promote autonomy should encourage a work environment with high employee satisfaction and low turnover. How many new products or services the company has created in the previous year and how many patents it has received are two factors that can be used to measure innovation. People should also think about whether their attitudes and actions are in line with the three EO dimensions.

Using both firm growth and personal wealth measures, the effects of entrepreneurial orientation on competitive advantage, competitive advantage on SMEs' performance, and the mediating effect of competitive advantage on the relationship between entrepreneurial orientation and SMEs' performance were all identified. First, entrepreneurial orientation positively and significantly influenced competitive advantage, second, competitive advantage positively and significantly influenced SMEs' performance, and third, competitive advantage mediated the relationship between entrepreneurial orientation and SMEs' performance when both firm growth and personal wealth performance measures were used. When a company adopts a value-creating strategy that is not also adopted by competitors, it gains a competitive edge. Even while the resource-based view emphasizes the significance of competitive advantage, research on the role that competitive advantage plays in mediating the link between entrepreneurial orientation and firm performance is still limited. Differentiated products, market sensing, partner collaboration, a focus on high value customers, market responsiveness, customers as assets, information transparency, and supply chain leadership are a few examples of ways that competitive advantage can be demonstrated. The measuring of competitive advantage is still inconsistent [4,5].

Conflict of Interest

None.

References

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