Why Entrepreneurial Organizations Seek Opportunities for Innovation
Entrepreneurial organizations are embracing innovative openings to influence their capabilities to gain a thrive on gaining a viable advantage over their competitor. They try as much as possible to assess the market patterns, produce high-quality products, and expand their operational productivity for them to obtain a reasonable share of the market and make a higher profit. The following reasons explain why entrepreneurial organizations seek opportunities for innovation;
The first reason as to why organizations seek innovative opportunities is to introduce fresh products and improved services. To gain domination in the market, entrepreneurial organizations should embrace creativity and new creative ideas. With innovations, these organizations are better placed to produce fresh products and earn a significant market share for such products. By virtue of being the first organization to introduce a product which fits the need of the customers in the market, it is only imperative that such an organization will build a broad base of loyal customers, since the product is perceived by the customers to be original and of quality as compared to the other substitutes.
The second reason is to come up with disruptive innovation. With the development of disruptive innovations and technologies, the entrepreneurial organization aims to develop products and services that are better placed to replace the existing ones at a lower price and to win over the customers overlooked by other businesses in the market and to generate more profits. Disruptive technologies, therefore, enable these organizations to come up with new or existing products in a diverse radical manner, thus making their products to become more appealing to customers as opposed to the mainstream companies. Rosamond (2016), suggests that entrepreneurial businesses, through disruptive innovations can infiltrate market segments overlooked by mainstream businesses by producing better products and winning many customers.
The third reason is to maximize the operational efficiency of an organization. The creation of new products or services allows entrepreneurial organizations to improve their services and lower production costs (Thomas & Snell, 2009). This is usually manifested when these organizations realize large profit margins after introducing operational, efficient strategies, which in turn result in the delivery of better products and services by the business. Innovation is, therefore, an asset when it comes to lowering operational costs while improving efficiencies and producing better and quality products and services.
The fourth reason is to remain competitive. With the adoption of innovative solutions by entrepreneurial organizations, they are better placed to gain a competitive advantage against their competitors by leveraging on innovations and technologies which are superior to that of their competitors in the market, thus making these organizations remain competitive and sustain their market dominance. As a result of embracing innovations, these organizations can assess market viability, customer needs, and provides high-quality products at competitive prices while still making profits.
Finally, opportunities for innovation are very vital at empowering employees and thus increasing their entrepreneurial ability skills. The entrepreneurial organizations can motivate and boost the performance of their staff by putting in place structures and processes that are important in providing an enabling environment for employees to perform better and deliver expected results for the organization. Employee performance and service delivery are pegged on the nature of workplace innovation policies and practices put in place by the management of the organization they work for (Frank, 2011).