Impact of Innovation and Entrepreneurship on the Performance of a Company
7 Pages1998 Words71 Views
Central Queensland University
MGMT20144 Management and Business Context docx (MGMT20144)
Added on 2020-02-23
About This Document
Contextual factor: Entrepreneurship refers to the capability of the person to develop mad & innovative processes in order to conduct the business activities along with taking the risk associated with it to earn the profit (Drucker, 2014). Communication factor: Entrepreneurship refers to the capability of the person to develop mad & innovative processes in order to conduct the business activities along with taking the risk associated with it to earn the profit (Drucker, 2014).
Impact of Innovation and Entrepreneurship on the Performance of a Company
Central Queensland University
MGMT20144 Management and Business Context docx (MGMT20144)
CONTEXTUAL FACTOR1 Table of Contents Introduction:...............................................................................................................1 Contextual factor:.......................................................................................................1 Impact on strategy and structure of the company:....................................................2 Impact on the decision making of the company:........................................................3 Conclusion:.................................................................................................................4 References:................................................................................................................4
CONTEXTUAL FACTOR2 Introduction: Innovation and entrepreneurship is the contextual factor that has great impact on the functioning of the companies. Entrepreneurship is the factor that is related to the activities that are conducted by the organizations (Teece, 2010). It is not necessary that every business have that entrepreneurship quality in them. Innovation is one of the factors that drive entrepreneurship. This is because it is required by the companies these days to be innovative so that they can attract the customers by offering them something new. This essay aims at identifying the contextual factors and their impact on the strategy and decision making practices of the company. The contextual factor that has been discussed in this essay is innovation and entrepreneurship at the business. The scope of the study suggests that the contextual factors affect the company’s functioning and understanding this impact can help the company to strategize itself. Contextual factor: Entrepreneurship refers to the capability of the person to develop mad organize the business processes in order to conduct the business activities along with taking the risk associated with it to earn the profit (Drucker, 2014).It can also relate to exploit the opportunities available in the marketing a fulfilling the needs of the market. The theoretical aspect of the factors suggests that risk taking is the first and foremost quality that should present in the entrepreneur. Economic theory of entrepreneurship relates the risk taking aspect with entrepreneurship. The criticism of this theory deals with non-consideration of other factors such as the environment changes and resource availability (Tidd & Bessant, 2015). Thus, this theory has not been accepted. Another theory that is based on resources have been developed which suggests that entrepreneurship is about exploiting the opportunities and using the resources available to conduct the business activities. Innovation is also considered as the major contextual factors that affect the functioning of the company. It can be defined as the aspect that brings changes in the existing functions or processes or developing the new ones according to the requirement of the market. As both the entrepreneurship and innovation is related to fulfilling the needs of the market thus both are the important aspect of business.
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