Asha:
A successful strategy requires an organization to innovate, given that competition thrives on innovation (Rothaermel, 2021). Rothaermel (2021) defines entrepreneurship as the “process by which change agents undertake economic risk to innovate” (p. 673). As the business landscape evolves, the need for companies to proactively adapt and innovate becomes increasingly critical (Tseng & Tseng, 2019). Without innovative solutions, businesses risk obsolescence due to intense competition, data management practices, and talent attrition.
Tseng and Tseng (2019) emphasize the importance of fostering internal innovation as opposed to relying heavily on acquisitions or external strategies. The authors recommend adopting a holistic approach that rewards creativity, establishes specialized I-teams for ideation, and fosters an entrepreneurial culture (Tseng & Tseng, 2019). Furthermore, Tseng and Tseng (2019) believe this culture should be supported by aligning ideas with organizational goals, allocating funds for entrepreneurial projects, promoting flexibility over rigidity, and learning from failures. Commitment from top leadership, championing innovation, is vital for sustaining this culture. Implementing these strategies can result in significant benefits, including increased employee motivation, the emergence of new innovative solutions, the development of a broader organizational perspective, and a greater appreciation for entrepreneurial values. Essentially, these strategies can stimulate innovative behavior, lead to new breakthroughs, and propel a company’s growth and success.
Heru et al. (2022) highlights the significance of creative differentiation in both large and small businesses. While large corporations typically have the resources and structure to drive innovation, smaller businesses, especially in Southeast Asia, face creative and resource constraints despite playing a crucial role in economic development. Yet, by adopting what the authors call “Distinctive Competence” or excelling where competitors do not, these businesses can achieve global prominence. The key to success is integrating technology, data-driven decisions, and fostering inclusivity in creative efforts (Heru et al., 2022). Furthermore, effective strategies are rooted in creativity, continual learning, and adaptability. Whether the company is large or small, businesses must embrace forward-thinking approaches and leadership to stay relevant and achieve sustainable growth.
The research revealed that innovation and entrepreneurship play a crucial role in business success. Rothaermel (2021) connects competition and innovation and Tseng and Tseng (2019) advocate for internal innovation by combining creativity, specialized ideation teams, and an entrepreneurial culture. Heru et al. (2022) discusses the value of creative differentiation, emphasizing the importance of “Distinctive Competence.” Overall, the studies strongly suggest that embracing innovative and entrepreneurial strategies is vital for businesses who desire sustainable growth and relevance in today’s dynamic market.
References
Heru, M., Chakim, R., Albar, F., Pinem, D., Putri, S., Cakranegara, P., & Chakim, M. (2022). From Creativity to Innovation: An Entrepreneur Strategic Management for Business Development. Budapest International Research and Critics Institute (BIRCI-Journal) Humanities and Social Sciences, 5, 2805–2814. https://doi.org/10.33258/birci.v5i1.3895
Rothaermel, F. T. (2021). Strategic Management (5th ed.). McGraw-Hill Education.
Tseng, C., & Tseng, C.-C. (2019). Corporate entrepreneurship as a strategic approach for internal innovation performance. Asia Pacific Journal of Innovation and Entrepreneurship, 13(1), 108–120. https://doi.org/10.1108/APJIE-08-2018-0047
Brian:
Innovation in Business: What it is & why it’s so Important.
This article defines and explains the importance of innovation. Innovation starts with an idea, often through basic research, which is then translated into a commercial application in business (Rothaermel, 2017). It discusses how business leaders must look for new creative ideas for new advancements. According to (Boyles, 2022) business leaders must constantly look for new ways to innovate because you can’t solve many problems with old solutions. It gives a detailed description of the innovation process. Innovation must solve a problem. Creative ideas don’t always lead to innovations because they don’t necessarily produce viable solutions to problems (Boyles, 2022). Innovation doesn’t have to be a world-changing idea it could be an enhancement or something as simple as a software upgrade. This article discusses two types of innovations which are sustaining and disruptive.
- Sustaining innovation enhances an organization's processes and technologies to improve its product time for an existing customer base. It’s typically pursued by incumbent businesses that want to stay on top of their market (Boyles, 2022).
- Disruptive innovation occurs when smaller companies challenge larger businesses. It can be classified depending on the market those businesses compete in (Boyles, 2022).
This article also low-end disruption and new market disruption. Low-end disruption is (Boyles, 2022) when a company enters and claims an existing market segment. New market disruption is when a company creates an additional market segment to serve a customer base the existing market doesn’t reach (Boyles, 2022) Most companies will use both types in their business strategy to continue their growth and competitiveness. According to (Boyles, 2022) innovation is crucial for a business because it allows adaptability, and growth, and gives a company a competitive advantage.
Strategy for Start-ups
This article discusses the entrepreneurial business strategy of RapidSOS and how it provides 911 services to mobile devices. It explains some of the options that were available regarding strategy for this company to become a success. It also the four decisions of an entrepreneurial strategy.
- Collaborate or compete? This means does a company works with another company or department on a new idea or competes with them.
- Build a moat or storm hill? This means according to (Erin L. Scott, 2018) some companies believe that they have more to gain from maintaining tight control; over a product or a technology and that imitation will leave them vulnerable. So they decide to invest in their intellectual property such as IP protection.
- The Intellectual Property Strategy is where a company collaborates with incumbents and retains control of its product or technology (Erin L. Scott, 2018).
- The Disruptive Strategy involves a decision to compete with incumbents, emphasizing the commercialization of the idea and the rapid growth of market share rather than control of the idea’s development (Boyles, 2022)
The article reviews some companies that have used the entrepreneurial business strategy and the process of some of their decision-making.
References
Boyles, M. (2022). Innovation in Business: What it is & Why It's so important. Design Thinking and Innovation Entrepreneurship & Innovation.
Erin L. Scott, S. S. (2018). Strategy for Start-ups. First answer two questions; then explore four paths.
Rothaermel, F. (2017). Strategic Management. New York: McGraw Hill Education.