Beruflich Dokumente
Kultur Dokumente
540-545
TI Journals
ISSN:
2306-7276
Reza Kianimavi
Assistant Professor Faculty of Management and Accounting, Islamic Azad University (IAU), Qazvin Branch, Iran.
Kaveh Teymournejad
Assistant Professor, Department of Public Administration, Faculty of Management, Islamic Azad University (IAU), Central Tehran Branch, Iran.
* Corresponding author: Hesam.naie@yahoo.com
Keywords
Abstract
Organizational Entrepreneurship
Organizational Innovation
Mahsan Co
To achieve high functioning and gain dominance over the competitive environment, organizations must
attempt to create an entrepreneurial organization these days, and this purpose is reached through
organizational innovation. The present article is aimed at determining the relation between strategic
entrepreneurial factors and organizational innovation in Mahsan Electrical Industry Company. The
conceptual research model was presented to test the relation between strategic entrepreneurial factors
(including individual skills, common ambitions, active endeavors, and environment) and organizational
innovations. It can be said that there is a direct significant relation between strategic entrepreneurial
factors and organizational innovations regarding the presented model and results of hypotheses test.
1.
Introduction
Managerial researches in entrepreneurship have mostly emphasized short-term and mid-term businesses and executive management before, but
more attention is paid to long-term guidelines and entrepreneurial behavior in strategic domain in recent studies [1]. Therefore, paying attention
to entrepreneurial strategic factors seems to be very important. Creating a long-term strategic view on entrepreneurship will cause a strategic
capability like organizational innovation which then creates wealth and competitive advantages leading to better functioning [2]. Leading
companies are out of activity circle due to their environmental adaption disability, or lack of achievement or ability in creating change. Strategies
are tools through which an organization can achieve different purposes of its era. Management theories also suggest that entrepreneurial
approach is crucial for an organization to create strategies to afford competition in present world [3]. Also, entrepreneurial process contributes in
organizational strategy formulations and innovations. Innovation is a multidimensional concept related to products, processes, technology,
management, rapid growth, or development. Innovation occurs in new products or processes form in many cases, but may include new ways for
company organization and administration, and/or recognizing new markets for products and services [4]. When human force is risk-taking and is
discovering new opportunities to develop organizational purposes, he also is looking for a solution to organizational issues and problems through
fostering ideas, and is applying innovations in organization, it can be said that entrepreneurship and innovation are institutionalized in that
organization. The issues in question are now as follows: How strategy institutionalization activities and innovations are ranked in an
organization? What is the relation between entrepreneurship and innovation? Also, what are the important and effective factors on
entrepreneurship and innovation development? How their relation is effective on innovation distribution and the analysis of interaction
strengthening factors?
2.
The main subject of this research is studying the importance of and the relation between entrepreneurship strategic factors and organizational
innovation regarding the four factors of individual skills, common ambitions, active endeavors, and environment in Mahsan Electrical Industry
Company. The location of this study is limited to Mahsan Electrical Industry Company, and the statistical population included all 495 employees
there. The research data was collected in spring, 2013. The purpose of this study is implicational in that it seeks a functional purpose, and it is
categorized as correlation in method and nature in that it studies the significant relation between strategic factors and organizational innovation
from an entrepreneurial view. The information collection method is fieldwork through questionnaire. The t test was used to analyze the obtain
correlation in the data. The reliability of Cronbach's alpha index was calculated for independent and dependent variables by entering the data in
SPSS which equals 0.989. This number is above 0.7 and indicates high reliability for the present research tool.
541
Investigating the Strategic Relations Between Entrepreneurship And Organizational Innovation In Mahsan Electrical Industries Company
International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.
Table 1.The reliability coefficient (Cronbach's alpha) for variables using SPSS software
495
100.0
Excluded
0.0
Total
495
100.0
Valid
Cases
Cronbach's Alpha
N of Items
0.989
20
542
International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.
originates from the French word entrepreneur meaning to begin something, undertake. During the mediaeval times, this word was being used
to describe an active working person [25]. However, in the economic theory, it was Richard Cantillon (1759), -an Irish economist of French
descent- first, who used the term entrepreneur. According to Cantillon, the entrepreneur is a specialist in taking risk [26]. Risk-taking is one of
the famous attributes of entrepreneurs which is also frequently emphasized in the literature. Spiritually, some people are observed to tend to
behave extra-ordinarily. As Jobs addresses; You have to trust in somethingyour gut, destiny, life, karma, whateverbecause believing that
the dots will connect down the road will give you the confidence to follow your heart, even when it leads you off the well-known path, and that
will make all the difference [27]. Taking the risk phenomenon and the spiritual reflections into consideration; it can easily be summed up that
entrepreneurship has something to do with inner-journey.
Another emphasis on entrepreneurship is its presentation as a mind-set. Entrepreneurship is first and foremost a mind-set. To seize an
entrepreneurial opportunity, one needs to have a taste for independence and self-realization. said Olli Rehn, a member of the European
Commission [28]. Understanding the entrepreneurial mind-set requires a certain threshold of empathy. First of all, entrepreneurship is the story
of ambiguity. An anonymous supporting quote is likely to highlight the gist of entrepreneurship. Its as follows: Anyone, (can be an
entrepreneur) who wants to experience the deep, dark canyons of uncertainty and ambiguity; and who wants to walk the breathtaking highlands
of success. But I caution, do not plan to walk the latter, until you have experienced the former [29]. In this regard, as Schumpeter also points
out; entrepreneurs seem to have some heroic vision. Schumpeter focused on high-level entrepreneurship, and larger businesses [30].On the other
hand, Marshall examined smaller businesses, partially [31]. It was Hayek and Kirzner, who examined the entrepreneurs as middlemen hoping to
profit by buying cheap and selling expensive [32], This preference of discussing entrepreneurship inside smaller boundaries is closer to the intent
of this paper which will be clarified in the upcoming sections. Stopford and Baden-Fuller considered entrepreneurs as opportunists even in
chaotic situations, and they also approached to entrepreneurship in a metaphorical way. According to them, entrepreneurs are like Olympic
athletes, long-distance runners, symphony orchestra conductors, and top-gun pilotsThese metaphors underline the entrepreneurs being
ambitious, determined, self-challenging and talent of synchronizing [33].
When it comes to define entrepreneurship; it can easily be discovered that various people have defined entrepreneurship differently. In spite of
this fact, the most common classification follows the mainstream of Collins and Moore; who claimed two types of entrepreneurship,
differentiating due to the context of entrepreneurial activities undertaken. These are, firstly, independent entrepreneurship and independent
entrepreneurs (similar to entrepreneurship/traditional entrepreneurship and entrepreneurs/traditional entrepreneurs in this paper), implying the
process whereby an individual or a group of individuals, acting independently of any association with an existing organization, create a new
organization. Secondly, corporate entrepreneurship and administrative entrepreneurs (similar to entrepreneurship and entrepreneurs in this
paper), implying the process whereby an individual or a group of individuals, in association with an existing organization, create a new
organization or instigate renewal or innovation within that organization [34]. A brief definition of an entrepreneur, inspired by Kuratko, can be
made as the following: An entrepreneur is an undertaker who notices and seizes opportunities; converts those opportunities into commercial
ideas; adds value via processes, effort, capital, or capabilities; and confronts the risks of the competitive market to apply those ideas; and what an
entrepreneur accomplishes, is therefore called entrepreneurship [35]. Now, entrepreneurial activities within an existing organization, namely
entrepreneurship will be discussed.
2.3 Strategic Entrepreneurial Factors and Their relation to innovation
Strategic Entrepreneurial factors include individual skill, common ambition, environment, and active endeavor. After defining each, their
relations to organizational innovation are studied.
Individual Skill: Individual skill is the capacity and capability in developing and learning at an individual level relying on innovational
dimensions in organizational innovations belonging to an individual. Organizational life depends on different employee skills, awareness, and
knowledge to a great extent. Human force training and improvement cause deeper perception and insight, higher knowledge and wisdom, and
more employee ability and skill in organization for a better task work performance and therefore achieving organizational aims to obtain better
and more efficiency and productivity [36].
Common Ambition: The outlook or common ambition consists of a common commitment to future tendencies and a common feeling towards
organizational purposes, and provides an innovation opportunity. Mere individual authority for innovation start and decision is not enough
because people support something they help to create; therefore a common outlook and a general commitment must exist among organizational
members [2].
Active Endeavor: The term "Active Endeavor" was first applied merely in its general sense (i.e. hyperactive), but its applications are in
behavioral sciences named hyperactive thinking framework, hyperactive behavior, and management. It became a general term in business and
commerce in management, and was applied to mean taking action before a situation or source goes into conflict or crisis, and also predicting or
taking responsibilities in different situations [37].
Environment: An influential factor on innovation in an organization is its activity environment. These environments are defined with
sometimes different cultural, climate, human, and organizational components. Some multiple environmental factors are mentioned in this
research as follows: dynamism, showing repeated change and turbulence in external environmental forces; complexity, referring to the number
of external elements that can influence organizational functions; and heterogeneity, showing the variety, multiplicity, and complexity in
companies' competitive environment [37].
Finally, a designed model is obtained from performed studies including strategic factors (such as individual skill, common outlook or ambition,
active endeavor, and environment) having a relation with entrepreneurship (including innovation) adapted from Malars et al.'s model (2007). It is
therefore attempted to study the mentioned model in Mahsan Electrical Industry Company.
Individual Skill
Common Ambition
Innovative
Organization
Active Endeavor
Environment
Figure 1. Structure Model
Entrepreneurship
Organization
543
Investigating the Strategic Relations Between Entrepreneurship And Organizational Innovation In Mahsan Electrical Industries Company
International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.
3.
Data Analysis
The main issues in question are as follows in this research: How strategy institutionalization related activities and innovations are ranked in an
organization? What is the relation between entrepreneurship and innovation? Also, what are the important and effective factors on
entrepreneurship and innovation development? How their relation is effective on innovation distribution and the analysis of interaction
strengthening factors?
Some hypotheses must be proposed now to answer these questions. The main one is considered the positive relation between strategic
entrepreneurial factors and organizational innovation which resulted from alternative hypotheses of the positive relation between individual skill
and organizational innovation, the positive relation between common ambition and organizational innovation, the positive relation between
active endeavor and organizational innovation, and the positive relation between environment and organizational innovation.
3.1 Main Hypothesis
Hypothesis 0: there are no positive relations between strategic entrepreneurial factors and organizational innovation.
Hypothesis 1: There is a positive relation between strategic entrepreneurial factors and organizational innovation.
Table 2. The test results
Innovative
Factors
Pearson Correlation
0.379**
Sig. (2-tailed)
0.000
495
The Pearson's correlation index was used to study the relation. As this index is positive, there is a positive relation between strategic
entrepreneurial factors and organizational innovation. As the significance level Sig =0.000 which is lower than 0.05, therefore the above
correlation is significant. Of course, the above correlation index is also significant at 99% security level. This software report was performed
based on t test.
3.2 Alternative Hypothesis
The tested alternative hypotheses in this research include the following:
There is a positive relation between individual skill and organizational innovation.
There is a positive relation between common ambition and organizational innovation.
There is a positive relation between active endeavor and organizational innovation.
There is a positive relation between environment and organizational innovation.
Table 3. The results of Pearson correlation coefficient
Individual skill
Common ambition
Active endeavor
Environment
Pearson Correlation
Sig. (2-tailed)
Innovative
.416**
.000
495
Pearson Correlation
.361**
Sig. (2-tailed)
.000
495
Pearson Correlation
.375**
Sig. (2-tailed)
.000
495
Pearson Correlation
.356**
Sig. (2-tailed)
N
.000
495
The Pearson's correlation index was used to study the relation in researching the alternative hypotheses. As all indexes are positive, there are
positive relations between the four strategic entrepreneurial factors and organizational innovation. As the significance level Sig =0.000 which is
lower than 0.05 in all cases, therefore all above correlations are significant. Of course, the above correlation indexes are also significant at 99%
security level. This software report was performed based on t test.
4.
Results
544
International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.
5.
This research argues that the entrepreneurship and innovation combination is a key factor for organizational consistence and stability in this era
of all rapid changes. As entrepreneurship and innovation are systematic behavior, systematic attempts are required for their integration in
organization activities. Entrepreneurship and innovation must be considered continuous and daily subjects in organizations. This research will
contribute greatly in developing such attitude in Mahsan Electrical Industry Company, will help organizational success, and will cause business
expansion and development. When organizational conditions are ready for organizational entrepreneurship institutionalization, the organization
members will show greater tendency towards accepting innovative responsibilities and expressing creativity. It can be concluded that the relation
between strategic entrepreneurial factors and organizational innovations plays a crucial and fundamental roll in productivity of entrepreneurship
strategy in the organization. Regarding multiplicity of research variables, each one can be studied separately but meticulously, because
organizational innovation and organizational entrepreneurship have extended dimensions each of which can be the subject of a new research. It
seems that future researchers must study organizational culture and reformist leadership variables in addition to the already studied ones.
Acknowledgement
The author is grateful to Reza Kianimavi from Faculty of Accounting and Management Islamic Azad University Gazvin Branch and Dr. Kaveh
Teymournejad from Faculty of Accounting and Management at Islamic Azad University Central Tehran Branch, for a thorough review and
useful suggestion in the article.
References
[1] Bergevoet, R.H.M and Ondersteijn, C.J.M, Saatkamp, H.W. and Van woerkum, C.M.J and Hu R.B.M. (2004) Entrepreneurial behaviour of Dutch dairy
farmers under a milk quota system: goals, objectives and attitudes. Agricultural Systems 80(1), 1 - 21.
[2] Morales, V.J.G. and Montes, F.J.L. and Jover, A.J.V. (2007) Influence of personal mastery on organizational performance through organizational learning and
innovation in large firms and SMEs, Emerald Management Reviews, Technovation 27(9), 547 - 568.
[3] Gategory, G.D and Lumpkin, G.T. and Covin, J.G. (1997) Entrepreneurial Strategy Making and Firm Performance: Tests of Contigency and Configurational
Models, Strategic Management Journal 18(9), 677 - 695.
[4] Mazzarol, T. and Reboud, S. (2006) The Strategic Decision Making of Entrepreneurs within Small High Innovator Firms, International Entrepreneurship and
Management Journal 2(2), 261 - 280.
[5] Freeman, C., Soete, L., 2000. The Economics of Industrial Innovation. Continuum, London.
[6] Avlonitis, G.J., Papapstathopoulou, P.G., Gounaris, S.P., 2001. An empirically-based typology of product innovativeness for new financial services: success
and failure scenarios. Journal of Product Innovation Management 18, 324342
[7] Wijnberg, N.M., 2004. Innovation and organization: value and competition in selection systems. Organization Studies 25, 14131433.
[8] Luecke, R. and Katz, R. (2003), Managing Creativity and Innovation, Harvard Business School Press, Boston, MA.
[9] Davila, T., Epstein, M. and Shelton, R. (2006), Making Innovation Work: How to Manage It, Measure It, and Profit from It, Wharton School Publishing, Upper
Saddle River, NJ.
[10] Fischer, M.M. (2006), Innovation, Networks, and Knowledge Spillovers, Springer, Berlin.
[11] OECD. (2005). Oslo Manual: Guidelines for Collecting and Interpreting Innovation Data (3rd edition). Organization for Economic Cooperation and
Development, Paris, France.
[12] Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. (2011). Strategic Management Competitiveness & Globalization: Concepts and Cases. Canada: South Western.
[13] Drucker, P. F. (2008). Management. USA: Harper Collins Publishers.
[14] Jarboe, K. P. (2007). Measuring Intangibles: A Summary of Recent Activity, Alliance for Science and Technology Research in America (ASTRA).
[15] Moe, E. (2003). An Interpretation of the Asian Financial Crisis Innovation Systems and Economic Performance in a Period of Transformation. Hawaii ICSS,
1-39.
[16] The World Bank. (1993). East Asia: Recovery and Beyond. The World Bank, Washington DC.
545
Investigating the Strategic Relations Between Entrepreneurship And Organizational Innovation In Mahsan Electrical Industries Company
International Journal of Economy, Management and Social Sciences Vol(3), No (10), October, 2014.
[17] Irwin, J.G., Hoffman, J.J., & Lamont, B.T. (1998). The effect of the acquisition of technological innovations on organizational performance: a resource-based
view. Journal of Engineering and Technology Management, 15, 2554.
[18] Hurley, R., & Hult, G. T. (1998). Innovation, market orientation, and organizational learning: An integration and empirical examination. Journal of
Marketing, 62(3), 4254.
[19] Senge, P.M. (1990). The Fifth Discipline. New York, NY: Doubleday Publ
[20] Kaplan, R. S., & Norton, D. P. (2001). The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment.
Boston, MA: Harvard Business School Press.
[21] Tushman, M.L., Nadler, D.A., 1986. Organizing for innovation.California Management Review 28, 7492.
[22] Lemon, M., Sahota, P.S., 2004. Organizational culture as a knowledge repository for increased innovative capacity. Technovation 24, 483498.
[23] Yang, C.C., Marlow, P.B. and Lu, C.S. (2009), Assessing resources, logistics service capabilities, innovation capabilities and the performance of container
shipping services in Taiwan, International Journal of Production Economics, Vol. 122 No. 1, pp. 4-20.
[24] Moica, S. and Socaciu, T. and Radulescu, E. (2012) Model innovation system for economical development using entrepreneurship education, Procedia
Economics and Finance 3(2012) 521 526
[25] TSAD, (2002), Trkiyede Giriimcilik, stanbul: TSAD Yayn.
[26] Cantillon, R., (1755), Essai sur la nature du commerce en generale (ed.Henry Higgs, 1931), London: Macmillan
[27] Jobs, S.P., (2005), American businessman and inventor, Stanford Commencement Speech, USA.
[28] Lundstrm, A. and Stevenson, L.A., (2010), Entrepreneurship Policy, Theory and Practice, Springer, USA
[29] Timmons J. A., and Spinelli S., (2007), New Venture Creation, Seventh Edition. New York: McGraw-Hill/Irwin.
[30]Schumpeter, J.A., (1934), The Theory of Economic Development (trans. Redvers Opie), Cambridge, MA: Harvard University Press.
[31] Marshall, A., (1919), Industry and Trade, London: Macmillan.
[32] Hayek, Friedrich A. von, (1937), Economics and Knowledge, Economica (New ser.). Kirzner, Israel M., (1973), Competition and Entrepreneurship, Chicago:
University of Chicago Press.
[33] Stopford, J.M. and Baden-Fuller, C.W.F., (1994), Creating Corporate Entrepreneurship, Strategic Management Journal, 15(7), 521-536
[34] Collins, O. and Moore, D.G., (1970), The Organization Makers, New York Appleton
[35] Kuratko, D.F., (2009), Introduction to Entrepreneurship, Eigth Edition, South-Western Cengage Learning, Canada.
[36] Kollinger, P. and Minniti, M. and Schade, C. (2007), I think I can: Overconfidence and entrepreneurial behavior, Journal of economic Psychology 28(4), 502 527.
[37] Garcia, J. and Victor.M. and Lorens, F.J.h. (2006) Antecedent and conseguences of organizational innovation and organizational. Learning in ENT
repreneurship, Industrial. Management. & Data Systems 106(1), 21 - 42.