Entrepreneurship Theory and Practice
1.0 Introduction
Entrepreneurship orientation (OE) may be defined as firm-level strategic orientation that captures an organization’s marketing strategy practices and firm behaviour that are entrepreneurial in nature. Additionally, it may be considered as an strategic approach which may help to promote the various innovations in the firm in order to achieve the entrepreneur success. In this report, the creation and discovery related to entrepreneurship opportunities will be discussed along with the firm level strategy and dimensions of entrepreneurship orientation.
2.0 Evaluate the creation and discovery related to entrepreneurship opportunities
2.1 Creation Theory of Entrepreneurship opportunities
An entrepreneurial opportunity may be defined as a particular situation when the business may expand with the help of products and services, more specifically, that particular situation when the entrepreneurs may take actions to make profit regarding the business. The entrepreneurship opportunities have been created with the help of two theories such as creation and discovery theory as well as these two theories has implications to address the effectiveness of entrepreneur actions in various contexts. In addition to that, it may be mentioned that creation and discovery theories have broader theoretical implications which are necessary in the strategic business management and entrepreneurship (Alvarez and Barney, 2007). In creation theory, the opportunities are created by actions and exploiting ways provided by entrepreneurs to produce new products or services, moreover, entrepreneurs may not depend on the result, they only depend on their work. In this model, entrepreneurs’ actions are to be considered as an important source of these opportunities to build a profitable business. These entrepreneurship opportunities have been created as the entrepreneurs are involved to exploit the opportunities and exploiting these entrepreneurship opportunities may be considered as a source of business profits.
The Entrepreneurial Creation Theory has stated the entrepreneurial value creation and its realization with the help of venture, therefore, this theory consists of two stages such as venture formation and venture monetization. In venture formation, the entrepreneurs start with entrepreneurial intentions or entrepreneurial opportunities to find a new venture for realization of entrepreneurial rewards. Apart from this, it may be argued that in the first stage of creation theory, entrepreneurial competencies are formed which may be described as theory of Entrepreneurial competencies. According to the Entrepreneurial Value Creation Theory, few ventures fail during venture formulation, however, the Business Model theory within the Entrepreneurial Value Creation Theory may explain the elements of the business model design such as venture value drivers. Furthermore, opportunities provided by Creation Theory do not exist independent of entrepreneurs as well as entrepreneurs may or may not differ from non-entrepreneurs. Moreover, it may also highlight that entrepreneurial opportunities may be effective in the strategic management field, similarly opportunities may continue as an important concept in entrepreneurship (Alvarez and Barney, 2020).
2.2 Discovery Theory of Entrepreneurship opportunities
Though both the theory such as creation theory and the discovery theory are explained the way through the entrepreneurs may receive their entrepreneur goals along with their personal development goals, however, in the discovery theory, opportunities exist. Apart from this, the entrepreneurs may differ from non entrepreneurs in various certain ways as well as decision making context is also risky according to the discovery theory. On the other hand, it may be argued that competitive imperfections have arisen exogenously by changes in consumer preferences and in technologies, however, both theories may state that opportunities exist while competitive imperfections are present in the market or industry. According to Shane, political, technological and demographic changes may increase the opportunities’ existence in the market as well as it may disrupt competitive equilibrium in the market or industry (Alvarez and Barney, 2007). Furthermore, the discovery theory is based in reality or exists as real and the exogenous imperfections may generate these opportunities to produce new products in the industry or market. In addition to that, it may be mentioned that diversity in entrepreneurial strategic networks has differed depending on the nature of the entrepreneurial strategic opportunities such as creation and diversity (Upson et al., 2017).
More specifically, it may be highlighted that entrepreneur strategic networks diversity may not be unidirectional in creation and discovery, however, it varies depending on the specific matters. The prime assumption provided by discovery theory may concern the nature of entrepreneurs related to the nature of the opportunities. According to Discovery theory, the decision making procedures are risky as decision makers have collected enough information for making a decision to anticipate possible outcomes. On the other hand, it may be argued that decision making procedures are uncertain if decision makers have not collected the information associated with anticipated possible outcomes. It is highly necessary to make proper actions by entrepreneurs towards the development of new opportunities and innovativeness in the context of discovery based on known risks (Jones and Barnir, 2019).
3.0 Firm level strategies and capabilities
3.1 Market orientation
Market orientation may be defined as an approach through which entrepreneur management may focus on identifying the customers’ needs to generate the entrepreneurship opportunities. The market orientation approaches may be stated below:-
Production orientation
Production orientation approach may focus on the customers’ value prices through which this approach concentrates on lowering production costs to fulfil price needs of customer targets. Through the production orientation approach, strategic business management may help to gain entrepreneurship opportunities in order to enhance the productivity of products and services after knowing the customers’ preferences. On the contrary, it may be argued that set-up costs are high in this approach as well as degrades customers’ needs.
Product orientation
Product orientation is similar to production approach, on the other hand, it may be argued that this approach may concern the business by continuously improving their innovative strategies so that the products are always good in comparison to other competitors. Additionally, with the help of development models including development processes, development inputs and development outputs which may provide opportunities to the business management (Suryathi and Gede, 2018).
Sales orientation
Sales orientation approach may focus only on their customers not their needs such as existing product is given to marketing and sales team as well as the team may find appropriate buyers to sell those products. Additionally, it may be stated that marketing strategy including the sales orientation approach move forward to the entrepreneurs accomplishment by taking decisions through which the management utilizes their management opportunities to achieve the success (Mintzberg, 1973).
Societal orientation
Considering the organization of products, marketing and processes, societal orientation may concentrate the impact of their products or processes socially as maintaining social sustainability provides opportunities to the entrepreneurs to expound their business. According to recent marketing competition scenarios, this approach may be considered as challenges for medium and small business where customer satisfaction may generate a significant result.
Market orientation
Market orientation is to be considered as an important approach as most of the customers have more access to information related to the marketing preferences.
3.2 Collaboration
Collaboration framework may be considered as two components such as vision and strategy and collaboration strategy may be subdivided into three components within an organization which may mentioned below:-
People and culture
This collaboration strategy is to be considered as a human element of collaboration through which the business management may address the risks associated with management and ethical culture within the organization and may provide an opportunity to the management to expand their business. Furthermore, the open layout may encourage visibility and access to the colleagues within a work setting to increase collaboration and communication (Zamani and Gum, 2019).
Technology
This approach may describe the reason for collaboration with the technologies needed asc well as it also refer to the way of support from the technologies or integration in order to move forwards the business.
Process and governance
It may be considered as an internal business model to optimize the collaboration such as funding, staffing and support services as well as the organizational model that governs the evolution of collaboration.
3.3 Technology
According to the recent scenarios, new and advanced technologies are helpful to implement management strategies through which the entrepreneurs effectively help to generate significant results by providing innovative ideas of the design process. The advanced technologies such as Artificial Intelligence (AI) and Information and Communication Technology (ICT) and Internet of Things (IoT) may effectively help the entrepreneurs to implement management strategies in order to achieve organizational success. On a contradictory note, it may be mentioned that information processing technological devices similar to control and scanning systems have been used in the business through which the management may effectively know the operating and environmental efficiency of the decision making process (Miller and Friesen, 1982).
4.0 Explanation of dimensions of entrepreneurship orientation
The dimensions of entrepreneurship orientation define dimensions through which the entrepreneurship approach to management may help to hold their positions in business. In addition to that, five dimensions of EO may involve Autonomy, innovativeness, risk taking, competitive aggressiveness and proactiveness as well as these five dimensions have strong relationship with entrepreneurs performances.
4.1 Competitive aggressiveness
According to Kolb’s reflective model, I have found that competitive aggressiveness with positive behaviour has a strong connection with performances to meet the organizational success. Competitive aggressiveness is the market’s response to competitors to protect its competitive market position, therefore, I think this particular dimension may provide vision related to attitudes presented in front of the competitors. Additionally, self-realisation is an effective tool which helps me to understand the effectiveness of positive behavioural traits, so that I try to improve my attitudes and behaviour with the help of online educational programs. My willingness towards the organizational success by competing with my competitors has been increased with the help of self-determination by this dimension. On the other hand, it may be argued that competitive advantages are associated with business performances which depend on my skills or self-confidence provided by these dimensions.
4.2 Risk taking
Risk taking in entrepreneurship is to be mentioned as a tendency to take bold actions which I have highlighted by measuring the entrepreneurial Self-Efficacy. Additionally, as per the Kolb’s reflective model, risk taking tendency is also linked with human capital invested in business, therefore, through this dimension, I may enhance my self-confidence with positive attitudes to take more risk actions. On the contrary, it may be mentioned that, with the help of the OCEAN model, I have improved my personality trait through which I will be able to take risks in my career (Singh and Singh, 2020). Apart from this, it is highly necessary that I may develop my thoughts and actions with positive attitudes through inspirational speeches by educational expertise that help to manage my work regarding activities. I have summarised that risks may be associated with several factors similar to supportive policies and political instability which all are effective handled by positive attitudes and patience provided by risk taking dimensions.
4.3 Proactiveness
Proactiveness is opportunity seeking behaviour which has supported disruptive innovation to taking risks and administrative processes which is also necessary to manage the business regarding activities. Considering Kolb’s reflective model, I will realise that the proactiveness dimension has a significant result by improving the behaviour. Proactiveness is required to address customers’ needs and gain competitive advantages, therefore, I have improved my opportunity seeking behaviour to fulfil the business goals. On the contrary, it may be stated that with the help of Kolb’s reflective model I may prepare an action plan through which I may improve my personality behaviour skills through effective communication, taking others opinion and online educational sessions.
5.0 Conclusion
Considering the above mentioned discussion, it may be concluded that entrepreneurship orientation needs opportunities to expand the business in order to expand their business effectively. Additionally, EO dimensions provide a significant effect on the performances related to market orientation and firm development activities.
References
Alvarez, S.A. and Barney, J.B., 2007. Discovery and creation: Alternative theories of entrepreneurial action. Strategic entrepreneurship journal, 1(1‐2), pp.11-26.
Jones, R.J. and Barnir, A., 2019. Properties of opportunity creation and discovery: Comparing variation in contexts of innovativeness. Technovation, 79, pp.1-10.
Miller, D. and Friesen, P.H., 1982. Innovation in conservative and entrepreneurial firms: Two models of strategic momentum. Strategic management journal, 3(1), pp.1-25.
Mintzberg, H., 1973. Strategy-making in three modes. California management review, 16(2), pp.44-53.
Singh, K. and Singh, A., 2020. Frozen Pizza: a bite for Indian consumers: an OCEAN model analysis.
Suryathi, W. and Gede, I.G.K., 2018. Empirical Studies Development Of Creative Industry Its Contribution To Make-Up Of Product Orientation Exporting In Denpasar-Bali. In Journal of Physics: Conference Series (Vol. 953, No. 1, p. 012098). IOP Publishing.
Upson, J.W., Damaraju, N.L., Anderson, J.R. and Barney, J.B., 2017. Strategic networks of discovery and creation entrepreneurs. European Management Journal, 35(2), pp.198-210.
Zamani, Z. and Gum, D., 2019. Activity-based flexible office: Exploring the fit between physical environment qualities and user needs impacting satisfaction, communication, collaboration and productivity. Journal of Corporate Real Estate, 21(3), pp.234-253.
Know more about UniqueSubmission’s other writing services:
