How an Entrepreneur Can Uild an Adaptive Firm
1. INTRODUCTION
Innovation is essential to the success of a firm in today's business environment. "Innovation is the lifeblood of the modern economy" (Bridgman, 2001, p.1). Firms must continue to become more and more adaptive and responsive to today's ever changing business environment if they are going to succeed.
The purpose of this report is to "explain how an entrepreneur can build an adaptive firm that balances entrepreneurial characteristics with managerial style." By researching a number of entrepreneurial texts discussions have been made on how this balance can be best achieved.
This report begins by explaining the great importance of innovation and change, and also the great importance of effective management. The many differences and similarities between entrepreneurs and managers are outlined and discussed. Various ways which change and innovation can be managed successfully while maintaining an adaptive and change responsive firm are then explored. These include the use of Lewin's three phases of planned organisational change, the importance of realising resistance to change and the reasons for resistance, and finally the significance of using flexible leadership styles in different situations. Conclusions are then drawn from these observations and discussions and are followed with a number of recommendations.
2. DISSCUSIONS
2.1 THE NEED FOR INNOVATION
The business environment that we operate in today is one of great uncertainty and continuous change. Over the past few decades New Zealand organisations have seen numerous and major advances in such areas as globalisation of business, technology, legislation and probably most importantly the introduction of e-business. To succeed in this ever changing business environment firms must also be adaptive and responsive to change. "Organisations and their managers must continually innovate and adapt to new situations if they are to survive and prosper over the long run" (Shermerhorn, 2001,
Innovation is essential to the success of a firm in today's business environment. "Innovation is the lifeblood of the modern economy" (Bridgman, 2001, p.1). Firms must continue to become more and more adaptive and responsive to today's ever changing business environment if they are going to succeed.
The purpose of this report is to "explain how an entrepreneur can build an adaptive firm that balances entrepreneurial characteristics with managerial style." By researching a number of entrepreneurial texts discussions have been made on how this balance can be best achieved.
This report begins by explaining the great importance of innovation and change, and also the great importance of effective management. The many differences and similarities between entrepreneurs and managers are outlined and discussed. Various ways which change and innovation can be managed successfully while maintaining an adaptive and change responsive firm are then explored. These include the use of Lewin's three phases of planned organisational change, the importance of realising resistance to change and the reasons for resistance, and finally the significance of using flexible leadership styles in different situations. Conclusions are then drawn from these observations and discussions and are followed with a number of recommendations.
2. DISSCUSIONS
2.1 THE NEED FOR INNOVATION
The business environment that we operate in today is one of great uncertainty and continuous change. Over the past few decades New Zealand organisations have seen numerous and major advances in such areas as globalisation of business, technology, legislation and probably most importantly the introduction of e-business. To succeed in this ever changing business environment firms must also be adaptive and responsive to change. "Organisations and their managers must continually innovate and adapt to new situations if they are to survive and prosper over the long run" (Shermerhorn, 2001,
References: Bridgman, A. (2001). Encouraging Innovation: Managing Failures Among Entrepreneurs Shermerhorn, J.R., Jr. (2001). Management (6th ed.). New York: John Wiley & Sons, Inc. Timmons, J.A. (1999). New Venture Creation. Enterprise For The 21st Century