Managing Innovation - Essay Example

Organizational Culture Organizational culture is defined as the shared values, norms, beliefs, vision and system within an organization. Organizational culture defines the pattern of how people in the organization are supposed to think, perceive and act in certain situations therefore organizational culture influence how people and groups need to communicate and work in the organisation. Organizational culture can be divided into different types and entrepreneurial organizational culture is one of the types.

ENTREPRENEURIAL ORGANIZATIONS Innovation is an important aspect of entrepreneurial organizational culture and such firms are always looking to be innovative in their approach. Organizational culture helps and encourages people how they need to act and work. Also organizational culture encourages employees to act in innovative way and employees in the organization are all the time identifying different opportunities and then respond to these opportunities in order to maximize the profitability of the firm.

Not only the management of the firm but everyone in the organization are looking for new opportunities and therefore it creates a culture that promotes innovation. There are different reasons why entrepreneurial organizations look for innovation and most important reasons have been described below: Reason #1: Entrepreneurial organizations are always seeking to innovate Firms that have adapted entrepreneurial organizational culture are always seeking to innovate in their approach as they predict their revenue from new sources therefore innovation is an important aspect of such organizational culture.

Entrepreneurial organizations are generally built because of any innovative product and therefore they try to be innovative in their approach and for this reason such organizations are always looking to be innovative so that they can continue to come up with new products and services (Chatman, & Jehn, 1994). Reason #2: Innovation is the building block of an entrepreneurial organization Innovation is one of the building blocks of an entrepreneurial organization therefore entrepreneurial organization always rely on innovation.

Reason #3: Maximize the efficiency of the company Innovation can make or break the company and if the innovation of the company is a success then it can improve the efficiency of the company. Innovations not only include innovation in products but it includes innovation in processes as well. Innovations could drastically improve the efficiency of the company as it could reduce the processing time, cost of manufacturing because of new technology as well as new processes. For instance, new processes could improve the customer waiting time and variable cost and several other costs, therefore entrepreneurial organizations because of innovation could maximize the efficiency of the firm.

Reason #4: Empowerment Of Employees Employees are empowered in entrepreneurial organizations and empowerment of employees is directly dependent on the level of entrepreneurial ability. Employees always look for different opportunities and try to seek new sources of revenue and for this reason they adapt innovative structure and processes in their approach and it helps in improves the profitability of the company. It is the organizational culture of entrepreneurial organizations that they have been able to come up with different technological breakthrough products (Bateman and Snell, 2009).

References Bateman, S., and Snell, A. (2009). Management: Leading & Collaborating in a Competitive World (8th Edition). Boston: McGraw-Hill Irwin. Chatman, J. A., & Jehn, K. A. (1994). Assessing the relationship between industry characteristics and organizational culture: How different can you be?. Academy of Management Journal, 37(3), 522-553.