• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The Impact of entrepreneurial behavior on the potential for growth and development of an organization

Extracts from this document...

Introduction

The Impact of entrepreneurial behavior on the potential for growth and development of an organization "Enterprising people translate what is possible into reality" (Kao, 1989) Entrepreneurship is commonly viewed as the process of establishing a new business firm. Thus the study of entrepreneurship relates to the individuals behind such formation. Many studies apply a trait theory approach to assess the personal characteristics of an entrepreneur (Casson, 1982, Caird, 1988, Timmons, 1994). These evaluations include some form of innovativeness and the will to act. Schumpeter (1934) defines innovativeness as the essence of entrepreneurship and Wickham (2001) describes it as the "exploitation of innovation". However, since a person does not become an entrepreneur by virtue of the possession of some combination of these characteristics, Littunen (2000) disregards of this notion and takes a contingency approach to entrepreneurship. Similar to the contingency models of leadership theory, where the leader is required to adapt his style to the structural moments of the leadership situation (Buelens, 2002, Bolden, 2004), Littunen views entrepreneurial activity as a reaction to environmental factors. Entrepreneurial activity is often related to the motivations behind such activity. Reynolds (2003) distinguishes between "opportunity entrepreneurship" that is based on the seizure of an opportunity and "necessity entrepreneurship" that originates from the lack of economic alternatives. ...read more.

Middle

Sometimes this growth is limited by the entrepreneur's deliberate decision (Irwin, 2000, Lau and Snell, 1996, Mochrie, Galloway and Donnelly, 2006) However, once the firm is established and has reached a certain size, other factors need to be considered. Primarily the set-up in a larger organization is different in that ownership and control are more dispersed. Wickham (2001) views entrepreneurship as a style of management, which considers entrepreneurial behavior of managers within an organization and thus already extends the previous definition. Further, in a large organization, management is removed from both the customer base and the processes. As argued above any change is preceded by the perception of either an opportunity or a need. Management is in a position to evaluate the organization as a whole and in context to developments in its market (Mullins, 2002). It is therefore able to identify inefficiencies, as well as the relative success of its products. If management acts upon these perceptions and finds ways to improve its output, then this can be viewed as entrepreneurial behavior. However, this is still limited to the actions of those in control of the organization. Perception is largely based on experiences (Littunen, 2000). Thus, it is people using certain processes on a daily basis that are most likely to identify any shortcomings of such processes. ...read more.

Conclusion

Where a change is based on opportunity it is more likely to lead to actual growth. As argued above, innovation and the willingness to take risks are the essential to entrepreneurship. Thus entrepreneurship within an organization has a positive impact on organizational growth and development. The extent of this impact depends on the extent the organization chooses to use its human capital and is influenced by the organizational structure. As there is no economic need for an employee to innovate, these innovations are likely to fall under the opportunity or lifestyle categories identified earlier. Thus they occur before developments in the organization's external environment put pressure on the organization to change. Thus, for a larger organization to grow, it is helpful if employees are able to communicate their ideas and these are not lost through communication barriers. Thus, for an established organization to remain entrepreneurial and thereby retain growth, not only the entrepreneurial behaviors of the person who initially started the company or the people who run the company is significant, but also the display of such behaviors by the people working within that organization. In order to access employees innovations, communication barriers need to be avoided. This is most likely where the organization has a flat or hybrid structure. This means that organizational structure and management style have a moderator effect on the impact of entrepreneurial behavior on organizational growth and development. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Environmental Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Environmental Management essays

  1. Topic: Critically contrast the approach to organisations of the classical management theorists with that ...

    Woodward (1980) insisted that bureaucratic-mechanistic organisation might be appropriate for firms employing mass-production technologies but that firms with unit, small-batch, or process systems of production need a different approach. Thirdly, Katz and Kahn (1978) pointed out that the classical theories have tended to view the human organisations as a "closed" system.

  2. Water Crisis in Pakistan, its Impact on the Economy and Potential Solutions.

    Our reluctance to treat water as economic good and inadequate recognition of the environmental concerns associated with current practices has led us to catastrophic situation. Further more its remedy is an urgent one, otherwise it could trigger water riots and finally lead to social catastrophe.

  1. Critically evaluate the view that understanding the multi-disciplinary nature Organisational Behaviour is essential to ...

    There are three main areas of the study of behaviour: psychology, sociology and anthropology. There are other, more obscure subjects, such as political science, which intertwine with these three, however, it is these primary drivers which have made the most important contribution to the subject of organisational behaviour.

  2. The Impact of Man on the Environment.

    By every major indicator, the planet's physical condition has deteriorated. Regrettably, we are losing the battle. Scientists discovered that the seemingly harmless chlorofluorocarbons (CFCs) used in refrigerators, air conditioners, aerosol cans, and plastic foams were depleting the stratospheric ozone layer that protects us from harmful ultra-violet radiation.

  1. ORGANISATIONAL CHANGE

    This plan forms part of a wider strategy for neighbourhood renewal and sustainable communities. Tenants are at the heart of plans at all stages in the process, starting with the drawing up of options for investment. In order to achieve the targets, authorities need to: 1)

  2. What impact has study into perception had on the nature nurture debate?

    What is the result then if a sensory skill has not been developed? This question was addressed by Gregory and Wallace (1963) - S.B. a case study of an individual whom had led a life without sight for 52 years, at which point he underwent an operation to awaken his visual senses.

  1. Why, despite its relevance in today's world, is management development so problematical in its ...

    This together with organizational complexity, produced specialisation and the longest running feature of management development which is management training courses. Factors affecting management development practice which to identify the issues that companies perceived would affect management development practice in their organizations over the next two or three years.

  2. In this paper we'll take a look at changes which each organization may face, ...

    Hence, the second meaning of managing change, namely, the response to changes over which the organization exercises little or no control (e.g., legislation, social and political upheaval, the actions of competitors, shifting economic tides and currents, and so on). Researchers and practitioners alike typically distinguish between a knee-jerk or reactive response and an anticipative or proactive response.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work