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Motivation Behind Innovative Organizations

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Motivation Behind Innovative Organizations

The first reason why entrepreneurial organizations seek opportunities for innovation is to

create and maintain a competitive advantage. Innovation helps companies set themselves apart

by providing distinctly better products or services that customers desire to purchase.

Differentiating themselves in this way could help create more loyal customers and a greater

connection with the brand. This creates ‘first-mover advantage,” where a given company is the

first to come up with revolutionary product or service that makes the company take the lead

position in the industry. For instance, in 1920’s Apple was competing with Dell and Hp in PC

manufacturing. Apple Inc. gained a competitive advantage by inventing iPod which changed

how people listened to music (Asemokha et al., 2019). Through the innovation of unique

products, Apple has managed to retain a competitive edge in the technological industry.

Another reason why companies seek opportunities for innovation is to expand their

market share. Innovation helps organizations to focus on the unmet needs which would allow

them to create new markets where there are different customer segments. They can also venture

into the international arena by modifying the innovations into products that match universal

consumer interests thereby expanding beyond local scope. For example, Starbucks started as a

simple coffee shop located in Seattle. However, Starbucks have introduced numerous innovative

products such as new coffee drinks, extended the menu with foods, and launched a smart phone

application that enables clients to pre-order and pay the beverages before delivery. This

innovative approach has enabled Starbucks to expand its operations in the international markets

with ease.

Adaptation to change is also a major reason why entrepreneurial organizations seek

opportunities for innovation. Organizations must be flexible in order to stay relevant amidst ever-
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changing business landscapes. Innovation helps organizations to promptly adapt to changes in

customers tastes, market trends and regulations. Through constant innovation companies can

adjust, adapt and develop any kind of change in technology, distribution channels or

environment sustainability (Danish et al., 2019). Therefore, innovation helps to keep

organizations resilient, thereby protecting them against obsolescence as a result of disruptive

changes. One perfect example of such companies is Amazon. After DVDs were phased out by

the Internet Netflix devised a streaming platform where customers could stream movies and TV

shows directly on their TVs, computers, and smartphones.

Organizations may also seek for innovation opportunities in order to cut down costs.

Through continuous improvement of their internal operations, organizations, can eliminate

waste, maximize resources use and achieve higher levels of production. Such innovations help in

cutting down production cost, shortening the lead time and improving operations of a supply

chain (Lüdeke‐Freund, 2020). As a result, the same may lead to higher profits margins as well as

low costing in comparative pricing. A reduction in costs may also promote sustainability through

lowered use of resources and environment degradation. For example, McDonald’s invented their

made-to-order system and digital ordering and self-service kiosks in order to cut down

operational costs and improve their profit margins.

In conclusion, it is essential for any entrepreneurial organization to pursue chances of

innovations as a means to retain a competitive advantage, expand markets, adapt to change, and

be cost-effective overall. Such benefits are vital towards the sustainability of business operations

in an ever-changing competitive environment. This way, these companies can manage their

survival in an ever-evolving environment and eventually become market champions.

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References

Asemokha, A., Musona, J., Torkkeli, L., & Saarenketo, S. (2019). Business model innovation

and entrepreneurial orientation relationships in SMEs: Implications for international

performance. Journal of International Entrepreneurship, 17, 425-453.

https://doi.org/10.1007/s10843-019-00254-3

Danish, R. Q., Asghar, J., Ahmad, Z., & Ali, H. F. (2019). Factors affecting “entrepreneurial

culture”: the mediating role of creativity. Journal of Innovation and Entrepreneurship,

8(1), 1-12. https://doi.org/10.1186/s13731-019-0108-9

Lüdeke‐Freund, F. (2020). Sustainable entrepreneurship, innovation, and business models:

Integrative framework and propositions for future research. Business Strategy and the

Environment, 29(2), 665-681. https://doi.org/10.1002/bse.2396