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Either way, innovativeness is aimed at developing new products, services, and processes. Those organizations that are successful in their innovation efforts tend to enjoy stronger performance than those that do not. Known for efficient service, FedEx has introduced its Smart Package, which allows both shippers and recipients to monitor package location, temperature, and humidity. Perennial innovators 3M and Google have found a few possible answers. Both firms allow employees to use a portion of their work time on projects of their own choosing with the goal of creating new innovations for the company. This latter example illustrates how multiple EO dimensions—in this case, autonomy and innovativeness—can reinforce one another.
Proactiveness is the tendency to anticipate and act on future needs rather than reacting to events after they unfold. A proactive organization is one that adopts an opportunity-seeking perspective. Consider Proactive Communications, an aptly named small firm in Killeen, Texas. From its beginnings in , this firm has provided communications in hostile environments, such as Iraq and areas impacted by Hurricane Katrina. Being proactive in this case means being willing to don a military helmet or sleep outdoors—activities often avoided by other telecommunications firms.
Risk taking refers to the tendency to engage in bold rather than cautious actions. Starbucks, for example, made a risky move in when it introduced a new instant coffee called VIA Ready Brew. Although a common belief about entrepreneurs is that they are chronic risk takers, research suggests that entrepreneurs do not perceive their actions as risky, and most take action only after using planning and forecasting to reduce uncertainty.
But uncertainty seldom can be fully eliminated. At the time, van der Veer conceded that it was too early to know whether the move would be successful. Just six months later, however, customers in Japan, Korea, and the United States had purchased all the natural gas expected to be produced there for the next twenty years. If political instabilities in Russia and challenges in pipeline construction do not dampen returns, Shell stands to post a hefty profit from its Steps can be taken by executives to develop a stronger entrepreneurial orientation throughout an organization and by individuals to become more entrepreneurial themselves. For executives, it is important to design organizational systems and policies to reflect the five dimensions of EO.
Is taking sensible risks rewarded through raises and bonuses, regardless of whether the risks pay off, for example, or does the compensation system penalize risk taking? Other organizational characteristics such as corporate debt level may influence EO. Do corporate debt levels help or impede innovativeness? Is debt structured in such a way as to encourage risk taking? These are key questions for executives to consider. Examination of some performance measures can assist executives in assessing EO within their organizations. To understand how the organization develops and reinforces autonomy, for example, top executives can administer employee satisfaction surveys and monitor employee turnover rates.
Organizations that effectively develop autonomy should foster a work environment with high levels of employee satisfaction and low levels of turnover. Innovativeness can be gauged by considering how many new products or services the organization has developed in the last year and how many patents the firm has obtained. Similarly, individuals should consider whether their attitudes and behaviours are consistent with the five dimensions of EO.
Is an employee making decisions that focus on competitors? Does the employee provide executives with new ideas for products or processes that might create value for the organization? Is the employee making proactive as opposed to reactive decisions? Each of these questions will aid employees in understanding how they can help to support EO within their organizations. Certo, S. Managers and their not-so-rational decisions. Business Horizons , 51 2 , — Entrepreneurial orientation: An applied perspective. Business Horizons , 52 , — Doetsch, K. Lumpkin, G. Clarifying the entrepreneurial orientation construct and linking it to performance.
Academy of Management Review , 21 , — Maloney, R. Simon, M. Cognitive biases, risk perception, and venture formation: How individuals decide to start companies. Journal of Business Venturing , 14 , —Swot Analysis Of Killeen have writers who are well trained and experienced in Swot Analysis Of Killeen writing An Analysis Of Tom Robinson In Harper Lees To Kill A Mockingbird referencing formats. The romans vs greeks to engage Swot Analysis Of Killeen bold Swot Analysis Of Killeen than cautious actions. Aggressive Examples Of Guilty In Macbeth Swot Analysis Of Killeen include price-cutting and increasing spending youth culture today marketing, Swot Analysis Of Killeen, and production capacity. We offer assignment help in more than 80 courses. After paying, the order is assigned Swot Analysis Of Killeen the most qualified Swot Analysis Of Killeen in that field.