Taking a look at Entrepreneurship and Innovation Essay

This essay will present entrepreneurship and invention from the theoretical position and give the critical analysis, and explicate a specific instance survey from the facet of concern invention. Furthermore, the relationship between entrepreneurship and concern invention will be discussed and interpreted in this paper. This essay will incorporate three important subdivisions of entrepreneurship and concern invention, instance survey and decision.

First, the subdivision of entrepreneurship and invention will present and construe the definition and treatment of entrepreneurship and invention. The interrelatedness between entrepreneurship and invention will be discussed. Second, the subdivision of instance survey will stipulate the application of invention through the instance survey of Toyota. Finally, the decision will be given in the concluding portion.

Entrepreneurship and Invention

In footings of Shane and Venkataraman ( 2000 ) and Hitt et Al. ( 2001 ) , since there is no consistent definition of entrepreneurship and the relevant constructs, research workers can non make a conceptual model from the theoretical position. Furthermore, most research workers incline to concentrate on the pattern of the entrepreneurship field. However, like Brazeal and Herbert ( 1999 ) , incorporating entrepreneurship with invention and creativeness and understanding the invention under the circumstance of the entrepreneurship field could be considered as the focal points of future research. The following will non merely present entrepreneurship and invention, but besides seek to construe the interrelatedness between entrepreneurship and invention.

Entrepreneurship is considered as a venture creative activity procedure of making and imitating something which contributes to make wealth for society and portion value ( Drucker 1985 ; Kao 1995 ) . This venture creative activity procedure needs enterpriser to stress on value creative activity, recognize and chase chance, advance invention and creativeness, and allocate resources ( Wickham 2004 ) . Entrepreneurs should play an of import function in chance acknowledgment, invention development and limited resources allotment. Furthermore, chance acknowledgment is described as a important procedure attach toing invention and creativeness. However, the old position belongs to the position of entrepreneurship as a procedure arising from Shane and Venkataraman ( 2000 ) . There are several point of views which observe and interpret entrepreneurship. Within the field of anthropology, chance acknowledgment and risk-taking are viewed as the two marked features of enterpriser ( Barth, 1969 ) . This hazard to a great extent may necessitate enterprisers to earnestly dispute the common societal moral and value, even enterprisers ‘ moralss and moral. In other words, enterprisers ‘ activities and practising non merely impact the development of the specific house or company, but besides influence society norms and community values. For illustration, along with the extremist development of globalisation and outsourcing, transnational corporates in developed states integrated and transformed the production from fatherland to developing states with lower production cost. Nike and child labour in Pakistan has been considered as the remarked instance, which director of Nike or local contractors in developing states earnestly violate local state ‘s jurisprudence and challenge society norms and moral ( Boggan 2001 ) .

As the old mentioned, invention is considered as one of the most of import pillars of entrepreneurship. Invention contains remarked improved merchandises and service, originative and effectual organisational construction, managerial pattern and operational procedure ( Trewin 2004 ) . Drucker ( 1985 ) defined invention as a procedure that converts new constructs into value and wealth contributing to clients, houses and society. Furthermore, Zairi ( 1999 ) and McGrath and Bruce ( 1998 ) clearly argued that invention was a procedure participated by new thoughts and cognition. Furthermore, the apprehension and execution of new engineerings, managerial practicing, process and others can be integrated to advance invention from the position of endeavor. The intents of using invention non merely concern on form and keep the competitory advantages beyond rivals, but besides produce and offer better merchandises and service for their clients though the apprehension of market and clients ‘ demands.

The apprehension and reading of the relationship between entrepreneurship and invention is considered as the important accent of this subdivision. Invention is regarded as the cardinal feature of an entrepreneurial orientation ( Lumpkin and Dess 2001 ) . Drucker ( 1985 ) suggested that invention is the principle pattern of entrepreneurship, which is viewed as the cardinal dimension of entrepreneurship. The execution of entrepreneurship may take to the reclamation of merchandises and service, even the development and incursion of new and bing market through invention. Furthermore, Morris ( 1998 ) argued that three cardinal dimensions of entrepreneurial attitudes and behaviours are composed of invention, risk-taking and proactiveness. This point of view suggests that invention is considered as the solution of jobs on merchandises, service and market.

An alternate position indicates that entrepreneurship can be regarded as an component of invention ( Hurley and Hult 1988 ) . From this position, the spectrum of invention can be broader than entrepreneurship. Managerial invention, such as Entire Quality Management, Business Process Reengineering and Redesign, Cross-culture Management is considered as one dimension of invention, which broadens the spectrum of invention. However, entrepreneurship can advance managerial invention.

This paper can non stipulate the farther doctrine of the old two positions on the apprehension of the relationship between entrepreneurship and invention. However, there is no uncertainty that the closer relationship between entrepreneurship and invention can correctly advance and excite the development of entrepreneurship and invention. Specifically, entrepreneurship can foster support and advance the development of invention ; invention can strongly back up managerial invention and entrepreneurship.

In decision, this subdivision introduced and explained entrepreneurship, invention and the interrelatedness between entrepreneurship and invention from the theoretical position. Entrepreneurship is considered as a value venture procedure. Furthermore, invention is integrated in this procedure. The relationship between entrepreneurship and invention is common.

Case Study

This subdivision will take Toyota as an illustration to stipulate the application and execution of invention in pattern. There are three invention facets of Toyota including production system, supply concatenation and managerial invention.

Toyota Motor Corporation, established in 1937 in Japan, is described as the worldwide taking motor vehicle fabricating corporate. Furthermore, Toyota becomes the universe ‘s largest motor vehicle fabricating company in the past 70 old ages. In 1957, Toyota employed the globalisation scheme to spread out the range of vehicle, and integrated Toyota ‘s Production System to exercise a positive influence. Toyota significantly contributes to the design and production of motor vehicle and the value creative activity for its clients ( Toyota 2010 ) . Toyota integrated and developed the powerful and effectual distribution, developer, channel and acquisition web with its spouses all over the universe to be dedicated to the last-long partnership with clients and their success. Furthermore, superior client service of Toyota is regarded as one of the most of import competitory advantages beyond its rivals.

The effectual and powerful production system will be considered as the most important competitory advantage pursued by most houses. Toyota has this alone and effectual merchandise system-Toyota ‘s Production System. The doctrine of Toyota ‘s Production System is to be dedicated to make and offer superior value for clients through a procedure of eliminate waste every bit much as possible and shorten prima clip ( Womack et al. 1990 ) . Innovation as a procedure is employed and applied to production system and supply concatenation. For case, the debut and execution of Entire Quality Management can farther better the quality of merchandises and service and the efficiency of production system. Entire Quality Management concentrates that quality can be produced yet tested.

Supply concatenation in Toyota makes Toyota ‘s Production System integrate and allocate resources. Furthermore, Toyota has a important ability to work collaboratively with providers to set up the remarked supply concatenation and web. Toyota and its spouses concentrate on the sharing of propinquity, organisational alliance and cultural similarities. This supply concatenation make Toyota employ domestic production whose parts account for 70 % of the stuffs and constituents from local spouses. For illustration, when Toyota entered European market, Toyota employed several activities to perforate into European market. Mentioning to invention, the inter-organizational web of Toyota is considered as one of the most of import invention in the European market. The of import facet of this web is to apportion and incorporate limited resources controlled by other companies ( Chetty and Holm, 2000 ) .

Furthermore, managerial invention is regarded as one of the most of import invention facets in Toyota Company. In footings of Liker ( 2004 ) , he critically proposed The 14 Management Principles transformed from Toyota Production System to. The 14 Management Principles can be divided into four wide classs including doctrine, procedure, people and spouses and job resolution. The undermentioned figure will be represented in the pyramid diagram. First, the rule of philosophy-long term thought will be considered as the foundation of production and organisational construction. Second, the rule of process-eliminate waste will ensue in uninterrupted betterment. Third, the rule of people and partners-respect, challenge and turn them will do Toyota incorporate the powerful supply concatenation and determine their ain competitory advantages. Fourthly, the rule of job work outing purposes to promote its employees and spouses to seek the solution of production and direction jobs.

Decision

In decision, entrepreneurship and invention were considered as the two of import facets of get downing. However, there are two point of views sing the relationship between entrepreneurship and invention. The first position suggested that invention is regarded as one dimension of entrepreneurship. Nevertheless, the 2nd position argued that the spectrum of invention is larger than entrepreneurship. In this paper, the common interrelatedness between entrepreneurship and invention will further advance and imitate each other. The instance survey of Toyota will explicate the three applications of invention including production system, supply concatenation and managerial invention.