Enterprise and Innovation Affected by the Rising World Economy

Enterprise and Innovation
Name
Institutional Affiliate
Enterprise and Innovation
Introduction
The world’s economy is characterized by increasing competition across the different economic sectors and emerging trends in the markets that have equally diverse effects on daily business operations among enterprises and other business organizations around the globe. Emerging consumer trends, advancing technology, and the effects of globalization are some of the factors affecting business operations across the different sectors of the global economy. Both the small business organizations and multinational corporations alike are affected by such trends in the global economy and thus necessitating the adoption of effective interventional measures towards sustainable growth and development in the diverse economic sectors of operations. It is essential for business enterprises to maintain their competitiveness in the industries and sectors within which they operate to secure their share and influence on the market for increased productivity and revenue generation. The achievement of the said outcome is dependent on the availability of effective leadership in the entrepreneurial organizations and their ability to enhance the organization’s adaptability to the market changes by maintaining a culture of innovation. Provided herein is an evaluation of the concept of effective leadership in an entrepreneurial setting through the lens of how such leaders can maintain an innovation culture within the organizations.
Leaders play significant roles in entrepreneurial organizations as they function to influence other members towards embracing and incorporating the organization’s values, beliefs, and principles for the achievement of set goals and objectives. One of the primary objectives of entrepreneurship is the utilization of resources for the production of goods and services for maximum profitability CITATION Bae12 \l 1033 (Baer, 2012). Leaders in such organizations are tasked with the responsibilities opportunities for growth and development for maximum utilization of the available resources for the main purpose of gaining profits. Leaders may embrace different leadership styles in executing their duties and responsibilities to their organizations, and whose efficacy in achieving the set objectives impacts the success of the enterprises. Among the leadership styles embraced, leaders across different organizations include contingency, trait, and situational leadership approaches CITATION Bag10 \l 1033 (Bagheri, 2010). The contingency leadership approach builds on the principle of establishing positive relations with other members of the organization or team as the basis for influencing them to reach their full potentials towards the achievement of set objectives. The trait approach involves the use of personal traits such as charisma to influence other members into embracing the organization’s beliefs, values, and principles in the effort to promote sustainable growth and development of the entity in its sector of operations. Situational leadership, on the other hand, builds on the principle of understanding the needs of the organization and influencing the available resources towards meeting the identified demands for growth and development of the organization. Each of the leadership theories thrives on unique principles of leadership reflected by leaders across different organizations who also exhibit equally distinct leadership characters. Determining the most effective leadership approach for an entrepreneurial organization requires an understanding of underlying elements defining such entities towards identifying the most appropriate leadership principles to apply for a given enterprise. Entrepreneurial organizations refer to business entities that function to identify and exploit new opportunities for maximum production of goods and services for the purpose of gaining profits CITATION Bag10 \l 1033 (Bagheri, 2010). These organizations are characterized by the ability to mitigate complex demands and uncertainties in the exploitation of identified opportunities for growth and development across the different economic sectors. Navigating such complexities and uncertainties in a given economic sector necessitates an effective leadership approach to secure the organization’s position in the highly competitive market economies. Thus, effective leadership in an entrepreneurial organization refers to the ability to influence the available resources towards the identification and utilization of opportunities to maximize the production of goods and services for profits. Entrepreneurial organizations such as the public listed companies (PLCs) and sole proprietorships such as retail shops for snacks require effective leadership strategies to maintain their relevance in their unique sectors of operations. Mitigating the effects of shifting consumer trends and internationalization of the labor markets, for instance, requires the adoption of new ideas and enhancement of operational activities to meet the new demands. It is evident, therefore, that effective leadership in an entrepreneurial organization correlates to the former’s ability to enhance the latter’s flexibility to change by creating, influencing, and instilling a culture of identifying potential growth opportunities. These new opportunities manifest through the incorporation of new ideas and enhanced ways of production, innovations, which function to maintain the organization’s competitiveness in the market.
Effective leadership is integral to the maintenance of a culture of innovation in an entrepreneurial organization. It functions to promote the mitigation of changes in the market by encouraging the development and implementation of new ideas or the improvement of new ideas to enhance the organization’s competitiveness in the market. Effective leadership in entrepreneurial organizations is characterized by leaders who are not afraid of taking risks or facing the uncertainties posed by the implementation of new ideas within the organization CITATION Bag10 \l 1033 (Bagheri, 2010). The world of entrepreneurship is characterized by uncertainties emerging from both the internal and external environments of the organization. The effects of such forces are unpredictable and often expose entrepreneurial organizations to uncertainties on the outcomes of their production activities in a given market. Effective leadership provides an effective platform for the development of positive attitudes to change and encouraging acceptance and adaptation to change through creativity and innovation. Effective leadership serves to promote critical and creati...