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Abstract: A quantitative methodology is presented to analyze the extent to which the degree of the various types of innovation influence the growth of the various types of business in the small enterprise and whether entrepreneurial capacity drives these types of innovation. Four types of business were considered high-tech companies, specialized services, companies with own brand products, and companies with conventional processes and the four classic types of innovation.
The methodology is exploratory and supports empirical study applied to a sample of companies. The results showed that the appropriation of some additional value, like own brand, potentiates the differences in the relationship between entrepreneurship, innovation and revenue growth. Keywords: Organizational Performance, Competitiveness. A metodologia é exploratória e ampara estudo empírico aplicado a uma amostra de empresas.
Innovation and technology are relevant drivers for entrepreneurship and economic growth Peng, at al. Innovation and entrepreneurship can be understood as unceasing and complementary processes, the fuel of the modern economy QianSchmitz, at al. Innovation is an important field of research, impacting society Dodgson at al,Lado-Sestayo et al. Maintaining competitiveness is a matter of concern to top managers and innovation professionals, who are looking for a better way to overcome the challenges they encounter in their daily activities Alexy et al,supported on good ideas that can generate and enhance their innovation performance Christensen at al.
Innovation and entrepreneurship are interconnected Arshi and Burns, Some authors consider that innovation is at the core of corporate entrepreneurship in mature organizations Duobiene,others that entrepreneurship is an antecedent to innovation in large companies Arshi and Burns,and others that entrepreneurship is an important factor to increase innovation and performance in SMEs Ahmed, et al.
Entrepreneurship is the heart of innovation activities and innovation is the main characteristics of entrepreneurship Tao and Qiuying More specifically, it sought to verify to what extent the degree of the different innovation types affects the revenue growth of the company and the extent to which entrepreneurial capacity drives innovation in each of the business types studied.
These types of business are: a companies using conventional processes CP - labor-intensive and basic technology manufacturing, such as clothing, footwear, etc. The CP type of business companies using conventional processes is the standard where the majority of SMEs operate, many of them acting as subcontractors. The three other types of business seek to grant some relevance to the companies.
This classification, besides representing typical businesses of small and what is composition in art enterprises, at least in Brazil, allows to check whether the appropriation of some additional value, such as an own brand products, technological expertise or technical knowledge, increases the differences in the relationship between entrepreneurship, innovation and income growth.
Innovation, in turn, was classified by the Oslo Manual OECD, and Davila et alin four types: a product innovation, b process innovation, c marketing innovation, and d organizational innovation. The study was developed based on an exploratory research by applying statistical techniques on data extracted from a sample of 48 Brazilian small enterprises, which results showed that: a concerning revenue growth, there is a significant difference between the types of business, b innovation affects income growth in various degrees depending on the type of business, and c entrepreneurial capacity also affects innovation in different degrees, in its several types, and what are the three different symbiotic relationships different types of business.
These results showed that to possess some additional value, like own brand products, technological expertise and technical knowledge, emphasizes the differences in the relationship between entrepreneurship, innovation and revenue growth, giving consistency to the proposed methodology. A survey in the Scopus and Web of Science database, at the end of Junein the research fields: title, abstract and keywords, from tousing the research string: entrepreneurship AND innovation AND growth, presented 1, documents at Scopus and 1, documents at Web of Science.
Table 1 Research string. Source: The authors. Some Brazilian studies also follow this trend, like Fontenele We found some articles that aimed at a better understanding of the relationship between entrepreneurship and organization success, such as Fernandes and SantosMan at al. However, considerable part of the articles deals with large companies. Brito at al. Therefore, philippnies seemed appropriate to develop this study whose methodology is applicable to SMEs, in order to study the relationships among the variables degree of innovation, revenue growth rate and entrepreneurial capacity, but dividing the companies into their various types of business, and innovation in its four classical general categories.
The contributions of this article are the proposition of the procedures for the quantitative evaluation of the what is non course equivalency capacity in small enterprises and of its degree of innovation, and the several conclusions about the relationships among these two variables and the enterprise revenue growth.
The exam;les of the relationship of these three variables confers uniqueness to the article, since our bibliographic research identified studies relating only two of them. In addition, it was found that, by separating the companies under such criteria, it is possible to achieve more revealing results than those obtained by Varis and Littunen who in a similar study found that company growth is not affected by innovation category, contrary to the outcome obtained here.
This article is organized in five sections. In the second, we present the literature review on entrepreneurship and innovation in small and micro companies, which provided the theoretical foundations that support the proposed methodology. The third section presents the procedures for the application of the methodology, in the fourth section is presented the results marketinf the discussion of its application to a sample of 48 small businesses. The last section presents the examples of companies using relationship marketing in philippines of the study.
This section presents a literature review on attributes of the entrepreneur and innovation in order to justify the adoption of the proposed methodology. Many studies have attempted to identify attributes of entrepreneurial philipoines. Weber claims that religious belief would be a motivating factor for entrepreneurial actions, meaning that the environment in which the individual lives and his values and beliefs relatkonship his choice for venturing.
Feuerschütte at al. Zampier and Takahashiin turn, consider that entrepreneurial learning is an ongoing process that facilitates the development of knowledge needed to start and manage new ventures. Regardless of the way in which the entrepreneurial capacity of individuals emerges or realtionship, this copmanies required the development of an appropriate procedure to evaluate it. To justify the adopted procedure, here follows the traits of the successful marketinb, according to the main classical authors.
McClelland identified a strong psychological element that distinguished successful entrepreneurs: the motivation for achievements or the drive for improvements. This resulted in the possibility of considering entrepreneurship also as a set of behaviours and practices that can be observed and acquired. The behavioural approach to entrepreneurship suggests that examples of companies using relationship marketing in philippines behaviours and practices can be significantly strengthened in people through education and training.
In his studies, McClelland identified ten personal skills often found in successful entrepreneurs: search of opportunities and initiative, persistence, risk acceptance, demand for efficiency and quality in actions, commitment to work, goals setting, search of information, monitoring and systematic planning, persuasion, independence what is meant by intangible personal property self-confidence.
According to him, the entrepreneur would be responsible to combat the natural entropy of the economic cycles, by promoting a new rise and preventing the decline of wealth generation. Carland at al. Bateman and Snell observe that entrepreneurs are determined and effective leaders, obsessed with opportunities, creative, motivated, confident, and tolerant to uncertainties and risks.
According to Hisrich at al. Drucker states that the key roles of the entrepreneurs are: innovation, risk-taking and a permanent state of unbalance, of breaking paradigms. In order to develop a multi-criteria model to support the selection explain the difference between theoretical and experimental values incubator companies, Oliveira and Examples of companies using relationship marketing in philippines conducted a vast research on the characteristics of the entrepreneur most commonly cited by 34 authors.
They have obtained the list compwnies the following fifteen: 1 Persuasion, 2 Initiative seize opportunities, new ideas3 Independence decision autonomy4 Self-confidence belief in self, motivation5 Persistence strong will, perseverance6 Vision look at the future of the company7 Opportunity ability to identify and explore8 Innovation search for new ideas9 Risk determination to face10 Advantage or competitive differential, 11 Coordination goals, supervision and control12 Communication knowing how to listen, to spread, to transmit13 Connectivity, Articulation and Participation why my call not going through integration14 Management strategic planning, marketing, negotiation, decision15 Feedback value the feedback of information.
Korunka et al. A research tool was developed to measure the relevant characteristics of entrepreneurs, their resources and the environment. The characteristics of the phhilippines considered were: internal locus of control, need of achievement, risk taking propensity, gender and age of business founder. More recent studies have evoked characteristics related to personality traits, cognitive aspects and human capital, and although they do not fit the types of characteristics to be evaluated in the present study, they deserve to be highlighted, since they show some convergence with the characteristics treated in previous studies.
Olivari conducted extensive research on characteristics of the entrepreneurs in works published in the last five years that preceded his publication, having identified the following main traits of personalities: need of achievement, internal locus of control and persistent self-efficacy. Olivari examples of companies using relationship marketing in philippines identified within the cognitive characteristics: high alertness, creating style, role models start-up motive and desire to build successful business.
Bianchi at al. Ugalde-Binda et al. The main characteristics of the entrepreneurs were identified: commitment to quality, work hard, ability to adapt to change, perseverance, business experience and motivation. Felício at al. The purpose of the research was to investigate the influences of entrepreneurial and managerial exaples on the relationship between human capital and social capital.
The results indicated that the principal factor was highly correlated to the variables of experience, professional proficiency and cognitive ability, which were predominant characteristics of the entrepreneur, as well as some status variables such as interlinking, family support, personal relations and social relations. The procedure developed to the quantitatively assess the entrepreneurial capacity is presented in subsection Quantitative assessment of the entrepreneurial capacity.
The concept of innovation is diversified, depending mainly on its application. Luecke and Esamples consider innovation as the embodiment, combination or synthesis of knowledge into new products, processes or services that provide value in an original or relevant way. Accordingly to Gundling innovation can be seen as new ideas associated with actions that produce results coated with originality, of phhilippines in relation to the beneficiary audience, and of relevance, measured by their ability to solve more complex issues.
An innovative company, according to the Oslo Manual OECD,is one that has introduced an markeging during a certain period of analysis. It points out that an innovative company is not necessarily the one that can always introduce a product or service successfully exxamples the market, because these attempts examples of companies using relationship marketing in philippines often fail. It defines innovative company as one that develops its own innovations, or in cooperation with other companies or public research organizations, or still a company that innovates by adopting innovations developed by other companies.
The Oslo Manual was prepared by OECD together with the European Commission and involved experts from around thirty countries, aiming to provide a set of actions that can produce significant results compabies innovation. Valladares at al. Examples of companies using relationship marketing in philippines and Apaydinpresented a compilation, based on a systematic review of the literature since the early s, of different research perspectives involving a comprehensive view of organizational innovation, linking leadership, innovation as a process, and innovation as results.
In this work, they considered four what is a theoretical perspective example categories of innovation: product, process, organizational, and marketing. Accordingly, to the Oslo Manual OCDE : Technological innovations in products or processes comprise new products or new processes, or significant technological improvements in products or processes.
Organizational innovations concern the implementation of a philipplnes organizational method in the business practices of the companies, in the organization of their workplace or in example of antisymmetric relation in discrete mathematics external relations.
The main types of organizational and managerial innovation are the following: examples of companies using relationship marketing in philippines of advanced management techniques; modified organizational structures; compamies implementation of new or modified corporate strategies. Marketing innovation refers to how the company relates to the market in order to expand its sales and customers network, exploring opportunities to offer better services to satisfy their requirements, needs, preferences and expectations.
This article required the development of a methodology to evaluate quantitatively the degree of innovation of the companies in each of its four general categories. The main point of this article is to present a quantitative study to analyse to what extent the degree of the four general categories of innovation affect the growth of various what does a a stand for of business in small companies and to what extent entrepreneurial capacity drives these types examlpes innovation.
The study was developed with the objective of answering the following research questions:. To answer these questions, we developed a procedure for the quantitative evaluation of the entrepreneurial capacity and the degree of innovation of the companies, which follows. The study was accomplished based exampoes a sample of small companies, composed of 48 companies of different types of business companies with high-tech products or processes - TEC, specialized service companies - SS, companies selling products with their own brand - OB, and businesses using conventional processes - CP.
The sample covered a wide range of companies manufacturing, transportation and storage, food, automation, information and communication, education, health and social services and high-tech companies TEC concentrated in companied, automation and manufacturing of surgical products. The specialized service companies SS focused on IT activities and on managerial training courses. Companies with own brands OB and conventional processes CP covered a broad range of economic activities, companies kf do not have any special skills and labour-intensive use.
The companies were randomly selected among those ones that replied to the survey. We considered the entrepreneurial capacity of the companies EC like that present in its top executives, usually the entrepreneur himself, which is a reasonable assumption for small companies. For its quantitative assessment, we proposed a procedure based on the characteristics of the entrepreneur identified by Oliveira and Fontenele Based on those characteristics, 41 sentences were developed, that portrayed attitudes or behaviour of the entrepreneur in practical situations of his business life.
For each of these sentences, the respondent of the company - the top executives - have indicated the frequency of that practice among the options: always, often, sometimes, rarely, or never. For each of the xompanies options for the behaviour of the entrepreneur, the weights 5, 4, 2. The capacity of the leader entrepreneurial was then determined by the arithmetic mean of the weights of the 41 sentences. The 41 sentences created were based on the significance of the word that expressed each one of the characteristics.
For example, the four sentences that showed behavioural attitudes related to the attribute persuasion were: a Listens to the needs or concerns of your employees, identifying those you need to consider, b What is an example of a string variable the companiees of your examples of companies using relationship marketing in philippines with the vision of how to turn them into benefits for the company, c For the conversations in which you are going to make persuasive proposals you prepare in advance, seeking to gather solid arguments, d Acts with parsimony and firmness at the right time and never in an untimely manner in situations of conflict.
The proposed procedure aimed relatoinship evaluate the entrepreneurial capacity starting from the self-analysis of the executive of the company about his personal behaviour in dealing with daily problems of management and marketung arising opportunities.