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The Research On The Relationship Between Entrepreneurial Environment And Entrepreneurial Orientation

Posted on:2010-04-29Degree:MasterType:Thesis
Country:ChinaCandidate:Y G ZhangFull Text:PDF
GTID:2189360272998919Subject:Business management
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The progressive realization of economic globalization shortens the business and product life cycles constantly. In this external environment, for most of the existing enterprises, how to extend their product life cycle and continuing to maintain their own competitive advantage have become a problem they have to face.Theory of entrepreneurship provides a good solution for the company, that is Corporate Entrepreneurship. According to the survey made by "Fortune" to the top 500 companies in the world, 65% in the top 100 product innovation large companies uses internal corporate entrepreneurship mechanisms. "International Herald Tribune" reported that Panasonic entrepreneurs can make use of the power to realize their entrepreneurial dreams; if they can get profits, they can get dividends. Even if they failed, there is no risk of debt; all of this undoubtedly provides a strong support for the smooth conduct of entrepreneurship. Numerous successful facts of corporate entrepreneurship show that corporate entrepreneurship has become an effective way to improve their ability to innovate and enhance competitive advantage. More enterprises have been aware of the importance of corporate entrepreneurship and have begun to support corporate entrepreneurship resorted to various forms.With the development of economic restructuring and globalization, developing countries have begun to pay much attention to entrepreneurial activity, and entrepreneurship has become the global focus of common concern. In China, the corporate entrepreneurship also has begun to rise gradually. More and more entrepreneurs have been aware of the importance of corporate entrepreneurship, and researchers of theoretical aspects study corporate entrepreneurship continuously. Meantime, some entrepreneurs who have a long-term vision also actively promote corporate entrepreneurship. For a time, corporate entrepreneurship starts to become the subject of widespread concern.However, entrepreneurship is an open system, entrepreneurial activity and its environment is the interaction, mutual influence, and entrepreneurial environment plays a crucial role for business success. Entrepreneurship is often seen as a reflection of the environment variables, these environment variables hinder or promote the success of a business (Aldrich & Wiedenmayer, 1993). Pfeffer & Salancik (1978) have discussed the different environmental conditions may stimulate or impede entrepreneurial behavior, and then Miller et al (1982) expanded entrepreneurial behavior subject to the environmental to the corporate level. Ireland & Kuratko (2003) took the premise of entrepreneurship orientation into account from an external perspective, that is, environmental factors. The change in environmental conditions such as technological changes, product update cycle to speed up, the environment changes, etc. will lead to the emergence of corporate entrepreneurship orientation. Entrepreneurial environment is the outside conditions of entrepreneurship。It is a whole organic formed by a number of factors, and the objective factors and social factors need to be considered when doing decision-making by policy makers.Entrepreneurial orientation is a series of production and operation of enterprises in the process demonstrated by the innovative, risk-taking, proactive and other series of dynamic spirit. Entrepreneurship emphasizes the content, pays attention to what kind of industry and market to enter, such issues will determine the scope of the operation of the company, entered the market and the allocation of resources. However, the entrepreneurship orientation stresses the process, focusing on entrepreneurial business approach, practice and decision-making style. This process includes trying new technologies, taking the initiative to seize market opportunities of new products and tending to engage in the risk industry and so on. Therefore, the entrepreneurial orientation is reflected in the operation of enterprises, rather than what enterprises do.The external environment is an important determining factor of entrepreneurial orientation. Lumpkin & Dess (2001) summarized the previous studies, stated two environmental characteristics, that is dynamic and hostile. Dynamic describes the changes in business-to-degree of unpredictability that undermine the capacity of managers to predict the future, as well as the impact of their organizations to determine uncertainties; hostile used to describe the antithesis of that environment and showed the extent of the lack of resources.Miller (1983) divided entrepreneurship orientation into three dimensions that is innovative, risk-taking and proactive. He considered that a business venture in the company's activities will show the characteristics of these three dimensions at the same time. Among them, the innovative means the will to support the creative activities and test of enterprises, such as the introduction of new business products or services, the development of new technology, the implementation of the strategy of technology leadership wishes. Risk-taking was used to distinguish between entrepreneurs and the characteristics of employees, Miller used it distinguish the difference between a entrepreneurship-oriented enterprises and a conservative-oriented enterprises. Risk-taking has also been used to describe the commitment and the will that the enterprises use the resources to high-risk activities. Proactive refers to the forecast of future demand and introduce new products earlier than competitors, strategically cut the recession business units, establish a brand, acquire proactive advantage.A small number of scholars discussed the impact of the environment on the entrepreneurship orientation, but these studies happened mainly under the western situation. Bulgaria scholars Matilda Alexandrova, published"Entrepreneurship in a Transition Economy: The Impact of Environment on Entrepreneurial Orientation"in the Journal of Management Problems and Prospects in February 2004. The article demonstrates the impact of the dynamic and hostile nature of the environment on entrepreneurial orientation. The environment differences in various regions are very large, therefore, in the context of Chinese business environment, researching on the relationship between entrepreneurial environment and entrepreneurial orientation has a profound theoretical and practical significance.219 valid questionnaires enterprises Of Jilin Province showed that the hostile environment is positively related to entrepreneurial orientation, that is, the more hostile environment is, the stronger the entrepreneurial orientation is and at the same time, the hostile environment is also a positive correlation with entrepreneurship orientation innovative, risk-taking, proactive. Dynamic environment is positively related to entrepreneurial orientation too, that is, the more dynamic environment is, the stronger entrepreneurship orientation is. Dynamic environment is positively correlated with innovation and proactive dimension, but negative correlated with risk-taking dimension. Most of the results of the analysis are consistent with the study in abroad contexts. As to the significant negative correlation between dynamic and risk-taking dimension, it may be due to the special circumstances in Jilin Province. Most companies take a conservative attitude to face higher dynamic environment, and not inclined to take risks. Higher in the hostile environment, even if companies are reluctant to carry out innovation, the market and the existence of rival companies will forced it to reform, to conduct business in order to escape a recession even further the possibility of bankruptcy. Therefore, the pursuit of profit maximization for most companies, instead of being forced to start, might as well take the initiative to start, as far as possible, for the initiative and their own competitive advantage. Thus, corporate entrepreneurship can be said to have become the company's own internal demand.
Keywords/Search Tags:Entrepreneurship, Corporate Entrepreneurship(CE), Entrepreneurship Environment, Entrepreneurship Orientation(EO)
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