Babeș -Bolyai University [629217]
Babeș -Bolyai University
“Faculty of Economics and Business Administration”
DISSERTATION THESIS
Coordinator:
Univ. Prof. Dr. Anca Borza Student: [anonimizat]
2018
2
Babeș -Bolyai University
“Faculty of Economics and Business Administration”
DISSERTATION THESIS
ENTREPRENEURSHIP AND INNOVATION IN BOSCH
COMPANY
Coordinator:
Univ. Prof. Dr. Anca Borza Student: [anonimizat]
2018
3
TABLE OF CONTENTS
I. ENTRPRENEURSHIP AND INNOVATION ………………………….. ………………………….. …….. 5
1.1 DEFINITION AND IMPORTANCE OF ENTREPRENEURSHIP ………………………….. ….. 5
DEFINITION OF ENTREPRENEURSHIP ………………………….. ………………………….. ………… 5
Measuring Entrepreneurs hip………………………….. ………………………….. ………………………….. …. 6
IMPORTANCE OF ENTREPRENEURSHIP ………………………….. ………………………….. …….. 8
1.2 TYPE OF ENTREPRENEURS ………………………….. ………………………….. ………………….. 9
1. Innovative entrepreneurs: ………………………….. ………………………….. ………………………….. …. 9
2. Imitating entreprene urs: ………………………….. ………………………….. ………………………….. ……. 9
3.”Fabian” entrepreneurs: ………………………….. ………………………….. ………………………….. …… 10
4.”Drone” entrepreneurs: ………………………….. ………………………….. ………………………….. ……. 10
5. Social Entrepreneur: ………………………….. ………………………….. ………………………….. ………. 10
1.3 DEFINITION AND IMPORTANCE OF INNOVATION ………………………….. ………… 10
DEFINITION OF INNOVATION ………………………….. ………………………….. …………………… 10
IMPORTANCE OF INNOVATION ………………………….. ………………………….. ………………… 11
1.3 TYPE OF INNOVATION ………………………….. ………………………….. ………………………….. .. 13
II. ENTREPRENEURSHIP VS INNOVATION ………………………….. ………………………….. ……. 16
2.1. ISSUES AND HINDRANCES TO INNOVATION AND ENTREPRENEURSHIP … 16
2.2. THE DIFFERENCE BETWEEN INNOVATION AND ENTREPRENEURSHIP …… 17
2.3. THE RELATION BETWEEN ENTREPRENEURSHIP AND INNOVATION ………. 19
III. PRACTICAL PART ………………………….. ………………………….. ………………………….. …………… 26
3.1. PRESENTATION OF THE COMPANY ………………………….. ………………………….. ………. 26
Products and services ………………………….. ………………………….. ………………………….. …………. 27
3.2 RESEARCH METHODOLOGY AND INTERPRETATION OF RESEARCH
RESULTS ………………………….. ………………………….. ………………………….. ………………………….. .. 29
3.3 IDENTIFYING PROBLEMS AND THEIR SOLUTIONS ………………………….. ………. 39
CONCLUSIONS AND RECOMMENDATIONS ………………………….. ………………………….. ……. 41
BIBLIOGRAPHY ………………………….. ………………………….. ………………………….. ……………………. 44
ATTACHMENT (Q UESTIONNAIRE) ………………………….. ………………………….. ………………….. 46
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TABLE OF FIGURES
Figure 1. Innovation S -curve adoption ………………………….. ………………………….. ……………………. 14
Figure 2 Employees, an important source of information ………………………….. ………………………. 29
Figure 3 Previous decisions are a very useful source of information for curr ent decisions ……… 30
Figure 4 Our competitors are an extremely important source for learning new methods and
services ………………………….. ………………………….. ………………………….. ………………………….. ………. 31
Figure 5 Ou r organization has employees whose job is related to searching for external
information ………………………….. ………………………….. ………………………….. ………………………….. …. 32
Figure 6 Internal training for employees ………………………….. ………………………….. …………………. 33
Figure 7 Meetings with the purpose to inform employees ………………………….. ……………………… 34
Figure 8 Management tolerance for uncertainty (as distinct from risk) in planning process ……. 35
Figure 9 Management makes decisions with lots of input from the rest of the organization ……. 36
Figure 10 The style of communication within the organization is highly formal …………………… 37
Figure 11 Leaders emphasize management of people and their interactions …………………………. 38
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I. ENTRPRENEURSHIP AND INNOVATION
1.1 DEFINITION AND IMPORTANCE OF ENTREP RENEURSHIP
DEFINITION OF ENTREPRENEURSHIP
Many definitions of entrepreneurship can be found in the literature describing business
processes. The earliest definition of entrepreneurship, dating from the eighteenth century, used it
as an economic term descr ibing the process of bearing the risk of buying at certain prices and
selling at uncertain prices. Other, later commentators broadened the definition to include the
concept of bringing together the factors of production. This definition led others to quest ion
whether there was any unique entrepreneurial function or whether it was simply a form of
management. Early this century, the concept of innovation was added to the definition of
entrepreneur -ship. This innovation could be process innovation, market inn ovation, product
innovation, factor innovation, and even organisational innovation. Later definitions described
entrepreneurship as involving the creation of new enterprises and that the entrepreneur is the
founder.
Considerable effort has also gone into t rying to understand the psychological and sociological
wellsprings of entrepreneurship. These studies have noted some common characteristics among
entrepreneurs with respect to need for achievement, perceived locus of control, orientation
toward intuitive rather than sensate thinking, and risk -taking propensity. In addition, many have
commented upon the common, but not universal, thread of childhood deprivation, minority
group membership and early adolescent economic experiences as typifying the entrepreneu r.
At first glance then, we may have the beginnings of a definition of entrepreneurship. However,
detailed study of both the literature and actual examples of entrepreneurship tend to make a
definition more difficult, if not impossible.
Consider, for examp le, the degree to which entrepreneurship is synonymous with 'bearing risk',
'inno vation', or even founding a com pany. Each of the terms described above focuses upon some
aspect of some entrepreneurs, but if one has to be the founder to be an entrepreneur, then neither
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Thomas Watson of IBM nor Rey Kroc of McDonald's will qualify; yet few would seriously
argue that these individuals were not entrepreneurs.
Although risk bearing is an important element of entrepreneurial behaviour, many entrepreneurs
have succ eeded by avoiding risk where possible and seeking others to bear the risk. As one
extremely successful entre preneur has said; 'My idea of risk and reward is for me to get the
reward and others to take the risks'.
Creativity is often not a prerequisite for entrepreneurship either. Many successful entrepreneurs
have been good at copying others and they qualify as innovators and creators only by stretching
the definition beyond elastic limits.
There are similarly many questions about what the psychological and social traits of
entrepreneurs are. The same traits shared by two individuals can often lead to vast different
results: successful and unsuccessful entrepreneurs can share the characteristics commonly
identified. As well, the studies of the life paths of entrepreneurs often show decreasing
'entrepreneurship' following success, which tends to disprove the centrality of character or
personality traits as a sufficient basis for defining entrepreneurship.
So, we are left with a range of factors and behaviours which identify entrepreneurship in some
individuals. All of the above tends to reinforce the view that it is difficult, if not impossible to
define what an entrepreneur is, and that the word itself can be best used in the past tense to
describe a successfu l business person .
Measuring Entrepreneurship
Despite the above, there is remains a powerful impulse, particularly amongst enterprise
development practitioners, to measure entrepreneurship in some way. These measurement
attempts can range from simple check lists through to complex and detailed computer
programmes. This need for a definition and measure of entrepreneurship is because, however
defined, the entrepreneur is the key to the successful launch of any business.
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He or she is the person who perceives t he market opportunity and then has the motivation, drive
and ability to mobilise resources to meet it. The major characteristics of entrepreneurs that have
been listed by many commentators include the following.
Self-confident and multi -skilled. Th e person who can 'make the prod uct, market it and
count the money, but above all they have the confidence that lets them move comfortably
through unchartered waters'.
Confident in the face of difficulties and discouraging circumstances.
Innovative skills. Not an ' inventor' in the traditional sense but one who is able to carve
out a new niche in the market place, often invisible to others.
Results -orientated. To make be successful requires the drive that only comes from setting
goals and targets and getting pleasure from achieving them.
A risk -taker. To succeed means taking measured risks. Often the successful entrepreneur
exhibits an incremental approach to risk taking, at each stage exposing him/herself to
only a limited, measured amount of personal risk and moving from one stage to another
as each decision is proved.
Total commitment. Hard work, energy and single -mindedness are essential elements in
the entrepreneurial profile.
However, two warnings need to be attached to this partial list of entrepreneurial qualit ies.
Firstly, selecting individuals for enterprise development training by such a set of attitudes
and skills in no way guarantees business success.
Secondly, the entrepreneurial characteristics required to launch a business successfully
are often not thos e required for growth and even more frequently not those required to
manage it once it grows to any size. The role of the entrepreneur needs to change with the
business as it develops and grows, but all too often he or she is n ot able to make the
transitio n.
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IMPORTANCE OF ENTREPRENEURSHIP
In recent years entrepreneurship has become a global dream for lots of people all over the world,
but only very few understand the importance of entrepreneurship and dare to turn their dreams
into reality. Though starti ng a new business from a scratch requires certain personal traits, as
passion, self -belief, high self -motivation and courage, which are sometimes hard to develop, and
high level of devotion as making your own business work takes a lot of time, in exchange it
provides dozens of benefits. One of the most appealing advantages of becoming an entrepreneur
is being financially independent. At the same time, you should be prepared for all the risks
associated with investing your money into something that maybe wil l fail. Those who were not
afraid to take a risk eventually became successful businessmen. Richard Branson, Steve Jobs,
Bill Gates are the few among those who decided to bring their own ideas to life. Without any
doubt we can say, that entrepreneurs did ch ange the way modern people perceive world, and not
only from business perspective. Their unconventional, creative approach to the business and the
innovations that have become inseparable part of modern society, not only made our everyday
life easier, they became a source of motivation and inspiration for people all over the world.
Another benefit that influences a lot the decision to become an entrepreneur is the opportunity to
be your own boss, and therefore to do something you are truly passionate about, to communicate
your own values and ideas to the society. In other words, entrepreneurship implies freedom in
many areas, which is unobtainable when you are working for someone else.
In addition to all positive aspects of having your own business, entrepre neurship plays a big role
in economic development and thus, the importance of entrepreneurship cannot be undermined.
There is a prevailing opinion that corporations are the ones having a significant impact on
economy growth. However, contrary to that, the smaller businesses are the ones stimulating local
economies the most. Often entrepreneurial companies play a significant role in economic
development not just on national level, but within the global economy. Moreover, one of the
most important aspects of entrepreneurship is that it creates opportunities for employment;
therefore it affects local societies in a most positive way. Particularly nowadays, when majority
of countries worldwide are facing an increasing unemployment, the importance of
entrepreneur ship should not be underestimated. Aside from reducing unemployment rates and
economic growth, importance of entrepreneurship lies in positive social changes, made through
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non-profit organizations or businesses which are focused on innovative and sustainab le
development. It does not necessarily means that social entrepreneurs are working only to solve
social problems, but with more creative and innovative approaches majority of problems can be
solved in a more efficient way.
1.2 TYPE OF ENTREPRENEURS
Dependin g upon the level of willingness to create innovative ideas, there can be the following
types of entrepreneurs:
1. Innovative entrepreneurs:
These entrepreneurs have the ability to think newer, better and more economical ideas of
business organisation and m anagement. They are the business leaders and contributors to the
economic development of a country.
Inventions like the introduction of a small car „Nano‟ by Ratan Tata, organised retailing by
Kishore Biyani, making mobile phones available to the common ma y by Anil Ambani are the
works of innovative entrepreneurs.
2. Imitating entrepreneurs:
These entrepreneurs are people who follow the path shown by innovative entrepreneurs. They
imitate innovative entrepreneurs because the environment in which they operat e is such that it
does not permit them to have creative and innovative ideas on their own.
Such entrepreneurs are found in countries and situations marked with weak industrial and
institutional base which creates difficulties in initiating innovative ideas .
In our country also, a large number of such entrepreneurs are found in every field of business
activity and they ful fil their need for achievement by imitating the ideas introduced by innovative
entrepreneurs.
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Development of small shopping complexes is t he work of imitating entrepreneurs. All the small
car manufacturers now are the imitating entrepreneurs.
3.”Fabian” entrepreneurs:
The d ictionary meaning of the term „F abian‟ is „a person seeking victory by delay rather than by
a decisive battle‟. Fabian e ntrepreneurs are those individuals who do not show initiative in
visualising and implementing new ideas and innovations wait for some development which
would motivate them to initiate unless there is an imminent threat to their very existence.
4.”Drone ” entrepreneurs:
The dictionary meaning of the term „drone‟ is „a person who lives on the labo ur of others‟. Drone
entrepreneurs are those individuals who are satisfied with the existing mode and speed of
business activity and show no inclination in gaining ma rket leadership. In other words, drone
entrepreneurs are die -hard conservatives and even ready to suffer the loss of business.
5. Social Entrepreneur:
Social entrepreneurs drive social innovation and transformation in various fields including
education, he alth, human rights, workers‟ rights, environment and enterprise development.
They undertake poverty alleviation objectives with the zeal of an entrepreneur, business practices
and dare to overcome traditional practices and to innovate. Dr Mohammed Yunus of Bangladesh
who started Gramin Bank is a case of social entrepreneur.
1.2 DEFINITION AND IMPORTANCE OF INNOVATION
DEFINITION OF INNOVATION
Innovation generally refers to changing processes or creating more effective processes, products
and ideas. For business es, this could mean implementing new ideas, creating dynamic products or
improving your existing services. Innovation can be a catalyst for the growth and success of your
business, and help you to adapt and grow in the marketplace.
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Being innovative does no t only mean inventing. Innovation can mean changing your business
model and adapting to changes in your environment to deliver better products or services.
Successful innovation should be an in -built part of your business strategy, where you create a
cultu re of innovation and lead the way in innovative thinking and creative problem solving.
Innovation can increase the likelihood of your business succeeding. Businesses that innovate
create more efficient work processes and have better productivity and perfor mance.
Innovation can be defined as the development or adoption of new concepts or ideas, and/or the
new or adopted ideas themselves as well as the successful exploitation of new ideas. Creativity is
having the ideas, and innovation is its application. Cre ativity only emerges when the innovator
takes the idea and does something with it. Joseph Schumpeter defined economic innovation in
"Theorie der Wirtschaftlichen Entwicklung" (1912):
1. The introduction of a new good — that is one with which consumers are not yet familiar
— or of a new quality of a good.
2. The introduction of an improved or better method of production, which need by no
means be founded upon a discovery scientifically new, and can also exist in a better way
of handling a commodity commercially.
3. The opening of a new market that is a market into which the particular branch of
manufacture of the country in question has not previously entered, whether or not this
market has existed before.
4. The conquest of a new source of supply of raw materials or hal f-manufactured goods,
again irrespective of whether this source already exists or whether it has first to be
created.
5. The carrying out of the better organization of any industry, like the creation of a
monopoly position or the breaking up of a monopoly pos ition.
IMPORTANCE OF INNOVATION
The economy is composed of enterprises and businesses. Our economy has survived because the
industry leaders had been able to adapt to the changing times and supplied mostly the
communities‟ needs. Any small business is inte gral to the economy. Without it, our economy
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would not survive. But a business must also sustain itself, be able to constantly evolve to fulfil
the demands of the community and the people. In every business, it is imperative to be
industrious, innovative a nd resourceful.
Entrepreneurship produces financial gain and keeps the economy afloat, which gives rise to the
importance of innovation in entrepreneurship. Entrepreneurs are innovators of the economy. It is
not just the scientist who invents and come up w ith the solutions.
The importance of innovation in entrepreneurship is shown by coming up with new way to
produce a product or a solution. A service industry can expand with another type of service to
fulfil the ever changing needs of their clients. Produc ers can come up with another product from
the raw materials and by -products.
The importance of innovation in entrepreneurship is another key value for the longevity of a
business. Entrepreneurs and businesses began with a need. They saw the need within the
community and among themselves that they have come up with a solution. They seize the
opportunity to innovate to make the lives more comfortable. And these solutions kept evolving to
make it better, easier and more useful. Entrepreneurs must keep themselv es abreast with the
current trends and demands. Manufacturers are constantly innovating to produce more without
sacrificing the quality.
Companies and enterprises keep innovation as part of their organization. Innovations contribute
to the success of the c ompany. Entrepreneur, as innovators, see not just one solution to a need.
They keep coming up with ideas and do not settle until they come up with multiple solutions.
Innovation is extremely important that companies often see their employees‟ creativity as a
solution. They come up with seminars and trainings to keep their employees stimulated to create
something useful for others and in turn, financial gain for the company.
Other factors that raises the importance of innovation in entrepreneurship is compet ition. It
stimulates any entrepreneur to come up with something much better than their competition in a
lower price, and still be cost -effective and qualitative.
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Small businesses see the importance of innovation in entrepreneurship. They were able to
compe te with large industry and see their value in the economy. Small businesses are important
as they are directly involved in the community and therefore, contribute to their financial and
economic gain. These small businesses know exactly what community need s and fulfill them.
All things start small.
Innovation is important not just in entrepreneurship. As individuals, we are innovators by
adapting well to our needs and create our own solutions. Entrepreneurs are the same. The
innovation in entrepreneurship h elped the country by changing with the times and producing new
products and service from ones that already exists .
1.3 TYPE OF INNOVATION
A number of frameworks have been used to look at types of innovation. Generally these
approaches for categorizing inno vation consider the sources of innovation from past successes or
attempt to identify where to look for new innovation in the future. The variety of innovation
types demonstrates that the benefits of innovation are not limited to new product development.
Categorization also helps in the measurement of innovation, allowing for performance
comparison and evidence based choices that can guide where improvements or advances might
generate the most return for a given investment. This is sometimes referred to as t he "Return on
Innovation."
Alternative frameworks for innovation lead to differing types of innovation based on the
objectives and approach inherent in the framework. Here are some well-known examples that
can be helpful with managing innovation .
In Geoffrey A. Moore's book, "Dealing with Darwin: How Great Companies Innovate at
Every Phase of Their Evolution" , innovation is considered in the context of the category
life cycle, with category being the product or service term used by customers that
distinguish what it is they are buying. In this context, Moore defines innovation types
consisting of:
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o Disruptive;
o Application;
o Product;
o Platform;
o Line-extension;
o Enhancement;
o Market ing; o Experiential;
o Value -engineering;
o Integration;
o Process;
o Value -migration;
o Organic; and
o Acquisition.
Figure 1. Innovation S -curve adoption
Doblin (a member of the Monitor Group) suggests types from industry patterns. These
include innovation in:
o Business model ;
o Networking;
o Enabling process;
o Core process; o Product performance;
o Product system;
o Service;
o Channel;
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o Brand; and
o Customer experience.
In an approach that considers change impact or scope, common types are:
o Incremental innovation ;
o Radical (or breakthrough) innovation; and
o Transformational (or disruptive) innovation.
In a similar manner, an alternative approach considers impact to current business, leading
to categorization of innovation into:
o Cannibalization;
o Market creation; and
o Competitor disruption.
Types of innovation can be determined by innovation source. Familiar examples are:
o Manufacturer innovation; and
o End-user (or open -market) innovation.
Where to focus leads to internal versus external innovation. This can sometimes be
helpful in managing the level of investment needed.
The Oslo Manual, developed jointly by Eurostat and the Organization for Economic Co –
operation and Development (OECD) provides a framework to enable innovation
measurement. The manual proposes innovation typ es of:
o Product (good or service);
o Process;
o Marketing methods; and
o New organizational method in business practices, workplace organization or
external relations.
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II. ENTREPRENEURSHIP VS INNOVATION
2.1 ISSUES AND HINDRANCES TO INNOVATION AND ENTREPRENEURSHIP
Moroccan context seems to present many obstacles to managers engaged in entrepreneurship and
innovation. The main problems disclosed by senior managers in the present study can be stated
as follows: – None of the nine companies has a formal specific structur e in place for the
implementation of innovation and entrepreneurship, and none has set up a position of
“innovation manager” or “entrepreneurship manager”, or an independent function 12 dedicated
to innovation inside their firms. The responses of managers indicate that, at present, the systems
of innovation and entrepreneurship were very “informal” in their organizations. – Sometimes
innovations aren‟t well received by clients. In the words of the Distribution company manager
“the customers are sometimes re ticent towards new idea and stuck to the same old formula”. –
Innovation cannot prosper without suitable culture. According to the printing manager “the
brakes are in the culture. Our employees have not evolved in a favorable innovation culture, as in
their educational and training they were not encouraged to be creative, to take initiatives and
propose new ideas”. – Lack of Government support. For many senior managers, it is hard to
innovate because there is no aid from the government side to encourage com panies to “think
outside the box” and to create something new or something different in the words of the software
solutions manager. The freight forwarder stated that “history shows that big technological and
managerial breakthrough were directly or indire ctly backed up by the government, if we want an
innovation culture, the government should be willing to help by subsidies or preferential taxes
and other facilities”. – There is lack of innovation culture as well that prevents Moroccan
companies to go furt her in their plans. According to the advertisement agency owner, innovation
and entrepreneurship need a suitable environment and a different set of culture and values, that
emphasis more individualism, ambition and transparency…there will be time before th ese values
become common in [Moroccan] society.” – It is impossible to measure the
consequences/outcomes of innovation and entrepreneurship on the companies because it is very
difficult to separate them from the overall business of organizations. – Lack of Funding. As one
manager stated: “It is very hard for a small company like ours to be innovative in product
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development because it is hard to find the needed capital [funds] req uired to promote that
product”. – Managers do not like to lose control. As one interviewee observed from other
managers‟ behavior in his firm, they can feel “a bit of a threat if you become too creative”, and
this can hinder the development of innovation. There were many endeavors to stimulate
innovation in entrepreneurship. An integ rated framework for innovation and entrepreneurship
studies show that organizations can foster 13 entrepreneurship and innovation internally through
their strategy, structure, and processes (Cornwall and Perlman, 1990). On the basis of
management texts by Bartol et al. (2001), Robbins et al. (2000), and Drucker (1994), Zhao
(2005) has proposed an integrated framework for innovation and entrepreneurship for
companies. The framework involves the “5Ss” of strategy, system, staff, skills, and style.
However, du e to the complex and evolving nature of entrepreneurship and innovation in
Morocco, it will be interesting in the future to compare the proposed model with practices of
Moroccan firms on a large scale. The model should therefore be seen as a starting point in
developing effective organizational strategy, structure, and culture to stimulate entrepreneurship
and innovation in Moroccan organizations
2.2 THE DIFFERENCE BETWEEN INNOVATION AND ENTREPRENEURSHIP
Most players in the start-up ecosystem celebrate innovat ion. We tell entrepreneurs that they need
to think out of the box. They are exhorted to be creative and original so that they can come up
with a smart new idea which will solve the customer's pain points. They then need to convert that
idea into a business , and if they follow this road map, they will become successful.
Actually, this is bad advice and is in fact completely wrong. There is a big difference between
innovation and entrepreneurship, and Prof Anil Gupta who runs Honeybee Network highlighted
this at the recent Vibrant Gujarat Start -up Summit.
Innovation refers to the ability to have original ideas, and we come up with all kinds of bright
ideas all the time. We encounter problems in our own life and think of solutions for them.
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However, just havin g a good idea is never enough, and most good ideas never get translated into
a commercially viable business.
This is because there is a big difference between an innovator and an entrepreneur. An innovator
is in love with his idea; he wants to keep on twea king it and fine tuning it and adding new
features and progressively making it better. In one sense, he really doesn't care about going to
market, or making money from his idea. He is in love with his product, and doesn't care as much
about commercialising it.
In fact, some innovators actually look down on the messy process of selling, because they think
it's below their dignity. It's usually not their sweet spot, which means it's not something which
they're good at. They're quite happy tinkering away in t heir laboratory and coming up with better
ideas.
An entrepreneur is completely different. He understands that every idea can be incrementally
improved, but the important thing is not to make the perfect product, but to actually sell it at a
profit. He's qu ite okay with taking an immature imperfect product created by an innovator to
market. He listens to the feedback which the customer gives, and tries to see if he can find people
who are willing to pay him for using it.
Innovators and Entrepreneurs have a different way of thinking, and while you may get the
occasional individual who is both an innovator and an entrepreneur, in reality it can be quite
difficult to get this combination in one person. This is why having a co -founder with
complementary skill se ts can be so useful when you want to create a successful business, and
you need to be able to respect and trust each other.
There is always tension between spending time and money improving a product, versus spending
time and money marketing the product. W e need to understand that both are equally important.
Just like a bicycle needs two wheels to run properly, this is as true of a start-up enterprise as
well.
In Ron Davison‟s opinion, innovation and entrepreneurship are two closely related words used in
the business world. Some may think they mean the same, but using them interchangeably would
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be making a big mistake. While they revolve around the same idea, it is crucial to understand the
difference.
Innovation is applying your creativity to come up with a unique idea or solution. It is
technological invention, which lets parts do what they could not previously do. You have an
engine, wheels and axles and you put them together to invent a car. Progress depends on
innovation and great innovators can get rich .
Entrepreneurship, by contrast, is applying the innovation to bring the ideas to life. It is social
invention, which lets people do what they could not previously do. Entrepreneurs grasp the
opportunity to cash in on the innovation. They build businesses and propel the innovation
forward. Progress depends on entrepreneurship and great entrepreneurs get even richer than great
innovators.
Ray Kroc didn‟t invent the hamburger, but when he died he was worth half a billion dollars. He
was an entrepreneur. Sam W alton didn‟t invent the retail store, but his heirs are worth more than
$100 billion. He was an entrepreneur. Henry Ford didn‟t invent the car, but he when he died in
1947, he was worth nearly $200 billion (inflation adjusted). He, too, was an entrepreneur .
Given the way we use the term, all of these entrepreneurs were innovative. And indeed, it is hard
to imagine an entrepreneur who wasn‟t innovative having much success. You have to distinguish
your product or service from competitors and that usually call s for innovation. But thinking that
your job as an entrepreneur is the same as the job of an innovator , it can create unn ecessary
confusion and failure.
2.3 THE RELATION BETWEEN ENTREPRENEURSHIP AND INNOVATION
What is the relationship between entrepreneurship and innovation? Depending on which model
you are looking at entrepreneurship has a differing relationship with innovation. There are
definitions out there that make an entrepreneurial behaviour almost identical to that of
innovation. Is there more to inno vation than being entrepreneurial? Can entrepreneurship be
defined by innovation? These are some questions I intend to answer throughout the essay and I
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will examine and determine how the two are related, however large or small the relationship is.
Up to 1 in 3 business start -ups fail within the first three years and with the amount of start-ups, 3
per minute in 2001, there are a lot of prospective, hopeful entrepreneurs aiming to succeed in
business but fail. What is the difference in characteristics betwe en those that succeed and fail, is
there a clear differentiation and can the amount of innovation used by the entrepreneur effect the
success of the business? I aim to come to a conclusion and answer all of these questions
throughout and critically analyse differing theories.
Both of the terms are often used interchangeably with little understanding of the differentiation
between the two (David Johnson, 2001). My interpretation of innovation is that it has a lot to do
with the invention of a product or a pr ocess and is a change in the norm, which then becomes the
norm. A good example which would show innovation would be the movement from the floppy
disk to the CD ROM, this is a clear move with a totally different design and then became the
norm, till further innovation happened and the USB flash drive has become the most common for
file storing and transfer. The question of defining entrepreneurship and linking it to innovation is
harder than it sounds. There are many studies of entrepreneurship however there is no specific
definition as it cannot be summed up into one single statement. There are various models
showing a differing correlation between innovation and entrepreneurship. I see the link between
the two as one in which, if worked together in harmony there can be a prefect outcome in terms
of the success of an entrepreneur. Not everyone who starts up a business is an entrepreneur; it is
the one who makes the best outcome of any opportunity given throughout the life of a business
that will be a successf ul entrepreneur. There are different characteristics and different
circumstances surrounding each successful entrepreneur's story but each made it down their route
to become successful.
A good idea is nothing more than a tool in the hands of an entrepreneu r.'(Jeffry Timmons 1977)
This idea shows that innovation, or the idea is just one single aspect of the processes of the
entrepreneur in the making of, and continuing the success of a business. Therefore this means
there is a relationship visible but it can not be said it is one that says that entrepreneurship is more
than just an idea, or innovation but it is using that idea.
'Innovations are the composite of two worlds, namely, the technical, and the business; so when
only a change in technology is involved , this is just an invention; but as soon as the business
21
world is involved, it becomes an Innovation.' (Schumpeter 1934). 'An entrepreneur is an
individual who establishes and manages a business for the principle purposes of profit and
growth. The entrepre neur is characterised principally by innovative behaviour and will employ
strategic management practices in the business this explanation is very relevant to what I am
trying to explain and the link with business shows how entrepreneurs in business can be
innovative.' (Carland et al, 1984). These are how innovation and entrepreneurship can be defined
in 2 different models. They can both be linked into each other visibly due to the idea of business
in innovation and the innovative behaviour. However, they ca n also be criticised due to saying
entrepreneurs are only in pursuit of profit but this would depend on the personality of the
individual. The founder of Oxfam, Joe Mitty, was solely interested in making money for charity
and was a volunteer.
Schumpeter's view of 'creative destruction' (1934) refers to the entrepreneur introducing a new
idea that takes over a market and links entrepreneurs to economic growth and development. This
could be an idea of shifting production processes, reducing the size of the wo rkforce to increase
productivity or indeed the introduction of a new product. The reason the introduction of the new
idea has such an effect is, because of the unpredictability of the introduction, meaning there is no
chance to prepare and lessen the impac t of the new idea. Therefore, Schumpeter's theory was
very much in line and the link innovation has with the entrepreneur is clear and represented by
the fact that this creative destruction often leads to the overhaul of a market and takes over the
old ide a. For example, the DVD, taking over VHS, and now they do not sell VHS in HMV and
most other leading electronic multimedia stores.
The view of Kirzner (1973) is that entrepreneurs are individuals that recognise opportunity and
find gaps in the market and t est the viability of new business by trial and error and feedback from
the market. Therefore, these two views are contrasting with Kirzner's view of entrepreneurship
related more markets and gaps within them, and the responsiveness of an individual to reac t and
make the most of this opportunity, rather than seeing the opportunity for a new product or idea,
rather than simply moulding or adapting what is there already to gain market share. After this an
entrepreneur differentiates from just an opportunist in troduction and realisation of the idea by
carrying on the idea and turning it into a viable business.
22
These two ideas give a different level of linkage with innovation, rather than the destruction of
Schumpeter's model which creates the market for the prod uct, Kirzner believes it is about
adapting the idea to fit into the market, so the innovation may be seen as more lapse and less
extreme in Kirzner's case.
OECD (1998) states that: '(they) accelerate the generation, dissemination and application of
innovat ive ideas' this sums up one particular idea of the relationship between the two; it implies
that entrepreneurship is innovative however, innovation is not always entrepreneurial. Innovation
may only be one aspect in the beginning, or perhaps innovation sho uld happen throughout and be
continued through the life of the business to attempt to keep ahead of competition. Innovation is
not always a radical destruction of a current process or product and it can just be a small
alteration to current product or proc ess. E.G. Sir Stelios Haji -Ioannou, an entrepreneur and the
founder of easy jet, took an idea and used his business mind and talents to create and exploit the
market, however did not invent any new innovative product, or production process but he spotted
an opportunity for a budget airline which opened air travel up to the masses, whom perhaps
could not afford what was there before it.
Schere (1982) sums up an entrepreneur by giving their characteristics, it states they have a
tolerance for stress and uncer tainty, a real life example here can be the entrepreneur I
interviewed, John Russell, who had to support a family at the same time as mortgaging his house
and set up a business. To get through the stress of this whilst setting up and pursuing a successful
business would t ake a lot of tolerance and self believe . The tolerance of uncertainty could be
linked to innovation, if it is a new process or product and it has not been tried and tested in a
market as is discussed by Kirzner (1973), the entrepreneur is t aking a big risk even if the gap in
the market it there in theory, there is no certainty due to the irrational behaviour of consumers.
Schere gives a characteristic of entrepreneurs that they are open minded and can react quickly to
change. The nature of i nnovation is that however prepared or quickly entrepreneurs can react
they are often powerless to prevent a total overhaul of a market, due to the action of another
entrepreneur (Schumpeter 1934).
Timmons et al (1985) gives one of the largest sets of trait s in the field. The trait of having the
drive to achieve and grow is one of them. The drive to grow is one trait of interest and can be
linked in to what has already been discussed, due to the distinction between innovation and
23
entrepreneurship, with innov ation being the starting point of a process and the entrepreneurial
side leading to the growth of the business, however innovation would be needed throughout the
life of the business to lead to a growth in the idea, an example is Simon Cowell who from X
factor went on to expand using entrepreneurial prowess to take it into other countries and then
went on and created Britain's got talent, which introduced a new idea and process to the TV
industry. Simon Cowell, just one example can already counter the idea of Timmons et al, of they
have Low need for status and power, as it is visible that this interests him.
Theories giving traits of entrepreneurs, however, is a generalisation of all entrepreneurs and can
be easily criticised as there are so many different t ypes and individual entrepreneurs that cannot
be segmented and categorised. The studies give traits of entrepreneurs and do not take into
account the background. For example, one entrepreneur may be a university graduate, whilst
another could be a middle a ged worker who has found a way doing what their business is doing
more efficiently. Therefore, it is likely that the traits they portray are not all identical to each
other. If all the traits an entrepreneur is said to portray in journals and articles are true then
entrepreneurs would be close to perfectly efficient and functioning human beings.
People can also be innovative but cannot make the step up to become entrepreneurial, the BBC
television programme (2. The Age of Plenty, The Foods that make Billion s 2010) it shows us the
story of how business has turned grain into one of the biggest success stories of the modern food
industry. In the beginning, it was one of the Kellogg brothers who invented the product; however
it was the other one of the brothers that took it forward as a business. The person who created the
idea is the brother of the entrepreneur and he could be seen as innovative. His brother was the
one who took the idea further, by increasing the product range and adding sugar to it where his
brother chose not to. Therefore, a differentiation is shown here between the two thought
processes of simply just an inventor and then an entrepreneurial mind that has increased the size
of the company, and its profits, significantly.
Apple, in recent times , is a great example to use when referring to both entrepreneurial expertise
and new innovative products. Before the IPod was launched on October 23rd 2001, there were
there means of personal media players which people were satisfied with. However, the ide a of
'1000 songs in your pocket' came by surprise and nobody could have predicted it. People used
portable CD players and Walkman‟s without realising the potential and they were later deemed
24
'clunky and useless'. However, The IPod has become a household na me, and despite not being
the first mp3 player they revolutionised the MP3 and now people call them IPods rather than
mp3 players. Here the iPod can be seen to be in line with Schumpeter's idea of creative
destruction (1934) because it is an example of how a new introduction (of the iPod) effectively
destroyed the ideas that came before it, e.g. people don't use Walkman anymore, due to the intro
of the iPod. The reason Apple is a near perfect example of a complementary relationship
between both innovation a nd entrepreneurship is because of their actions after the initial
introduction, and the way in which they continued to use innovative strategies and keep up the
level of innovation and did not settle on the idea. Further developments on the IPod were broug ht
to the market, for example the mini, shuffle, Nano and the touch were all further innovations, and
then they continued to create other products under the Apple brand. They made the new Mac
books, the air and the pro, Apple Macs which further competed wi th other computer companies
than they did in the past. Then more recently they have made the I Phone, which has 4 different
models, and potentially more, iPad and in the future they are also looking into moving into a new
(for them) form of media, TV. Thes e innovative ideas, along with the fact that they are becoming
a market leader in electronics and making huge profits year on year, whilst 'banging nails' into
past leader of the portable media industry (with the Walkman ) Sony's 'coffin' (Naughton, 2010).
They demonstrate perfectly why innovation has such a relationship with entrepreneurship. The
reality of it is, however, one day there will be innovation, not by apple, and perhaps not by any
of the current firms in the electronics market, that will kill of f apple and lead to a new market
leader. Due to the nature of innovation, however much Apple prepare they will not be able to
prevent this happening.
Drucker's source of opportunity (1985) is a model in which the opportunities for an entrepreneur
come abou t both internally and externally. Internally through inadequacy, changes in market or
coming about through chance; or externally through perception and mood, demographic changes
and new knowledge, from individuals or chance revelations.
'Small firms are mo re innovative than their large firm counterparts, being less bound by
convention and more flexible' (Carter & Jones -Evans 2006) This suggests that in large firms
which have set policy and running to it, would be more ridged, and therefore less reactive to a
change in the market and could be pushed out of the market due to new innovative firms taking
25
over. Therefore, for a business to succeed in the long term they may need innovative ideas to
survive and prevent being overtaken by the more innovative smaller firms.
To sum up the relationship between innovation and entrepreneurship is not a simple thing to do
with a single sentence answer. What I can conclude is that there is a differing relationship
between the two in different fields of study. A common idea of the relationship is that it is a
dependant one, in which both are needed in an economy to stimulate economic growth. The idea
that innovation is a part of the entrepreneurial process is one that I agree with, there can be
innovation without an entrepren eur involved; however, there cannot be a successful
entrepreneurial venture without the input of innovation. This is because innovation is what will
be the distinction between ideas, without innovation there may be change or progression and this
could lead to a stagnant economy. The examples I have given of entrepreneurs are ones that I
believe show a differing amount of innovation, but similar amounts of success, Stelios had
merely a change in the pricing and strategy of airline firms which w hen compared t o the example
of Apple is only a small change, however, innovation is still shown and is still important. Overall
in most cases it is not just an individual entrepreneur people may be inspired by an individual
innovative idea and create entrepreneurial flo w of a business over time as a team which can lead
to great success with the right mix of both innovation and entrepreneurial processes.
26
III. PRACTICAL PART
3.1. PRESENTATION OF THE COMPANY
The company was set up in Stuttgart in 1886 by Robert Bosch (1861 -1942) as “Workshop for
Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert
Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for
the company to plan over the long term and to under take significant upfront investments in the
safeguarding of its future. Ninety -two percent of the share capital of Robert Bosch GmbH is held
by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held
by Robert Bosch Indu strietreuhand KG, an industrial trust. The entrepreneurial ownership
functions are carried out by the trust. The remaining shares are held by the Bosch family and by
Robert Bosch GmbH.
Excellent customer service was already important to him as a young entr epreneur. These
included ensuring customers could be visited quickly at their premises. To achieve this, he
procured a cutting -edge low -wheeler bicycle. Robert Bosch also ensured his customers could
reach him easily by installing one of the first telephone s in Stuttgart.
Good tools sound raw materials, and smooth manufacturing processes were required in order to
produce high quality. This was the only way to guarantee all goods left the Bosch factory in
flawless condition. Continuous improvements to both ma chinery and work processes were
essential. But meticulous work also called for well-trained associates. For this reason, Robert
Bosch established his own apprentice workshop in 1913, to train young people in all fields of
work.
The Bosch Group is a leading global supplier of technology and services. It employs roughly
390,000 associates worldwide (as of December 31, 2016). The company generated sales of 73.1
billion euros in 2016. The Bosch Group comprises Robert Bosch GmbH and its roughly 440
subsidiaries and regional companies in some 60 countries. Including sales and service partners,
Bosch‟s global manufacturing and sales network covers nearly every country in the world. The
basis for the company‟s future growth is its innovative strength. At 120 locatio ns across the
globe, Bosch employs some 59,000 associate s in research and development.
27
Products and services
1. Mobility
Bosch brings together comprehensive expertise in vehicle technology with hardware, software,
and services to offer complete mobility s olutions. With its extensive technical expertise, Bosch
develops smart mobility solutions in the areas of hardware, software, and services. In this field
Bosch is providing: Mobility Solutions web portal; Auto parts and accessories; Bosch Car
Service; E-bike systems and The Workshop W orld;
2. House tools
When referring to the home field we can encounter: Garden tools; Heating and hot water; Home
appliances and for DIY enthusiasts – Power tools.
3. Industry and trades
Bosch offers innovative products and s ervices for industry and trades,
• Business Process Outsourcing (BPO) solutions;
• Drive and Control Technology;
• Energy and Building Solutions;
• Large thermal plants and system solutions;
• Packaging technology ;
• Power tools for professionals ;
• Securit y solutions ;
• Software solutions;
4. Connected products and services
Bosch believes that connectivity is more than just technology. It‟s part of our lives. It improves
mobility, shapes the cities of the future, and makes homes smarter, industries connec ted, and
healthcare more efficient. In every sphere, Bosch is working towards a connected world. A world
28
that opens up possibilities n o one could ever have imagined. Bosch solutions for the internet of
things: Connected Mobility; Smart Home; Smart Cities; Industry 4.0.
5. Market -specific solutions: Solutions for commercial buildings; Solutions for airport
Facilities; Bosch solutions for the automotive industry; Solutions for entertainment facilities;
Solutions for hotel facilities; Solutions for the food an d confectionery industry; Solutions for the
pharmaceutical industry; Bosch solutions for theaters; Solutions for railways and train station
facilities; Solutions for mining facilities.
Bosch developed micromechanical sensors for use in automobiles during t he 1990s, which work
like sensory organs for measuring acceleration, rotation, pressure, and sound. They relay
information to electronic control units, letting them know exactly when to inflate an airbag in an
accident, for example. In 2005, Bosch also sta rted manufacturing sensors for consumer
electronics, such as smartphones or games consoles. The smallest MEMS are just 1.5 millimeters
wide. A Bosch research team invented the “plasma etching” process for manufacturing these
miniature parts. Bosch has prod uced around 5 billion MEMS since 1995 and is now the market
leader, manufacturing some 4 million units each day.
Following the sale of the telecommunications section, Bosch acquired industrial technology
specialist Mannesmann Rexroth in 2001. This strength ened the industrial technology section and
balanced the company‟s structure. The remaining parts of the telecommunications section
formed the Security Systems division. Bosch expanded its thermo technology section with the
acquisition of Buderus AG in 2003 . Bosch parted with other new fields such as the solar energy
section it had set up in 2008.
In Bucharest, Bosch is present since 1994 with a sales office for power tools and accessories,
thermotechnology, security systems and products for the automotive i ndustry, but also with BSH
Electrocasnice (since 1999).
In Cluj, Bosch opened in 2014 a research & development center as well as a production unit for
automotive technology. Bosch produces here for global automotive customers electronic control
units for d river assistance and energy management systems.
A production unit for linear motion technology and one for automotive technology are located in
Blaj. Furthermore, the company runs a business process outsourcing center in Timisoara.
29
3.2 RESEARCH METHODOLOGY AN D INTERPRETATION OF RESEARCH
RESULTS
Choos ing the questionnaire as a research method was because it can be both, quantitative and
qualitative , depending on the type of questions. The questions presented in the appendix were
analysed using a quantitative method such as bar -charts. Some of the a dvantages of
questionnaires are: no costs, reduced time of data collection and a higher level of objectivity in
comparison with other methods. Starting from this point I will go through all the questions from
the survey and each one of them will presented sequentially.
Figure 2 Employees, an important source of information
First question seeks to highlight that employees are an extremely important source of
information. Following the stud y by applying questionnaire results show as follows: in women‟s
answer we have 4 women agree and 6 strongly agree; in men‟s answer we have 2 men nor
disagree nor agree, 10 agree and 8 strongly agree.
Satisfied, highly -motivated and loyal employees represe nt the basis of competitive company.
The growth of satisfaction is to be reflected in the increase of productivity, improvement of the
products‟ quality or rendered services and higher number of innovations. Satisfied employees
form positive reference to t he employer and thus increase its attractiveness for potential job
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30
seekers and strengthen its competitive position in the market. Management of the company does
not often know opinions of own employees and underestimates dependence between satisfaction
of employees and total successfulness of the company in the market.
Figure 3 Previous decisions are a very useful source of information for current decisions
The second question seeks to highlight that previous decisions are a ve ry useful source of
information for current decisions. Following the study by applying questionnaire results shows
as follows: in women‟s answer we have 5 women agree and 5 strongly agree; in men‟s answer
we have 2 men disagree, 11 agree and 7 strongly agr ee.
The need for a decision arises in business because a manager is faced with a problem and
alternative courses of action are available. In deciding which option to choose he will need all
the information which is relevant to his decision; and he must hav e some criterion on the basis of
which he can choose the best alternative. Some of the factors affecting the decision may not be
expressed in monetary value. Hence, the manager will have to make 'qualitative' judgments , e.g.
in deciding which of two person nel should be promoted to a managerial position. A 'quantitative'
decision, on the other hand, is possible when the various factors, and relationships between them,
are measurable.
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31
Figure 4 Our competitors are an extremely impor tant source for learning new methods and services
The third question seeks to highlight that previous decisions are a very useful source of
information for current decisions. Following the study by applying questionnaire results shows
as follows: in women ‟s answer we have 1 woman agree and 9 strongly agree; in men‟s answer
we have 2 men agree and 18 strongly agree.
Every business plan needs to include information on competitive analysis. It's one of the most
important points in your plan and should always be included, even when you're just doing an
internal plan but especially when outsiders will read it. A competitive analysis is your chance to
look closely at your market and your competition, to learn what the others are doing and why.
Companies that annu ally update their plans should always include a competitive analysis to catch
changes in the marketplace and in their competition; start-up‟s need to know the landscape
before they begin. Your business plan's competitive analysis should list your main comp etitors
and their strengths and weaknesses. The more information you have about them, the better.
Know where they're located, what they sell, their prices, their marketing messages, their web
addresses and their reputations.
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32
Figure 5 Our organization has employees whose job is related to searching for external information
The fourth question seeks to highlight that the organization has employees whose job is related to
searching for external information. Following the study by a pplying questionnaire results shows
as follows: in women‟s answer we have 3 strongly disagree, 4 disagree and3 nor disagree nor
agree; in men‟s answer we have 5 strongly disagree 5 disagree, 3 nor disagree nor agree and
seven agree.
Recruiting employees ca n be a somewhat precarious process. With the exorbitant cost of hiring
and training an employee with job and soft skills matching the job description, making a mistake
in this arena can substantially harm net profit for the entire year. One major considera tion in
recruitment is whether to hire externally or promote from within your organization .
01234567
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3 7
3 4
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MALE FEMALEOur organization has employees whose job is related to searching for external
information
33
Figure 6 Internal training for employees
The fifth question seeks to highlight that the organization organize internal training for t he
employees. Following the study by applying questionnaire results shows as follows: in women‟s
answer we have 10 women who strongly agree; in men‟s answer we have 20 men who strongly
agree.
Employee training is a process focused on communicating with and teaching employee
information and/or instructions. The purpose of employee training is to improve the employee's
performance or to help the employee gain a necessary level of knowledge and skill to
productively, effectively, and profitably perform his or her job. It is important in predicting
whether your organization is likely to retain an employee after hire. Employee training is also a
key factor in motivation well as in employee retention . The opportunity for your employees to
continue to grow and develop job and career -enhancing skills is integral to an employee‟s
happiness and satisfaction with their job. In fact, this opportunity for employees to grow and
develop through training is one of the most important factors in employee
motivati on, engagement , and positive morale . And employee training and development or
opportunities to train others are integral components in half of the 18 factors that contribute to
reducing employee turnover . Your best employees, the employees you mos t want to keep, thrive
when they have the opportunity to grow through employee training and development options.
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MALE FEMALEInternal training for employees
34
Figure 7 Meetings with the purpose to inform employees
The sixth question seeks to highlight that the organization frequently hold meetings with the
purpose to inform employees. Following the study by applying questionnaire results shows as
follows: in women‟s a nswer we have 10 women who strongly agree; in men‟s answer we have
20 men who strongly agree.
Holding regularly scheduled staff meetings with employees in the workplace will greatly
enhance the communication efforts that make up the foundation of the work group. Employees
who can count on consistently meeting with fellow co -workers and their manager will feel more
ownership of the work they do because of the frequent opportunity to communicate with one
another at these meetings. Furthermore, these employees will feel a sense of trust for a leadership
which includes them in on the planning and processes that make the workplace a better place to
be for all. Since employees spend a great deal of their lives at work, it is important to make them
feel that they a re a part of the success of the organization as it meets its strategic goals .
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35
Figure 8 Management tolerance for uncertainty (as distinct from risk) in planning process
The seventh question seeks to highlight that the managemen t tolerance for uncertainty in
planning process. Following the study by applying questionnaire results shows as follows: in
women‟s answer we have 2 women nor disagree nor agree, 5 agree and 3 strongly agree; in
men‟s answer we have 2 men disagree, 3 nor d isagree nor agree, 10 agree and 5 strongly agree.
These are internal risks, arising from within the organization, that are controllable and ought to
be eliminated or avoided. Examples are the risks from employees‟ and managers‟ unauthorized,
illegal, uneth ical, incorrect, or inappropriate actions and the risks from breakdowns in routine
operational processes. To be sure, companies should have a zone of tolerance for defects or
errors that would not cause severe damage to the enterprise and for which achievi ng complete
avoidance would be too costly. But in general, companies should seek to eliminate these risks
since they get no strategic benefits from taking them on. A rogue trader or an employee bribing a
local official may produce some short -term profits f or the firm, but over time such actions will
diminish the company‟s value.
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Figure 9 Management makes decisions with lots of input from the rest of the organization
The eighth question seeks to highlight that the management makes decisions with lots of inputs
from the rest of the organization. Following the study by applying questionnaire results shows as
follows: in women‟s answer we have 2 women nor disagree nor agree, 2 agree and 6 strongly
agree; in men‟s answer we have 5 nor disagree nor agree, 5 agree and 10 strongly agree.
The job of a manager is, above all, to make decisions. At any moment in any day, most
executives are engaged in some aspect of decision making: exchanging information, reviewing
data, coming up with ideas, evaluating alternatives, implementing directives, following up. But
while managers at all levels must play the role of decision maker, the way a successful manager
approaches the decision -making process changes as he or she moves up in the organization. T o
climb the corporate ladder and be effective in new roles, managers need to learn new skills and
behaviors —to change the way they use information and the way they create and evaluate
options. In fact, we‟ve seen in our executive coaching that making decis ions like a full -fledged
senior executive too soon can hurl an ambitious middle manager right off the fast track. It‟s just
as destructive to act like a first -line supervisor after being bumped up to senior management.
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MALE FEMALEManagement makes decisions with lots of input from the rest of the organization
37
Figure 10 The style of communication within the organization is highly formal
The ninth question seeks to highlight that the style of communication within the organization is
highly formal. Following the study by applying questionnaire results shows as follows: in
women‟s answer we have 10 women who strongly agree; in men‟s answer we have 10 agree and
10 strongly agree.
Communication within an organization happens in a number of different ways, which is why it's
so important to realize the types of communication t hat are happening and the correct way to
communicate within those realms. The way you communicate with co -workers or peers should
be different then how you communicate with your manager or the company president. Many
other factors come in to play as well, including the values of the company and nonverbal
communication. There are three avenues in which formal communication exists within a
company: downward, upward and horizontal . This type of communication exists when managers
need to explain job instruction s, correct employees' work, or explain new procedures. Although
this type of communication is vital to the organization, it's important that managers communicate
effectively without talking down to employees. Upward communication happens when
subordinates need to talk with their managers, something that could be as simple as letting the
manager know a task was completed or about a work -related problem.
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Figure 11 Leaders emphasize management of people and their interactions
The tenth question seeks to highlight that the leaders emphasize management of people and their
interactions. Following the study by applying questionnaire results shows as follows: in women‟s
answer we have 1 woman who disagree, 3 nor disagree nor agree and 10 strongly agree; in men‟s
answer we have 1 disagree, 3 nor disagree nor agree, 5 agree and 7 strongly agree.
Some managers have learned to lead successfully based on their practice wisdom and personal
experience, but as a group social work administrators m ay rely too heavily on these two
facets. Social work administrators often supervise people who arrived in the human services
field for different reasons and with various educational backgrounds. In order to encourage staff,
managers must understand what m otivates people, beyond the traditional notion that social
workers “just want to help people. Managers must understand that employees will be motivated
by unmet needs and that once a need is satisfied; it is no longer a motivator. The manager will
need to motivate based on higher level needs, such as those at the social level. Further, people
may move up or down on the pyramid of needs. When job security becomes an issue due to
budget cutbacks or other limitations, a worker at the social needs level may sud denly beco me
motivated by security needs.
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MALE FEMALELeaders emphasize management of people and their interactions
39
3.3 IDENTIFYING PROBLEMS AND THEIR SOLUTIONS
Everything really comes down to solving problems. To be successful and a leader in your field,
you not only have to come up with good solutions; you need to be innovative. And that can feel
like w aiting for lightning to strike.
Creativity is applying imagination to address a challenge. Innovation is applying creativity to
generate unique solutions. And entrepreneurship is applying innovations, scaling the ideas, by
inspirin g others‟ imagination.
Once you understand this framework, you can put it into action and the way to innovate is to
look at situations from a fresh perspective.
In today's marketplace, the practice of innovation isn't just about creating new products. It's
about discovering completely new markets that meet previously unknown and therefore
untapped customer needs. And in the age of Internet commerce, the act of innovation becomes
an even greater challenge, awash in a sea of new ideas. Therefore the drive tow ard selecting and
executing the right ideas and bringing them to market before your competitors takes on an
urgency that has been previously unknown, yet is sure to increase in the rapidity of its scale in
the years ahead.
As a result, the driving forces b ehind innovation – previously technology and control of quality
and cost – have shifted away from issues of efficiency and are now solely focused on the
creativity and growth of the organization toward a future state of competitiveness.
In our opinion, one of the problems in this company is the re lationship between employees. Fr om
the questionnaire analysis, we can see that they have trainings, meetings or informative meetings.
Leaders or department managers should relate more closely to employees, listen t o their ideas,
and support them when they need it. In this way, employees will feel better at work and their
work will gradually improve.
People should be also motivated to endorse and embrace change, and told how it can benefit
them personally and the org anization in general.
In the process approach the ideal is to follow individual and collective sense by making by those
involved as it happens, and how people translate, react to and feel about change initiatives.
40
Uncertainties, confusion, anxieties and fe elings of inadequacy surround change work. An
important element here is how people relate to change initiatives in terms of their identity
positioning, i.e. how they understand themselves and their interests.
It is also imperative on part of organizations to understand the dynamics of change and
communicate effectively and try to gain inputs and confidence of those who resist and an
affected by the organizational change being undertaken.
If an organization can gain inputs, create an effective plan of change and execute it perfectly, the
returns will always be positive.
Further, an organization should invest considerable time and money understanding the areas
where changes is needed and drawing plans for change.
An advantage to this solution would be that as long as there is good communication between the
company's employees, the work and results will be more satisfying for everyone. Also here, if
the CEO of the firm would slightly modify employees' remuneration, motivating them with
bonuses, or other benefits , it would help employees overcome the frustration they have in
relation to their wages.
A good manager encourages employees to work to the maximum potential today for the
opportunities that will emerge in the future. The sooner they will develop their pro fessional
skills, the more they will see their interest in work. Employees need to know that they are
primarily responsible for their professional development.
In our opinion, if the company will take care of its employees, it will pay its employees
approp riately or adequately motivate them, the firm will have finished projects in time, and the
employees will have the right work environment and the results as they are.
Another problem encountered in this company would be that the organization does not have
employees dealing with outside information. As a large company with a relatively large number
of employees, a department should be implemented to deal exclusively with this issue. Indeed,
this remark has advantages and disadvantages. First of all, to set u p a new department, you need
new employees, which involves a higher staff cost.
An important point to be made is that the organization may name old employees, those who meet
these conditions as employees of the new department.
41
CONCLUSIONS AND RECOMMENDATI ONS
The purpose of this paper is to highlight innovation and entrepreneurship in an organization. The
paper is structured in three chapters, the first two focusing on the theoretical part and the last part
on the case study, Bosch, a production unit in te chnology and services.
The first chapter of this paper sets out the importance of conceptual approaches to the definition
and importance of entrepreneurship and innovation, the types of entrepreneurship and the types
of innovation found in an organization .
In the second chapter, the paper focuses more on entrepreneurship and innovation in an
organization, highlighting the differences between entrepreneurship and innovation, as well as
the issues and difficulties of innovation in entrepreneurship as well as the relationship between
them.
Schumpeter's view of 'creative destruction' (1934) refers to the entrepreneur introducing a new
idea that takes over a market and links entrepreneurs to economic growth and development. This
could be an idea of shifting prod uction processes, reducing the size of the workforce to increase
productivity or indeed the introduction of a new product. The reason the introduction of the new
idea has such an effect is, because of the unpredictability of the introduction, meaning there is no
chance to prepare and lessen the impact of the new idea. Therefore, Schumpeter's theory was
very much in line and the link innovation has with the entrepreneur is clear and represented by
the fact that this creative destruction often leads to the ov erhaul of a market and takes over the
old idea.
The third chapter, Bosch's case study, provides an overview of the company, its presentation
from its inception, and a thorough analysis of entrepreneurship and innovation found in the
company. From the anal yzed ones, we can see that each employee is charged with his / her part,
each department, which results in a good performance of the activity and without encountering
problems during the implementation of the projects.
In this paper we analyzed entrepreneu rship and innovation, from the perspective of employees,
each responding to a questionnaire. From the questionnaire analysis, we conducted a thorough
analysis of each of the questions in that questionnaire.
42
Also in this chapter we analyzed the employees' o pinions on entrepreneurship and innovation, on
their day -to-day activities, to see if entrepreneurship exists and how it manifests itself.
Here too, we noticed a few impediments to the company. It is expected that, as with a company
with many employees, th ere will also be small conflicts or impediments. That's why, in this
chapter, I have proposed some small changes (proposals) for the company, for the smooth
running of the company's activities.
The analysis of the questionnaires, of each employee, shows t hat, firstly, not everyone thinks the
same, each with his discontent. As I said, it is impossible in a company where there are more
employees not to be small conflicts or discussions. Every employee plays an important role in
the business, so there are dep artments, each employee, making his part, of course, to his
department. It is very important for them to know from the beginning what they have to do, to
specify the term in which they have to be finished and, most importantly, to have communication
betwee n the employees of the team and the manager.
It is also very important that each project is done in time, so that everyone can manage their
tasks. An important role in the good performance of the activities is also the motivation of the
employees. When emp loyees are not satisfied with the conditions in which they work or the way
they are treated and paid, frustration will arise, and their work will not be worthy of praise, but
on the contrary, it will not be one with a pleasant end.
Chapter three also capt ures the identification of problems and their resolution. From the
questionnaire analysis, I noticed that the manager does not get in touch with the employees. This
is the first problem we have seen in this company. For a better job, the manager needs to g et in
touch with employees, to provide support when needed, to help them if they have little
impediment to the projects. It is very important for employees to feel good at work, to be in good
relationships with each other, to communicate and to liaise with the manager.
An advantage to this solution would be that as long as there is good communication between the
company's employees, the work and results will be more satisfying for everyone.
A good manager encourages employees to work to the maximum potenti al now for the
opportunities that will emerge in the future. The sooner they will develop their professional
43
skills, the more they will see their interest in work. Employees need to know that they are
primarily responsible for their professional developmen t.
Another problem encountered in this company is that the company has no employees dealing
with external information. It is quite important to say, as a big company, it needs as much
information as it would bring only benefits.
As we said before, as a lar ge company with a relatively large number of employees, a department
should be implemented to deal exclusively with this issue. Indeed, this remark has advantages
and disadvantages. First of all, to set up a new department, you need new employees, which
involves a higher staff cost.
An important point to be made is that the organization may name old employees, those who meet
these conditions as employees of the new department.
In our opinion , if the company will take care of its employees, if their relation ship with the
manager will improve and if they have people who will be on the department for external
information, the company will have to win, the projects will be completed in time.
44
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ELECTRONIC SOURCES
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2. www.lafarge.ro
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46
ATTACHMENT (QUESTIONNAIRE)
Questionnaire
In the questionnaire we ask you about impact of various elements of organizational learning process and
innovations on organizationa l performance. We would like to ask you to be realistic and objective in
assessing your organization. We assure complete anonymity of the gathered data, your answers will be
processed in making a case study included in a dissertation thesis.
Please circl e one choice for each of the following statements.
(1 = strongly disagree, 2 = disagree, 3 = nor disagree nor agree, 4 =agree, 5 = strongly agree)
Statements Answer
1. Employees in our organization ar an extremely important source of information 1 2 3 4 5
2. Previous decisions are a very useful source of information for current decisions 1 2 3 4 5
3. Our competitors are an extremely important source for learning new methods and
services 1 2 3 4 5
4. Our organization has employees who se job is related to searching for external
information 1 2 3 4 5
5. In our organization we often organize internal training of our employees 1 2 3 4 5
6. We frequently hold meetings with the purpose to inform employees 1 2 3 4 5
7. Management‟s tolerance for uncertainty (as distinct from risk) in planning process 1 2 3 4 5
8. Management makes decisions with lots of input from the rest of the organization 1 2 3 4 5
9. The style of communication within the organization is highly formal 1 2 3 4 5
10. Leaders emphasize management of people and their interactions 1 2 3 4 5
II. For following questions, please select the correct alternative.
11. Innovation proposals are welcome in the organization.
a. Yes b. No c. I don‟t know
12. People are not penalized for new ideas that do not work.
a. Yes b. No c. I don‟t know
13. In marketing innovations (entering new markets, new pricing methods, new distribution methods,
etc.) our company is better than competitors.
a. Yes b. No c. I don‟t know
47
14. We continuously improve old products and raise quality of new products.
a. Yes b. No c. I don‟t know
15. Experience at work:
a) Under 1 year b) Between 1 year and 3 years c) Over 3 years
16. Sex :
a) Male b) Female
17. The size of the organization is:
a) Up to 50 employees b) 50 to 100 employees c) More than 100 employees
Note: The qu estionnaire was applied on the Market and Sales Planning department. We
questioned 30 employees, the department has 55 employe es.
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