Digital technology has changed the Economy. value creation for customers have changed from material goods to an Economy That favors service, information and intelligence as the main source of value creation. and in the center of This economic transformation is e-commerce.
The goal of this article is to analyze the role of entrepreneurship and innovation in e-business. A review of principal and current literature on e-business perspective of entrepreneurship and innovation was undertaken to collate the existing theories about the two and to explore the conceptual relationships between them.
Table of contents
Entrepreunership
In the narrowest sense, entrepreneurship includes capturing ideas, transforming them into products or services, and then making venture capital to bring the product to the market. The key elements of entrepreneurship include risk-taking, initiative and innovation. However, these elements are not sufficient to ensure organizational success. They insist that a successful company does not only engaged in the management behavior of entrepreneurs, but also have the appropriate culture and organizational structure to support every act and behavior.
Innovation
For many years, research and development has been closely related to technological innovation. Invention is the closest definition of innovation. there are seven basic sources of opportunities to innovate but only one of them has something to do with inventing something new. Therefore, innovation means a lot more than invention and it does not have to be technical. There are many examples of social and economic inventions. Innovation is a proposed theory or design concept that integrates existing knowledge and technology and provides a theoretical basis for new concepts. Innovation thus has many stages and is multidimensional. The most prominent innovation dimensions can be expressed as dualism such as ; radical versus incremental, product versus process and administrative versus technological.
Identifying the Strategic Opportunities of
E-business Innovation
E-business innovations are digital transformation of business processes which has a profound influence upon existing business practices. In addition to that, e-business innovations are about making a change to a company culture, which has been generally described as a system of shared meaning within an organization describing the way employees act. E-business inside organizations is related to the internet and the evolution in the use and application of computers. Establishing e-commerce strategic opportunities for the company will help to better understand innovation and its reasons for improving business, competitiveness and customer service.
The conceptual relationship
between entrepreneurship and
innovation
The economics of innovation, in particular, have attracted attention in recent years. Sundbo Summarized the basic theories of innovation economics, and demonstrated three competing paradigms in the current innovation theory discussion:
- the entrepreneur paradigm
- the technology-economics paradigm
- The strategic paradigm
The entrepreneurial paradigm can be traced back to the 1930s, when Schumpeter first tried to establish a
theoretical connection between entrepreneur and innovation, and the entrepreneur is regarded as an innovator.
Schumpeter maintained that innovation contributed to the growth of the economy because entrepreneurs produced innovations. The concept of the entrepreneur as an innovator has laid the foundation of the entrepreneurial paradigm, in which the role of the entrepreneur is emphasized in the innovation process. According to this paradigm, only a person who found a new company on the basis of a new idea can be called an entrepreneur. Entrepreneurship is seen as a creative act and innovation.
Entrepreneurship is about creating things that didn’t exist before. Creation is based on perceiving and capturing opportunities, adding value to individuals and communities. Innovation is a specific tool for entrepreneurship, and entrepreneurs can use it to provide opportunities of differentiation for different companies or services. There is considerable overlap between entrepreneurship and innovation. In addition, innovation must meet market demands and requires entrepreneurs to achieve commercial success.
E-commerce has a positive disruption
Technologies like mobile and social interactions have created much more personalized expectations, and in the present days we see retail organizations being successful in making that stronger connection. High-end fashion retailers such as Ralph Lauren and Chanel, are focused on creating unique journeys by knowing and understanding more its customers and creating relevant interactions with them through multiple channels and platforms.
There are several such examples in India. One of them is Wildcraft, which enters the adventurous niche market with rucksacks, bags, shoes and other products, and subdivides its consumers into different groups. who like adventure and camping. Therefore, in order to be able to understand the target audience and their consumption patterns and buying behavior, they went back with targeted campaigns on a repetitive basis which were designed after understanding personalized needs and demands.
Based on the existing repeat buyers of Wildcraft, they expanded their products to the core area around the adventure, and D365 helped them gain a place in the niche market, understand these customer groups, and expand their footprint to increase sales thereafter
Final thoughts
Electronic markets provide a challenging environment for entrepreneurs and their organizations. The rapid development and availability of technology is forming a new economic form, and different forms of distribution, marketing, sales, and job placement can be observed. The characteristics of this economy include the breakdown of boundaries between companies, suppliers, customers, and competitors. Since e-commerce is a relatively new thing, the foundation will provide solid support for the future market. On this basis, a lot of thinking and construction are needed to fully utilize its potential. Internet companies that emphasize innovation and rapid response to changes may be best suited to recognize and identify new opportunities and ideas for their business. in fact, to Identify new opportunities can be pretty important in initiating innovation and change related with improvements in products/services, technological capabilities, and seeking alternative markets and opportunities. Those Internet companies that adopt more conservative and defensive e-commerce strategies to maintain their market positioning may not fully value and integrate additional marketing strategies or improving business processes. From the review of the principal literature and from cases studies conducted by the authors, the results revealed that e-commerce firms that
By emphasizing market leadership and quickly responding to changes in their environment, they are more likely to identify and evaluate new opportunities and ideas for their business. Some people believe that Internet companies that emphasize changing strategic positioning may succeed in this new form of entrepreneurship..
In conclusion, entrepreneurship and innovation should be regarded as ongoing, everyday practices in organizations.
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