The paper "Innovation and Entrepreneurship " is an outstanding example of a business literature review. The last three decades have seen a continuous complex, unpredictable and dynamic businesses business (O’ Regan, Ghobadian & Sims 2006, p. 251). Stiff competition within the international market is prompting companies to leverage their competencies and capabilities, make themselves unique, and enhance their competitive advantage and their performance. Ndubisi and Iftikhar (2012, p. 214) claimed that today, most organizations now use innovation and entrepreneurship to sustain a competitive edge and to leverage the capability of the firm. Maritz and Donovan (2015, p. 74) stated that on individual perspective, the increase of unemployment in the world market and the inspiration of becoming own boss have seen many people turn to innovation and entrepreneurship as they seek to create themselves wealth.
The happenings have led to numerous researches in the field of innovation and entrepreneurship in recent years as many entrepreneurs seek to right approaches and strategies to success (Lehner & Kansikas 2012, p. 30). Therefore, this essay will review various literature to explain innovation and entrepreneurship. In addition, this easy will chose one change diagnosis and one change intervention and explain how they can be applied to manage organizational change sustainable from innovation and entrepreneurship. Literature review Shane (2012, p. 12) and Lewrick et al.
(2010, p. 3) contended that entrepreneurship is associated with discovery, analysis and taking advantage of the opportunities in the environment and creating something like a business start-up or products out it. In standard terms, innovation is defined as a new idea, concept or a process lie a new product. On the other hand, Crossan and Apaydin, (2010, p. 1157) and Lewrick et al.
(2010, p. 4) argued that innovation implies to development, embracing and using of the value-added actions in social and economic areas. Innovation can be a process or an outcome. Meaning a new idea or concept can also be called an innovation. Innovation is a major factor in growth and competitiveness. Maritz and Donovan (2015, p. 79) posited that the necessity to understand innovation and entrepreneurship has gained momentum in recent years leading to several frameworks of innovation and entrepreneurship being discussed in various literature. While several scholars and researchers have discussed innovation and entrepreneurship and contributed to theory development, there has been confusion as some use the term alternatively (Crumpton 2012, p. 100).
On the other hand, some scholars tried to dedifferentiate the terms and show their relationship. Numerous authors and scholars have discussed entrepreneurship as a fundamental action underpinning the innovation that also echoes with Schumpeter’ s opinion on entrepreneurship as the key medium for the innovation (Maritz and Donovan 2015, p. 78). However, these viewpoints are concerned nearly absolutely with the entrepreneurial acts as a mechanism for radical change. Even though this is an overlap in the definition of the two factors, differences can be noticed.
Innovation can take place but outside the entrepreneurship sphere. McFadzean, O'Loughlin and Shaw (2005, p. 355) argued that while entrepreneurship is concerned with creating a product and using it to create a business startups innovation is only concerned with creating a product. Innovation and entrepreneurship can be at an individual level or company level. At individual level mean a person has identified an opportunity and use the new concept to exploit it (McFadzean, O'Loughlin & Shaw 2005, p. 357).
At the company level means an innovative and entrepreneurial company. Here is where the management identifies an opportunity and directs the employees to pursue it. However, with high competition in the market places, people and company are now recommended to have both innovation and entrepreneurship skills (Lewrick, et al. , 2010, p. 7). The argument is based on the fact that innovativeness of the company enables it to create a new product while the entrepreneurial nature of the company enables the management to identify opportunities in the market. As such the company can identify opportunities in the market and develop the existing or new production to exploit such opportunities.