The Importance Of Entrepreneurial Orientation In Business

In an era of extreme competition and demanding customers, firms are facing huge unpredictable challenges. As firms become more competitive, customers tend to become more and more demanding. In today’s highly competitive world, it is becoming increasingly difficult for firms to effectively cater to the needs and wants of customers which may risk losing dissatisfied customers to the competition. The pace of change in the world of business is intensified, which means that running a business successfully has become an increasingly complex task, and it is within this background that different strategic orientations have taken a pride of place. In order to manage environmental challenges and to maintain business performance, firms are placing relative

It is a strategic orientation which embraces the particularly entrepreneurial aspects of firms’ strategies (Bhuian et al., 2005; Covin & Slevin, 1989; Hult et al., 2004; Lumpkin & Dess, 1996; Wiklund, 1999; Wiklund & Shepherd, 2005). Entrepreneurial orientation being a strategic approach, considerably promotes various innovations in the firm. It isconsidered as an important driver to facilitate information relating to innovation and superior business performance (McGrath, 2001). Entrepreneurial orientation refers to “the process, practices and decision making activities that lead to new entry” (Lumpkin & Dess, 1996, p. 136). Lumpkin and Dess (1996) conceptualised entrepreneurial orientation to include risk-taking, proactiveness, autonomy, innovativeness and competitive aggressiveness. Further, Morris and Paul (1987) defined entrepreneurial orientation as the tendency of top management to take calculated risks, to be innovative and to exhibit proactiveness. Entrepreneurially oriented firms modify and transform the environment and enthusiastically execute resources to accomplish uncertain opportunities. “An entrepreneurial firm is one that engages in product market innovation, undertakes somewhat risky ventures, and is first to come up with ‘proactive’ innovations, beating competitors to the punch” (Miller, 1983, p. 771). The advocates of

Relationship marketing has been constantly considered as successful business practice worldwide. Over the past twenty years, relationship marketing has characterized a revitalization in marketing (Bonnemaiz et al., 2007) and it signifies international, industrial and services marketing and is also overruling traditional marketing theory (Davis, 2008). The term ‘relationship marketing’ was introduced by Berry in the services marketing literature in 1983 (Barnes, 1994; Gronroos, 1994). Berry defined relationship marketing as “attracting, maintaining and in multi-service organizations- enhancing customer relationship” (Berry, 1983, p. 25). A business implementing relationship marketing orientation enhances its performance, which has been supported by both marketing academicians and practitioners for about three decades (Berry, 1983; Fuhrman, 1991). Further, Fox and Stead (2001) asserted that successful customer relationship marketing focus on understanding the needs and desires of the customers by placing those needs at the heart of the business by integrating them with the organization strategy, people, technology and business processes. Relationship marketing also increases customer satisfaction and enhances business performance of the organization. Further, it helps an organization in creating, developing and maintaining profitable exchanges with selected customers over