Enterprise and Innovation Affected by the Rising World Economy

Enterprise and Innovation
Name
Institutional Affiliate
Enterprise and Innovation
Introduction
The world’s economy is characterized by increasing competition across the different economic sectors and emerging trends in the markets that have equally diverse effects on daily business operations among enterprises and other business organizations around the globe. Emerging consumer trends, advancing technology, and the effects of globalization are some of the factors affecting business operations across the different sectors of the global economy. Both the small business organizations and multinational corporations alike are affected by such trends in the global economy and thus necessitating the adoption of effective interventional measures towards sustainable growth and development in the diverse economic sectors of operations. It is essential for business enterprises to maintain their competitiveness in the industries and sectors within which they operate to secure their share and influence on the market for increased productivity and revenue generation. The achievement of the said outcome is dependent on the availability of effective leadership in the entrepreneurial organizations and their ability to enhance the organization’s adaptability to the market changes by maintaining a culture of innovation. Provided herein is an evaluation of the concept of effective leadership in an entrepreneurial setting through the lens of how such leaders can maintain an innovation culture within the organizations.
Leaders play significant roles in entrepreneurial organizations as they function to influence other members towards embracing and incorporating the organization’s values, beliefs, and principles for the achievement of set goals and objectives. One of the primary objectives of entrepreneurship is the utilization of resources for the production of goods and services for maximum profitability CITATION Bae12 \l 1033 (Baer, 2012). Leaders in such organizations are tasked with the responsibilities opportunities for growth and development for maximum utilization of the available resources for the main purpose of gaining profits. Leaders may embrace different leadership styles in executing their duties and responsibilities to their organizations, and whose efficacy in achieving the set objectives impacts the success of the enterprises. Among the leadership styles embraced, leaders across different organizations include contingency, trait, and situational leadership approaches CITATION Bag10 \l 1033 (Bagheri, 2010). The contingency leadership approach builds on the principle of establishing positive relations with other members of the organization or team as the basis for influencing them to reach their full potentials towards the achievement of set objectives. The trait approach involves the use of personal traits such as charisma to influence other members into embracing the organization’s beliefs, values, and principles in the effort to promote sustainable growth and development of the entity in its sector of operations. Situational leadership, on the other hand, builds on the principle of understanding the needs of the organization and influencing the available resources towards meeting the identified dema...