Competition nature of business in the light of market

Competition among organizations is intensifying as a result of many factors, including traditional ones arising from the nature of business in the light of market economics, and recent ones arising from globalization and massive advances in telecommunications and information technology, making many see world markets as a single market. InnovationInnovation has a major role in the growth of organizations and the upgrading of their performance, so the study of innovation was one of the first concerns of researchers who tried to activate the facets of innovation in organizations. In view of the urgent need for innovation in the present time, organizations have had to contribute to the development of innovation among their employees from the point of senior management (deputy managing director, group manager, team leader, and head of section). Innovation is the most imperative and current issue of organizations and furthermore a wide point addresses in several disciplines, for example, operational management, organizational behavior, service management, management of information technology, marketing, product development, strategic management, quality management,  and economics (Hauser, Tellis, Griffin, 2006).  Innovations provide firms a strategic orientation to overcome the problems they encounter while striving to achieve sustainable competitive advantage (Drucker, 1985 Hitt et al., 2001; Kuratko et al., 2005). Innovation as a concept was first highlighted within academe by Joseph Alois Schumpeter, an economics professor at Harvard University, who considered innovation as a process that takes an invention and develops it all the way to a marketable product and service that changes the economy.

 

Organizations innovate on many ways like those
related to business models, products, services, processes and distribution
channels in order to maintain or defeat new market, to separate themselves from
competitors and to ensure long term survival and growth, mainly in the perspective
of being present in complicated and unsettled environments (Freeman, 1994;
Lawless and Anderson, 1996).

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There
was much stress has been placed on the classification and dissemination of
innovation as in collected works of Freeman, (1994); Miles & Snow (1978);
Van de Cen et al. (1999). Though, the process of innovation in the organizations
has not been taken into account and is not an eternal and important intention
of the organization. (Amabile (1997) is acknowledged that The most critical
components of concentrating on innovation are the value appended to creativity
and innovation in general, an orientation towards risk, a feeling of pride
among organization individuals, their eagerness to what they can do and an
offensive strategy of obligation of the future. Furthermore, Innovation is the
specific tool of entrepreneurs, the means by which they exploit change as an
opportunity for a different business or service. (Drucker, 1985). Ramadani and
Geguri (2010) stated that innovation is essential for sustainable growth and
economic development.