3 Entrepreneurial Orientation

Question 1

What is Entrepreneurial Orientation (EO)?

Answer 1

Entrepreneurial Orientation (EO) is about the mindset and behavior that makes someone—or a company—think and act like an entrepreneur. It’s like having an “entrepreneurial personality.”

Question 2

What are the five dimensions of Entrepreneurial Orientation?

Answer 2

Innovativeness: Encourages creating novel solutions, driving differentiation and value, core dimension
Proactiveness: Focuses on identifying and acting on future opportunities before competitors.
Risk-Taking: Involves strategic decisions under uncertainty
Competitive Aggressiveness: Pushes to outperform competitors through assertive market tactics.
Autonomy: Empowers individuals or teams to independently innovate and implement ideas.
These dimensions collectively foster a dynamic and opportunity-driven organizational culture.

Question 3

What traits define entrepreneurial personalities, and why are they essential in organizations?

Answer 3

**High Achievement Motivation: **Drives individuals to set and accomplish ambitious goals.
Need for Autonomy: Ensures self-directed and independent work approaches.
Strong Determination and Resilience: Helps overcome challenges and persist through failures.
**Willingness to Take Risks: **Comfort with uncertainty enables exploration of bold ideas.
**Creativity and Innovation Potential: **Fuels the ability to generate unique solutions and improvements.
These traits align with EO’s goals, promoting a robust entrepreneurial culture.

Question 4

Explain disadvantages of the five dimensions?

Answer 4

1. INNOVATION: High failure rates, misslocation of resources
2. PROACTIVENESS: risk of unfocused, premature action
3. RISK-TAKING: Risk of gambling withouth any calculated strategy.
4. COMPETITVE AGRESSIVNESS: can lead to destructive market behvaiours
5. AUTONOMY: Lack of cohesion in company goals

Question 5

Explain 4 corporate environments.

Answer 5

1. Dynamic environment (constantly changing in framework conditions in order to create oprotunities.
2. **Hetreogenous environemnt(diverse customer needs lead to numerous opportunities)
3. Harsh environemnt (high competition that encourages innovative behaviour)
4. Resource-rich** environment (access to cpaitala or other resources enables experimentation)