Holographics Technologies International (HTI) is a market leader in technology. However, it is apparent that its current corporate culture is quite bureaucratic that does not allow innovation to be nurtured at all levels of the organization and departments. Such antiquated business practices is an imminent danger to the organization which can lead it to lose the competitive advantage; and its market share and growth rate may significantly decline.
This research design depicts a study that would be conducted to substantiate the claim that promoting innovative culture in this particular organization will help enhancing performance of various departments of HTI such as HR, logistics, procurement, and research and product development.
The purpose of this research study is provide evidence that having organization with entrepreneurial spirit will help management at HTI to indulge in such business practices that are agile, speedy, creative and goal-oriented. The relevant data would primarily be acquired through primary and secondary resources. 1 The data acquired would be analyzed to substantiate the claim that entrepreneurial organization will help HTI to sustain the competitive advantage.
The preliminary research has highlight that an entrepreneurial organization is structured so that its members are given the information and tools necessary to allow each to pursue solutions and take advantage of opportunities at their level, based on the stated objectives of the organization. Moreover, entrepreneurial atmosphere facilitates individual initiative, and mistakes and failures that occur in the process of taking initiative are actually viewed as progress in the personal and organizational quest for excellence.1 Implementation of such a strategy may enable HTI to sustain its competitive advantage.
Holographics Technologies International (HTI), is a multinational conglomerate of 28 different hardware and software companies located in the United States, New Zealand, South Africa, Ireland and Canada. Their target segments include government, industry and education. There exist bright prospects for this industry. Some marketing experts and futurists believe that holographic motion pictures are the future of entertainment industry.2 However; HTI faces an immense challenge of sustaining the competitive advantage.
The preliminary observation has revealed a major problem for HTI. The bureaucratic chain of command that exists in HTI is adversely effecting organization at every level whether it is Human Resource, logistics or marketing. It is apparently recommended to the organization that it inculcates entrepreneurial spirit with in the organization.
The following section outlines the basic research design for the research study that would endeavor to empirically substantiate the claim that entrepreneurial organization will help HTI to sustain the competitive advantage that will ensure that this recommendation has a high probability of being successful at HTI.
The following research design depicts a study that would be conducted to substantiate the claim that promoting innovative culture at HTI that will enable HTI to retain high growth rates and market share. This preliminary research design uses the first 5 steps of the Sekaran process.3
HTI exist as a market a leader in technology industry. However it appears that this organization faces an imminent danger as its existing business processes are old-fashioned that are not sensitive to the needs of evolving organizational and external environment. It is apparent that in order to grow HTI must limit bureaucratic management style. Various departments such as research and development, marketing and Human Resource may not perform up to their full potential until they are not bound to follow only instructions that are passed on by the top management. It is apparent that organization effort may be more agile, speedy, creative and goal-oriented if entrepreneurial spirit is nurtured with in the organization.
Preliminary data collection
This research study uses the primary as well as the secondary sources of information to collect relevant information. A sample representing population of employees of HTI would be the target sample. A random sampling technique would be used to collect data from the respondents through structured questionnaire. Moreover Personal interviews would also be used to compliment the data collected through questionnaires.
The secondary resources have helped collecting valuable information. For example, the success of any company implementing an entrepreneurial organization can be reflected by the case of EnCana that has acquired competitive advantage by fostering an innovative culture at every level of organization through structure of entrepreneurial organization.
The immense significance of entrepreneurial organization can be succinctly explains by the following comment of Jack Welch, the legendary former CEO of GE, on entrepreneurial organization:
“To win we have to find the key to dramatic, sustained productivity growth… We have to turn in the nineties to the software of our companies, to the culture that drives them… We have to move from the incremental to radical, toward a fundamental revolution in our approach to productivity and to work itself–a revolution that must touch every single person in the organization every business day.”
Source: Jack Welch, speech, The Bay Area Council, San Francisco, California, September 2, 1989
In the article ‘Entrepreneurial learning’ by Harrison and Richard in one of the business journals, it is explained that entrepreneurial organization can foster organizational learning. Unlike authoritarian, hierarchical structures, entrepreneurial organization facilitates collaborative learning. The employees are more motivated that can result in continuous improvement
Such an organization is goal-oriented and has a greater strength to sustain competitive advantage.
Definition of the Problem
The organization clearly faces a problem in growing and increasing its market share due to the bureaucratic management style. At HTI a ‘military’ like organization structure exists where only a few executives influence the research, design, prototyping, production, and distribution of products. Moreover, lack of innovation in various departments such as Personnel management (HR) logistics and product development who are bound to follow the instructions of their executives are unable to pursue innovative strategies to acquire competitive advantage. Hence it is apparent that this is an immense obstacle for the growth of the organization.
Following is the relevant research question that would be addressed by the research study.
Question: Can entrepreneurial organization help HTI to increase its performance?
Based on the literature reviewed, it is predicted that there exist a significant positive relationship between the implementation of an entrepreneurial organization and organization effectiveness. The growth of an organization like HTI is only possible if it envisions itself a decentralized organization structure that facilitates innovation and nurture creativity. This would not only enable employees to be motivated and remain loyal to the organization but would also help organization to create and sustain a competitive advantage.
Purpose of the study
The purpose of this research study is accumulating adequate evidence that implementing entrepreneurial organization structure will help HTI to grow and increase its market share. This research study will substantiate the claim that a positive correlation exist between the performance of the organization and implementation of key entrepreneurial variables within the organization setup. It will help management at HTI to ensure that such business practices would lead their efforts to be more agile, speedy, creative and goal-oriented-enabling organization to sustain a competitive advantage and retain the leading position in the technology industry.
Entrepreneurial organization and its effectiveness is affected by a myriad set of variables.Following are the various variables that can be changed and individual responses may be recorded in order to conclude whether entrepreneurial elements help organizations to acquire competitive advantage.
- Freedom to grow
- Freedom to experiment
- personal responsibility
- value addition
Each item alone is an important predictor, but taken together, they could provide an important relationship between organizational effectiveness and elements of entrepreneurial organization.
Generation of hypotheses
The research study will test the sample results in order to accept or reject following hypotheses:
Hypothesis 1: Greater the Bureaucratic controls lower the innovativeness
Hypothesis 2: Greater the Bureaucratic controls lower the organization loyalty
Hypothesis 3: Greater the Empowerment greater the motivation of employees
Hypothesis 4: Greater the innovation, greater the Value-addition to a product
Hypothesis 5: Greater the autonomy, greater the organization loyalty
Hypothesis 6: Greater Entrepreneurial element, greater the productivity
This research study will reveal valuable insights about management practices. It will enable top management of the HTI to understand the significance of a decentralized organization. The organization would understand that valuing creativity and creative people would provide and help HTI to sustain competitive advantage. They would have sufficient evidence to believe that innovation would help them seize market opportunities that will bring prosperity to the organization
- Zikmund William G. (2002) Business Research Methods: South-Western College Pub
- The Sekaran (2003) Research Process & MGT600 Roadmap, © 2007, American InterContinental University-Online
- Maxwell, J. (1996) Qualitative Research Design. An Interactive Approach. Applied Social Research Methods Series