RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

104 RESPONSIBLE ENTREPRENEURSHIP
competing in global and domestic market (Hitt et al., 2001). Hamel (2000) argues that innovation
is the most important component of firm’s strategy. Further, findings of Robert (1999)
show relationship between high innovation and superior performance.
As emphasized in literature, there are several factors influenced on firm’s performance to
different extent. Competitiveness is the concept often related to long-term performance of
firms and economies (Man et al., 2002). Improving firm competitiveness not only benefits
the firm itself, also direct impact on the competitiveness of an industry (Sirikrai & Tang, 2006).
Competitiveness can be defined as the ability to increase market share, profit and growth in
value-added to stay competitive for a long duration.
To promote the competitiveness of tea manufacturing firms in developing countries like
Sri Lanka it is important to conduct theoretical and empirical research on the factors promoting
competitiveness of tea manufacturing firm’s that shows integrate framework of both internal
and external factors. According to the literature, this study argues that external relationships,
owner / managers competencies, EO and innovation affect the business performance of tea
manufacturing firms.
This study aims to explore the factors promoting competiveness in tea manufacturing firms
by studying the several tea manufacturing firms located in tea low grown areas in Sri Lanka.
It is decided to start the analysis of cases by emphasizing the key role of each factor (external
and internal factors) in promoting competitiveness of tea manufacturing firms. Therefore,
specific objectives of this chapter are as follows:
– To understand how external and internal factors such as external relationships,
entrepreneurial competencies, entrepreneurial orientation and innovation enhancing the competitiveness
of tea manufacturing firms.
– To explain the relevance of using each variable to overcome the current problems faced
by tea manufacturing firms.
– To develop theoretical model of the factors promoting competitiveness in tea manufacturing
firms form the empirical cases of low country tea manufacturing firms.
The model will be developed in two steps. First by appraising the existing literature, a
preliminary model of the factors promoting competitiveness in tea manufacturing firm will
be developed. Then, the principle model will be evaluated by using comparative case study
methodology with experiences of six tea manufacturing firms that have engaged in developing
their factors promoting competitiveness. By that attempt to develop a clear and more empirically
grounded theoretical model.
Theoretical background and conceptual framework
Importance of entrepreneurial orientation
Many scholars argue that entrepreneurial behavior is crucial for firms to prosper in competitive
environment (e. g. Miller, 1983; Lumpkin & Dess, 1996) and economic prosperity
of the nation. EO stands for key entrepreneurial processes that answer the question of how
business is undertaken. In this manner, EO contributes to higher performance by facilitating
a firm to identify innovative opportunities with potentially large returns and obtain first mover
advantage (Lumpkin & Dess, 1996). It is grounded in strategic choice point of view and considers
the “intension and actions of key players functioning in a dynamic generative process”