RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

106 RESPONSIBLE ENTREPRENEURSHIP
Behavioral approach of entrepreneurial competencies describes competencies as person’s
behavior and actions which correspond to the characteristics of competitiveness (Man et al.,
2002). Entrepreneurial competencies are defined as fundamental characteristics possessed by
a person that result in effective performance of business (Bird, 1995). This study defines
entrepreneurial competencies as, attitudinal and behavioral characteristic of owner/manager
which enables to accomplish and sustain the business success. Consequently, six competency
areas; opportunity, organizing, strategic, relationship, commitment and conceptual competencies
were considered as categorized by Man et al. (2002). Those competencies are supposed
to play different roles in process of firm’s EO.
Opportunity recognition and exploitation are considered as the focal concept of
entrepreneurship (Shane & Venkataraman, 2000). Opportunity competencies facilitate for scan
the environment and identify promising opportunities. Organizing competency is related to
the management of internal and external resources (Man et al., 2002). Strategic competencies
lead to be visionary; goal oriented, and set the direction for the firm in order to ensure
long-term performance of the firm. Relationship competency helps to interact with environment
to acquire and utilize the resources. An entrepreneur also needs to acquire strong commitment
competencies which providing the needed drive and initiative to sustain the efforts.
Conceptual competency is facilitating for understand the complex issues; thereby enhance
the decision making skills (Man et al., 2002).
The process of achieving competitiveness is strongly influenced by the key players or
entrepreneurs (Horne et al., 1992). Entrepreneurial competencies are important to catch the
innovative business opportunities and formulate strategies for new directions of the business
while imagining one or more realistic scenarios for competition (Chandler & Jansen, 1992).
Slevin and Covin (1995) suggested that competitiveness of firm is positively influenced by
founder who is responsible for business operations. Further, Miller (1983) explained that
owner/managers competencies facilitate to succeed difficulty for successful realization of firm’s
business strategies. Therefore, entrepreneurial competencies are important to meet the arising
challengers in tea industry and this study concerns the influence of entrepreneurial competencies
on EO of the firm.
Entrepreneurial orientation and innovation
Innovation is an essential component for sustained the success of business firm and it protects
both tangible and intangible assets against the erosion of market. Hult et al. (2004) defines
innovation as the capacity to introduce of some new process, product or idea in the firm. The
degree of newness can be used to distinguish the generation of innovation from its adoption
(Damanpour & Wischnevsky 2006). Operational definition of innovation concern in this study
is developing new product, process, or market or slight improvement of existing product, process,
or market.
Successful firm demonstrated more adaptability, and higher level of innovation and
entrepreneurial behavior under unstable conditions than their less successful counterparts in
the same industry (Miller & Friesen, 1983). Tajeddini (2010) found that higher level of EO
and innovation are associated with improved business performance. Further, Hult et al. (2004)
argued that EO as incremental process within the firm through which innovation results. Zhou
et al. (2005) found that EO positively affects breakthrough innovations which facilitates for
both technology and market base innovations.