The Role Of The Entrepreneurial Organisations


In this competitive world, it is important for any organization to be more entrepreneurial to face the challenges of rapid technological progress ,intensifying global competition ,corporate downsizing and delayering, and other factors, without which a firm cannot survive or prosper

The aim of this essay is to enhance the understanding of entrepreneurial organizations in terms of its functions , features ,strategies and how it stands out from other organizations with a particular focus on a case study. Before getting into the topic we will see the definition for an entrepreneurial organization.

"An entrepreneurial organization is one that is concerned with growth, is proactive than reactive, customer focused, can assess the risk involved in the venture and then take risks that is likely to bring sustained growth and market share, is prepared to tolerate failure, lastly, has large number of employees who share the vision and believe in the organization".(cartwright, 2002 e-book)


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What constitutes an entrepreneurial organization?

According to (cole, 1965;kilby,1971;vesper,1980) human and financial capital ,property(real estate ,equipment, raw material,)and credit form the building block for most organizations(scottshane,2002).

Though these are the fundamental requirement for any entrepreneurial organization, "Entrepreneurship begins with people -they are the heart and soul of any enterprise . There are no entrepreneurial organizations without entrepreneurial employees"( Morris, Kuratko , Covin ,2008 pg:164)

Before discussing further about this topic we will see the EU definition for small , medium and macro enterprise. On 6 May 2003, the European Commission adopted a new recommendation in order to take account of economic developments since 1996. It entered into force on 1 January 2005 and will apply to all the policies, programmes and measures that the Commission operates for SMEs.

Source :European Commission

Further to the topic we will first examine the set up of the large organisations.

Principal share holders directors & some top managers share responsibility for managing risk and uncertainty.

Planning and innovation is a function which the chief executive may share with working directors,vice presidents or persons specializing in research in engineering , new products, markets etc

In large organizations innovation is very crucial not only for the single top executive but also on the work of technical planning and research staffs.

There are many specialists involved in administration and control such as division managers,the comptroller, cost control, quality control, production planning and scheduling and many other specialized activities

Lastly,there are supervisors who have responsibilities of directing the work of the clerical and manual labour forces.

The small and medium enterprise by and large performs the same functions as large organisations but they vary in the amount and type of managerial resources required .

The main share holder of the company may be two members of the family who assumes the risk bearing, planning, administration and control functions.

A supervisor who manages the work force of the company.

But, when a small firm grows it is essential to hire professional managers, and experts who can take over the administrative and control functions.

Source : The quarterly journal of economics ( harbison, 1956 ,pg:366,367)


How they develop their strategies and use their resources?

"A strategy at its essence , attempts to capture where the firm wants to go and how it plans to get there" (Morris, Kuratko , Covin ,2008, pg:188)

Entrepreneurial strategy is defined "as a vision -directed, organization-wide reliance on entrepreneurial behavior that purposefully and continuously rejuvenates the organization and shapes the scope of its operations through the recognition and exploitation of entrepreneurial opportunity"( Morris, Kuratko , Covin ,2008, pg:194)

Various definitions and classifications of resources have been proposed in the literature. Some of definitions are briefly described here,

• A number of authors divide resources into homogeneous classes, such as, financial

resources, physical resources (plant, machine,equipment, etc.), human resources, technological

resources, reputation, and organizational resources (e.g., control management system,

organisational climate, internal relationships)(e.g., Grant, 1991; Azzone et al., 1996).

• Others classify resources as tangible, such as human, financial or physical resources, and

intangible, such as reputation, organisation, know-how or patents (e.g., Hall, 1992; Zahara

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and Das, 1993; Collis and Montgomery, 1995).

Source: Small Business Economics (Rangone, 1989, pg:234)

We are choosing a live case study in order to explain how an organization develops its strategies, use its resources and why they are particularly important in today's economy. More emphasis is on innovativeness, risk taking qualities and opportunities recognition, since these are the main factors for any entrepreneurial organizations to develop their strategies.

TRITECH INTERNATIONAL LTD: A living example of product innovation and market success


"The greatest risk to a company is not to take a risk" Richard Marsh (2003).

Richard Marsh the owner of tritech international ltd was born in 1944 the son of a research physicist at Cambridge University. Established in 1991, Tritech International Limited (headqurtered in aberdeen UK) began with the aim of producing the finest, most innovative range of subsea products for the offshore oil & gas industry, military and other world-wide subsea markets.

The most successful strategy in marsh's case is that he started with a market need and found the technology and the product to fill it. This shows the innovativeness in his approach and his risk taking qualities as an entrepreneur where most of the organizations start with a technology and find difficulties in establishing a potential market in which this technology can compete.


Tritech recruited staff with the requisite technical knowledge from different backgrounds and a 'can-do' attitude to problem solving as a specific strategy to enhance organizational capability.

Unlike other organizations, Tritech developed a hierarchy free structure, with salary the only factor distinguishing employee performance with constant encouragement for the organization to embrace risk.

Tritech's commitment to innovation and market up gradation is evident, with the launch of several new products into the marketplace.

Tritech has a culture that is deeply committed to investing in its people and ensuring continuous improvement. This culture extends to its attitude and approach to learning and development and ability to adapt products to customer expectations in emerging markets.


Tritech recognized that to remain an industry leader, it must be able to optimize all engineering, design and production resources to maintain its market leading innovations. To accomplish this, Tritech has formed market specialist roles for key staff, to develop strategies for Tritech to capitalize on its technical expertise.

Technology is treated as a commodity to be found upon demand to suit the market need.

A strong management team has developed a climate where all employees feel involved and empowered to develop and improve themselves.

Tritech used their engineers to work with customers, refining products, performing training and writing technical manuals designed to help customers utilize products.

Tritech have no in-house R&D.They utilized external technology development sources to embrace many different technologies, e.g. acoustics, lasers, hydraulics, video. This has enabled Tritech to focus internal resources on customers and their needs and searching externally for suitable technologies to fulfill them.


2000-Tritech achieved the Royal Society of Edinburgh's Millennium Award

2001-Tritech was awarded another prestigious Queen's Award, for Innovation

2006-Tritech became part of Halma p.l.c., a global group, operating within three specialized business sectors; Health and Analysis, Infrastructure Sensors and Industrial Safety. Tritech Aberdeen and ST Ulverston merge during Tritech's acquisition by Halma p.l.c, in November 2006

2010-In March 2010 Tritech was shortlisted for the industry acclaimed Scottish Offshore Achievement Awards (SOAAs) in the category of The Innovator.

From their achievements , we can say that entrepreneurial organizations are not mere business creation, but their motivation to excel, potential to identify opportunities, risk taking characteristics, Innovation in every aspect and their tenacity to push an idea to reality combines into a special perspective that differentiate them from other types of organizations

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From the above case study we can conclude that entrepreneurial organizations possess a logical thinking processes to match the scientific world with the ability to learn and improvise which so often a critical feature of the entrepreneurial venture in the face of ever changing technologies and external market conditions.

All these factors contribute to the economic growth of the society and continuously prove that entrepreneurial organizations are crucial in today's economic growth.