1. INTRODUCTION
Innovation is essential to the success of a firm in today's business environment. "Innovation is the lifeblood of the modern economy" (Bridgman, 2001, p.1). Firms must continue to become more and more adaptive and responsive to today's ever changing business environment if they are going to succeed.
The purpose of this report is to "explain how an entrepreneur can build an adaptive firm that balances entrepreneurial characteristics with managerial style." By researching a number of entrepreneurial texts discussions have been made on how this balance can be best achieved.
This report begins by explaining the great importance of innovation and change, and also the great importance of effective management. The many differences and similarities between entrepreneurs and managers are outlined and discussed. Various ways which change and innovation can be managed successfully while maintaining an adaptive and change responsive firm are then explored. These include the use of Lewin's three phases of planned organisational change, the importance of realising resistance to change and the reasons for resistance, and finally the significance of using flexible leadership styles in different situations. Conclusions are then drawn from these observations and discussions and are followed with a number of recommendations.
2. DISSCUSIONS
2.1 THE NEED FOR INNOVATION
The business environment that we operate in today is one of great uncertainty and continuous change. Over the past few decades New Zealand organisations have seen numerous and major advances in such areas as globalisation of business, technology, legislation and probab ...