Investigate the Impact of Entrepreneurial Orientation and Entrepreneurial Management on the Organizational Performance of Insurance Companies

Author Name(s): Zohreh Javan Khoshamal, Maryam Golriz
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Abstract

According to the position of innovation and entrepreneurship in the provided services by insurance companies, in this article, attempts have been made that the impact of entrepreneurship orientation and entrepreneurial management on the organizational performance of insurance companies is investigated. According to the mentioned subjects, the main question in this study can be stated as follows: How much is “to what extent is the impact of entrepreneurship orientation and entrepreneurial management on the organizational performance of insurance companies?” Statistical population of the research is included experts and senior managers of branch offices of Mellat insurance in Tehran. In this study, a closed questionnaire with 33 questions was used to collect field data. Results of evaluation of research hypotheses were confirmation all of them and indicate the impact of entrepreneurship orientation and entrepreneurial management on the organizational performance of insurance companies

Keywords

entrepreneurial orientation, entrepreneurial management, organizational performance.

Introduction

Due to rapid changes in business world, competition among businesses has been also increased, and the necessity of the use of strategies is felt to improve the performance inside and outside the organization for any organization. Knowledge-based business environment of modern world is required an approach that the new organizational intangible assets have been also included Such as knowledge and competence of human resources, innovation, organizational structure and so on [1].

In today’s world stability in the workforce has been replaced by instability and uncertainty, and old and traditional industries has also replaced by new ones and developed. The future belongs to businesses that has been recognized unstable conditions of modern markets, and ahead of competitors, is responsive to the changing needs of customers. Operation speed in responding is required the existence of flexible structures and proper context for innovation in products and processes. In this regard, the existence of entrepreneurial attitudes in organizations and their proper management is the underlying an appropriate context for innovation in organizations. The existence of innovation in organizations has been effective in improving process efficiency, and ultimately is provided for organizations reduce costs and provide performance improvement [2].

Entrepreneurship is noticeable topic twenty-first century organizations, and is often recognized as a way to achieve higher levels of organizational performance. Without having entrepreneurial mindset and action to it, organizations in the world today do not have the ability to achieve higher levels of success. Corporate entrepreneurship organizational commitment in achieving is referred to new opportunities. In the other words, organizational entrepreneurship is not limited to investing in new products, and is referred to a comprehensive approach to innovation strategies and the willingness of all internal processes [3].

In this regard, entrepreneurial orientation of organizations can be considered as their desire to achieve the benefits of new opportunities and commitment to ideas and innovation and deployment of changes to maximize the efficiency of existing processes, and innovation-oriented is a factor that has a high impact on the organizational entrepreneurship. In the other words, willingness to provide and support of new ideas has been led to the creativity in process that this issue ultimately will be the ground for presenting new products and services [3]. This issue is more important in the service and insurance organizations, and these organizations in order to improve their performance have been required to provide innovative services that are not dropped behind in the competition with competitors.

According to rapid changes in the business environment, companies for a long time are not able to maintain its market position, and are required improving their performance through the use of mechanisms such as entrepreneurship and innovation. Entrepreneurship in the organizational processes is required innovation and reasonable structure in organizations, and the appropriate structure would be to promote entrepreneurship and performance improvement of organizations. In order to benefit of the benefits of entrepreneurship, organizations and institutions such as insurance companies should pay more attention on the management of this process, and has been strengthened entrepreneurial orientation in their company that eventually can be seen improve the performance and profitability [2].

According to the position of innovation and entrepreneurship in the services provided by insurance companies, in this study, has been tried that the impact of management and entrepreneurial orientation on the organizational performance of insurance companies has been investigated, and the impact of these factors are identified and evaluated.

Conclusion

According to research findings, is determined that among the affecting variables on organizational performance, entrepreneurship Management has a higher impact, and then has been entrepreneurial orientation. This means that with a focus on efficient management and administration of the entrepreneurship in organization and focus on present and future needs of employees can be seen higher levels of organizational performance. Morales et al. [10] in research findings, also have achieved to similar results, have been emphasized on the impact of organizational entrepreneurship on organizational performance. Also Hejazi and Hosseini Moghaddam [13] have emphasized interaction of entrepreneurial orientation on the performance of banks, and have known mutual the relationship among agents.

Also results of this study suggest that among the affecting factors on the entrepreneurial management, centered strategy factor has been more effective that this subject is showed the necessity of more attention to the developed strategy in the organization and commitment to its implementation. Also among the affecting factors on the on the entrepreneurial management Factor, innovation has been more effective than other variables. Also Lee et al [11] have been mentioned in their findings to the relationship between innovation, entrepreneurship and performance, have been approved And the relationship between these factors.

Based on these tests, the following suggestions are proposed:

1: Due to the significant role of entrepreneurial orientation on organizational performance can be offered to the insurance company that mechanisms have been used toward strengthening In order to strengthen the entrepreneurial intention in company (Such as providing material incentives to the personnel providing of new ideas) that is benefited the benefits of improving of organizational performance.

2: pay attention to high impact entrepreneurial management on organizational performance can be offered to the organizations to improve their of organizational performance in order to improve the performance of your organization pay special attention to the entrepreneurial management in the organization through classification of new ideas their refining and attract them in order to improve the services provided by the organization.

3) Considering the existence of relative impact of entrepreneurial culture on the entrepreneurial management, can be said that organizations and companies that are looking to promote their entrepreneurial level in their organization should be considered first of all, culture and organizational norms incentive entrepreneurship, and are applied active control over them.

4::Based on the effect of reward philosophy on entrepreneurial management, can be suggested to managers and custodians of organizations on the compensation ideas presented by their human resources (as the most important asset of the organization) pay attention more and utilize of supportive strategies such as financial rewards and offer travel packages to their entrepreneurial employees.

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