THE IMPACT OF INNOVATION AND TECHNOLOGY ON ENTREPRENEURSHIP OF PROJECT -ORIENTED COMPANIES IN KERMANSHAH

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1 TE IMPACT OF INNOVATION AND TECNOLOGY ON ENTREPRENEURSIP OF PROJECT -ORIENTED COMPANIES IN KERMANSA Pegah Dezfouli Nezhad and Farshid Namamian *2 Department of Business management, college of umanities, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran. 2 Department of Business management, college of umanities, Kermanshah Branch, Islamic Azad University, Kermanshah, Iran. farshidnamamian@iauksh.ac.ir ABSTRACT Today, the most remarkable discrepancy of the actual world comparing to the past one is the speed of technological developments and innovations; seemingly, a direct effect has been created between technology development and economic and social progress in the country and employment and entrepreneurship with innovation development and production increase have been produced in the project-oriented companies. Therefore, the research studies the innovation and technology effect on the entrepreneurship in Kermanshah Province. Effects of innovation in productions and interactive invention, innovation in productions and supportive invention, construction and production technology with interactive invention, construction and production technology with supportive invention, interactive invention and stable competitive advantage, supportive invention and stable competitive advantage and whether there is a positive and significant effect between stable competitive advantage resulting from inventions and entrepreneurship or not are studied in the article. The research is carried out by survey method and the population includes all project-based construction companies in the province of Kermanshah which have been evaluated by questionnaire technique and spss, Amose software are used for data analysis. The results show that the modern technology and innovation has been effective on entrepreneurship and enhancement of the service quality along with saving costs and accelerating the affairs. KEYWORDS: innovation, technology, entrepreneurship, competitiveness INTRODUCTION Accelerated rate of technology change has profound effect on the society and life standards. As we go move toward the 2st century, the industrial revolution provides the path for technology revolution and innovation in the productions. Project-based small and medium sized enterprises have been known as the creation and usage of innovations and stimulating factor of the economic system in moving toward the knowledge-based economic system. The firm turns the attempts to the products and services by the help of new ideas entrepreneurs and they could have higher share in meeting customers needs due to their high flexibility in comparison with large Industries. Technology and innovation as scientific application of knowledge and experience in order to meet human s needs play a remarkable role in the economic and industrial development of the countries and to obtain the competitive advantage of the firms. Service or production provision or lower costs, higher quality or more speed are examples of short-term advantages of technology transfer process. On the other hand, enhancement of the competitive position of the project-oriented firm in the long-term depends on development of learning skills and innovation of the firm receiving the technology which requires focused and directed activities of the Research Centre and development for the localization of the transferred technology (Maleki Nejad, 2006). Statement Innovation is a skill with accompanies other cooperation and technological management requires vast range of abilities in the operational areas from research and development to financial marketing and each other traditional management activity. The technological management requires having an interdisciplinary approach as well as a support from various fields. owever, the mission of traditional management fields is how to dedicate the sources. The technological management isn t compelled to dedicate the sources whereas its objective is to achieve and dominate formation of technological variables effects on the business (Maleki Nejad, 2006). Considering available documentations, there is not required understanding of dynamisms of the technology development process in management and process terms in which the process approach is considered for the management of new Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 298

2 technology development (NTD). The process approach to the management of NTD projects is based on comprehensive and thorough view and it focuses on available Feedback processes in the project system (Mosayi et al., 200). The competition base in such industries is hidden in the field of innovation and solutions based on the technology development. Considering the competition necessities in the industries based on innovation in implementation of constructive affairs and specific conditions in the field of construction business in Iran, it seems previously submitted patterns and models by researchers will have necessary effectiveness and efficiency to explain competition phenomenon and competitive advantage in the level of project companies (SAREMI et al., 2009). In general, developing countries could take valuable lessons from successful experience of certain industrial countries and newly industrialized countries in the field of technology and industry development. The successful experience of such countries suggests thoroughness and vast transfer of proper and modern technologies into such countries could enable them increasing their productivity, as well as rapid industrial development of such countries. The project-oriented companies of Iran are not exceptional in this matter and they could use technology innovation for the implementation of their affairs along with flourishing the production and entrepreneurship. Research Objectives General Objectives Recognizing the impact of innovation and technology on entrepreneurship of Kermanshah Province project based companies Specific Objectives. Recognizing structures in innovation and technology impact on entrepreneurship of project-oriented companies in Kermanshah Province 2. Measuring the structures in innovation and technology impact on entrepreneurship of project-oriented companies in Kermanshah Province 3. Ranking the structures in innovation and technology impact on entrepreneurship of project-oriented companies in Kermanshah Province 4. Designing the optimum model and innovation and technology impact on entrepreneurship of project-oriented companies in Kermanshah Province Applied Objectives. Study the innovation effects in products by interactive and supportive invention 2. Case study of construction and production effects and acceptance of new products by interactive and supportive invention 3. Study the effects of stable competitive advantage resulting from inventions on entrepreneurship Research ypotheses Main ypothesis There is a positive and significant effect in innovation and technology effects on the entrepreneurship of the projectoriented companies. Secondary ypothesis - There is a positive and significant effect in innovation in productions and interactive inventions. 2- There is a positive and significant effect in innovation in productions and supportive inventions. 3- There is a positive and significant effect in construction and production technology with interactive inventions. 4- There is a positive and significant effect in construction and production technology with supportive inventions. 5- There is a positive and significant effect in interactive inventions and stable competitive advantage. 6- ere is a positive and significant effect in supportive inventions and stable competitive advantage. 7- There is a positive and significant effect in stable competitive advantage resulting from inventions and entrepreneurship. Research Background By the complexity of competitiveness, invention and innovation, there is an intense tendency to the employees proficiency and commitments as well as technology changes. Moreover, expansion of new capabilities will help to the Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 299

3 achievement to the higher performance. A country development and growth depends on the production capacity and its competitiveness in the global market and experiences of newly-developed countries have suggested the entrepreneurship is one way of getting out of underdevelopment. Therefore, it has been tried to review various books and articles which are effective patterns in innovative companies in the field of technology and they have worked in the field of entrepreneurship as well. A short summary of the above mentioned issues is provided blew: Table : List of Books in Research literature Summary and Results Study of the firms in the countries economic structure, identification of innovative activities, innovation stimulators and obstacles are being significant in entrepreneurial firms. Study the innovative obstacles and motivating factors for innovation in small industries of Iran have been stated. Articles of field research results is in the small industries of Iran and it studies instructive needs of Small Business owners in the field of entrepreneurship and their results are shown. Author and Year of Publication Mahmood, Ahmadpour Dariani 2008 Seyyed Mohammad Moghimi, Mahmoud Ahmad pour Dariani, 2008 Title Entrepreneurship, definitions, comments and Templates Entrepreneurship in Small and Medium Sized businesses of Iran: strategies and needs Row 2 The relationship between production quality and production innovation is described better through combination of mediating role of the innovation process. The production quality could affect indirectly the innovation performance of the production through the process innovation. Jalil, Samad Aghaei 200 Publication of Tehran University Entrepreneurship Center Creativity of entrepreneurship essence 3 Study innovation, definition and innovation measurement in services are two forms of interaction and support. The research argues the need of combined sources in project-oriented companies in which creation of superior value need is related to efficient and judicious provision of new solutions for dealing with customers. Sandeep Salank 203 Competitiveness through service innovation in: role of construction and production in projectoriented companies 4 Innovation is a key concept has turned to a global economy in the business world following fleeing of a crisis course and a business could be flourished by the use of new technology and innovation in order to be victorious in the competitive today market. Review of Literature and Research Necessity Project-oriented Small and Middle Sized Institutions: are commercial units which are located in the lower classification in comparison with large companies and they carry out team and project works. Classification of such institutions is generally conducted based on four components: - number of firm s employees, 2- total net assets of firms, 3- sale level of firms, 4- investment amount of firms. Most countries consider some firms with one to two hundred and fifty employees as a small or middle-sized firm and in case they are managed as a team or group, they are considered as project-oriented firms (Zadeh Vakili and Farzaneh Pour, 2006). Technology: according to Economists, technology means a knowledge being used in the field of production, trade, goods distribution and service providing which is obtained through combination of certain factors such as raw materials, tools, land and nature (5). Technology is defined as required knowledge and skills for production and service providing which is result of thought power and human knowledge as well as combination of available rules in the nature (Zadeh Vakili and Farzaneh Pour, 2006; Ghiyasi, Majdaldyn, 985). Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 300

4 Innovation: Innovation normally means every new products or phenomenon being created by human being. In the more precise meaning and in the field of management, a particular definition is given for Technology which is different from certain concepts such as creativity and invention. Shumpeter has highlighted stirring role of innovation in the production field. e considers innovation as establishment of innovative functions in production (Rezvani and Graily Nejad, 20). Interactive invention: is called to create direct value experienced by the customer (Sandeep Salunke et al., 203). Supportive invention: is called to create indirect value in the end (Sandeep Salunke et al., 203). Stable competitive advantage: has direct relationship with given values of the customers so that in a comparative range, the more supplied values of an organization is similar to the customers values, the more compatible it is. It is said the organization has superiority and advantage comparing to its rivals in terms of one or several competitive criteria. The most significant features of the stable competitive advantage are vulnerability and its value (Khodadad osseini, 2004). Entrepreneurship: Entrepreneurship is derived from a French word (Entrepreneur) meaning Commitment. Joseph Shumpeter considers an entrepreneur as the main stimulating forces of the economic development and he states: the role of the entrepreneurship is innovation. Kersner, professor of NY University describes Entrepreneurship as creation of mutual compatibility and harmony in the works and operations of markets (Ahmed Pour Dariani, 2008). Innovation in productions and services and interactive inventions: using new tools, systems, programs, policies, processes, productions or services created in the company or purchased out of the company which are suitable for compatibility and adaptation of the company with new productions and implementation and interactive invention leads to creation of direct value experienced by the customer and innovation directly affect the purchase. Technical innovation is highly effective on the operational innovation (Rezai Dowlatabadi et al., 202). Innovation in production, services and supportive invention: supportive invention refers to the indirect creation of the value at the end of the job and innovation in the job implementation is effective on employment and customers purchases without being directly touched. Therefore, source supply and creation of new values are inherent components of service innovation process (Sandeep Salunke et al., 203). Technology of construction and acceptance of new production in interactive inventions: includes the technology related to tool making, designing, metal forming, building lightening such as pre-built walls, new architectural designs and which is directly used in the Construction Products, entrepreneurial project-oriented companies apply construction and production attitude in their attempt toward offering better value to their customers (Sandeep Salunke et al., 203). Technology of construction, production and acceptance of new production in supportive invention: is assurance of proper quality of consumer raw materials as well as construction process and implementation of constructive affairs. For this purpose, companies have upgraded their products quality by the use of modern industrial equipment and experienced observers. Supplying new productions which are in harmony with customers needs and interests as well as paying specific attention to qualitative upgrade and localization based on Iranian architecture and culture and they create indirect value in work implementation (Ahmed Pour Dariani, 2008) and (Sandeep Salunke et al., 203). Interactive invention and stable competitive advantage: direct and evident effects on the competitive advantage is a type of advantage that its origin has been evident sources which are seen as physical data such as materials, equipment and ; an example of evident advantage could be investing on constructive materials. On the other hand, an entrepreneur is responsible for balancing the market against balance distracting factors. The entrepreneur could offer his satisfactory entrepreneurial ideas to the market (Saremi et al., 2009). Supportive invention and stable competitive advantage: the policy of construction companies are based on the fact that engineers could spend their time on their own projects as well as assisting in innovation of company production. Replacement and attraction of in unobvious advantage is much more difficult than evident advantage. Most likely the unobvious advantage is derived from features, characterizations and company capabilities which are vague and complicated. Stable competitive advantage resulting from inventions and entrepreneurship: is considered as project-oriented construction firms in this research that the entrepreneurship is looking for innovation based on improvement of competitive strategy and construction and production development and strategic capability of source combination for opportunities exploitation as well as creation of unique value leading to higher levels of service innovation in the competitive market. Moreover, key objective of the prosperous businesses is to create new knowledge to create and maintain a competitive advantage (Begner, 2006). Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 30

5 Conceptual Model In today situation, due to rapid changes of technology and innovation in company productions, companies must venture their own abilities to identify new opportunities and to respond to them immediately in order to adapt them with the market opportunities so that flexibility in the recent years has been highly considered as the source of competitive advantage in the productions. Innovation in productions and services Technology Construction, manufacturing and acceptance of new productions 4 Innovative invention Creation of experienced direct value Supportive invention Creation of indirect value in the end of the work Invention in productions and services Stable competitive advantage resulting from inventions 7 Entrepreneurs hip Figure : Conceptual Model (Sandeep Salunke et al., 203). The research objective is to study the process and strategy of innovation and technology theories and effects of the competitive advantage resulting from the inventions which lead to entrepreneurship creation in the construction companies of Kermanshah province. The impact of innovation and execution of civil and construction is studied and the above conceptual model was submitted for this purpose. MATERIALS AND METODS In the present research, the relationship between innovation and technology on the entrepreneurship of project-oriented companies in Kermanshah is studied. Accordingly, a questionnaire will be prepared. The research is applied in terms of the objective and it s a survey in terms of data collection in which the relationship between available variables is described by the use of the correlation test. Data Analysis Descriptive Analysis Following descriptive statistics related to the work experience of the project participants, work experience of the participants display 5.6 % of the respondents have more than 0 years of experience, 23.9% of them hold less than 0 years of experience, 23.4 % of them less than 5 years, 24.9% of them with less than 3 years of experience and only 2.2 % of the participants has less than one year of experience, respectively. The descriptive statistics related to the participants gender show 85.4% of the participants are men and only 4.6% of them are women, respectively. About the participants education, it is showed 5.4% of them hold diploma, 5. of them with associate degree, 57. % bachelor degree and 22.4 % of them hold Master degree or higher degrees, respectively. RESULTS AND DISCUSSION Inferential Statistics After fitting the model into the research data, study of technology and innovation effect on the entrepreneurship, correlation coefficient, model determination coefficient, Fisher statistics, Durbin-Watson statistics and level of significance have been obtained. Based on the obtained values for the correlation coefficient which is equal to Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 302

6 0.666, it shows there is a linear relationship equaling between innovation, technology and entrepreneurship factors and the obtained determination coefficient which is equal to shows suitable estimation potential of the model. Study the of innovation relationship in productions and interactive inventions based on the obtained values for the correlation coefficient which is equal to indicates there is a linear relationship (0.582) between innovation in products and interactive invention and the obtained determination coefficient equaling to shows suitable estimation potential of the model. Study the of relationship between innovation in productions and supportive inventions, the correlation coefficient which is equal to indicates there is a linear relationship (0.547) between innovation in products and supportive invention and the obtained determination coefficient equaling to shows suitable estimation potential of the model. Study the of relationship between technology of construction and manufacturing and acceptance of new productions and interactive inventions, the correlation coefficient which is equal to indicates there is a linear relationship (0.556) between technology of construction and manufacturing and acceptance of new productions and interactive inventions and the obtained determination coefficient equaling to shows suitable estimation potential of the model. Study the of relationship between innovation in productions and supportive inventions, the correlation coefficient which is equal to indicates there is a linear relationship (0.540) between innovation in products and supportive invention and the obtained determination coefficient equaling to 0.29 shows suitable estimation potential of the model. Study the of relationship between interactive inventions and stable competitive advantage resulting from the inventions, the correlation coefficient which is equal to indicates there is a linear relationship (0.529) between interactive invention and stable competitive advantage resulting from the inventions and the obtained determination coefficient equaling to shows suitable estimation potential of the model. Study the of relationship between supportive inventions and stable competitive advantage resulting from the inventions, the correlation coefficient which is equal to indicates there is a linear relationship (0.639) between supportive invention and stable competitive advantage resulting from the inventions and the obtained determination coefficient equaling to shows suitable estimation potential of the model. Study the of relationship between stable competitive advantage resulting from the inventions and entrepreneurship, the correlation coefficient which is equal to 0.60 indicates there is a linear relationship (0.60) between stable competitive advantage resulting from the inventions and entrepreneurship and the obtained determination coefficient equaling to shows suitable estimation potential of the model. According to the regression coefficients obtained, it can be argued there is a positive relationship between hypotheses. Table 2: Regression to study the relationship between the dependent and independent variables R R a.547 a.556 a.540 a.529 a.639 a.60 a Durbin- Watson Statistics Level of significance.000 F Value Average of squares Degree of freedom 5 Sum of squares Source of changes Regression of the main Regression of st Regression of 2 nd Regression of 3 rd Regression of 4 th Regression of 5 th Regression of 6 th Regression of 7 th Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 303

7 Structural equation modeling for the effect of innovation and technology variable on entrepreneurship of project oriented companies In the diagram below, the relationship between the variables and the effect of each model variables are shown in the status where the data are non-standard. Figure 2: Structural Equation Modeling CONCLUSIONS Today, the small companies play a remarkable role in the modern economy. The entrepreneurship as a stimulating engine of economic and social development plays an essential role in the process of society s development. Small businesses are the best way for entrepreneurial activities and it is needed business owners and employees have entrepreneurial skills and abilities. Considering human capital role entrepreneurship in the development of various societies and the entrepreneurs needs to obtaining knowledge, attitude and entrepreneurial skills, the required solutions have been offered to improve the entrepreneurial status of the small businesses (Moghimi and Ahmadpoor Dariani, 2008). Innovation in the entrepreneurial processes focuses on values guidance and changes creation through innovation in the productions. The service innovation includes strategic changes made by value chain. On the one hand, the company s position depends more on customer orientation and customers feedback in the innovation process. Additionally, it depends on meeting the customers needs focusing on creation of innovation and modern technology. It has been attempted to study certain opportunities regarding role of the innovation and technology on the entrepreneurship and the most significant theories and researches related to the innovation and its effective factors by the focus on the constructive project-oriented entrepreneurial companies are discussed here and the impact of the innovation in the productions and implementation and technology improvement are considered effective on entrepreneurship. REFERENCES Ahmed Pour Dariani Mahmoud. (2008). Jajarmi publisher, entrepreneur, definitions, ideas and patterns, Eighth Edition. Begner William. (2006). Corporate ventures and knowledge. In Michael itt &Duane Ireland, Entrepreneurship, Victoria: Blackwell Publishing. Ghiyasi Majdaldyn (985). Technology and Development, the Ministry of Planning and Budget, Department of Economic Affairs, Office of International Economics. Khodadad osseini Seyed amid., Mehri. A. (2004). Model for Competitive Advantage. Volume- 4 Issue- 2 (205) ISSN: (p); (e) 205 DAMA International. All rights reserved. 304

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