Success Factors for Business Growth

Success F boutors for Business GrowthThe purpose of this musical composition is to look for and identify the decisive conquest reckons adjoind to egress of the giving medications in nowadayss changeable bank line line environs. The investigate is exploratory and descriptive in nature. Initially, an overview of the importance of identifying the decisive victory factors in organizational dodging for process is given. Later on the concept is delineated to the importance of institution in the organizational strategy as the close to revolutionary factor to gain the agonistic profit in domestic and international platform. The power of leaders in the growth prospects through fostering grounding and especially kind instauration is explored from the lit. The paper also gives guidelines for advance research by identifying the research gaps.Globalization and its personal effects on melodic line and solicitude had led the academics to acknowledge the importance of inte ntion and its in-chief(postnominal) post in the growth and pargonntability of an organization (Gupta et al. 1986). Critical victor factors are defined as the key performance areas which are crucial for the operation of organizational goals. With the arrival of world(prenominal)ization both techno- globalisation (Henderson Clark 1990) and social globalization (ILO 2008) the need for cosmos as a major elflike advantage factor is obligatory to build and maintain combative advantage. Different types of presentation (product, service, and business fiber, social) are found to be tightly integrated with the direction light up- precaution. Several issues cerebrate to progressive strategies visualiseing growth of an organization are discussed in the literature review.Overview of the LiteratureThe foremost purpose of any organization whether it is macro or small, local or international, profit or no-profit, is to meet the necessarily of its customers, employees, pa uselyners or alliances, shareholders and the communities that are going to benefit from its business. To successfully accomplish the predefined objectives a company designs a strategy which reflects the mission and vision of the organization. Tasks from top to female genitalia level of the organization are such divided and assigned so as to ensure the alignment of the whole organizational functions towards a parkland goal to be met within certain time limits. Strategy leads to the acquaintance of certain key factors that are immensely required for the completement of the goals and without acting well in those key factors the success of the organization seems doomed. These factors are called the critical success factors. These CSFs are often completely under consideration of the top counseling but not often unequivocally communicated to the layers of commission. Once communicated these factors military service the whole organization to be well integrated and aligned towards th e achievement of the common organizational goals (Caralli 2004).Critical Success FactorsStudies on the critical success factors originated from the studies by Daniel (1961) as the definitive factor that must be united with the organizational goals in order to facilitate organizational administration and solicitude control. Research showed that with the evolution of information technology the organizations were confronted with a information final solution and even after having so much information the top management was unable to filter the right information needed to make important decisions (Dobbins Donnelley 1998). Rockhart (1979) worked with his team to counter with the problem of continuous information f emit in the organizations and suggested the CSF approach to filter the most appropriate and useful information in order to achieve organizational goals. Primarily focus was made on the information needs of the executives in the IT world but later on the significance of CSFs i n other business sectors give care Federal governance program management (Dobbins 1998), Enterprise resourcefulness planning (Jang, Lin and Pan 2009, Ngai, natural law and Wat 2008), manufacturing (Sherer, Susan 2003, Burns,Turnipseed and Riggs 1991), International projects (Freedman Katz 2007, Eid, Trueman and Ahmed 2002) and Education Industry (Huotari Wilson 2001, Mazzarol 1998) was also certified by variant studies.Rockart (1981) defined 5-specific sources of CSFs as the intentness, organizational peers, organizational environment, barriers/challenges for the organization and managerial hierarchy. Moreover, the dimensions of CSFs are internal/external and monitoring/adapting. The internal CSFs are those which are controllable by the managers while the external 1s are uncontrollable as they are influenced by the external forces working in the organizational surroundings. Moreover, monitoring CSFs relate to the factors needed to be scrutinized for the regulatory objective s of the organization whereof the adaptive CSFs are link to the changes reachring in the world outside the boundaries of the organization and are olibanum utilise by the organizations to keep their competitive edge over the other organizations in the industry.CSFs, Globalization and organizational strategiesRapid changes occurring in the technological world and burgeoning global competition has alarmed the firms to identify and imbed their critical success factors for the packaging and sustainability of growth. (Caralli 2004). Business world today is confronted by doubled effects of globalization. The techno-globalization is related to the advancements in the information technology which organizations open to adapt to be in the race of competition (Henderson Clark 1990) where of the social globalization is concerned with the impact of globalization on the lives of individuals and their families and which must be taken in measure originally doing businesses internationally (ILO 2008). According to Rockart (1979) the major advantage gained by working on these factors is enhanced communication among the hierarchal levels of management. Among some other benefits of inculcating the CSFs in the organizational strategy is less(prenominal) organizational ambiguity, dynamic nature for reflecting the ongoing working(a) activities, improved risk-management practices and realignment of the organizational activities when contradiction between visualized and real problems occur (Caralli 2004). The critical success factors are innate for organizations start-up phase (Boyer, Creech Paas 2008) and growth (Freedman Katz 2007) to give a competitive advantage over its competitors.Further studies argued on the earthly concern specificity of the critical success factors as they differ from organization to organization (Anthony et.al 1972). The critical success factors for growth of an organization are dependant upon the environment and industry in which it operates. Extensive research is being done in this regard such as the CSFs that are crucial in Enterprise resource planning are top management support and training and program line (Ngai, Law Wat 2008). In international business and coopetition strategies the strongest CSFs are found to be management leadership and trust ontogeny (Chin, Chan Lam 2008) and those of environmental and social enterprises are leadership, partnerships, renewing, social and economical benefits alignment, long-term short-term planning management , community involvement and risk management (Boyer, Creech Paas 2008). In Strategic management however a great deal of change in define the critical success factors is seen since 1990s. With the advent information technology and gust of globalization the organizations need to modify their mission statements in regard of organizational business strategy (Strong 197), stake holders (internal and external) concerns (Greenley Foxall 1996) and identifying the critical s uccess strategies (Strong 1997, Gupta et al. 1986). The ultimate goal of an organization has been to attract and retain its customers (En sensitive and Binks 1996) but today the focus of organizations is having a dual nature of being environmental and societal friendly also to sustain their image and growth in global industry (David 1989, Strong 1997). foot-an essential growth imperativeThe revolutionary change in the global competitive world has introduced Innovation and quality as the most essential success factors to become marketplace leader (Gupta et al. 1986). Innovation is defined as the act of doing something new (new method) or bringing in something novel (new product/ service) or moving into something new (new market) (Schumpeter 1968).The burgeoning need for the adoption and implementation of groundbreaking strategies for local and international business is thus the most recent and essential part of academic research on business and management strategies (Jeffery Rana 2008, Haapaniemi Seppanan 2008, Pittaway et.al 2004). The drivers for innovation are categorized as accelerating global competition, technological advancement, turbulent and alter market needs and volatility of natural resources (Kingsland 2007).Innovations are of different kinds like technological innovations (Henderson Clark 1990), Business model innovations (SAP 2008) and bring in different competitive effects on the organizations. The business model innovations are radical in nature whereof those related to new customer solutions/systems are incremental (Kearney 2008). The organizations of today are focusing more on the business model innovations for its broader boldness of effectiveness throughout the organizational structure.Key factors for innovation strategiesThe business model innovations are typically classified into customer-centric innovations, supply-chain centric innovations and organizational process innovation (SAP 2008). Innovation is considered to be collective and not individual or separate in nature. Any idea needs collaboration and collective childbed both from internal stakeholders and external stakeholders for the realization of that idea (Majahan Peterson 1985, Panzano Roth 2006, Kearney 2008).NetworkingResearch from some(prenominal) studies on innovation and importance of taking the external stakeholders (suppliers) in account specifically for organizations growth sustainability through innovation has defined the importance of networking (Sherer 2003, Pittaway et.al 2004). The literature about innovation is also intimately connected to the risk management because introducing any novelty is itself a risky job (Panzano Roth 2006). Through networking the benefits of innovation can be doubled as it fosters risk sharing thus increasing the risk propensity of the organizations in contact (Pittaway et.al 2004). Other than networking one of the most important factors influencing the development of innovative culture in the organizati ons to have a competitive edge in the global market is the role of leaders (Freedman Katz 2007, Morales, Reche Torres 2008, Fairholm 2009).Role of LeadershipStudies from the leadership literature proves the important role of top-management in enhancing the organizational learning and thus supporting the innovativeness in the organization. The strategic thinking of leaders links the implicit knowledge of organization with its functionality by explicitly disseminating it to the layers of management and improves organizational learning (Appelbaum, Pierre Glavas 1998, Vera Crossan 2004, Fairholm 2009). Transformational leadership is a relatively new style in the literature of leadership. It is related to a more change-oriented attribute of the leaders thus fostering and encouraging new changes in the organization which in turn motivates the employees to be more innovative and increasing organizational performance (Morales, Reche Torres 2008). The CEOs are considered to be the champ ions of making innovation and sustainability of any organization in the global market by making ways through open-innovation (involving people in innovative strategies) and co-creation (involving stakeholders and partners)(Kearney 2008).Sustainability and innovationInnovation has greatest effects on the sustainability of an organization. Sustainability is defined as the tendency to fulfill both functional and emotional needs of the customers in a less resourceful and more competitive environment. Organizations which take into account the sustainability as their business strategy are the ones that outperform in the global world (Kearney 2008). For this they dont and have to focus on making profits by crack product or service innovations rather they would have to focus on social innovations (well-being of society) as well (Simmon Eduardo 2008).The Business and Management world has benefited by introducing innovations in their products, services and business models and will continue to keep up the competitive advantage only if they keep on bringing or doing something new.ConclusionInnovation has been globally accepted as one of the most important success factor in the sustainability of the organizations (Jeffery Rana 2008, Haapaniemi Seppanan 2008, Pittaway et.al 2004). The most important role regarding introducing, communicating and networking the innovation among the organization and its stakeholders is that of top-management (Appelbaum, Pierre Glavas 1998, Vera Crossan 2004, Fairholm 2009). The leaders are thus required to increase research efficiency, encourage open innovation, and accent more on sustainability and social innovation by delievering benefits on low cost and use a more structured approach to innovation and technology platforms. Moreover, with the increased competition and uncertainty in the global market the CEOs should be passionate for innovative strategies, set clear expectations and use brand-imprint methodological analysis (pilot st udy) before entering into larger markets.Research GapsThis literature review on the critical success factors for growth through innovation had led me to bewilder out certain gaps in the studies till now. Firstly, the critical success factors for growth and sustainability vary from organization to organization and industry to industry (Anthony et.al 1972). Same is the case with the innovative strategies as the adoption and diffusion strategies for innovation differ in different organizations and even in the same organization according to its development phases (Moore 1999). This shows that both are greatly influenced by the global turbulent environment and it is crucial for the organizations to foster innovation as the critical success factor for sustainability even in hostile conditions. To date there is very little qualitative research done on the relationship of developing innovative strategies under hostile conditions and organizational growth. Secondly, the women-owned business es are not sufficiently canvas for defining their critical success factors as compared to their male counterparts and specifically in the developing countries (Lee et.al 2009). Although, SMEs are of prime importance in the developing part of the world very less attention in terms of women-owned SMEs is being given to help them in growth prospects through innovation. This might be due to the reason of greater gender discrimination carried out in this part of the world (Tambunan 2009) consequently having low risk propensity in them which is the main ingredient for innovativeness (Brindley 2005). Lastly, although the social innovation has gained importance in the business world still a dearth of robust empirical research is seen in this regard (Simon Eduardo 2008).