Document Type: Original Research Paper

Authors

1 Assistant Professor, Department of Technology Management, School of Management and Economics, Science and Research Branch, Islamic Azad University (IAU), Tehran, Iran

2 Department of Management, School of Management, Islamic Azad University (IAU), Qazvin Branch, Qazvin, Iran

Abstract

Due to the tough on-going competition between producers of commodities and services, the prices of products are continuously going down nowadays. To avoid bankruptcy in such circumstances, organizations have focused on the application of technological innovations that enable them to respond to the needs of their clients. It is to this end that they attempt to gain the market and increase their sales to satisfy their clients and ultimately, depending upon the innovation, competitiveness and technological advancement, make fortune. Therefore, utilizing economic models, where innovation plays a pivotal role in growth and development has drawn the attention of many policy makers and managers.
One of the most important economic models is entrepreneurship model based on Schumpeters theory which states that entrepreneur and enterprises are the engine to drive and generate economy; the establishment of new entrepreneurship enterprises based on innovation and creative destruction to provide value added is a central issue accordingly .
The basis for establishing new entrepreneurship enterprises is discussed form five angles in Schumpeters theory. This includes innovation in offering new product, the production processes, making changes in raw materials and cutting prices, seeking new markets and developing the organization. However this theory has not any methodology to determine of types of the best innovation to create the most value added; this paper intends to develop Schumpeters theory through presenting an entrepreneurship model.
The results shows that enterprises can attain the best type of innovation and make the most value added in their entrepreneurship projects, if they scrutinize their contingency conditions and fit them into the selected model. Last but not least, this model is suggested to active enterprises as internal entrepreneurs.

Keywords

Acs, Z. J., Armington, C. and Robb, A. (1999). Measure of Job Flow Dynamic in the US Economy.

Box, J. (1983). Extending Product Lifetime: Prospects and Opportunities.. European Journal of Marketing,. 17 (4), 34-49

Brich, D. L. (1979). The Job Generation Process,. Cambridge: MIT, Program on neighborhood, 30-31

Brich, D. L. (1987). Job Generation in America: How Our Smallest Companies Put the People to Work,. New York: Free Press, 19

Brown, C., Hamilton, J. and Medoff, J. (1990). Employers Large and Small,. 1st ed. Harvard University Press

Day, G., (1981). The Product Life Cycle: Analysis and Applications Issues. Journal of Marketing,. 45 (4), 60-67

Drucker, P. F. (1993). Innovation and Entrepreneurship,. New York: Harper Collins Publisher

Hayami, Y. and Godo, Y. (2002). Development Economics from the Property to Wealth of Nation,. Oxford: Claredon Press

Khalil, T. M. (2000). Management of Technology: The Key to Competitiveness and Wealth Creation,. Boston, Mass.: McGraw-Hill

Kano, N., Seraku, F., Takahashi, F. and Tsuji, S. (1984). Attractive Quality and Must-be Quality.. The Journal of the Japanese Society for Quality Control,. (April), 39-48

Kathleen, A. R. (1999). Growing and Managing an Entrepreneurial Business,. Boston: Houghton Mifeelin Company, 9

Levitt, T. (1965). Exploit the Product Life Cycle.. Harvard Business Review,. 43 (November), 81-94

Mahdjoubi, D. (2007). A Brief Description of Action Business Planning. , 1-21

Ball, P. (2004). Critical Mass: How One Thing Leads to Another,. 1st ed. Farrar, Straus and Giroux publication

Rogers, E. M. (1995). Diffusion of Innovations,. 4th ed. New York: Simon and Schuster

Mantegna, R. N. and Stanley, H. E. (1999). An Introduction to Econophysics: Correlations and Complexity in Finance,. Cambridge University Press

Schumpeter, J. A. (1927). The Explanation of Business Cycle,. Blackwell Publishing.

Schumpeter, J. A. (1962). Capitalism, Socialism and Democracy,. 3rd ed. Harper and Perennial

Schumpeter, J. A. (1969). Essay of Economic Topics of J. A. Schumpeter,. New York: Kennikat Press

Shumpeter, J. A. (1982). The Theory of Economic Development,. Transaction Publishers

Stoner, J. F., Freeman, R. E. and Gilbert, D. R. (1995). Management,. 6th ed. Prentice Hall