Re-examining The Relationship Between Innovation and Entrepreneurship from Sustainability Perspective within The Framework of The Abernathy and Clark Model

Abstract

The concepts of innovation and entrepreneurship are encountered in the literature as two concepts that feed each other while increasing their popularity, but there is no accepted study on which one is the initiator of the cycle. In our study, where the theoretical development processes of the concepts are discussed in detail, it is aimed to make the cycle more efficient and sustainable by finding the initiator. Innovation is the process of creating new ideas, products, processes or services and their systematic implementation. This process encompasses not only technical or technological developments, but also changes in organisational structures, business models and value models. In essence, innovation is a quest to create value that will contribute to the environment, society and governance. Entrepreneurship, on the other hand, is the process of recognising and valorising opportunities for environmental, social and managerial contribution. Could the answer to whether we innovate because we are entrepreneurs or become entrepreneurs because we learn to innovate and recognise opportunities from an innovative perspective be hidden in the environment. In the Abernathy and Clark model, revolutionary and structural environment focuses on learning, while regular and niche innovation emphasises the innate characteristics of the individual, but without an appropriate learning and practice environment, innate innovative tendencies can be suppressed and negatively affect entrepreneurial activities. In our study, in order to examine the relationality in detail, in addition to a systematic literature review, analyses were conducted on 5-year data of 43 countries. It is emphasised that innovation is a phenomenon that can be taught to human capital and initiates entrepreneurship.