Big Tech Companies, Culture, and External Environment
This century began with the emergence of Big Tech. Understanding how external factors affect new types of enterprises is the key to prosperity.
The entrepreneurial environment is a complex business concept that encompasses many factors from different areas of human activity. Researchers identify two categories, namely the necessary environmental elements and the supportive environmental ones (Ran, Yu and Ran, 2020). The first group includes nature, technology, finance, and talent (Ran, Yu and Ran, 2020). Institutions, culture, and social capital comprise the second group (Ran, Yu and Ran, 2020).
The entrepreneurial environment influences many of the aspects of the Big Tech organizations, one of which is innovation. For example, the financing environment defines whether a company can introduce new technologies and organizational strategies. Companies create and implement innovation faster in high-income countries because of the most comfortable financial climate (Dorion et al., 2018). It is partially why Tech Giants were able to originate and thrive in the United States.
Culture is a significant supportive environmental element that directly affects the entrepreneurial environment. Recently, this subject gained popularity among many researchers in technology-based enterprises (Danish et al., 2019). It is primarily due to the continuous and rapid growth of the influence of Tech Giants (Waters, 2021). It plays two significant roles in the entrepreneurial environment: the driver of innovation and the determinant of the nature of activities, processes, and operations. Researchers identify entrepreneurial culture as a set of business-related values and behaviors (Ashmarina, Mantulenko and Troshina, 2019).
Such value as the “readiness to change” in a particular business community determines the possibility of innovation (Ashmarina, Mantulenko and Troshina, 2019, p. 157). The type and nature of behaviors define the entrepreneurial activities’ impact, time costs, and profitability. Some entrepreneurial societies prefer to take risks, while others choose security (Drucker, 2015). However, it seems that there is a point of no return when entrepreneurial organizations become immune to external influence.
Big Tech companies now have enormous economic, social, and even political power. Nowadays, they are gradually dictating their rules and norms to the market and society in some countries (Fernandez, 2021). Simply put, they begin to change the environment in which they exist and operate for themselves (Noble, 2020). The uncontrollable influence of giant technology-based corporations could be the main problem of this century (Swabey and Harraca, 2021). Society is witnessing how external factors cease to exert any influence on leading entrepreneurial organizations.
Ashmarina, S. I., Mantulenko, V. V. and Troshina, E. P. (2019) ‘Readiness to changes as one entrepreneurial value of the innovation-oriented economy’, in Ashmarina, S. I. and Vochozka, M. (eds.) Sustainable growth and development of economic systems. Cham: Springer, pp. 157-166
Danish, R. Q., et al. (2019) ‘Factors affecting “entrepreneurial culture”: The mediating role of creativity, Journal of Innovation and Entrepreneurship, 8(1), pp. 1-12. Web.
Dorion, E. C. H. et al. (2018) ‘Entrepreneurship and sustainability as key elements for innovation: A Brazilian Dilemma’, in Mura, L. (ed.) Entrepreneurship: Development tendencies and empirical approach. Rijeka: INTECH, pp. 133-158.
Drucker, P.F. (2015) Innovation and entrepreneurship: Practice and principles. Abingdon: Routledge.
Fernandez, R. (2021) How Big Tech is becoming the government. Web.
Noble, S. (2020) ‘The loss of public goods to Big Tech’, Noema. Web.
Ran, J., Yu, X. and Ran, D. (2020) ‘Research on the entrepreneurial environment element system of the deeply impoverished area in Northeast Chongqing’, Modern Economy, 11(4), pp. 965-976. Web.
Swabey, P. and Harraca, M. (2021) Digital power: How Big Tech draws its influence. Web.
Waters, R. (2021) ‘Big Tech’s surging growth stuns Wall Street, Financial Times. Web.