Review of Management and



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2. CONCEPTUAL REVIEW AND 
HYPOTHESES
2.1. Conceptual Review of Innovation and Growth and 
Entrepreneurial Intention
In an era of increasingly intense competition between companies 
according to Zhai et al. (2018), entrepreneurs are required to 
have the ability to develop business strategies to adapt to a 
dynamic business environment Zhai et al. (2018). Bashir and 
Akhtar (2016) added that entrepreneurs need proactive abilities 
and courage to take risks to create innovative products ahead of 
competitors (Kabukcu, 2015). According to Rannikko and Autio 
(2015) entrepreneurs are people who dare to open independent 
productive activities by taking advantage of opportunities to 
create new businesses. Productive activities can improve the 
quality of innovative creative thinking in order to foster the 
ability to create business opportunities that are developed and 
manifested into a business. The potential of innovation creativity 
expressed by Huggins and Thompson (2015) becomes a strong 
fundamental for an entrepreneur to increase the ability to create 
or to innovate new ways of making business decisions. Innovative 
creativity is the ability of entrepreneurs according to Robles and 
Zárraga (2015) to develop new ideas and find new ways to solve 
problems, take advantage of opportunities and face competition. 
In this regard (Naudé, 2013) added that innovation creativity 
is an important source in creating growth (growth creation) in 
increasing business competitive advantage. Likewise, the case 
with Dogan (2015) illustrates that entrepreneurs as risk takers in 
running businesses with innovative approaches to create business 
growth to become independent in facing the challenges of business 
competition (Sevil and Koç, 2015). An innovative approach 
to creating business growth is a realistic proof that is able to 
inspire and bring entrepreneurial intention to other individuals. 
Where the characteristics of entrepreneurial intention according 
to Berg (2014) show a dynamic, innovative and adaptive ability 
to change the progress of science and technology and continuous 
improvement capabilities of business growth. Based on the 
statement above, the hypothesis in this study are:
H1. Innovation and growth have an effect on entrepreneurial 
intention.

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