4.

1 Conceptual Framework of Entrepreneurial Innovation model:

The main objective of developing the model is to study entrepreneurial orientations

or policies/ strategies, which result in innovation in this industry. The entrepreneurialorientations
reflect the Pioneering-Innovating (PI) behaviour of the entrepreneurs. TheEnterprise innovation
model thus will highlight the PI behaviour in the particular industry in Gujarat. The PI behaviour
is the result of various Micro Organization behaviour aspects and macro organizational
behaviour aspects.

Thus, the model has to answer what are the Micro OB aspects viz., personality traits,values,
attitudes and motives and Macro behavioral aspects viz., strategic choice andenvironment
determination.

As the Micro & Macro OB aspects are reflected in the policies and strategies, they canvery well
explain the PI behaviour. But the difficulty in identifying real policies andstrategies from
unorganized, small scale industry like this can be solved by identifyingrules of thumb or
heuristics reflected in the stories narrated by themselves. Heuristics or entrepreneurial
orientations explain the PI behaviour that justifies the innovation in theindustry.

The model can then be applied Afor finding desired PI behaviour for the level and type
of innovations the Gujarat diamond industry has shown.