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Emerald - Building Organisational Culture That Stimulates Creativity and Innovation
Emerald - Building Organisational Culture That Stimulates Creativity and Innovation
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To cite this document:
E.C. MartinsF. Terblanche, (2003),"Building organisational culture that stimulates creativity and innovation", European
Journal of Innovation Management, Vol. 6 Iss 1 pp. 64 - 74
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http://dx.doi.org/10.1108/14601060310456337
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Introduction
Building organisational
culture that stimulates
creativity and
innovation
The authors
E.C. Martins is Management Consultant in
Organisational Diagnostics, Glenvista, Johannesburg,
South Africa.
F. Terblanche is a Senior Lecturer in the Department of
Information Science, University of South Africa, Pretoria,
South Africa.
Keywords
Organisational culture, Creativity, Innovation, Attitudes
Abstract
The purpose of this article is to present, by means of a
model, the determinants of organisational culture which
influence creativity and innovation. A literature study
showed that a model, based on the open systems theory
and the work of Schein, can offer a holistic approach in
describing organisational culture. The relationship
between creativity, innovation and culture is discussed in
this context. Against the background of this model, the
determinants of organisational culture were identified.
The determinants are strategy, structure, support
mechanisms, behaviour that encourages innovation, and
open communication. The influence of each determinant
on creativity and innovation is discussed. Values, norms
and beliefs that play a role in creativity and innovation
can either support or inhibit creativity and innovation
depending on how they influence individual and group
behaviour. This is also explained in the article.
Research problem
In some organisations, action is taken to
stimulate creativity and innovation. The right
steps may have been taken, such as involving
personnel in decision making, recruiting and
appointing personnel with creativity
characteristics, setting standards for work
performance and giving regular feedback, but
creativity and innovation are hampered in some
way. The culture of an organisation may be a
contributing factor in the extent to which
creativity and innovation occur in an
organisation (Johnson, 1996; Judge et al.,
1997; Pienaar, 1994; Shaughnessy, 1988;
Tesluk et al., 1997; Tushman and O'Reilly,
1997). The current organisational culture and
the demands of creativity and innovation may
lead to a conflict situation.
This leads to the question: What
determinants of organisational culture have
an influence on stimulating and promoting
organisational culture in organisations?
This central research question is subdivided
into the following more specific research
questions:
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European Journal of Innovation Management
Volume 6 . Number 1 . 2003 . pp. 64-74
# MCB UP Limited . ISSN 1460-1060
DOI 10.1108/14601060310456337
64
Method
A literature study, which was descriptive in
nature, was undertaken. The aim is to
describe the phenomena as accurately as
possible. Literature in the managerial sciences
is used to describe organisational culture,
creativity and innovation in organisations.
The demands that creativity and innovation
place on the culture of an organisation are
derived from the literature study.
Strategy
An innovation strategy is a strategy that
promotes the development and implementation
of new products and services (Robbins, 1996).
Covey (1993) claims that the origin of creativity
and innovation lies in a shared vision and
mission, which are focused on the future.
Furthermore, the vision and mission of a
creative and innovative organisation are also
customer- and market-oriented, focusing on
solving customers' problems among other
things (CIMA Study Text, 1996).
An example of a vision that emphasises
creative and innovative behaviour is: ``Our
company will innovate endlessly to create new
and valuable products and services and to
improve our methods of producing them''
(Lock and Kirkpatrick, 1995).
It is also important that employees should
understand the vision and mission (which
support creativity and innovation) and the
gap between the current situation and the
vision and mission to be able to act creatively
and innovatively.
Judge et al. (1997) describe successful
innovation as chaos within guidelines; in
other words top management prescribes a set
of strategic goals, but allows personnel great
freedom within the context of the goals.
Organisational goals and objectives reflect
the priorities and values of organisations and
as a result may promote or hinder innovation
(Arad et al., 1997). Hall (cited in Arad et al.,
1997) found that personal and organisational
goals that emphasise quality rather than
effectiveness improve the levels of innovation.
It appears that reflecting the value of
purposefulness in the goals and objectives of
organisations has an influence on creativity
and innovation. Arad et al. (1997) mentions
that, apart from a few research studies,
sufficient research about the effects of
organisational and individual goals and
objectives has not yet been done.
Structure
Organisational culture has an influence on the
organisational structure and operational
Support mechanisms
Support mechanisms should be present in the
culture of an organisation to create an
environment that will promote creativity and
innovation. The literature study revealed that
rewards and recognition and the availability of
resources, namely time, information
71
Communication
An organisational culture that supports open
and transparent communication, based on
72
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Conclusions
In attempting to create a culture supportive of
creativity and innovation, it has been found
that one of the best approaches to describe
organisational culture is based on the open
systems approach. This conclusion is based on
the fact that it offers a holistic approach that
allows the investigation of the interdependence,
interaction and interrelationship of the different
sub-systems and elements of organisational
culture in an organisation.
The patterns of interaction between people,
roles, technology and the external
environment represent a very complex
environment. Under these circumstances
creativity and innovation can be influenced by
several variables. It appears that creativity and
innovation will flourish only under the right
circumstances in an organisation. The values,
norms and beliefs that play a role in creativity
and innovation in organisations can either
support or inhibit creativity and innovation,
depending on how they influence the
behaviour of individuals and groups.
The model designed in this research
highlights the determinants that play a role in
promoting creativity and innovation. The way
in which these determinants, namely strategy,
organisational structure, support mechanisms,
behaviour that encourages innovation and
communication, operate will either support or
inhibit creativity and innovation. It is clear that
these determinants overlap and interact with
one another, which supports the open systems
approach that was followed.
73
74
Further reading
Burke, M.E. (1994), ``Creativity circles in information
management'', Librarian Career Development,
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15. Bala Mulloth Frank Batten School of Leadership and Public Policy, University of Virginia, Charlottesville, Virginia, United
States Jill R. Kickul Stern School of Business, New York University, New York, New York, United States Lisa K Gundry
Department of Management and Entrepreneurship, Driehaus College of Business, DePaul University, Chicago, Illinois,
USA . 2016. Driving technology innovation through social entrepreneurship at Prezi. Journal of Small Business and Enterprise
Development 23:3, 753-767. [Abstract] [Full Text] [PDF]
16. Monica Perez Jolles, Bowen McBeath, Sarah Carnochan, Michael J. Austin. 2016. Factors Associated With Managerial
Innovation in Public Human Service Organizations. Human Service Organizations: Management, Leadership & Governance
40:4, 421-434. [CrossRef]
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Engineering, Knowledge Management and Innovation Research Center, The Hong Kong Polytechnic University, Hung Hom,
Hong Kong . 2016. Intellectual capital-based innovation planning: empirical studies using wiNK model. Journal of Intellectual
Capital 17:3, 553-569. [Abstract] [Full Text] [PDF]
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Business, State University of New York at Buffalo State, Buffalo, New York, USA Department of Management, University of
Malta, Malta . 2016. Culture and intellectual capital: towards a conceptual framework. International Journal of Organizational
Analysis 24:3, 438-453. [Abstract] [Full Text] [PDF]
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University of Technology, Taichung, Taiwan, Republic of China . 2016. Does innovation leadership enhance creativity in
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received his MBA degree in Marketing from the Bennett S. Le Bow College of Business at Drexel University and PhD
degree in Marketing from the Fox School of Business in Temple University, Philadelphia, PA, USA. His current research
areas are new product/technology development, cognitive/social psychology in innovation and small business management
and decision-making in teams. His work has been published in journals such as Industrial Marketing Management, Journal
of Product Innovation Management, IEEE Transactions on Engineering Management, R&D Management, Long Range
Planning and Research Policy. ZaccaRobert Robert Zacca Robert Zacca is an Assistant Professor of Management and
Entrepreneurship at the United Arab Emirates University, UAE. He earned his MBA degree from Plymouth State University,
New Hampshire, UK, and PhD in Entrepreneurship from Cracow University of Economics, Poland. His current research
areas are drivers and enablers of innovative enterprises and entrepreneurial creativity. He has recently won a National Research
Foundation grant from the UAE to investigate the Drivers and Enablers of Innovative Start-ups within the UAE, and
his work has been published in journals such as Management Decision Journal, International Journal of Entrepreneurship
& Innovation, Creativity and Innovation Management and IEEE International Technology Management Conferences.
HusainZafar Zafar Husain Zafar Husain is an Assistant Professor of Management of Technology and Innovation in the
College of Business Administration at Al Ain University of Science and Technology, UAE. He completed his PhD at
Indian Institute of Technology, New Delhi, India. His research interests focus on strategic management of technology
and innovation, technology-based innovation and entrepreneurship, business intelligence and performance management. Di
BenedettoAnthony Anthony Di Benedetto Anthony Di Benedetto is a Professor of Marketing and Supply Chain Management
and Senior Washburn Research Fellow, Temple University, Philadelphia, PA, USA. He was Editor-in-Chief of Journal of
Product Innovation Management for nine years and is the co-author of New Products Management. He earned his PhD,
MBA and BSc at McGill University, Montreal, Canada. His research is in the areas of product development, product
launch strategy and industrial marketing management. He has published in journals such as Journal of Product Innovation
Management, Management Science, Strategic Management Journal, Journal of International Business Studies, Journal of
Operations Management and IEEE Transactions on Engineering Management. RyanJames C. James C. Ryan James C.
Ryan is currently employed as an Assistant Professor of Human Resource Management and Organizational Behavior in the
College of Business and Economics at the United Arab Emirates University, UAE. He completed his PhD at Dublin City
University and MA and BSc in psychology at University College Dublin, Ireland. He has worked in universities in Ireland,
New Zealand and the UAE. His research interests focus on workplace motivation, leadership and culture in organizational
contexts with additional interests in work values and entrepreneurship. College of Business and Economics, United Arab
Emirates University, Al Ain, UAE Department of Business Administration, College of Business, AlFaisal University, Riyadh,
Saudi Arabia College of Business Administration, Al Ain University of Science and Technology, Al Ain, UAE Department
of Marketing and Supply Chain Management, Fox School of Business, Temple University, Philadelphia, Pennsylvania, USA
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