Executive Summary of The Role of Creativity and Innovation in Organizational Success

                In this paper, the role of creativity and innovation in organizational success is reviewed both at individual and organizational levels. The literature has been analyzed to review that how innovation and creativity play an important role in organizational success. It is also reviewed that why organizations are not able to foster innovation and creativity, because they face various issues due to their organizational structure, environment and behavior along with effects of rigid leadership. So, it is essential for organizations to deal with these challenges to promote innovation and creativity. The recommendations have also been made in the paper that organizations must change their work environment and behavior, which allows flexibility and motivation for resources to practice their innovative and creative abilities. Moreover, the leadership must be positive and supportive with decentralized approach so that individuals feel easy to practice their creative skills.

Introduction of The Role of Creativity and Innovation in Organizational Success

            There are so many essentials for the success of an organization, but with the entry of technology, the innovation as well as creativity has become great tools for success. The organizations with more creative and innovative approaches are getting more competitive advantages than the others. The business organizations are facing different issues and challenges in modern day business and that’s why they need to have creative and innovative skills to find relevant solutions. When organizations foster creativity and innovation, they are able to think out of the box, and are able to increase their efficiency and productivity. But the issue is that there are various obstacles for organizations to develop creative and innovative thinking in the minds of their employees (Sokolova, 2015). In this paper, the literature will be reviewed to see that how organizations have achieved success through individual’s creativity and innovation and what problems they have faced in this regard so that recommendations can be made accordingly.

Analysis of Literature of The Role of Creativity and Innovation in Organizational Success

            Keeping in mind the important role of creativity and innovation, it is crucial to first look at some examples from the practical world that how organizations have been able to achieve it. A research study was conducted to review the literature in detail that how innovation have played its role in achieving growth as well as success for the business organizations. After reviewing different aspects of the business, the study concluded that organizations do face various complex issues in today’s business environment, but innovation is the most complex one. But the good thing is that if organizations are able to foster innovation in their business process, then they are able to achieve huge success. It is recommended for the organizations to develop the essence of innovation from their product development to supplying product in the market as it would help them to survive well and obtain sustainable success (Tohidi and Jabbari, 2012)

            Baryniene and Dauknyte (2015) explored various aspects related to creativity to analyze that what creativity is, how it developed as a theoretical framework, and how it played its crucial role in achieving success for business organizations. They explained that in first place, the concept of creativity was seen on the individual level, and then the later research studies focused on its cognitive level. They explored and described that in today’s business environment, creativity has become essential for organizations in so many ways. They explained in detail that creativity is something, which is developed in the personality of individuals. If they have certain traits like originality, flexibility, facility, and imagination to think big, then they can practice creativity in any given organization. Their research also threw light on some important factors, which are critical to promote creativity. The originations with more flexible and decentralized structure can foster creativity. Moreover, the support from leader, adequate resources along with motivation are important factors in promoting creativity. They also concluded in their research that every country must adopt an educational system, which is oriented to develop creativity in individuals (Baryniene and Dauknyte, 2015).

            A research study was conducted to review that how creativity along with problem solving skills of individuals can play a positive part in organizations. The research explored various aspects related to creativity and problem solving outputs. They found out through their research that things are getting competitive with changing business environment and to get competitive advantage; it is important for organizations to develop creative problem solving skills in their employees and foster creativity in every aspect of the business. After reviewing literature, the researchers concluded that individual creativity is very crucial for the organizations. Moreover, they found out that creativity at both individual and organizational level is interconnected and it should be seen in a single perspective (KLETKE et al., 2001)

            The above analysis of literature has clearly shown that creativity and innovation, both are instrumental for organizations in contemporary business environments. But then why organizations do not develop the real asset of creativity and innovation, and the answer is those difficulties, which they have to face while practicing or developing creativity and innovation.  It is important to review those barriers, which come due to various reasons. Some of the organizations face barriers to creativity and innovation because of their organizational structure, which does not allow flexibility and open mind exposure to employee for developing their creativity and innovation. In some organizations, their leadership is a major barrier for creativity and innovation as leaders do not believe in decentralization and they do not involve employees in decision making process. Some of the organizations do not have processes to develop creativity as well as innovation, which stops individuals from exploring their creativity (Sieczka, 2011)

            The research has shifted its focus to understand the problems and issues in developing creativity & innovation, and what should be the roadmap to encourage creativity at individual as well as organizational level. A research study by MUMFORD and SIMONTON was conducted in 1997 to analyze the problems, people and relevant structures associated with creativity. They reviewed literature and gave insight on the importance of creativity. They explained in detail that how it is a complex thing for organizations to integrate creativity in their organization because organizational behavior models do not allow them to do so. They found out that creativity in an organization cannot be developed if organizational behavior as well as environment is not suitable for it. It is necessary for organizations to develop a model of organizational behavior, which encourages the environment of motivation along with creative thinking skills. If organizations are able to develop a good environment encouraging creativity, it can help them to grow in every aspect (MUMFORD and SIMONTON, 1997)

Conclusion on The Role of Creativity and Innovation in Organizational Success

            It can be concluded after analyzing literature that creativity and innovation, both are very critical for the individual and organizational level success. The individual’s ability to develop creativity and initiate innovative ideas is essential part of the contemporary business environment. The current business environment is complex and competitive as ever, so organizations become successful if they allow their human resources to develop the essence of creativity and innovation. Regardless that both innovation and creativity can be great for the economic and long term success of an organizations, still many organizations fail to adopt these beneficial tools. It happens because organizations are not able to understand the important role which innovation and creativity can play for them. Moreover, organizations face issues because their organizational structure and environment is not suitable for creative and innovative mindset. It is important for organizations to understand that if their human resources will be allowed to practice innovation and creativity, it will allow them to bring in more innovative and creative ideas, which later can prove great for their competitive landscape. So, whatever challenges are faced by organization in developing individuals creativity, they must address those issues and adopt those ways, which can foster the essence of innovation and creativity in every process of their business.

Recommendations of The Role of Creativity and Innovation in Organizational Success

            After looking at various aspects described in literature, various recommendations can be derived for organizations to develop and encourage innovation and creativity both at individual and organizational level. The first recommendation for organizations to encourage innovation and creativity is enabling motivation in employees. The individuals will explore and practice their creative abilities, when they will be motivated enough to do so. The other important thing for organizations is to foster a positive climate within their processes, which allows individuals to enhance their creative skills by generating innovative ideas. The organizations should provide all the resources and means for employees, which can help them to adopt innovation and creativity in their work approach. It is recommended that organizations should develop a challenging work environment, which forces individuals to think out of the box, and come up with innovative ideas. It will not only develop new ideas, but creative ways to deal with existing problems in an organization. A supportive leadership as well as supervision is a must recommendation for organizations as it allows individuals to explore their creativity and they feel motivated. It is also recommended for organizations to positively deal with the emotions of their human resources. If employees will be happy and satisfied with their recognition and rewards, then they will do their best to bring in creative ideas for the betterment of their organizations. These are some of the recommendations to foster innovation and creativity both for individuals and organizations.

References of The Role of Creativity and Innovation in Organizational Success

Baryniene, J. and Dauknyte, B. (2015) 'Creativity as the Main Factor for Organizations‘ Success: Theoretical Approach', European Integration Studies, vol. 9, pp. 235-243.

KLETKE, M.G., MACKAY, J.M., BARR, S.H. and JONES, B. (2001) 'Creativity in the organization: the role of individual creative problem solving and computer support', Int. J. Human-Computer Studies, vol. 55, pp. 217-237.

MUMFORD, D.M.D. and SIMONTON, D.D.K. (1997) 'Creativity in the Workplace: People, Problems, and Structures', Journal of Creative Behavior, vol. 31, no. 1, pp. 1-6.

Sieczka, K. (2011) Cause and Effect: Barriers to Creativity and Innovation, [Online], Available: https://trainingindustry.com/articles/strategy-alignment-and-planning/cause-and-effect-barriers-to-creativity-and-innovation/ [9 July 2018].

Sokolova, S. (2015) The Importance of Creativity and Innovation in Business, [Online], Available: https://www.linkedin.com/pulse/importance-creativity-innovation-business-siyana-sokolova [9 July 2018].

Tohidi, H. and Jabbari, M.M. (2012) 'The important of Innovation and its Crucial Role in Growth, Survival and Success of Organizations', Procedia Technology, vol. 1, pp. 535 – 538.