File Name: business creativity and innovation .zip
How relevant is their research to the practical challenges leaders face? In this article, the authors present highlights of the research presented and the discussion of its implications. Leaders must tap the imagination of employees at all ranks and ask inspiring questions.
- Entrepreneurship - Creativity and Innovative Business Models
- The Importance of Creativity in Business
- Creativity and the Role of the Leader
Innovation is commonly defined as the "carrying out of new combinations" that include "the introduction of new goods, However, many scholars and governmental organizations have given their own definition of the concept. Some common element in the different definitions is a focus on newness, improvement and spread.
This article explores the role of innovation in small and medium sized firms, in relation to the firm's success. After a discussion of the relationship between success, innovation and creativity, some possible backgrounds of creativity and innovation are presented. For one part these are of a personal nature, like the entrepreneur's values, attitudes and level of education.
Entrepreneurship - Creativity and Innovative Business Models
Alessandro De Nisco. Heiko Haase. Download PDF. A short summary of this paper. Entrepreneurship - Creativity and Innovative Business Models. PrefaceThe birth and infancy of entrepreneurship was turned into a specific area of academic study and empirical research quite early. The field greatly evolved, and at the same time, a constant urge to deal with real problems existed, from firm creation to industrial growth, including firm strategy and economic policy.
Economic, sociological, and managerial academics began to devise a detailed and interpretative framework for the study of entrepreneurship. Many people came from different fields, and there was a need to overcome the limitation of the standard neoclassical theory of entrepreneurship. New areas of research were embraced, thereby recognizing that powerful mechanisms are at work in entrepreneurship and require systematic analysis. The economics of entrepreneurshipEntrepreneurship, in a very broad sense, has always been at the heart of firm and industrial dynamics -extoling its influence on a macro level.
Starting with the analysis of the specific properties and effects of entrepreneurship as an economic function, researchers then proceeded to the historical and normative analysis of resource allocation mechanisms in the field of entrepreneurship. More generally, they analyzed the socio-economic institutions that could be relied upon to produce, mediate and favor entrepreneurship.
Many authors tried to define Entrepreneurship: "Entrepreneurship is an act of innovation that involves endowing existing resources with new wealth-producing capacity" Drucker "Entrepreneurship is a process by which individuals pursue and exploit opportunities irrespective to the resources they currently control" Stevenson "Entrepreneurship is the creation of organizations, the process by which new organizations come into existence" Gartner "Entrepreneurship is a way of thinking, reasoning, and acting that is opportunity drive, holistic in approach, and leadership balanced" Timmons "Entrepreneurship is about how, by whom, and with what consequences opportunities to bring future goods and services into existence are discovered, created and exploited" Venkataraman From these definitions, we can see that the academic understanding of entrepreneurship broadened over time.
The first dimension of the entrepreneurial space is the continuum between economic approaches oriented towards the origin and context of entrepreneurship, social science approaches and managerial concerns. Among others, influences can also be found in the education context, or, the institutional context.
And finally, researchers raised the question of what happens if we do not take those issues into account? What if we take them for granted and simply state that entrepreneurs do things differently, for whatever the reason and have ideas in different ways other than economic factors? The following table summarizes these three divisions of research in entrepreneurship. Approaches Classical economic and social contextWhere Education, development and institutional context Why Managerial contextHow Description of the entrepreneur, object of the study:The entrepreneur is an important element of macro and local development.
The impact can depend on gender, geographical location and social context. Is one a born entrepreneur? Does one become an entrepreneur through a specific education system or a special institutional context? The entrepreneurial process, the detection of opportunities, the development of ideas, creativity, and innovation. The construction of new business models Sectors of interest: Political level country, region, town level Educational system, historical studies, political influenceEconomists involved in theory of the firm, management science IntroductionOur perception of the creative formation of organizations through entrepreneurship has changed dramatically during the past ten years e.
For a long time, entrepreneurship was construed in terms of managing a small business or being the owner-manager thereof. However, entrepreneurship is not directly associated with this particular context; it is essentially context-free organizational creativity Gartner et al. It is equally likely to be present in large corporations' renewal efforts and in the identification of new markets and technologies as in the development projects of public organizations or, for that matter, in the reorganization of universities cf.
At the core of entrepreneurship lies the creation and exploitation of entrepreneurial opportunities regardless of the context Shane Entrepreneurship is a creative activity taking place when neither the goal nor often the initial conditions are known at the start, but constructed during the process Sarasvathy This happens, because there is no single right or best solution, and even the starting situation may be so complex and constantly changing that it is difficult to analyze it reliably in the extent necessary.
Bearing in mind the discussion above, this paper uses the term entrepreneur to refer to an individual or a community of individuals organization that creates new business in its operational environment cf. Hjorth Crucial for the study of entrepreneurship is the theory of organizational creativity Hjorth , for it is impossible to understand the behaviour of an entrepreneurial individual without considering the entrepreneur's psychological abilities, the social impact of the environment and the interplay between the two, manifesting itself in the entrepreneur's capacity to create something new or original see Woodman, Sawyer and Griffin Rational models of entrepreneurial activity presume that the environment induces individuals to perceive opportunities in it, to identify promising market niches or introduce new innovations Shane Regarding this view as being too narrow Wood and McKinley ; see also Burrell and Morgan , this paper assumes that individuals construct their own realities using concepts available in their culture Downing Thus, entrepreneurs and their business opportunities are not merely products of the environment, which the entrepreneurs will find, if they only know how to search rationally Kirzner ; rather, they are a product of the interplay between the entrepreneurs' own creativity and their organizational environment Kirzner This line of thinking is in alignment with the research of Sigrist , who posits that perceiving and exploiting business opportunities involves the creative discovery of something new see also Sarasvathy How can we explore the link between business opportunities and creativity, given that only a few research papers have been published on creative processes in business Jenssen and Kolvereid ;Muzyka ;de Koning and Muzyka ;Kirzner ;Hills, Shrader and Lumpkin ?
Too few in number, the conceptual foundation provided by these papers is insufficient for constructing an adequate framework for research. Nonetheless, research papers on entrepreneurship often hold entrepreneurship as a form of creative activity see, e.
Moreover, research has demonstrated that the dynamic, change driving spirit of entrepreneurship is associated with the ability of entrepreneurial individuals to generate new ventures. More often than not, however, this research merely stakes its claim, while failing to systematically explore the creative processes of entrepreneurship Alvarez and Barney This is not to say that no research exists that specifically investigates entrepreneurship as a type of creative activity e.
Unfortunately, this research is plagued by a problem that, according to Gartner , pervades the entire history of entrepreneurial research; namely, that is has focused on distinguishing entrepreneurs from other business people in terms of creativity and innovation, instead of making an effort to study and understand the creative process itself see also Steyaert, Personality characteristics of entrepreneurs have little bearing on how they-as individuals or organizations-create new business.
As a result, even these studies fail to provide a sound basis for research. Although falling short of adequately supporting the development of the idea of viewing organizational creativity as a form of perceiving and implementing business opportunities, they justify exploring the emergence of new business ventures as a creative process cf.
Hjorth This paper reflects on organizational creativity in terms of discovery and exploitation of entrepreneurial opportunities. A theoretical foundation for the notion of perceiving and seizing business opportunities as a creative process is first sought in creativity research.
On this basis, the paper constructs a view of entrepreneurial creativity as a creative process and presents a theoretical conception of the discovery of business opportunities as a creative process. The structure of the paper is as follows: First, a theoretical background will be provided for the research area, followed by an inquiry into what makes the processing of business opportunities a creative activity.
Third, this paper will present a review of existing research on creativity, which it then uses as a foundation for developing an understanding of creativity as a phenomenon. Fourth, the essence of creativity will be charted and the concept of creativity, as it emerges from research, will be discussed. Next, a framework, based on a theoretical approach to creativity, will be presented for the entrepreneurial ability to generate business opportunities.
Finally, a discussion will be conducted on the issues raised by this research. Theoretical background -entrepreneurship as the creation of new businessA core attribute of entrepreneurship is the ability to develop and exploit business opportunities Shane and Venkataraman One interesting reference in this context is MacMillan and McGrath's book on strategic management , which states that the central weapon in the strategic arsenal of business organizations is the ability to create and exploit new venture opportunities.
This represents a remarkable opening gambit to a wider mindset in which entrepreneurship is regarded as a strategic competence, capable of being utilized in all manner of organizations. Recognized as the creation of business opportunities, entrepreneurship comprises ideas, beliefs and actions directed toward generating new economic activity that emerges gradually as the process continues Sarasvathy, Dew, Velamuri and Venkataraman Hence, entrepreneurship is strongly present when the actors enter a business space "entre" without knowing what it is all about, what kind of business they want to conduct or even what they are striving at.
It is also less relevant, whether the outcome of the activity is the establishment of a new firm, an extension of existing activities or expansion into a new market. We are dealing with a problem-solving situation in which the situation, rules, solutions and goals must be created through action Sarasvathy Under these conditions, it is practically impossible to apply logic to arrive at the right and best solution.
Central to the effort is identifying and creating a business opportunity using the entrepreneur's creative ability as functional instrument. This is precisely the phenomenon that entrepreneurship circles around and one that researchers should delve into Davidsson After this event, when the actors move forward into the next space "prendre" centering around the implementation of the new business activity, we are no longer concerned with intrinsic elements of entrepreneurship.
Entrepreneurship is stepping into a space where new business can be hatched, without an idea of the nature of that business, and then making an effort to outline it. It also includes stepping out of that space with a business opportunity and realizing it through other measures, such as management initiatives and marketing.
What goes on in this space is an exceedingly interesting phenomenon. This entrepreneurial space and the creation of a business opportunity within it, is by no means an isolated process, detached from its environment, nor a closed, internal process from which a novel business idea crops up. Rather, this space is a process in which the mental creative powers of the entrepreneur and the environment are in continuous dynamic interaction.
Occurring within this space is something that absorbs influences from present business activities, bringing chaos and discontinuity into it.
How can we characterize this process is the question that the next section seeks to answer. Processing of business opportunity -a creative or rational undertakingAs an organizational process, the task of entrepreneurship is to revitalize and promote the economy by breaking old routines and patterns. Moreover, a business opportunity can be viewed in terms of entrepreneurial cognition of the business situation, the entrepreneur's internal model of it, arising out of the entrepreneur's construal of not only the situation's temporary dimension, window of opportunity and key business elements, but also of their interrelationships Vesalainen and Pihkala It is through these three factors and their relations that the entrepreneur constructs an internal model of the opportunity.
By regarding business opportunity in terms of cognition, we must presume that it originates from a cognitive process. This, then, leads to a notion that the ontological stance of this study is cognitive social constructivism Chell ;Chiasson and Saunders ;Steyeart Cognitive constructivism, according to Steyaert , "focuses upon mostly individualized cognitive processes through which individuals mentally construct their worlds using socially mediated categories, simultaneously 'downplaying' the role of language as an external expression of internal cognitions".
In this research, cognitive process is not seen as a systematic and rational arrangement of knowledge gleaned from the environment e. In other words, business opportunities are not the result of first searching for seeds of knowledge in the available resource base, including technological innovations, markets, competent personnel, available production facilities and equipment, and then applying logic to single out the best possible opportunity see Cadotte and Woodruff It is not as simple as that, because perceiving a business opportunity calls for a creative insight cf.
Kirzner to combine the wealth of information at hand in a meaningful way. Were it only a matter of organizing information, everyone would be able to identify venture opportunities. This is blatantly not the case e. Nevertheless, information alone is not enough, because piecemeal information tells us precious little about business opportunities.
The Importance of Creativity in Business
Industry Advice Business. Apple is a company synonymous with creativity. Design and the user experience mean a lot to overall creativity of a feature or service. Why innovation matters and the steps you can take to make a meaningful impact on your current company. The brand has become one other companies mirror their strategy after. Rather than try to replicate Apple, however, business leaders should focus on how they can foster creativity within their own organization.
Top priorities of most of the companies would be to bring new ideas of doing the same business irrespective of areas of specialisation (Porter Stern &Council on.
Creativity and the Role of the Leader
But what happens to those ideas? Do they become profitable innovations? Creativity —generating ideas—is relatively easy.