Creativity and innovation

Theoretical framework, types, implications

1. CREATIVITY AND INNOVATION SRO007 - INDUSTRY, NETWORKING AND INNOVATIVE CONTEXTS Georgiana Alexandra Badoiu

2. INDEX THEORETICAL FRAMEWORK.WHAT IS CREATIVITY? THEORETICAL FRAMEWORK. WHAT IS INNOVATION? LINKING CREATIVITY AND INNOVATION CONCLUSIONS

3. 1.THEORETICAL FRAMEWORK. WHAT IS CREATIVITY? Many definitions : T he generation of imaginative new ideas (Newell and Shaw 1972), involving a radical newness innovation or solution to a problem, and a radical reformulation of problems. A creative solution , either new or recombined, must have value (Higgins 1999 ). The production of novel and useful ideas (Amabile et al, 1996:1155 ).

4. Creativity can be considered : A process of Presentation Preparation Brainstorming Validation of ideas Outcome assessment A result of New , compared to the current ideas Useful , adds value

5. What is creativity ? Creativity “is a fundamental feature of human intelligence in general. It is grounded in everyday capacities such as the association of ideas, reminding, perception, analogical thinking, searching a structured problem-space, and reflecting self-criticism. It involves not only a cognitive dimension (the generation of new ideas) but also motivation and emotion , and is closely linked to cultural context and personality factors. ” (Boden 1998).

6. Types of creativity According to Boden (1998), there are three main types of creativity, involving different ways of generating the novel ideas: a ) The “ combinational ” creativity that involves new combinations of familiar ideas. b) The “ exploratory ” creativity that involves the generation of new ideas by the exploration of structured concepts. c ) The “ transformational ” creativity that involves the transformation of some dimension of the structure, so that new structures can be generated.

7. Levels of creativity Individual creativity Group creativity Organizational creativity

8. Individual c reativity Studies focused on measuring creativity and trying to link it with personality traits or cognitive traits . Other authors have focused on investigating what personality factors ( experience , attraction to complexity, high energy, autonomy , intuition, self-confidence, and ability to resolve contradictions) can affect the performance . Others features : persistence, curiosity, energy and intellectual honesty and great locus of control Intrinsec motivation and knowledge are also playing big role in generating creativity .

9. Group creativity Group composition - diversity , up to a certain point, is beneficial for the group. Group processes - democratic and collaborative leadership, an organic structure, problem solving approaches and a solid based social information. Group characteristics - good cohesive groups that have worked together for a time, ( if these factors are excessive, creativity decrease). C ontextual influences - e.g ., organizational culture, reward systems

10. Organizational creativity 3 models in organizational creativity Amabile model (1988) a firm innovates if it motivates employees, provides resources and manages the work environment accordingly. Ekvall model (1996) based on a creative environment that has an influence on the results of the company. Interactionist model Woodman et al. (1993) approaches creativity as a phenomenon that is affected by situational and behavioural factors ; in particular , the model recognizes intraorganizational influences that stimulate or inhibit organizational creativity.

11. 2. WHAT IS INNOVATION? Many definitions : Latin word , innovare , to renew. Innovation as that which is newly introduced innovation = invention + exploitation innovation is the means used by companies to adapt, differentiate and survive , especially in environments and turbulent times like the present

12. What is innovation ? Innovation is the creation of new : products, techniques, processes and services by generating and implementing new ideas to make them useful . ( Damanpour, 1991; Van den Ven, 1986).

13. Types of innovation First classification was made by Schumpeter ( 1934) According to OECD (2005), Oslo Manual there are four types of innovations: Product / Service Innovation Process Innovation Marketing Innovation Organisational Innovation

14. Product / Service Innovation Is the introduction of a good or service that is new or significantly improved with respect to its characteristics or intended uses. This includes significant improvements in technical specifications, components and materials, incorporated software, user friendliness or other functional characteristics . Product innovations can utilize new knowledge or technologies , or can be based on new uses or combinations of existing knowledge or technologies .

15. Process Innovation I s the implementation of a new or significantly improved production or delivery method . This includes significant changes in techniques, equipment and/or software. Process innovations can be intended to decrease unit costs of production or delivery, to increase quality , or to produce or deliver new or significantly improved products.

16. Marketing Innovation Is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing . Marketing innovations are aimed at better addressing customer needs, opening up new markets, or newly positioning a firm’s product on the market, with the objective of increasing the firm’s sales.

17. Organisational Innovation Is the implementation of a new organizational method in the firm’s business practices, workplace organization or external relations . Organizational innovations can be intended to increase a firm’s performance by reducing administrative costs or transaction costs, improving workplace satisfaction (and thus labour productivity), gaining access to non-tradable assets (such as non-codified external knowledge) or reducing costs of supplies.

18. 3. LINKING CREATIVITY AND INNOVATION

19. LINKING CREATIVITY AND INNOVATION Source : Innovation and Creativity in Organizations: A State-of-the-Science Review, Prospective Commentary, and Guiding Framework, Anderson and Potoč, Journal of Management, June 2014, page 72

20. Integrative definition Creativity and innovation at work are the process, outcomes, and products of attempts to develop and introduce new and improved ways of doing things . The creativity stage of this process refers to idea generation, and innovation to the subsequent stage of implementing ideas toward better procedures, practices, or products. Creativity and innovation can occur at the level of the individual, work team, organization, or at more than one of these levels combined, but will invariably result in identifiable benefits at one or more of these levels-of analysis. Anderson and Potoč (2014)

21. Creativity and the innovation process C reativity is centered on idea generation and innovation emphasizes idea implementation, creativity is often seen as the first step of innovation (Amabile, 1996; Mumford & Gustafson, 1988; West, 2002a, 2002b).

22. Source : MVA (2005) Medicon Valley Annual Report 2004. C reativity is more involved with the product creation, while innovation is more focused on analysing the market.

23. Models/ theories of creativity and innovation Componential Theory of Organizational Creativity and Innovation Interactionist Perspective of Organizational Creativity Model of Individual Creative Action Theorizing on Cultural Differences and Creativity Four Factor Theory of Team Climate for Innovation Ambidexterity Theory

24. The dark side of creativity/innovation Past studies reveal variously that innovation attempts can be provoked by negative work role evaluations and moods ( Binnewies & Wörnlein , 2011; Bledow , Rosing , & Frese , 2013), that experienced conflict may provoke innovation , that innovation is perceived in-progress and in-situ as conflictual, and that its outcomes may be both positive and negative in terms of team cohesion and objective clarity (e.g., Chen, Liu, & Tjosvold , 2005 ).

25. The dark side of innovation Del-Corte-Lora et all. (2014) questioned the traditional positive relationship between creativity and innovation, and suggest that such a relationship is not linear , but has instead an inverted U-shape due to a saturation effect. There is a saturation point beyond which an increase in creativity makes innovation performance decrease . Source : Own elaboration

26. 4.CONCLUSIONS Creativity and innovation are related constructs, they are by no means identical . Enhancing creativity fosters innovation in firms (Amabile et al .,1996 ) C reativity is a necessary prerequisite generation of innovation as it involves cognitive generation of new ideas that will later be implemented for innovation .

27. 4.CONCLUSIONS There are numerous studies that show the existence of a positive relationship between creativity and innovation, but we have to be aware to the point beyond which an increase in creativity makes innovation performance decrease. The ability to create and innovate is what enables us to impact, influence and change what’s around us and is exactly what we need to be able to succeed .