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European Journal of Innovation Management

Building organisational culture that stimulates creativity and innovation
E.C. MartinsF. Terblanche

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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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Introduction

Building organisational
culture that stimulates
creativity and
innovation

Post-industrial organisations today are
knowledge-based organisations and their
success and survival depend on creativity,
innovation, discovery and inventiveness. An
effective reaction to these demands leads not
only to changes, in individuals and their
behaviour, but also to innovative changes in
organisations to ensure their existence (Read,
1996). It appears that the rate of change is
accelerating rapidly as new knowledge, idea
generation and global diffusion increase (Chan
Kim and Mauborgne, 1999; Senge
et al., 1999). Creativity and innovation have a
role to play in this change process for survival.
The result is that organisations and leaders try
to create an institutional framework in which
creativity and innovation will be accepted as
basic cultural norms in the midst of
technological and other changes. Authors like
Ahmed (1998), Martell (1989), Pheysey
(1993), Robbins (1996) and Schuster (1986)
have emphasised the importance of
organisational culture in this context.
Organisational culture appears to have an
influence on the degree to which creativity and
innovation are stimulated in an organisation.

E.C. Martins and
F. Terblanche

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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. communication. Number 1 . decision making. values. It therefore refers to a set of basic assumptions that worked so well in the past that they are accepted as valid assumptions within the organisation. Rational tools and processes like strategic direction. If the organisational culture does not fulfil these functions in a satisfactory way. behaviours. These assumptions are maintained in the continuous process of human interaction (which manifests itself in attitudes and behaviour).Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . which forms the basis of communication and mutual understanding. Organisational culture fills the gaps between what is formally announced and what actually takes place. Organisational culture forms an integral part of the general functioning of an organisation. innovation and organisational culture? What determinants of organisational culture have an influence on creativity and innovation in organisations? How can a culture supportive of creativity and innovation be built? behaviour. 1996). Culture epitomises the expressive character of organisations: it is communicated through symbolism. Literature in the managerial sciences is used to describe organisational culture. Organisations use different resources and processes to guide behaviour and change. goals. which was descriptive in nature. creativity and innovation in organisations. Smit and Cronje. the meaning behind language. Organisational culture is manifested in the typical characteristics of the organisation. . 1998. the culture may significantly reduce the efficiency of an organisation (Furnham and Gunter. Martins and F. 1993). feelings. Organisational culture offers a shared system of meanings.. 1996). in other words as the right way in which things are done or problems should be understood in the organisation. tasks. . 1992). 1994). physical settings and artifacts. creating the boundaries of the organisation. An example is the role that organisational culture plays in the mission and goal statements. technology. The aim is to describe the phenomena as accurately as possible. . cooperation and interpersonal relationships are designed to do things. Organisational culture defined and its role in organisations Organisational culture is defined in many different ways in the literature. 64-74 E. Based on a literature study of the functions of organisational culture. the feeling of identity among personnel and commitment to the organisation. In this research organisational culture is defined as the deeply seated (often subconscious) values and beliefs shared by personnel in an organisation. 2003 . Furnham and Gunter (1993) summarise the functions of organisational culture as internal integration and coordination. The expressive practice of culture is more a reflection of a way of saying things (Coffey et al. 2000). making sense of the environment in terms of acceptable behaviour and social system stability (which is the social glue that binds the organisation together) (Martins. Perhaps the most commonly known definition is ``the way we do things around here'' (Lundy and Cowling. A strong culture provides shared values that ensure that everyone in the organisation is on the same track (Robbins. The coordinating function refers to creating a competitive edge. philosophy. The components of routine 65 . What is the role of organisational culture in organisations? How can the dimensions of organisational culture be described? What is understood by creativity and innovation in organisations? What is the relationship between creativity. structure.C. The demands that creativity and innovation place on the culture of an organisation are derived from the literature study. . Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) . Terblanche . was undertaken. It is The purpose of this article is to present. rules of the game and feelings all form part of organisational culture (Hellriegel et al.. the determinants of organisational culture which influence the degree of creativity and innovation in an organisation. internal integration can be described as the socialising of new members in the organisation. Organisational culture complements rational managerial tools by playing an indirect role in influencing behaviour. norms. by means of a model. The role that organisational culture plays in an organisation can be divided into the functions of organisational culture and the influence that organisational culture has on the different processes in the organisation.

. the direction indicator that keeps strategy on track (Martins. Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) Model to describe organisational culture in organisations Several models have been developed to describe the relationships between phenomena and variables of organisational culture. 64-74 E. structural. . Mission and vision (determines personnel's understanding of the vision. mission and values of the organisation and how these can be transformed into measurable individual and team goals and objectives). between individuals and groups within the organisation. 1993). This model is a comprehensive model which encompasses all aspects of an organisation upon which organisational culture can have an influence. 2003 . . 2000). formulating goals. control processes and communication). . 1995). organisation systems and personnel on the actual and expected behaviour patterns. which takes place on different levels. values and basic assumptions and their interaction. Means to achieve objectives (determines the way in which organisational structure and support mechanisms contribute to the effectiveness of the organisation). which focuses on the influence of leadership.C. the two survival functions. The criticism of this model is that it does not examine the influence of external factors on the organisational culture. structure. roles. It includes aspects such as decision making. namely artifacts. 1987. Leadership (focuses on specific areas that strengthen leadership. Image of the organisation (focuses on the image of the organisation to the outside world and whether it is a sought-after employer). This model can therefore be used to describe organisational 66 . External environment (determines the degree of focus on external and internal customers and also employees' perception of the effectiveness of community involvement). technology and the external environment represent a complex environment which influences behaviour in organisations. . The dimensions of culture encompass the following (Martins. but also emphasises the interdependence between the different sub-systems and elements in an organisation. The patterns of interaction between people. Some researchers see organisational culture in organisations against the background of the systems theory developed by Ludwig von Bertalanffy (1950) and adapted by several authors such as Katz and Kahn who initially applied the systems theory to organisations in 1966 (French and Bell. Martins (1987) developed a model to describe organisational culture based on the typical ideal organisation and the importance of leadership in creating an ideal organisational culture. management. . and the dimensions of culture. Some examples are the model of organisational culture as part of organisation reality developed by Sathe (1985). 1997): . Interpersonal relationships (focuses on the relationship between managers and personnel and on the management of conflict). innovation processes. Kast and Rosenzweig (1985) and Kreitner and Kinicki (1992) for application in the organisational development field. Employee needs and objectives (focuses on the integration of employees' needs and objectives with those of the organisation as perceived by employees/personnel). as perceived by personnel). technological and psychosociological sub-systems). managerial. Management processes (focuses on the way in which management processes take place in the organisation. which is regarded as an open system (French and Bell. 1995). technology and psycho-sociology). This complex interaction. industrial and corporate culture) and the internal systems (artifacts. Terblanche Against this background and the work of Schein (1985). namely the external environment (social. values and basic assumptions). Number 1 . Martins' model is based on the interaction between the organisational sub-systems (goals and values. can be seen as the primary determinant of behaviour in the workplace. the effectiveness thereof for the organisation and the level of personnel satisfaction brought about by these behaviour patterns. The systems approach offers a holistic approach. Martins and F. and vice versa. and with other organisations and the external environment. The organisation system model explains the interaction between the organisational subsystems (goals.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . Schein's model is criticised for not addressing the active role of assumptions and beliefs in forming and changing organisational culture (Hatch. . Schein's (1985) model depicts the levels of organisational culture.

1990. The concepts of creativity and innovation in the context of this research (determining which determinants of organisational culture influence creativity and innovation) can be illustrated as in Figure 1. Tushman and O'Reilly.. and the concept of creativity can be defined as the generation of new and useful/ valuable ideas for products. 1996. Terblanche procedures. services. Innovation is often associated with change (Drucker (1985) cited in West and Farr. 2000). 2000). Some definitions are general and broad. Udwadia. organisation. 1997. processes and procedures by individuals or groups in a specific organisational context. Hellriegel et al. Creativity as a context-specific evaluation can vary from one group. profession and wider (Ford. However. 1998). 1997). while others focus on specific innovations like the implementation of an idea for a new product or service. change cannot always be regarded as innovation since it does not always involve new ideas or does not always lead to improvement in an organisation (CIMA Study Text. beliefs and behaviour expected of members of an organisation) influence creativity and innovation in two ways: 67 . a product) which is regarded as new by the relevant unit of adoption and through which change is brought about (Martins. Robbins. the more varied the definitions seem to be (West and Farr.C. 1995). product. processes. 1996. new organisational structures and new personnel plans or programmes (Kanter (1983) cited in West and Farr. In the research under discussion innovation can be defined as the implementation of a new and possibly problem-solving idea.g. 1997. social. Definitions of innovation found in the literature vary according to the level of analysis which is used. An example of change that cannot be regarded as an innovation is changing office hours in an exceptionally hot summer season. Innovation is regarded as something new which leads to change. and still others focus on the product with regard to the different qualities and outcomes of creative attempts (Arad et al. Robbins. In the research under discussion the context of creativity is at the level of the organisation. it is important to analyse these concepts in the context of this research. industry. or saving of costs. culture in an organisation and thus be used as background to determine which determinants of organisational culture influence the degree of creativity and innovation in organisations. Successful organisations have the capacity to absorb innovation into the organisational culture and management processes (Syrett and Lammiman. improved communication. namely idea generating and implementation. practice or material artifact (e. one organisation and one culture to another and it can also change over time. The basic elements of organisational culture (shared values. Other definitions focus on the personal characteristics and intellectual abilities of individuals. 1996).g. new to the relevant unit of adoption. Evaluating creativity should therefore be considered at the level of a person. 64-74 E. West and Farr (1990) define innovation as follows: ``the intentional introduction and application within a role. products or Relationship of creativity and innovation with organisational culture Organisational culture seems to be a critical factor in the success of any organisation. According to Figure 1 creativity and innovation can be regarded as overlapping constructs between two stages of the creative process.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . West and Farr. Number 1 . 1990). Consequently. service or activity is implemented determines whether it can be regarded as an innovation within that specific context (Martins. the group. The more macro the approach (e. group or organization of ideas. Martins and F. 1990). 2003 . new technology for production processes. cultural). designed to significantly benefit the individual. 1990). 1990. examples of innovation are the implementation of ideas for restructuring. According to Tushman and O'Reilly (1997) organisational culture lies at the heart of organisation innovation.. Some definitions of creativity focus on the nature of thought processes and intellectual activity used to generate new insights or solutions to problems. In an organisational environment. It appears that the context in which a new idea. organization or wider society''. Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) Creativity and innovation in organisations The concepts of creativity and innovation are often used interchangeably in the literature.

management practices and procedures. support for change. 1988. organisational structure and technological cycles can be associated in the following ways with organisational cultures that support creativity and innovation: . Number 1 . 1995). King and Anderson (1990) and Woodman et al. strategic approaches. shared decision making. which is reflected in the strategy (e. In accordance with shared norms.g. . External environment (e.. individuals learn what behaviour is acceptable and how activities should function. innovation strategy) of the organisation (Robbins.g. Reaction to critical incidents outside and within the organisation. supported and implemented. creativity and innovation as follows. Kanter. (1) Through socialisation processes in organisations. Certain environmental circumstances. 1988. individuals will make assumptions about whether creative and innovative behaviour forms part of the way in which the organisation operates (Chatman (1991) and Louis (1980) both cited in Tesluk et al. broadly defined job responsibilities and flexible authority structure with fewer levels in the hierarchy) (Hellriegel et al. In this way individuals in organisations come to The assumptions of personnel in the organisation on how to act and behave within 68 . flexible structure characterised by decentralisation. (1993) in Tesluk et al. 1997). Managers' values and beliefs (e. which includes knowledge of individuals and availability of facilities (e.g. 1998). low to moderate use of formal rules and regulations.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . .. (2) The basic values. Norms develop and are accepted and shared by individuals. Schein (1990) cited in Tesluk et al. Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) Figure 1 Defining creativity and innovation Organisational culture affects the extent to which creative solutions are encouraged.. free exchange of information.g. Martins (2000) explains the relationship between organisational culture. 1997. practices.. 1997). computers. for example. Terblanche perceive what is considered valuable and how they should act in the workplace. Internet) to support the creative and innovative process (Shattow. assumptions and beliefs become enacted in established forms of behaviours and activity and are reflected as structures. policy. open questioning. 1997). Against the background of the systems approach which sees organisations as open systems consisting of different sub-systems interacting with one another. The structure of the organisation. 1996). . Martins and F. regards creativity as both desirable and normal and favours innovators as models to be emulated (Lock and Kirkpatrick... technology and customer preferences) (Kanter (1988) cited in Tesluk et al. economy and competitiveness encourage continual changes in products. Technology. the values and actions of top management. 1997).C. 1997). . A culture supportive of creativity encourages innovative ways of representing problems and finding solutions. These structures and so on impact directly on creativity in the workplace. diversity of beliefs) (Amabile. which in turn allows management to reach organisational goals (e.g. by providing resource support to pursue the development of new ideas (Tesluk et al. 2003 . 64-74 E.

will have an impact on the degree of creativity and innovation in the organisation (Martins. as found in the literature. Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) Determinants of organisational culture that support creativity and innovation Based on a literature study it was found that there is little agreement on the type of organisational culture needed to improve creativity and innovation. In order to synthesise the cultural values and norms that influence creativity and innovation. 1990. the vision and mission of a creative and innovative organisation are also customer. 2000). Terblanche which creativity and innovation take place in the organisation. Furthermore. norms and beliefs have been identified by researchers such as Judge et al. 1996). Pinchot and Pinchot. which are focused on the future. 1997. 1997). Covey (1993) claims that the origin of creativity and innovation lies in a shared vision and mission. (1997). NyÈstrom (1990) and O'Reilly (1989) in their empirical research. 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. Filipczak. NyÈstrom. In studying the influence of organisational culture on creativity and innovation. seem to have been done to support the findings of researchers. it offers a startingpoint for improved understanding. 1997. The model (Figure 2) shows that the dimensions that describe organisational culture have an influence on the degree to 69 Strategy An innovation strategy is a strategy that promotes the development and implementation of new products and services (Robbins. Based on the explanation of the relationship between organisational culture. It appears that reflecting the value of purposefulness in the goals and objectives of organisations has an influence on creativity and innovation. 1997) have worked on identifying values. 64-74 E. Tesluk et al. 1996.. norms and assumptions involved in promoting and implementing creativity and innovation. Judge et al. Several researchers (Ahmed. 1997) have a direct bearing on the influence of organisational culture on creativity and innovation.C. but several values. (1997) describe successful innovation as chaos within guidelines. Organisational goals and objectives reflect the priorities and values of organisations and as a result may promote or hinder innovation (Arad et al. 2000). in other words top management prescribes a set of strategic goals. Tushman and O'Reilly. (1997) mentions that. sufficient research about the effects of organisational and individual goals and objectives has not yet been done. as explained above. There also seems to be a paradox in the sense that organisational culture can stimulate or hinder creativity and innovation (Glor. 1997. 1995). the question now arises as to which specific determinants of organisational culture have an influence on the degree to which creativity and innovation are encouraged and stimulated in the organisation.. Structure Organisational culture has an influence on the organisational structure and operational . creativity and innovation. Consequently this model was used as a starting-point in developing a model of the determinants of organisational culture that influence creativity and innovation. Number 1 . 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. Arad et al. the following integrated interactive model was created (Martins.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 .and market-oriented. 1998. but allows personnel great freedom within the context of the goals. Very few empirical studies.. Although the newly developed model may illustrate only part of the phenomenon. 1989. O'Reilly.. Hall (cited in Arad et al. 1996). focusing on solving customers' problems among other things (CIMA Study Text. it became clear that the dimensions of Martins' model a of organisational culture (1987. the sub-systems context. Each of these determinants is discussed briefly to describe their influence in promoting or hindering creativity and innovation. Judge et al. 1997). and especially quantitative research. 2003 . apart from a few research studies. This influence can be divided into five determinants of organisational culture. Martins and F. 1997) found that personal and organisational goals that emphasise quality rather than effectiveness improve the levels of innovation.

. Freedom as a core value in stimulating creativity and innovation is manifested in systems in an organisation (Armstrong. control. The structure seems to emphasise certain values which have an influence on the promotion or restriction of creativity and innovation in organisations. 1997). whereas specialisation. and freedom as opposed to control. Examples of flexibility in organisations are to make use of a job rotation programme or to do away with formal and rigid job descriptions. 2003 . values like flexibility. 1995). autonomy and work teams will promote innovation. On the other hand.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . Martins and F. values like rigidity. Terblanche Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) Figure 2 Influence of organisational culture on creativity and innovation creativity and innovation. stability and order (mostly associated with hierarchical structures) will hinder creativity and innovation (Arad et al. that are emphasised in the literature. much has been written about the structural characteristics of organisations and according to Arad et al. (1997) and the CIMA Study Text (1996) a flat structure. freedom and cooperative teamwork will promote 70 . As regards the influence of organisational culture on a structure that supports creativity and innovation. It is especially the values of flexibility as opposed to rigidity. formalisation. In the innovation literature. 64-74 E.C. A high level of responsibility and adaptability also accompanies an organisational structure that allows for flexibility. Number 1 . standardisation and centralisation will inhibit innovation. predictability.

experimenting and generating ideas. in other words empowering them instead of controlling them (Judge et al. understand one another's perspectives and style of functioning. 64-74 Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) E. it will become the general. which leads to more pressure on employees to work harder. Management should be sensitive to which methods of reward and recognition will inspire personnel in their specific organisation to be more creative and innovative (Tushman and O'Reilly. 1997). 76).g. values about shared trust and solving differences) (Shattow. which is positively related to the level of creativity and innovation in an organisation (Arad et al. 4).. Apart from personality traits like intelligence. communicate effectively. 1996. p. 1996). The speed of decision making can also promote or inhibit creativity and innovation. Another important aspect is that team members should be able to trust and respect one another. 117) claim that cultural norms which lead to quick decision making (e. The literature study revealed that rewards and recognition and the availability of resources. Tushman and O'Reilly (1997. be open to new ideas and question new ideas. that speed is important and that the work rate is fast) should promote the implementation of innovation.. 1997). Recruitment. Emphasis on productivity and downsizing. The literature study revealed that the degree to which employees have freedom and authority to participate in decision making in solving problems determines the level of empowerment. inquisitiveness and energy. In organisations where creativity and innovation are encouraged. This implies that personnel are free to achieve their goals in an automatic and creative way within guidelines (described as ``chaos within guidelines'' by Judge et al. selection and appointment and maintaining employees are an important part of promoting the culture of and specifically creativity and innovation in an organisation. Personnel should also be rewarded for risk taking. namely time.. An organisational culture that promotes creativity and innovation should allow employees time to think creatively and experiment (Shattow. 1997). technology and creative people. 1997). The values and beliefs of management are reflected in the type of people that are appointed. It is also important to reward individuals as well as teams (Tushman and O'Reilly. In organisations where it is part of the culture to use computer technology such as the Internet and intranet to communicate and exchange ideas. The problem is that many organisations hope that personnel will think more creatively and take risks. 1996. If creative behaviour is rewarded. 1997. Intrinsic rewards like increased autonomy and improved opportunities for personal and professional growth may support the innovation process (Shattow.. dominant way of behaving (Arad et al. 1996). Tushman and O'Reilly. is not conducive to creativity and innovation in organisation (Filipczak. (1997)). Personnel therefore have the freedom to do their work and determine procedures as they see fit within the guidelines provided. allowed to spend 15 percent of their time on generating new ideas and working on their favourite projects.g. 1997). Mumford et al. 1997. Information technology as a support mechanism is an important resource for successful innovation (Shattow. information 71 . 1997). the chances of creativity and innovation taking place are improved (Bresnahan. a value like diversity Support mechanisms Support mechanisms should be present in the culture of an organisation to create an environment that will promote creativity and innovation. Such effective teamwork is partly based on team members' skills and abilities and partly on the shared values within the group (e. empowerment and decision making. Well-established work teams which allow for diversity and individual talents that complement one another should promote creativity and innovation (Arad et al.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . 1997.. p. Management should also believe in personnel and encourage them to be more creative by allowing them more freedom. 1997. risk taking. Martins and F. p. knowledge.. Number 1 . Terblanche autonomy. trusted methods and fault-free work.C. 1997). Cross-functional teams which encourage social and technical interaction between developers and implementers can improve and promote creativity and innovation. but they are rewarded for well-proven. Amabile and Gryskiewicz (1987) and Kanter (1983) cited in Arad et al. Co-operative teams are identified by some authors as having an influence on the degree to which creativity and innovation take place in organisations. personnel are. Khalil. Behaviour that is rewarded reflects the values of an organisation. are mechanisms that play this role. 1996). for example. 2003 . solve differences of opinion.

Several authors (Arad et al. used to punish someone or perceived as a learning opportunity (Brodtrick. keeping knowledge and skills up to date and learning creative thinking skills. By focusing on being inquisitive. Glor. 1997). 1997. to clients within and outside the organisation to learn from them). 1998).g. The assumption that risks may be taken as long as they do not harm the organisation will not encourage personnel to be creative and innovative by experimenting and taking risks (Filipczack. In creating a culture of competitiveness managers should reach out to internal and external knowledge. perceptions and ways in which information is processed and evaluated. based on 72 . 1996. According to Read (1996. regarding mistakes as learning experiences. creating a vision that emphasises change and revealing a positive attitude towards change (Arad et al. Appointing people of diverse backgrounds should lead to richer ideas and processes that should stimulate creativity and innovation (Bresnahan. Successful organisations reward success and acknowledge or celebrate failures. 1996) indicate that an organisational culture that supports a continuous learning orientation should encourage creativity and innovation. Martins and F. 1997.. 1995). the process of handling conflict should be handled constructively to promote creativity and innovation. Tushman and O'Reilly.Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management Volume 6 . Tolerance of conflict and handling conflict constructively are values that support creative and innovative behaviour in organisations (Mumford et al. 2003 .. 1997). Understanding different individual thinking styles and training personnel in the process of constructive confrontation will create a culture supportive of creativity and innovation. Mistakes can be ignored. 226). 1997. Tushman and O'Reilly. Robbins. creating a tolerant atmosphere in which mistakes are accepted as part of taking the initiative. assigning the responsibility of monitoring and measuring risk taking to someone in the organisation. Managers can create a culture that supports change by looking for new and improved ways of working. by creating opportunities to openly discuss and learn from mistakes (Ryan. encouraging personnel to talk to one another (e. encourage debating of ideas. competitiveness in organisations has shifted to the creation and assimilation of knowledge.. support projects based on information flow and actively manage the choice of organisational design. 1995. 1997). without being harmed. p. Judge et al. Number 1 . 1996. Lock and Kirkpatrick. Fair evaluation of ideas will also support and encourage creativity (Amabile. Research by NyÈstrom (1990) indicates that the most creative and innovative departments in an organisation regard competitiveness as an important aspect of their culture. Tolerance of mistakes is an essential element in the development of an organisational culture that promotes creativity and innovation. 1997. 64-74 E.C. when stating their annual objectives for the year. covered up. 1996. The way in which mistakes are handled in organisations will determine whether personnel feel free to act creatively and innovatively. It is imprrtant that a Communication An organisational culture that supports open and transparent communication. Terblanche balance should be reached in the degree to which risk taking is allowed. Johnson. and assuming that there is a fair chance of risks being successful.. Taking risks and experimenting are behaviours that are associated with creativity and innovation. When there is conflict between different ideas.. An example of a culture in which change is supported is to expect personnel. 1997. 1997). and where the focus is on what is supported instead of on what is not viable. 1997). a learning culture can be created and maintained. Support for change is a value that will influence creativity and innovation positively (Arad et al. A culture in which too many management controls are applied will inhibit risk taking and consequently creativity and innovation (Judge et al. 1997). Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) is of utmost importance in the appointment of creative and innovative people. An organisational culture in which personnel are encouraged to generate new ideas. 1997. 37). for example. Samaha. 1997. to indicate how they intend changing their work methods. 1997). create an environment in which constructive conflict will lead to information flow. should encourage creativity and innovation (Filipczak. This can be achieved by spelling out expected results.. p. 1997. Eyton. Tushman and O'Reilly. Gardenswartz and Rowe. Behaviour that encourages innovation Values and norms that encourage innovation manifest themselves in specific behavioural forms that promote or inhibit creativity and innovation.

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ISN’T IT NOW A CRUCIAL TIME FOR SAUDI ARABIAN FIRMS TO BE MORE INNOVATIVE AND COMPETITIVE?. International Journal of Production Research. Innovation culture and performance in innovation of products and processes: a study in companies of textile industry. Tamayo-TorresIgnacio Ignacio Tamayo-Torres Dr Ignacio Tamayo-Torres is an Assistant Professor in the Management Department at the University of Granada. Woojin Yoon. Granada. MOHAMED ZAIN. Tourism Management 57. Creativity. Luning. Spain . special issues. Telematics and Informatics 34:1. [CrossRef] 14. THOMAS ANNING-DORSON. 2016. [CrossRef] 12. 2016. 2016. 2016. International Journal of Production Economics. . 2017. Gutiérrez-Gutierréz is an Associate Professor of Operations Management at the University of Granada. 133-150. Giancarlo Gomes. Vincenzo Fogliano. Nyarugwe. Abdelkader Achi. 2016. He is the author of journal articles in Technovation. and social management. Mauricio Monge Agüero. and research books for leading publishers of business and management research. He has also published over 80 papers in international journals and conferences proceedings. and Technology Analyses and Strategic Management. Martínez-LópezFrancisco J. He is the Editor-in-Chief of the International Journal of Business Environment (Inderscience Publishers) and Associate Editor of European Journal of Marketing (Emerald). and belongs to the Editorial Board of Industrial Marketing Management (Elsevier). Shingai P. SONJA CHRISTINA SPERBER. flexibility management. Ethical leadership and its impact on service innovative behavior: The role of LMX and job autonomy. corporate social responsibility. University of Granada. [Abstract] [Full Text] [PDF] 13. Industrial Marketing Management. [CrossRef] 4. António Madureira. RAI Revista de Administração e Inovação . Gabriel Bouhid Barradas. Total Quality Management & Business Excellence and Technovation. Sang Ji Kim. 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MSc in Marketing and European PhD in Business Administration. which analyzes quality management initiatives and their influence on dynamic capabilities. Llorens-MontesFrancisco Javier Francisco Javier Llorens-Montes Dr Francisco Javier Llorens-Montes is a Full Professor of Quality Management in the Faculty of Economics and Business Administration. La cultura intraemprendedora y su efecto en la innovación de las spin-off académicas. Juan-Gabriel Cegarra-Navarro. Top management team characteristics and organizational creativity. Wensley. Anthony K. 2016. is a Professor of Business Administration at the University of Granada. 1445-1467. [CrossRef] 3. ChienHsing Wu. Gianluigi Viscusi. [CrossRef] 9. 2016. Review of Managerial Science 10:4. He has published over 100 articles in academic journals and books. Francisco J. Gutiérrez-GutiérrezLeopoldo J. Camille Salinesi. Vinícius Carvalho Cardoso. Journal of Management Analytics 1-28.Downloaded by UNIVERSITY OF INDONESIA At 04:28 09 November 2016 (PT) This article has been cited by: 1. Department of Business Administration. FAEDPYME INTERNATIONAL REVIEW 5:8. Jaeyong Song. Shu-Chen Kao. Leopoldo J. NORIZAN KASSIM. 2016. His research focusses on strategic flexibility. 77-87. and International Journal of Operations and Production Management. Eduardo Gómez-Melero. in Spain. Linking social and economic responsibilities with financial performance: The role of innovation. Omega: The International Journal of Management Science. . [CrossRef] 8. Carmelo Reverte. and strategic change. Anita Linnemann. International Journal of Production Research. International Journal of Production Economics. and a Professor of Marketing at the Open University of Catalonia (Barcelona). [CrossRef] 10. Information & Management 53:6. [CrossRef] 2. Industrial Management & Data Systems 116:8. [CrossRef] 11. 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Philadelphia. Illinois. 553-569. AlFaisal University. Al Ain. Taiwan. Human Service Organizations: Management. Kickul Stern School of Business. United Arab Emirates University. PA. Enrico Moretto. Saudi Arabia College of Business Administration. Virginia. Thailand Rongbin W. 2016.H. Republic of China Tsu-Wei Yu Department of Insurance. Taichung. Poland. Leadership & Organization Development Journal 37:5. [Abstract] [Full Text] [PDF] 19. Michael J. Monica Perez Jolles. 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. and development culture on new product exploration in small enterprises. willingness to change. product launch strategy and industrial marketing management. 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College of Business and Economics. Buffalo.B. 2016. MBA and BSc at McGill University. New York. New Zealand and the UAE. business intelligence and performance management. United Arab Emirates University. Culture and intellectual capital: towards a conceptual framework. Hung Hom. Driehaus College of Business. Canada. The Hong Kong Polytechnic University. Sarah Carnochan. Intellectual capital-based innovation planning: empirical studies using wiNK model. Nathaniel P. Bangkok University. New York. [Abstract] [Full Text] [PDF] 18. 668-683. He completed his PhD at Dublin City University and MA and BSc in psychology at University College Dublin. Anna Arcari. PA. Does innovation leadership enhance creativity in high-tech industries?. Bowen McBeath. Knowledge Management and Innovation Research Center. Al Ain University of Science and Technology. He earned his MBA degree from Plymouth State University. Paolo Ossola. Al Ain. USA. [Abstract] [Full Text] [PDF] 16. 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