The Impact of Creativity and Innovation on Organizational Performance: A Case Study of Vital Foam Nigeria Limited
Chapter One
OBJECTIVE OF THE STUDY
The objectives of the study are;
- To ascertain the impact of creativity and innovation on organizational performance
- To ascertain the relationship between creativity and innovation in vital Foam Nigeria Limited
- To ascertain the impact of product innovation and creativity on employee performance
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Firm performance, innovations, and creativity
Most economists would agree that creativity forms a seedbed of innovation. Amabile et al. (2000) define it as an intra-individual cognitive process conducive to the production of novel and useful ideas. The ability to combine and reorganize existing knowledge in previously unthought-of ways starts with individual creative efforts but can flourish only in a creative environment. From these starting points the research on the role of creativity in the innovation process developed in several directions from the organizational behavior conducive to creativity over the creative potential of individual economic sectors to the individual traits and occupational dimension of creativity. The organizational behavior literature notes that creativity emerges through the nexus of individual efforts and environmental factors. The research on individual traits of creativity has so far associated several personality characteristics with the creative potential of individuals. These range from human and intellectual capital to relational and social capital (Nahaplet and Ghoshal, 1998; Kale, Singh, and Perlmutter, 2000). Different experiences, backgrounds, and values pave the way for a combination of different types of knowledge (Koestler, 1964). Moreover, Florida (2003) notes that the tolerant environments, open to new ideas and newcomers are particularly attractive to the creative class. Such environments are particularly motivating for the emergence of innovations. Cohen and Levinthal (1990) were among the first to recognize the role of the organizational environment in the transformation of creativity into innovations. Later extensions of their research have further confirmed the importance of collaborative networks (Björk & Magnusson, 2009) among individuals within organizations as well as between organizations and their external environment for the development of innovations. Baucus et al. (2008) note that environments encouraging unconventional behavior, challenging authority, conflict, competition, and risk propensity have the highest potential for the flourishing of creativity. Tolerance of ambiguity, measures to develop a feeling of psychological safety, stronger self-confidence, and lack of rigidity lead to the fusion of ideas in creative groups. It appears that a flexible and decentralized organizational culture facilitates creative activities and the birth of innovations. Such settings enable the flow of information, teamwork, and knowledge sharing all of which are conducive to innovations. In addition to that, the motivation for creative behavior is strongest in dynamic and turbulent environments where rapid and effective responses are required from firms. Such settings encourage experiments and reduce risk aversion thus enabling the search for innovations (Yusuf, 2009; Baron and Tang, 2011). Finally, it has been argued by some scholars that intrinsic motivation such as an organizational structure that assigns creative individuals to challenging and complex jobs is more conducive to creativity and the generation of innovations than extrinsic rewards such as recognitions or monetary incentives (Hackman and Oldham, 1980; Deci and Ryan, 1985). Managerial skills in the creation of an environment conducive to the stimulation of talented employees are important for the development of creativity-relevant skills (Amabile, 1988; Swann and Birke, 2005; Cereda et al., 2005). Hiring personnel with creative skills as well as using creative methods developed in firms may facilitate knowledge transfer from one actor to another and increase the local firms’ capacity to innovate via national and international networking (Camagni, 1991).
CHAPTER THREE
RESEARCH METHODOLOGY
Research design
The researcher used a descriptive research survey design in building up this project work the choice of this research design was considered appropriate because of its advantages of identifying attributes of a large population from a group of individuals. The design was suitable for the study of the impact of creativity and innovation on organizational performance.
Sources of data collection
Data were collected from two main sources namely:
(i)Primary source and
(ii)Secondary source
Primary source:
These are materials of statistical investigation that were collected by the research for a particular purpose. They can be obtained through a survey, observation questionnaire, or as an experiment; the researcher has adopted the questionnaire method for this study.
Secondary source:
These are data from textbook Journal handsets etc. They arise as byproducts of the same other purposes. For example, administration, various other unpublished works, and write-ups were also used.
Population of the study
The population of a study is a group of persons or aggregate items, things the researcher is interested in getting information on the impact of creativity and innovation on organizational performance. 200 staff of Vital Foam Nigeria Limited were selected randomly by the researcher as the population of the study.
CHAPTER FOUR
PRESENTATION ANALYSIS INTERPRETATION OF DATA
Introduction
Efforts will be made at this stage to present, analyze, and interpret the data collected during the field survey. This presentation will be based on the responses from the completed questionnaires. The results of this exercise will be summarized in tabular forms for easy reference and analysis. It will also show answers to questions relating to the research questions for this research study. The researcher employed a simple percentage in the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain the impact of creativity and innovation on organizational performance.
In the preceding chapter, the relevant data collected for this study were presented, and critically analyzed, and appropriate interpretations are given. In this chapter, certain recommendations are made which in the opinion of the researcher will be of benefit in addressing the challenges of creativity and innovation on organizational performance.
Summary
This study was on the impact of creativity and innovation on organizational performance. Three objectives were raised which included: To ascertain the impact of creativity and innovation on organizational performance, to ascertain the relationship between creativity and innovation in Vogue Foam Nigeria Limited, and to ascertain the impact of product innovation and creativity on employee performance. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of Vital Foam Nigeria limited, Lagos. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made up managers, HRMS, marketers and junior staff was used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Conclusion
Based on the literature findings, as well as findings from the case, it is possible to prepare an instrument to measure creativity and innovation of an organization and to find out the relationship between creativity, innovation and competitive excellence. For measuring excellence, it is proposed to use the instrument used by the various Quality Models. It is also suggested that the present instrument to measure excellence is no longer valid as a tool to measure competitive excellence as it does not contain measures of creativity and innovation, which are instrumental in making an organization competitive in this time of competition and globalization. The case reinforces the postulate that various determinants of creativity and innovation such as strategy, structure, culture, leadership, context, climate, technology etc help to bring out innovative and quality products in their journey towards excellence.
Recommendation
As a result, firms which are empowered with resources to increase their innovation capabilities are more likely to increase their market and production performance. Production and quality, human resources and organizational structures would lead to larger number of new products and service projects. Managers should pay more attention to organizational innovation as it not only significantly relates with other innovation types but also has a stronger positive impact on innovative performance. Innovative performance is the main vehicle to express the positive effects of innovation types to market, production, & financial performance.
REFERENCES
- Aldridge, T., Audretsch, D., B., (2010). Does policy in fl uence the commercialization route? Evidence from National Institutes of Health funded scientists, Research Policy, 39 (5): 583-588.
- Amabile T., M., Mueler J., S. and Archambault, S. (2000). Detailed event narativa analysis (DENA) coding scheme, Harward Business School Working Paper 03-080.
- Amabile, T. M. (1988). A model of creativity and innovation. In B. M. Staw & L. L. Cummings (Eds.),Research in organizational behavior, 10 (pp. 123–167).
- Greenwich, CT: JAI. Andari, R. Bakshi, H, Hutton, W., O’Keefe, A. and Schneider, P. (2007): Staying ahead? The economic contribution of the creative industries. London: Department for Culture, Media and Sport.
- Baron, R.A., and Tang, J., (2011); The role of entrepreneurs in fi rm-level innovation: Joint effects of positive affect, creativity, and environmental dynamism. Journal of Business Venturing, 26: 49-60.
- Baucus, M., Norton, W., Baucus, D. and Human, S., (2008): Fostering creativity and innovation without encouraging unethical behaviour. Journal of Business Ethics. 81: 97-115.
- Bjork, J. and Magnusson, M. (2009): Where do Good Innovation Ideas Come From? Exploring the In fl uence of Network Connectivity on Innovation Idea Quality, Journal of Product Innovation Management, 26 (6): 662-670.
- Camagni, R. (1991). ‘Local milieu’, uncertainty and innovation networks: Towards a new dynamic theory of economic space. In: R. Camagni (Ed.), Innovation Networks: Spacial Perspectives (pp. 121–143). London: Belhaven Press
- Camison-Zornoza, C., Lapiedra-Alcami, R., Segarra-Cipres, M., & Boronat-Navarro, M. (2004) A metaanalysis of innovation and organizational size. Organization Studies, 25(3), 331-361.
- Damanpour, F., & Evan, W. M. (1984): Organizational innovation and performance: the problem of organizational lag. Administrative Science Quarterly, 29(3), 392-409.
- Duranton, G., & Puga, D. (2001). Nursery cities: Urban diversity, process innovation, and the life cycle of products. American Economic Review, 91(5), 1454-1477.
- Ettlie, J. E., & Reza, E. M. (1992): Organizational integration and process innovation. Academy of Management Journal, 35(4), 795-827.
- Gunday, G & Alpkan, L. (2011): Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662-676
