Role of Creative Management in the Improvement of Entrepreneurial Activities - Essay Example

Role of creative management in the improvement of entrepreneurial activities The survival of firms within the modern commercial market is a challenging task. In fact, when operating within the international market companies have to face not only the intensive competition but also the increased customer demands which are becoming difficult to be satisfied. Towards this direction, firms have introduced the scheme of ‘creative management’ by applying a series of innovative strategies in all their activities. In this context, current paper focuses on the development of creative management as a tool for the improvement of firm’s performance especially within the international marketplace. Aims and objectives of research Current research focuses – as already explained above – on creative management and its role in the improvement of entrepreneurial activities around the world. However, in order for the above issue to be appropriately explored it is necessary to examine a series of supplementary (or else secondary) issues like the following ones: a) is there a specific mode of creative management applied internationally? b) which is the role of innovation in the whole effort? c) which are the strategies adopted by the firms regarding the other entrepreneurial sectors (e.g. the HR department) when creative management is applied in all organizational activities? and d) are there specific methods for the measurement of the effectiveness of the creative management mode chosen by a particular firm? All these issues should be addressed appropriately in order to formulate a complete assumption regarding the role of creative management in the development of entrepreneurial performance and its interaction with innovation. Problems of the study Current study can face certain obstacles especially regarding the measurement of effectiveness of creative management in firms around the world. More specifically, because creative management belongs in the firm’s strategic decisions, it is rather difficult to retrieve accurate info for its effectiveness when applied in a particular organization – severe weaknesses of the above strategy are very likely not to be published trying to protect the firm’s position in its market. Towards this direction, all data and views presented regarding the particular issue have to be carefully chosen in order to represent the actual position of creative management and its effectiveness in the international market (at least as estimated by the majority of firms globally). Research method The research method used in current paper will be a combination of qualitative and quantitative one. In fact, qualitative data are going to be used to the extension that views of the literature are going to be presented regarding the particular issue. On the other hand, because the effective analysis of the specific subject requires the presentation of a series of statistical data, quantitative research has to be included as part of the research methodology used in this paper. The data retrieved by the above research are going to be analyzed trying to combine the personal assumptions of researchers (in the specific field) with the empirical data (as retrieved through relevant surveys conducted within the international market). Outline of the project The paper is going to be divided into chapters in accordance with the material presented. More specifically, in Chapter One, the Introduction on the issue under examination will be followed by the Research Hypothesis, the Aims and Objectives of the study and the Limitations of the Study. In the specific Chapter a short explanation for the reasons of choosing the particular topic will be also included. The methods used for the development of research applied throughout the paper will be also presented in Chapter One. On the other hand, Chapter Two will present the Literature Review related with the issue under examination. The empirical research of the particular subject will be included in Chapter Three which will be divided into three sub-chapters: Presentation of data, Analysis of Data and Discussion. Finally, Chapter Four will present a general overview on the material developed in the paper proposing some recommendations for the future. Presentation of literature The improvement of the firms’ performance within the international market has been an issue extensively analyzed in the literature. Towards this direction, it is suggested by Bhaskaran (2006) that innovation could include ‘creative and risk-taking behavior that foster incremental changes such as introducing new goods or services, new methods of production, establishing new markets, utilizing new supply sources, and creating new organizational forms’. The above view is also followed by the comment that innovation can also incorporate ‘undertaking activities in different ways to what is known to the firm and includes initiatives such as improving products, processes, or procedures aimed at enhancing the value and performance of products, processes, or procedures’ (Bhaskaran, 2006). In accordance with the above innovation is a common management tool used when the need for improvement of organizational performance is emergent. In the above terms, innovation could be considered as having the same role with creative management. Moreover, Gilbert (1996) supported that ‘the company must be aware of its industry and know what its competitors are doing with regard to innovation’. From another point of view, Kesler (2000) found that innovation could be regarded as including the following categories: ‘1. Finance, 2. Process, 3. Offering and 4. Delivery’. These are the factors in which innovation can refer when applying on a particular entrepreneurial environment. However, it is necessary for firms internationally to create the appropriate conditions in order to ensure the effectiveness of innovative plans applied on their internal environment (innovative plans related with the firm’s external environment could be also met). In this context, it is supported by Zander et al. (2000) that ‘by creating flexible linkages that allow the efforts of multiple units to be combined, a company can create synergies that can significantly leverage its innovation process’. The identification of the role and the elements of innovative strategies applied on a specific organization belongs to creative management. In fact, creative managers should decide on the effectiveness and the prospects of a particular innovative plan trying to monitor all stages of the relevant effort. In accordance with the above innovation is the most important element of creative management. Regarding this issue it is noticed by Uljin et al. (2000) that ‘innovation enables organizations to improve the quality of their outputs, revitalize mature businesses, enter new markets, react to competitive encroachment, try out new technologies, leverage investment in technologies that are so expensive that no single product can recoup them, and develop alternative applications for existing product categories, to name a few outcomes’. In other words, innovation should be included in any initiatives of creative management in order for the firm’s performance to be improved within an appropriate time limit (trying to avoid delays in the firm’s productivity). For this reason, it is necessary that all necessary measures have been taken in advance by creative managers. Regarding this issue it is supported by Kickul et al. (2002) that ‘the ability to arrive at new methods to target customers through new promotional and distribution channels as well as developing boundary supports may allow the business to add value by increasing brand awareness and levels of efficiency’ . The above issues that are also highlighted by Kotabe et al. (2007) can lead to the assumption that creative management is a valuable part of organizational activity. However, in order for creative management to be effective regarding the targets set by the specific organization it is necessary to enforce the application of innovative schemes; in a different case, i.e. if no innovation is involved in entrepreneurial activities attempted under the guidance of creative management, then the latter has no particular role within the organization in which these activities are taking place. References Bhaskaran, S. (2006), ‘Incremental Innovation and Business Performance: Small and Medium-Size Food Enterprises in a Concentrated Industry Environment’, Journal of Small Business Management, Vol. 44, Issue 1; pg. 65 Gilbert, J. (1996), ‘Managing Innovation: The Role of the General Manager’, Review of Business, Vol.17, Issue 3; pg.12 Kesler, G. (2000), ‘Four Steps to Building an HR Agenda for Growth: HR Strategy Revisited’, Human Resource Planning, Vol. 23, Issue 3; pg. 26 Kickul, J., Gundry, L. (2002), ‘Prospecting for Strategic Advantage: The Proactive Entrepreneurial Personality and Small Firm Innovation’, Journal of Small Business Management, Vol. 40, Issue 2; pg. 87 Kotabe, M., Hinkler, D., Parente, R., Mishra, H. (2007), ‘Determinants of Cross-National Knowledge Transfer and Its Effect on Firm Innovation’, Journal of International Business Studies, Vol. 38, Issue 2; pg. 259 Uljin, J., O’Hair, D., Weggeman, M., Ledlow, G., Hall, T. (2000), ‘Innovation, Corporate Strategy, and Cultural Context: What Is the Mission for International Business Communication?’, The Journal of Business Communication, Vol. 37, Issue 3; pg. 294 Zander, I., Solvell, O. (2000), ‘Cross-Border Innovation in the Multinational Corporation’, International Studies of Management & Organization, Vol. 30, Issue 2; pg. 45 Read More