The Role of Creativity and Innovation in Implementing Strategies - Essay Example

Strategic Management: The Role of Creativity and Innovation in Implementing Strategies By: Introduction Background of the study Innovation and creativity are essential elements in implementing successful business strategies. Corporations are reluctant to rethink their business models can learn a lot from Wal-Mart. The organization has successfully applied innovation and creativity to its business model. There are many benefits of creating a business environment that supports innovation. This environment is convenient for generating new ideas that could be very useful for the organization (Okpara, 2007). Innovation and creativity in the business field may not be rocket science, but they do take a special type of practical genius. Through innovation and creativity, small companies can squeeze even higher sales and greater profits from the markets. For instance, Wal-Mart started embracing technology (even though it is not in an e-commerce business), and they are now competing with internet giants like Amazon. Creativity is making or otherwise bringing into existence something new. It may be a new solution to a problem, a new method, device, or an artistic object. Innovation is adding a new thing to an existing product or process. Creativity is the starting point for innovation (Okpara, 2007). No businesses, however big, can continue to hold a position in the market unless they incorporate innovation and creativity in their strategies. This paper will analyze strategic management and the role of creativity and innovation in implementing firms’ strategies. The researcher will analyze Wal-Mart in describing the applicability of innovation and creativity in strategy formulation (Okpara, 2007). The researcher will rely on the psychoanalytical theory of creativity. The main tenet of this theory is that people become creative as a reaction to difficult circumstances and/or repressed emotions. In this case, companies apply creativity and innovation to their strategies in order to maximise their chance of market survival. From this theory, people regress from their surroundings prior to creativity. As situations become difficult, or they go through a traumatic event people pull back from their surroundings. They then rely on the creative side to find a solution to the plight or as an outlet for their now repressed emotions. Similarly, businesses and corporations rely on creativity to find a solution to the difficult market situation or as a chance to attract more customers. Purpose of the study The aim of this paper is to study the role of creativity and innovation in implementing firm’s strategies. This assessment is done by examining numerous literatures that cover on this topic and comparing it to previous research. Significance of the study The study will be significant, as it would enhance existing knowledge on creativity and innovation implementing a firm’s strategy. The study would also provide guidance to business managers interested in using creativity and innovation to implement their strategies. Aims of the paper This paper explains why innovation and creativity are essential in implementing successful business strategies. The paper will use the example of Wal-Mart Corporation in explaining the stated research question. Therefore, the aims of this paper are to: Explain why strategic management is necessary for organisations. Demonstrate the need for good strategies and leadership. Establishing the importance of innovation and creativity in designing successful business strategies. Discuss the applicability of using innovation and creativity in designing successful business strategies, in Wal-Mart Corporation. Literature Review A study by Aspenberg (2012) noted the advantages of defining terms before analysing it. Therefore, in this case, I will define the terms ‘creativity’ and ‘innovation.’ A study by Parjanen (2012) defined creativity as a phenomenon whereby something new and in some way valuable is created, such as a literary work or, an invention. The same study defined innovation as a process of translating an idea or invention into a good or service that creates values or for which customers will pay (Parjanen, 2012). Most firms regard creativity and innovation as a critical source of competitive advantage. According to numerous studies, innovation and creativity are the primary determinants of firms’ performance (Parjanen, 2012; Cokpekin1, 2012). Many studies enter the keyword ‘innovation’ or ‘creativity’ in the Google search area, and millions of articles come to display. However, reviews and meta-analyses are rare and narrowly focused, either around the level of analysis or the type of innovation or creativity (Aspenberg, 2012). Innovation often involves creativity. However, innovation is not identical to creativity. Studies indicate that innovation involves acting on creative ideas to make some specific and tangible difference in the domain in which the innovation occurs (Parjanen, 2012). For an innovation to occur there must be the generation of creative ideas. Innovation and creativity are crucial ingredients for organisational strategies to be a success. Successful strategies have to be flexible enough to adapt to the changing needs and development stages of an organisation. Successful strategies have to adjust to operations quickly and able to meet rapid changes in the markets (Parjanen, 2012). An organisation’s strategy not only influences a firm’s performance, but also may be a source of creativity. Parjanen (2012) noted that firms have a challenge of formulating strategies that influences internal creativity. A quantitative study by Okpara (2007) noted that innovation and creativity are tools for entrepreneurship. There is no entrepreneur that can continue to hold a place in leadership unless it recognises creativity and innovation. A study by Cokpekin1(2012) identified the determinants of creativity. These determinants include organisational climate, leadership style, organisational culture, resources and skills, and systems of an organisation. Studies have demonstrated how leaders face the challenge of profiting from individual potential and then leveraging it so that it produces organisational innovation and excellence (Cokpekin1, 2012; Parjanen, 2012). Because of creativity and innovation, firms can attract, develop and retain creative talents. Leaders who develop successful strategies, according to Parjanen (2012) can effectively communicate a vision conducive to creativity. These leaders are in a superb position to balance employees’ freedom and responsibility. Persons who believe they are leaders always consider themselves to have more potential for innovation than those individuals who think they have weak leadership potentials (Parjanen, 2012). Studies have proven that innovation and creativity can lead to long-term business success and growth. Therefore, for companies to improve its performance, they have to put in place the right innovation strategy, and innovation culture (Okpara, 2007; Parjanen, 2012). Methodology The researcher will acquire data by ‘sitting at a desk.’ He will collect data from existing resources. It will be a low-cost technique as compared to field research because the main cost, in that case, is involved in the executive’s time, telephone charges and directory. The researcher has adequate knowledge in innovation and creativity strategies and how data is collected; therefore one will not waste time. The researcher will generate data within Wal-Mart stores. He will provide an account of related information that indicates what type of products are sold, strategies used, the geographical location, types of customers, and so on. The researcher will involve internal and existing organisational resources to organise the data that he will collect in such a way that it is not only efficient, but also usable. The researcher will also rely on external data research. He will conduct research outside Wal-Mart boundaries. He will collect incredible amount of data available on the internet. There are billions of pages available on the internet. He will browse the specific information from industrial, marketing, or business sites. Additionally, he will use search engines like Google, Yahoo, Infoseek, and many other websites. Furthermore, the researcher will rely on government published data on creativity and innovation. The government data will be related to social, financial, and economic aspects of the economy. Most of the times, the government websites are free to access and contain most prominent information. Reference List ASPENBERG, H., 2012. Open innovation and organisational creativity – do they go together? S.l.: CHALMERS UNIVERSITY OF TECHNOLOGY. Cokpekin1, Ö., 2012. Does organising creativity really lead to innovation?. Integrative Innovation Management Unit. Okpara, F., 2007. The Value of Creativity and Innovation in Entrepreneurship. Journal of Asia Entrepreneurship and Sustainability, III(2), pp. 3-50. Parjanen, S., 2012. Experiencing Creativity in the Organization: From Individual Creativity to Collective Creativity. Interdisciplinary Journal of Information, Knowledge, and Management, Volume 7. Read More