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Improving Business Competitiveness Based On Managing Creativity System

Author

Listed:
  • Danijela Madzar

    (University of Mostar)

  • Ines Milohnic

    (University of Rijeka)

Abstract

Strong market competition is a prerequisite for new business approaches and the improvement of competitiveness based on the management system and a strategic framework while choosing the interventions which stimulate creativity. The aim of the paper is to point out the role and importance of managing organizational creativity. It is intended to answer the basic research question of whether organizations that successfully manage creativity have a competitive advantage. The creativity implementation in an organizational context depends on a wide range of elements and has a whole new dimension in business that is reflected in the readiness to take risks and apply different creative methods and techniques, especially how (and how successfully) an organization applies the methods of fostering creativity from the establishment of multidisciplinary or diverse teams, rotation of the employees, introducing financial and non-financial stimulations for development of the creativity, and training employees for the development and the interaction of creative ideas. The paper is based on a basic hypothesis that there is a statistically significant difference in achieving the competitive advantage of those companies that use the organizational creativity management system and those which do not. Research results suggest that successful creativity management positively influences the company's competitive advantage. Organizations implementing the creativity management system have a higher level of profit per employee, as well as a higher level of their own profitability. Results of the research suggest that the surveyed companies mostly invest efforts in creativity management. Workplace satisfaction, feeling of job fulfilment and financial incentives all play an important role in encouraging individual creativity. On the other hand, diversity of work groups, sharing of ideas between team members and cooperation with the environment are factors that encourage individual creativity display.

Suggested Citation

  • Danijela Madzar & Ines Milohnic, 2019. "Improving Business Competitiveness Based On Managing Creativity System," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 28(1), pages 193-208, june.
    • Handle: RePEc:avo:emipdu:v:28:y:2019:i:1:p:193-208
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    References listed on IDEAS

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    1. Giovanni Cerulli, 2010. "Modelling and Measuring the Effect of Public Subsidies on Business R&D: A Critical Review of the Econometric Literature," The Economic Record, The Economic Society of Australia, vol. 86(274), pages 421-449, September.
    2. Melissa Baucus & William Norton & David Baucus & Sherrie Human, 2008. "Fostering Creativity and Innovation without Encouraging Unethical Behavior," Journal of Business Ethics, Springer, vol. 81(1), pages 97-115, August.
    3. Aerts, Kris & Schmidt, Tobias, 2008. "Two for the price of one?: Additionality effects of R&D subsidies: A comparison between Flanders and Germany," Research Policy, Elsevier, vol. 37(5), pages 806-822, June.
    4. Gu, Huimin & Duverger, Philippe & Yu, Larry, 2017. "Can innovative behavior be led by management? A study from the lodging business," Tourism Management, Elsevier, vol. 63(C), pages 144-157.
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    More about this item

    Keywords

    competitiveness; creativity; managing system;
    All these keywords.

    JEL classification:

    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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