Argumentative

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Creativity, Innovation & Design

Creativity at the Organisational level

=> 1. Corporate Entrepreneurship

Prepared by Dr Gerrit de Waal

What can organisations do to ensure employees are creative on the job and innovate?

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Objectives of week 3

1. Corporate entrepreneurship

2. Creativity enhancing factors

3. Creativity inhibiting factors

4. The role of an innovation manager (BONUS) 5. Open Innovation (BONUS) 6. Managing Innovation (BONUS)

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“The challenge is relatively straightforward … companies must tap into the creative power of their members. Ideas come from [individual] people. Innovation is a capability of the many. That capability is utilized when people give commitment to the mission and life of the enterprise and have the power to do something with their capabilities.”

(Brandt, 1986)

CREATIVITY INNOVATION

How to survive and grow?

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The Componential Theory of Individual/Team Creativity (Amabile 1997)

Assumptions: • everyone has the capacity to do at least moderate creative work

in some domain, some of the time • the social environment can influence the level and

frequency of creative work

 Individual’s expertise

 Individual’s creative thinking

 Individual’s intrinsic task motivation

Expertise

Creative Thinking

Intrinsic task

motivation

Creativity

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The Componential Theory of Organizational Creativity and Innovation (Amabile 1997)

Organizational motivation to innovate – the basic orientation of the organization to innovate and the support for creativity and innovation throughout the organization

Resources – all resources available within the organization that are used in creative work and innovations

Management practices – management practices that support and promote creativity and innovation in the organization

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Corporate entrepreneurship

• Corporate entrepreneurship is a term used to describe entrepreneurial behaviour inside established mid-sized and large organisations.

(Morris, Kuratko, & Covin, 2011)

• It results in the development of new businesses, products, services or processes inside of an existing organisation to create value and generate new revenue growth.

But what do we mean by ‘entrepreneurial behaviour’?

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Entrepreneurial behaviour 1. Innovativeness: The extent to which an organisation is doing things that are novel, unique, or different. Creativity, as we have seen, is integral to this.

2. Risk-taking: It reflects an organisation’s willingness to pursue opportunities that have a reasonable likelihood of producing losses or significant performance discrepancies

3. Pro-activeness: It indicates an organisation’s level of action orientation; its determination to do whatever is necessary to bring an entrepreneurial concept to fruition. The opposite of reactiveness.

(Morris, Kuratko, & Covin, 2011)

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Do we really want entrepreneurial employees?

We asked two HR managers in two different companies how they viewed corporate entrepreneurship. Check out what they say in Canvas week 3.

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How do we motivate employees to act entrepreneurial?

With the expectation that: Importance Rating

EFFORT SPENT ON

ENTREPRENEURIAL ACTIVITIES

SUCCESSFUL PERFORMANCE EVALUATION

REWARD

Perceived Equity

will lead to

will lead to

INDIVIDUAL MOTIVATION

TO BE ENTREPRENEURIAL

ON THE JOB

is a function

of

Porter and Lawler’s Expectancy Model (see animation in week 3)

(Porter and Lawler, 1968) (Morris, Kuratko, & Covin, 2011)

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References • Amabile, T. M. (1997). Motivating creativity in organizations: Doing what you love and loving what you do. California

Management Review, vol. 40, no. 1, pp. 39-58. • Brandt, S. C. (1986). Entrepreneuring in Established Companies: managing toward the year 2000. Homewood, IL:

Dow Jones-Irwin. • Morris, M. H., Kuratko, D. F., & Covin, J. G. (2011). Corporate Entrepreneurship and Innovation 3e. South Western:

Cengage Learning. • Porter, L. W., and Lawler, E. L. III. (1968). Managerial attitudes and Performance. Homewood, IL. Richard D. Irwin.