CORPORATE INNOVATION AND ENTREPRENEURSHIP.

Running head: CORPORATE INNOVATION AND ENTREPRENEURSHIP
CORPORATE INNOVATION AND ENTREPRENEURSHIP
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Executive Summary
The aim of the paper is to identify the barriers to creative thinking and organizational innovation,
carry out an in-depth analysis of various models of organizational creativity and innovation such
as the Woodmens’s multi-level model, the Peter Senge frameworks and many more. The study
will also provide some recommendation’s that can be carried out by the organization under study
to improve organizational creativity and innovation.

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Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................4
Conclusion.......................................................................................................................................5
Recommendation.............................................................................................................................6
References........................................................................................................................................7

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Introduction
Critical thinking is the process of using the information that is gathered through
observation or experimentation for the purpose of analyzing, synthesizing and conceptualizing
for the purpose of carrying out any actions (Guimaraes and Paranjape, 2017). Critical thinking is
equally important in the organizations or the workplace because it helps the people in the
organizations’ to find solutions to the problems after properly diagnosing the problems. It
broadens the thinking capability of the organizations and its people such that they can look at the
problems differently and from a broader perspective to find the solutions. The main benefits of
carrying out critical thinking in the organization are that of empathizing with others and help the
individual have to carry out the process through self-control, self-directional and others (Brettel,
Chomik and Flatten, 2015). The organizational innovation is the process of carrying out the
activities of the organization in a new way or even innovating some new products or services.
Organizational innovation can act as a competitive advantage to the company by developing new
products and carrying out innovations which will help to make the company better from others
(Jafri, Dem and Choden, 2016). DRAX is a British company from Yorkshire, that is engaged in
providing electrical power generation and its major products are the power generation products
and the byproducts of these. The company is known for its traditional methods of occurring out
its business and it has been successful using the same (Drax. 2019). However, recently it is
facing many problems due to lack of technological innovations and in order to regain its position
it is important to carry out the innovations such that it can gain a competitive advantage. The
main aim of the study is to show the importance of innovation and creative thinking. DRAX can
regain its lost position in the market by doing the same. The following paper will discuss about

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the problems that is being faced by the DRAX which is acting as a barrier and to overcome those
with the help of innovative techniques.
Analysis
There can be different types of barriers to the process of creative thinking in an
organization due to which it is not easy to carry out innovations and changes in the organization.
The company was using traditional techniques for carrying out the operations of the organization
and was running a profitable business but the company recently lost its market share due to fierce
competition from competitors and because the company is lacking technological innovations.
This has resulted in new strategies being formulated by the company directors to rethink the
process by which it was carrying out its operations. The company has decided to carry out a
paradigm shift from the traditional hardware and software selling business to a modern business
that will make use of AI or artificial intelligence, machine learning and internet of things. For
this the company has established a separate department to look after the innovative capabilities’
of the company called the knowledge transfer partnership (KTP) funded by the UK (Drax. 2019).
However, this approach of the company can improve its innovativeness failed because of lack of
availability of in-house expertise. The company then decided to take help of some academic
Computer Science Technology to help the company in its acts of innovations. This has led the
company to innovate an centralized dashboard by which all the operations can be centrally
controlled and that will be established by the company at the clients house such that the fire
alarm system can give alarms in case of any critical situation and on a real-time basis. The fire
and maintenance system of UK is in need for innovation and creativity in order to become

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successful. This scenario has however has seen some major barriers within the organization to
creative thinking.
Cultural background
The cultural backgrounds of the employees determine their openness to change and their
creativity. According to Hofstede, there are various cultural factors that define the way a person
behaves (Block and Walter 2017). Power gap is one of the cultural dimensions defined by
Hofstede that defines how the people react to change and for creation of an environment in the
organization. If the country is one that follows hierarchy then the environment of organizations
in those countries will be such that employees will not feel free to share their views and ideas.
On the other hand, the employees’ belonging to countries where the power distance is less, the
managers will support the participation of the employees and there the employees can give their
opinions. Therefore, the country from which the individual belongs also determines the way they
perceive change and open-mindedness. If an employee is from a country that follows more
power gap, he needs to be motivated so that he can share some ideas. The culture of UK is the
one with more follows the heueacghy structure and that is why companies that are established in
UK find it difficult to share their ideas as they do not get a friendly atmosphere and fear that their
ideas will not be heard (Pesämaa, Shoham and Ruvio, 2017). Therefore, it is DRAX’s duty to
create such an environment where the employees feel free to share his views.
Adaptability to change and organizational climate
Organizational climate refers to the organizational environment of work and the level of
motivation an employee gets in the organization (Iljins, Skvarciany and Gaile-Sarkane 2015).
The employee’s adaptability to change affects the way they look at innovations. There are many