Enterprise Innovation and Creativity: Role of Culture in Social and Economic Progress

This essay explores the relationship between enterprise culture, creativity, and innovation and their impact on social and economic progress. It defines enterprise culture and its four types, explains creativity and innovation, and discusses their role in enterprise success. The essay also highlights the importance of a healthy culture in fostering creativity and innovation and how they contribute to economic growth.

ENTERPRISE
INNOVATION AND
CREATIVITY

Table of Contents
INTRODUCTION...........................................................................................................................3
Explanation of Enterprise Culture, Creativity and Innovation ...................................................3
Role of Enterprise Culture in Creativity and Innovation ............................................................5
Creativity and Innovation Contributes to Social and Economic Progress...................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Creativity is all about imagining new ideas to innovate something new. Creativity and
Innovation go side by side in an enterprise which is majorly impacted by the culture that been
followed (Yun and et.al., 2020). Thinking of a new idea and then taking an action to implement
is the need of an hour. It's important for an enterprise to create an environment wherein a culture
of originality is appreciated and motivated to bring in the creative side for the overall growth of
the business. The essay will focus on the interrelatedness of these three concept that is culture,
creativity and innovation and further discuss their role in social and economic progress of an
enterprise.
Explanation of Enterprise Culture, Creativity and Innovation
Enterprise Culture defines as the value, beliefs, ethics, behaviour and attitude which has
been followed by the employees of an enterprise. The culture is developed over a period which
describes the way in which the employees interact and respect each other. It basically describes
the mission of an enterprise and becomes its identity. The main key factor is to maintain a
motivating and encouraging culture among the employees which further aids in obtaining the
ultimate goal of an enterprise (Danish and et.al., 2019). Healthy culture is really important for
the image of the enterprise. In an enterprise, the culture is build by the employees with the
positive attitude which helps to attain the ultimate goal of a business and gain more of customers.
Not only this but a strong culture will attract more talented and skilled people which will result
in more productivity of an enterprise. It encourages employees to put in their best efforts and
foster their overall development along with the growth of an individual and as a whole
organization as well. Encouraging environment among the employees is appreciated and
rewarded. Enterprise culture can be differentiated in 4 parts that is: Adhocracy Culture: This culture focuses upon taking risk through innovations for high
rewards. Market Culture: In this type of culture, profitability is the main factor which is taken into
consideration before taking any risk. Clan Culture: It is a collaborative culture where there is an open and effective
communication between the authority and the employees.

 Hierarchy Culture: Hierarchy is the traditional culture which involves different level in
the enterprise. Under this culture, the vision and mission of the enterprise is
predetermined.
Creativity is a uniqueness of an idea depending upon the imagination and thinking of a
creator. Enterprise creativity is thinking and generating of new ideas, product or service which
will help an enterprise to stand in this competitive environment and differentiate themselves
from others. There are 2 main components of creativity that is originality and functionality
(Acar, Tarakci and Van Knippenberg, 2019). Creativity is most important skill in an enterprise.
For instance, Zara has creatively come up with the idea of mouth publicity, which help the
company to reduce the advertisement cost. A Creative employee think out-of-the-box and work
smarter than harder which helps an enterprise to grow in a less span of time. Creative thinking
leads to innovation as generating a new idea or ways will lead to implementation. Creativity
guide in exploring new aspects of a problem in a completely different manner which gives more
opportunity to be successful. It offens depend on the internal and external motivational factors
and can be categorized into 4 types: Deliberate and Cognitive creativity: This type of creative person has vast knowledge
about there field and experienced speaks louder then words. They are good in research,
problem solving and market analysis. Deliberate and Emotional creativity: This type of creative person creates a balance
between rational and emotional thinking. They reflect better when they are alone. Spontaneous and Cognitive creativity: This type of creative person needs to be
motivated and encouraged to think out of the box. They generally can't think in a
pressurised situation rather gets an idea when their relaxing mode is on.
 Spontaneous and Emotional creativity: This type of creative person are artistic in nature.
They don't have vast knowledge about the field of work but think from a deeper point of
view.
Innovation cannot exist without creativity and is always been linked with it. Innovation
refers to implementing or taking action towards a new idea created. Innovation can lead to new
opportunities as in today's challenging world, one has to be innovative to compete in the market

and for the overall success of an organisation. It is not only about introducing something new,
rather it is exploring new possibilities to an existing problem. Innovation maintains the market
position as the enterprise is coping with the needs and demands of the market (Gupta, 2018).
Enterprise success depends on how well they implement the creative solution to a given problem
and maintain their market position in the fast growing environment. Google is the best example
for innovation which immediately change according to the needs of customers. Innovation builds
upon the growth and the quality of an enterprise by continuously improving upon what an
organization already have and maintaining it (How does innovation lead to growth?. 2022). It is
majorly categorized into 4 types: Incremental Innovation: it is most common innovation wherein the improvement in
existing product is done by update its feature, packaging, etc. Disruptive Innovation: it is all about innovating a new idea in the existing market. Architectural Innovation: Applying existing products and services in the new market or
expanding the market.
 Radical Innovation: this form is the least common which refer to inventing something
new in the new market. The competition is less but the risk is high.
Role of Enterprise Culture in Creativity and Innovation
In today's competitive business environment, Enterprise Culture, Creativity and
Innovation are interrelated. There is a strong positive relationship between enterprise culture,
creativity and innovation. For an enterprise to be successful, it needs to follow a culture of
creativity and innovation. Enterprise culture has a major impact on the success of an enterprise
which is defined by the new ideas and the way it is put together to create a value to it (Bendak,
Shikhli and Abdel-Razek, 2020). Culture describes the work ethics, values, belief and respect
towards each other. Positive attitude among the employees can lead to personal as well as
professional growth depend on the culture of an enterprise (Mohamed and et.al., 2019). An
environment with a healthy culture builds trust, respect and a sense of belongingness which
further leads to creativity and innovation. Employees who are appreciated, motivated,
encouraged and rewarded builds loyalty towards the enterprise. Open work culture where equal
opportunities are given to explore their creativity without having a fear of being judged, risk of

rejection, which result in more creative environment. Creativity may not always leads to
innovation but rather innovation is the outcome of creativity.
 In organisation, culture plays a dominant role in enhancing the creativity and innovating
new ideas.
 Employees who's creativity leads to innovation, are self motivated to generate more new
ideas and receive appraisal from the authority.
 An open communication between the authority and team, brainstorming new ideas,
discussing different perspective creates a healthy bond between the employees.
 An environment of research and forecasting the future needs and demands will
automatically leads to the critical analysis of current limitations.
 In order to serve the customer with the changing demand, an organisation needs to be
more creative.
 More creativity and innovation will help in attaining more productivity in the enterprise
and grow as whole.
 Healthy enterprise culture enhances the performance of the employees by fostering the
creative and innovative side.
 When the employees don't feel that they are valued in an enterprise are more likely to
leave which may result in lower productivity.
 Culture is basically the image of the enterprise which attract the skilled employees
towards the business and provided the opportunity to showcase their creativity, the first
step towards the innovation.
Creativity and Innovation Contributes to Social and Economic Progress
Social progress is defined as increasing capacity in meeting the basic needs of the
society, fulfilling the demand and providing more opportunities for the individuals. The success
of society depends on how well these requirements have been fulfilled. Economic progress refers
to the increase in productivity of goods and services, better use of available resources and raise
the profitability of the enterprise (Anjum and et.al., 2020).
Creativity and innovation is directly connected to the social and economic growth as a
whole. Both are the pillars for the growth and development of an organisation. Future of the
enterprise depends on the progressive use of the available resources and coping up with the

competitive environment. A growing enterprise will able to generate more job opportunities and
attract the talented and skilled people (How Creativity and Innovation Enhance Business Growth
and Development. 2021).
Creativity and innovation are associated with reducing unemployment, poverty, rise in
living standards. Innovation results in high productivity that means more production of goods
and services which directly connected with the raise in the wages of the workers, more profit to
the organisation (Ferreira, Coelho and Moutinho, 2020.). Customers will have plenty of options
to choose from the goods and services available and helps in building faith and loyalty towards
the organisation.
As citied above, Economic growth is related to positive change in demand and supply of
goods and services in a country. Creativity nurture the critical thinking or finding a solution to
the problem in a very different way which further implemented and put into action. The
resources are limited but innovating different ways to use those resources in better and creative
way offer high rate of increase in output. Organisation culture that facilitates creative ideas helps
to improve the skills and ability of the human resource by valuing and rewarding there ideas and
area of interest. One of the major important factor in the growth of economy is the technological
advancement (Nishimura and et.al., 2019). Technological advancement works for the increased
productivity, more external opportunities leads to overall development. Factors that contribute to
the social and economic progress are:
 Employment: The unemployment ratio will decrease as creativity and innovation will
give enterprise more opportunities to grow. Productive business provides more job
vacancy to expand their business.
 Poverty: The decline in unemployment helps to reduce the poverty rate as well.
 Productivity: A motivated and encouraged employee tends to be more productive and
creative. A sense of belonging and trust is build towards the enterprise which cause
profitability and development.
 Technological Development: Considering the needs of the people, innovation of product
and services and focusing on the reduce cost and high production in limited resources.
 Opportunities: Creative skilled people generate a different solution to a problem and
implement to provide more opportunities.

In the changing and competitive scenario, social and economic growth of a country
entirely depends on the power of creating new idea and implementing the most innovative
solutions which benefit the global society for example creativity and innovation are 2 major
reason for Apple reaching new heights in the smart phone industry. Apple empowers their
creative team which helps them to be more innovative. New ideas give birth to new enterprise
and generate more job opportunities. Its important to give priority to creativity and encourage the
skilled employees with positive attitude and healthy work culture (Akhmetshin and et.al., 2018).
The enterprise will able to compete in the market and secure their place to meet the demand of
customer and to invest in creative solutions to the problems.
CONCLUSION
After summing up the above information, it has been concluded that creativity and
innovation is the heart of an enterprise which has motivating, encouraging and rewarding work
culture. There is a vital connection between the culture, creativity and innovation and neither of
the concept can be achieved in the enterprise if it lacks value and self respect among the
employees. An inspiring organisation culture generates new ideas which are implemented in real
life to provide value to the society. Better productivity and profitability of an enterprise
contributes to the social and economic progress and establish the vision and mission of the
enterprise. Attract critical thinker, imaginative and skilled employees that helps in to achieve a
great level of customer satisfaction which is viewed as the ultimate goal for any enterprise.

REFERENCES
Books and journals
Acar, O. A., Tarakci, M. and Van Knippenberg, D., 2019. Creativity and innovation under
constraints: A cross-disciplinary integrative review. Journal of Management. 45(1).
pp.96-121.
Akhmetshin, E. M. and et.al., 2018. The influence of innovation on social and economic
development of the Russian regions. European Research Studies. 21. pp.767-776.
Anjum, T. and et.al., 2020. Entrepreneurial intention: Creativity, entrepreneurship, and university
support. Journal of Open Innovation: Technology, Market, and Complexity. 7(1). p.11.
Bendak, S., Shikhli, A. M. and Abdel-Razek, R. H., 2020. How changing organizational culture
can enhance innovation: Development of the innovative culture enhancement
framework. Cogent Business & Management. 7(1). p.1712125.
Danish, R. Q. and et.al., 2019. Factors affecting “entrepreneurial culture”: the mediating role of
creativity. Journal of Innovation and Entrepreneurship. 8(1). pp.1-12.
Ferreira, J., Coelho, A. and Moutinho, L., 2020. Dynamic capabilities, creativity and innovation
capability and their impact on competitive advantage and firm performance: The
moderating role of entrepreneurial orientation. Technovation. 92. p.102061.
Gupta, M., 2018. The innovation process from an idea to a final product: a review of the
literature. International Journal of Comparative Management. 1(4). pp.400-421.
Mohamed, M. S. and et.al., 2019. The mediation effect of innovation on the relationship between
creativity and organizational productivity: An empirical study within public sector
organizations in the UAE. Journal of Engineering and Applied Sciences. 14(10).
pp.3234-3242.
Nishimura, H. and et.al., 2019. Harnessing New Technologies for Social and Economic Progress
Towards ASEAN 20401. Published in March 2019. p.50.
Yun, J. J. and et.al., 2020. The culture for open innovation dynamics. Sustainability. 12(12).
p.5076.
Online references
How does innovation lead to growth?. 2022. [Online]. Available through:
<https://www.ecb.europa.eu/ecb/educational/explainers/tell-me-more/html/
growth.en.html>
How Creativity and Innovation Enhance Business Growth and Development. 2021. [Online].
Available through: <https://truscribe.com/business-growth-with-creativity-and-
innovation/>
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