A Brief Review on Innovation & Creativity in Entrepreneurial SMEs

This report provides a comprehensive review of the importance of innovation and creativity within the context of entrepreneurial Small and Medium Enterprises (SMEs). It begins by highlighting the significance of these elements in driving business growth and competitiveness, emphasizing their role in adapting to market changes and fostering entrepreneurial success. The report then delves into specific strategies for intensifying innovation and creativity within organizations, including the adoption of entrepreneurial skills and the use of technology. It explores the impact of creativity on organizational performance, with a discussion of the Windsor Hotel as a case study. The report also addresses the importance of business, management, and leadership knowledge in driving strategic performance in SMEs. In conclusion, the report underscores the importance of self-reflection, cultural and ethical considerations, and adaptability in fostering innovation and creativity, providing valuable insights for entrepreneurs and business leaders looking to thrive in today's dynamic business environment.

A BRIEF REVIEW ON THE IMPORTANCE OF INNOVATION
& CREATIVITY IN AN ENTREPRENEURIAL SME CONTEXT
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Table of Contents
Introduction:....................................................................................................................................2
Intensify innovation and creativity in organization:........................................................................2
Importance of creativity:..................................................................................................................2
Impact of creativity to the organization:..........................................................................................3
Creativity and innovation in Windsor:............................................................................................5
Some observed gap of the company................................................................................................6
Reflection:........................................................................................................................................7
Reference list:..................................................................................................................................8
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Introduction:
The purpose of this article is to identify & understand the importance of the creativity in an
entrepreneurial SME (small and medium) context. The main objective is to accomplish the role
of the innovation and creativity as an input in the small & medium scale organization. The
framework of the organization has a direct reference towards enhancing the innovativeness and
creativity. The attributes of national innovation system, entrepreneurial and entrepreneurship
creativity and their influences conclude the significance of innovation in the organization. Ever
since the early work of Schumpeter, 2 the concepts of ‘entrepreneurship’ and ‘innovation’ have
been strongly related as stated by Ahlin, Drnovšek, & Hisrich (2014). By identifying numerous
innovations and creativity the organizations now adopting various skills and possibilities to
enlarge and grow the business.
Intensify innovation and creativity in organization:
In the current time the organizations has adopted entrepreneurial skills to stimulate the work
process. Very recent entrepreneurial innovation includes internet search engines, biotechnology
& personal computer based work. The technology based economic development has seen a
progress in the organization. The initiative also incorporates Small business innovation research,
small business technology transfer etc, to promote the creativity and innovation in the
technology. In the Global Entrepreneurship Monitor survey collected data of 80 countries where 30%
of the company has adopted the new technology & creativity. As cited by Autio et al. (2014), given the
long-standing theoretical association between entrepreneurship and innovation, the question of contextual
influences on entrepreneurial innovation has received surprisingly little attention. The high-level
organizational structure has exaggerated the innovative influences on, entrepreneurship and
entrepreneurial formation.
Importance of creativity:
As businesses move forward, the market scope also expands. The global business settings also
include the creativity and innovativeness to extend way beyond its local area and to give a tough
competition to the other global companies. The creativity, now become a necessity in the today’s
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global business genre. The imaginative skill of an organization amplifies the productivity and it
becomes a key to entrepreneurship. Innovative sense can be enhanced by generate new ideas by re-
appealing the existing ideas. Creativity is also an attitude, the ability to accept change and newness, a
willingness to play with ideas and possibilities, a flexibility of outlook, the habit of enjoying the good,
while looking for ways to improve it as stated by Bello et al. (2016). The organizations by making
some gradual refinements & alternatives it increase the performance and excellence to generate
productivity. Any organization is constantly trying to create new products and processor to the
market in order to establish knowledge and eventually increase adoptability to the employee.
Impact of creativity to the organization:
Innovation, being the foremost idea to capture best quality work, develops the solution to the run
the organization in a proper manner. Entrepreneurs are inclined to be more adaptable and are prepared
to consider a range of alternative approaches. They challenge the status quo, which can sometimes bring
them into conflict with their colleagues as quoted by Anderson, Potočnik, & Zhou (2014). The
creativity and innovation is an idea that indulges knowledge & new process to create value for
the organization. The continuous progression of the work towards creating the economic
environment for the organization is very essential to initiate productivity. Any start-up business
is the area where it can actually develop new ideas, fresh way of looking things and the
willingness to take up any risk. Innovation fostered by information gathered from new
connections; from insights gained by journeys into other disciplines or places; from active,
collegial networks and fluid open boundaries as suggested by Caniëls & Rietzschel (2013).
These creativity and innovation can take several forms- i) the changes and methods adopted by
the organization ii) create and generate innovation in the product development iii) innovativeness
in the management and working organization iv) creativity in the work culture from where the
entrepreneurs can generate market potentiality and covert market opportunities into profit.
Creativity is a response to ignite opportunities in business environment. The entrepreneurs
combine newness to the work method, services and blend resources to meet the need of the
consumers or the end users. As stated by Csikszentmihalyi, & Sawyer (2014), most people resist
change and thus, a key part of innovating things and convincing other people the same idea is a
good one.
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i. Signification of entrepreneurship, enterprise, business, management & leadership knowledge
as the foremost object of discipline:
The hotel industry the management and the business go hand in hand and these two are
constantly growing criteria to evolve out as a best industry. The enterprise and the
entrepreneurship develop the industry to grow and form discipline. In the section of discipline
with the consideration of business, management and leadership knowledge, it is very essential to
get the general acceptance of rules, regulations, standards and procedures of the organization
from the staffs as cited by Mansfield (2014). The manager will direct the employee and mane
them do the work in more responsible manner. There is the significance of good industrial
relation and the providence of favorable work environment. In the entrepreneurship, enterprise,
business, management- promoting the industrial morale and efficiency among the workers to get
the best results at minimum cost need to done. The employees should feel the sense of co-
operation and therefore maintain discipline in the SME structure.
ii. An admiration regarding uncertainty, ambiguity and limits of knowledge in organization:
The managers of the specific organization will admire the employees and their work procedures.
The employees can have some ambiguity regarding the jobs and related work but the mangers
need to make them understand every work. The manager will admire the employee’s enquiries
and any uncertainty related to the work. When the managers will; be cooperative enough to help
and admire the employees in every sector then the service of the organization will eventually
increase.
iii. Application of business, management and leadership knowledge to fetch strategic
performance in SME context:
The employees and the mangers need to learn properly about the business, management along
with the leadership knowledge to strategize the work culture and bring the best out of it. In the
SME context, the management needs to perform very strategically to increase the production
base and keep up the good market place in the global state.
iv. Inspection of the techniques to investigate issues or projects regarding SME business:
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Organizational overlaps sometimes create the problem and issues related to the project. From the
very first and with the starting of the project the managerial department need to look after the
issues of the problem and will solve them with an immediate effect. The business inspection is
very essential in order to grow the business in future. The patterns from which the organization
will come to know about the issues related to the business. Lack of consistency, coordination and
coherence can generate some problem, and all these problems need to be get examined and
solved thereafter.
v. Affirmation of the self-reflection to enhance the future potentiality for the efficient
contribution in a SME business or organizational environment to increase the future potentiality
the employees need to show self-reflection in the work. The ability, engagement and aspirations
generate self – reflection to perform better in an organization. The insight one employee can gain
from the organization itself. Self-awareness helps us discover our talents. It points us in a
direction for growth, encourages us to learn, and aids us in assessing difficult situations. Tapping
into it does not just make a better leader, it is what makes the employee a better friend, a better
leader, a better student, a better everything as cited by Mohamad, Embi, & Nordin (2016).
vi. To diverse the environmental terms the cultural and ethical sense has a foremost importance
to escalate the enterprise, entrepreneurship, business, management and leadership knowledge for
further progression- the cultural and ethical sense of the management along with the employees
hold importance to match up with the work environment. The employees when mix up well with
each other, they can bring the best work and the coordination can amplify the enterprise,
entrepreneurship, business, management & leadership knowledge.
vii. Self-reflection used as a greater perspective to enhance and contribute effectively in a SME
business or organizational environment- to meet the goals of the organization and to create
opportunity to modify the direction that the organization needs a particular self-reflection. The
organization has a direct effect to mould the personality of the employees. The organizational
self-assessment is an important criterion in this context. The organizational environment allows
the employees to decide the routs and the direction of the work culture through self-reflection.
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Creativity and innovation in Windsor:
In the context to show creativity and innovative sense can bring a company in the top most
priority list in customer choice, The Windsor is the best example to dealt with. The Windsor, a
company established in the year 1883 most cherished grand hotel in Melbourne, Australia now
famous for its innovative sense and creativity in serving hospitality to the customer. The hotel is
mainly famous for its hospitality management. The hotel has 180 impeccably appointed rooms
&7 suits in the heart of Melbourne. The very fast accommodation & room servicing are the
featured greatness about the hotel. The customer can choose the preferable rooms and pillows.
The company also offers some spacious and opulent lounges and bedrooms with exquisite
furnishing to cater and highlight the timeless Victorian heritage. It mainly focuses on serving the
best decorative and furnished rooms. The organization believes in enhancing creativity in their
service to attract the customer. The rooms are decorative, available in either a king or a twin bed
configuration and featuring a marble bathroom, a walk in robe and a comfortable armchair. They
have arranged everything regarding the decorations to feel and experience the luxury of the
hotel. The conception of innovation and creativity has totally merged in the Windsor hotel.
Another focus they have given on the technological aspect of the company by providing the pre-
service technique, free wifi to the entire hotel, pre- bookings of the rooms and suits and easy
cancellation of any service. The hotel industry has taken into consideration the innovative
formulae to inculcate growth and evaluation of the specific organization. The Windsor has a
long-standing association with the service innovation & technology based new ventures to
capture more customers. The most influential entrepreneurial innovation they have taken is to
regulate each customer activity. The customers who are visiting the hotel what is the thing they
like most, what other services they want, they have any other choices or not all the things note
down by the management and eventually on each point, the management is working. Creative
person work hard and continually improve ideas and solutions, by making gradual alterations and
refinements to their works as quoted by Beheshtifar, & Kamani-Fard (2013). The team of
management also strongly believes that creativity is the attitude and as they are into hospitality
management all the creative management team primarily concerned with developing new
marketing & servicing plan. The team brings best ideas drawn from the reality, original thinking
and a range of alternative approaches to satisfy the customer. Creativity and Innovation therefore,
trigger and propel first-rate entrepreneurship in steering organization activities in whatever new directions
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are dictated by market conditions and customer preferences, thereby delighting the customers to the
benefit of the stakeholders, a statement by Shalley & Gilson (2016).
Some observed gap of the company
The company as running in the hospitality management, the customer orientation is very
necessary. The customers have some issues related to the flooring and the marvels are required
some more work, the high heel shoes make noise and also the frosted window has some problem
and can’s see through properly the outside things. The other problem is customer rose that the
food is the dining section has not decorated properly. The management needs to look after the
presentation & decoration of the foods serving in the dining area. The intersection of the
innovation and creative implementation should perform by the staffs to serve the best to the
customer. The head management will give the new direction and dynamism to create freshness
and modernity regarding the dining sector and flooring. The incorporation of creativity and
innovation will be an additional quality in customer service for creation of proper customer base.
The perfect canvas for the flooring, also need to remodel the texture in an innovative way can
eliminate the problem of floor sound. It is the duty of the entrepreneur to keep his/her
organization lean, young, flexible, and eager for new things to continuously delight the
customers, which is the purpose of every business as quoted by Li (2015).
Reflection:
From the above organizations closer view regarding the innovation and creativity in an
entrepreneurial SME context, it has found that creativity is the imperative scale in the small and
medium sized enterprise. Innovation and creativity in work process, employee management and
technical progression bring the utmost value for the organization and they can go ahead in terms
of marketing and specializing in their certain field of work.
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Reference list:
Ahlin, B., Drnovšek, M., & Hisrich, R. D. (2014). Entrepreneurs’ creativity and firm innovation:
the moderating role of entrepreneurial self-efficacy. Small business economics, 43(1), 101-117.
Anderson, N., Potočnik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A
state-of-the-science review, prospective commentary, and guiding framework. Journal of
Management, 40(5), 1297-1333.
Autio, E., Kenney, M., Mustar, P., Siegel, D. and Wright, M., (2014). Entrepreneurial
innovation: The importance of context. Research Policy, 43(7), pp.1097-1108.
Beheshtifar, M., & Kamani-Fard, F. B. (2013). Organizational creativity: A substantial factor to
growth. International journal of academic research in business and social sciences, 3(3), 98.
Bello, D. C., Radulovich, L. P., Javalgi, R. R. G., Scherer, R. F., & Taylor, J. (2016).
Performance of professional service firms from emerging markets: Role of innovative services
and firm capabilities. Journal of World Business, 51(3), 413-424.
Caniëls, M. C., & Rietzschel, E. F. (2013). A special issue of creativity and innovation
management: Organizing creativity: Creativity and innovation under constraints. Creativity and
Innovation Management, 22(1), 100-102.
Csikszentmihalyi, M., & Sawyer, K. (2014). Shifting the focus from individual to organizational
creativity. In The Systems Model of Creativity (pp. 67-71). Springer Netherlands.
Li, Y. (2015). StarryMedia: Bridging the Gap between Innovation and Market Needs. World
Scientific Book Chapters, 105-129.
Mansfield, E. (2014). Making art history: A changing discipline and its institutions. Routledge.
Mohamad, S. N. A., Embi, M. A., & Nordin, N. M. (2016). E-Portfolio Reflective Learning
Strategies to Enhance Research Skills, Analytical Ability, Creativity and Problem-Solving. Asian
Social Science, 12(10), 228.
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Shalley, C. E., & Gilson, L. L. (2016). Creativity and the management of technology: Balancing
creativity and standardization. Production and Operations Management.
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