Analysis of Corporate Innovation and Entrepreneurship at Webasto

This report provides an in-depth analysis of corporate innovation and entrepreneurship at Webasto, an automotive parts supplier. It begins with an executive summary and introduction, outlining the importance of creative thinking in today's business environment, especially within the automotive industry. The report then offers an organizational overview of Webasto, followed by a comprehensive literature review, exploring concepts like globalization, market competition, and the significance of creative thinking. The study examines the barriers to innovation at Webasto, including leadership styles, rule consciousness, and hyper-specialization, using frameworks such as VUCA, Amabile’s creative thinking model, and organizational ambidexterity. The analysis delves into the company's ability to promote creativity and innovation, identifying both individual and collective challenges faced by employees. Finally, the report provides specific recommendations for fostering a more innovative culture, including suggestions for funding creative initiatives and implementing creative thinking techniques. The conclusion summarizes the key findings and reinforces the importance of these recommendations for Webasto's future success.

Running head: CORPORATE INNOVATION AND ENTREPRENEURSHIP
Corporate Innovation and Entrepreneurship
Name of the Student
Name of the University
Author Note

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Executive Summary:
The study is based on a company named as Webasto AG. The organization has the expertise
of supplying automotive parts to the multinational automotive brands. With a precise look at
the ability of the organization in promoting innovation and entrepreneurship, the study
identifies the individual and collective blocks that the employees of the organization, are
facing. At the same time, the study evaluates the initiatives that the higher authority of the
company has taken, in promoting the innovation and entrepreneurship. From the analysis, it is
evident that the organization is considerably limited in providing appropriate funds for the
development of an environment that promotes creative thinking. With a precise
understanding of the same, the study suggests the practice of creative thinking techniques and
along with that, it recommends the higher authority of the company to provide appropriate
funding for the improvement of the condition of the organization in contributing to creativity
and innovation.

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Table of Contents
Introduction:...............................................................................................................................3
Organizational Overview:..........................................................................................................4
Literature Review:......................................................................................................................5
Application of the Theory:.........................................................................................................9
Organizational Analysis:..........................................................................................................12
Recommendations:...................................................................................................................13
Conclusion:..............................................................................................................................13
References:...............................................................................................................................15

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Introduction:
The significance of the creative thinking in the modern world of business is visible
with a look at the changing modern business environments. According to the comments of
Nieuwenhuis and Katsifou (2015), the dynamics of the modern business industries has
changed in a notable manner in recent years and that is evident with the changes in the style
of business operations attempted from the part of majority of the multi- national business
organizations. Other than this, Soejachmoen (2016) claimed that the effects of the
globalization on several business industries such as services industry, mining industry,
manufacturing industries and the automotive industries is seen to be pretty evident. The
impact of globalization has provided significant chance to the organizations working in the
mentioned industries in expanding the perimeter of their business activities. On the other
hand, Nieuwenhuis and Katsifou (2015) claimed that one of the primary outcome of the
globalization is seen to be decrement in the market monopoly through the entry of new
companies in the above mentioned business sectors. As a result, the competitive rivalry
between the organizations operating in these industries is certainly associated with a notable
rise. In addition to this, the existing business organizations operating in different national and
international markets, are seen to face the heat of the competition which also raised concerns
over their survival and growth (Cattani, Porac and Thomas 2017). As a result, the higher
authority of majority of the business organizations are observed to face the necessity of
applying different marketing and operations related strategies for achieving the desired
success and sustainability in their business actions.
Having said that, Soejachmoen (2016) claimed that the success of the companies in
managing the uncertainty associated with different business environments is largely
dependent on their ability in developing solutions that are designed with precise consideration

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towards the variation of the business environments. Hence, in order to consider the variation
of the business environments during the development of the business solutions, the business
organizations are required to make sure that they create a group of suitable solutions which
they can apply on the merit of the business environments. According to the comments of
Farhana and Bimenyimana (2015), the development of such ability of creating business
solutions, the companies are required to promote the creative thinking inside their
organizations. The study is based on the primary concept of the creativity where it provides
an in depth analysis of Webasto’s ability in promoting the creativity and innovation in their
business actions. Along with that, the paper provides a brief overview of the organization and
its business operations. The study analyses the barriers that the company faces in promoting
creativity. With an efficient analysis of the barriers through the application of the VUCA,
AMABILE’s creative thinking model along with the organizational ambidexterity, the study
delivers some important recommendations for the improvement of the ability of the company
in incorporating creativity in their business.
Literature Review:
According to the esteemed opinion of Jadhav, Mantha and Rane (2015), the
importance of creative thinking is considerably high when it comes to improve the
sustainability of the business operations of the companies. As per the comments of Zmigrod,
Zmigrod and Hommel (2015), the ability of the companies in managing the financial and
social sustainability associated with their business actions, is seen to be largely reliant on the
ability of the companies in eliminating the constraints of the business environments in which
they work. Other than this, Farhana and Bimenyimana (2015) claimed that the incorporation
of the creative thinking in the business actions of the companies certainly adds value in their
pursuit to the management of their business activities in a professional manner irrespective of
the market constraints. Other than this, Jadhav, Mantha and Rane (2015) claimed that the

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incorporation of the creative thinking in the business actions of the companies is of great
significance for the organizations in creating competitive advantage over the competitor
organizations which can be utilized in a professional manner for the much required success.
On the other hand, Fabian (2018) mentioned that the incorporation of the creativity in the
design and manufacturing of the companies, increases the effectiveness of the business
activities of the companies and at the same time, it enhances the attractiveness of the services
and products that the company deliver. Hence, it is understandable that the increased practice
of the creative thinking is much required for the companies in conducting sustainable
business in the competitive modern market of business.
Considering the fundamental question of barriers to creativity and innovation, Fabian
(2018) claimed that the organizational leadership is one of the important factors responsible
for the promotion of creativity and innovation. As per the comments of Farhana and
Bimenyimana (2015), the success of the companies in influencing their employees and other
stakeholders in participating in the creative thinking or innovative thinking practices, is
primarily dependent on the type of leadership styles that the business leaders of the
companies follow. Jadhav, Mantha and Rane (2015) claimed that the modern business leader
have the tendency of applying different leadership styles which ranges from Autocratic form
of leadership, Democratic form of leadership, Laissez Faire form of leadership,
Transformational form of leadership to Transactional for of leadership. With a precise
consideration towards the dynamics of the modern business market along with the source and
application of the power, it is evident that several business entities are inclined towards the
democratic and autocratic form of leadership.
While the application of these forms of leaderships, the reflection of the available
leadership skills and competencies of the business leaders get highlighted. However,
Thawabieh, Saleem and Hashim (2016) mentioned that the application of the autocratic form

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of leadership is a major concern for the business organizations in ensuring the practice of the
creative thinking. The business leaders that follow the autocratic form of leadership are seen
to be considerably limited in considering the opinion of other individuals may it be the
employees or the other stakeholders of the company. Along with that, the lack of openness
towards the viewpoint of others, is one of the crucial reasons that restrict them from hearing
and considering the opinions of others. In addition to this, Fabian (2018) claimed that such
style of leadership has a significantly negative impact on the interest of the employees in
exchanging their viewpoint with the decision makers or the leaders of the organizations. The
lack of openness of the employees or other stakeholders towards the opinion and ideas of
others has the ability of demotivating the employees in sharing their ideas (Cropley 2016).
Hence, it is evident that the application of inappropriate style of leadership has the capability
of demoralizing the employees in contributing to the aspect of creativity in the organizations.
On the other hand, Zmigrod, Zmigrod and Hommel (2015) mentioned that one of the
major blocks to creativity at the individual level, is the urge of the individuals in finding out
the correct answer or the right solutions. Zmigrod, Zmigrod and Hommel (2015) further
stated that there are considerable number of professionals working in the global labour and
employment market with high level of admiration towards the identification of the correct
solution. Keeping the idea of the creative thinking in mind, the mentioned aspect is
considered to be the worst aspect of the formal education. As the desired outcome in the
concept of creativity or innovation is the development of a group of suitable solutions that
can be applied at diverse business environments, the urge amongst the modern professionals
in identifying the correct answer, certainly limits their ability in thinking creatively
(Baltrėnas, Baltrėnaitė and Kačerauskas 2015).
As per the comments of Fabian (2018), one of the primary concerns for the business
professionals working in the labour and employment industry in thinking creatively, is seen

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to be the rule consciousness. In majority of the modern business industries, the professionals
are observed to be largely goal oriented and is more inclined towards complying with the set
standards and framed legislations. According to the comments of Zmigrod, Zmigrod and
Hommel (2015), the sense of rule consciousness amongst the modern professionals is
primarily influenced from the style of leading that the business leaders of their companies
implement. The sense of rule consciousness amongst the employees or the stakeholders
certainly creates considerable number of obstacles for them in anticipating the necessity of
the creative ideas along with the evaluation of the strengths and weaknesses of such ideas.
Thawabieh, Saleem and Hashim (2016) mentioned that the compliance of the employees and
the stakeholders with the framed corporate legislations or the code of conduct, influences
them in abiding by the legislations of the business organizations and that partially kills the
urge or interest of the professionals in thinking about their operations or business related
activities.
Other than this, Ritter and Mostert (2017) claimed that impact of the hyper
specialization in modern era of business is remarkably evident where the organizations are
dependent on framed hierarchies and the roles are responsibilities of the employees and the
stakeholders are crystal clear. Park, Kirk and Waldie (2015) mentioned that the formation of
the roles and responsibilities in today’s business world, not only provides clarity to the
business actions and the operational activities of the employees and other stakeholders of the
companies, but also creates a shielding in their mind which restricts them from thinking
anything beyond their operational activities. In addition to this, Thawabieh, Saleem and
Hashim (2016) informed that the limitation or the apathy of the employees and the different
stakeholders associated with their business in considering anything that is out of their
operational activities, has the potential of placing the individuals in inappropriate position for
thinking creatively. As the organizational creativity is the collective form of the creative and

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innovative thinking from the part of each and every members of the organizations, it becomes
important for the higher authority of the companies to eliminate the constraints associated
with their consideration of only the operational activities of the companies.
Other than this, Park, Kirk and Waldie (2015) highlighted some of the personal
attributes that lead to the incapability of the professionals in thinking creatively. Park, Kirk
and Waldie (2015) further claimed that the inappropriate management of the emotions from
the part of the employees and stakeholders affects the success of the company in thinking
collectively and at the same time, DiYanni (2015) mentioned that portraying excessive level
of seriousness is also a major concern for the companies in enhancing the creativity or
innovativeness of their business actions. Additionally, Ritter and Mostert (2017) presented a
significant assessment of the professionals who are incapable in thinking creatively. Ritter
and Mostert (2017) further claimed that majority of the professionals who are seen to be
limited in thinking creatively, are seen to have considerable amount of fear in being wrong.
Such professionals consider that being wrong is bad for them and that certainly increases
their limitations in doing the efforts for creative thinking.
Application of the Theory:
With a look at the Amabile’s creative thinking model, it is evident that the concept of
the creativity is a combination of domain skills, motivation and creative thinking skills
(Black, Freeman and Stumpo 2015). Suri et al. (2016) mentioned that the domain skills are
the technical expertise of the individuals and on the other hand, the creative thinking skills is
the ability of the professionals in thinking creatively and innovatively. Other than this, Black,
Freeman and Stumpo (2015) mentioned that the business professionals that are expert in
thinking creatively are seen to require a certain level of motivation for the same. Suri et al.
(2016) highlighted the fact that the professionals that re motivated, will have the urge or will

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find the interest in thinking creatively. Hence, the appropriateness and compactness of the
model is pretty prominent considering the concept of creative thinking. Looking at the model,
it is evident that the creative thinking or creativity inside the organizations can be promoted
with encouragement from three layers of the companies.
The encouragement from the part of the supervisors and the support from the part of
the work groups along with the encouragement from the part of the managerial position
holders of the companies, are notably important for the success of the companies in motivate
the members of their organization in thinking innovatively. The model also puts strong
emphasis on the ability of the companies in delivering the freedom along with sufficient
resources to their employees for ensuring that the members of the organization have the scope
of contributing to the creativity and innovation of the organization. Apart from this, the
model shows that the workload pressure and the challenging work have the ability to
influence the employees in thinking creatively. Considering the concept of VUCA world,
Raghuramapatruni and Kosuri (2017) highlighted that the companies are required to motivate
their employees for thinking creatively which is essential for them in managing the volatility
associated with the business environments. In addition to this, Raghuramapatruni and Kosuri
(2017) claimed that the political influence on the business environments and the changes in
the trade relationship between the countries, are one of the main reasons responsible for the
increased changes in the dynamics of the business environment and the uncertainty associated
with such changes has significant impact on the business level success of the companies.
Considering the point of uncertainty associated with the business, Mardi et al. (2018)
mentioned that the companies are required to put strong emphasis on the supporting ideas,
trust amongst the members of the organizations, debate, humorous environment, conflict
management and risk taking for creating an appropriate environment for promoting the
creative thinking for the purpose of managing the uncertainty associated with their business

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actions. In addition to this, Papachroni, Heracleous and Paroutis (2015) mentioned that the
business organizations are bound to face complex business environments and that is visible
with the increasing business competition. In such challenging work situations, the companies
have the ability to create remedies through the practice of the creative and innovative
thinking as that will have greater significance for them in managing the complexity of the
business environment (Burns 2016). Other than this, Papachroni, Heracleous and Paroutis
(2015) mentioned that the availability of sufficient resources and the ability of the employees
in appropriately utilizing the same, plays a significant role in managing the ambiguity
associated with the business environment. Hence, it is evident that the practice of creative
thinking inside the organizations enables it in professionally managing the challenges of the
business environment. With a look at the concept of organizational ambidexterity, it is
evident that the companies have the ability to contribute to the aspect of collective creative
thinking through creating such an organizational environment where the companies have the
ability of tolerating the failure, have the expertise of experimenting, provides psychological
safety, is non– hierarchical in nature and is highly collaborative as well.
In addition to this, Papachroni, Heracleous and Paroutis (2015) claimed that the
organizations have the necessity to improve the sense of organizational ambidexterity in a
professional manner. With a look at the organizational, group and individual level of the
business, it is understandable that the companies have the necessity to promote the
coexistence of the formal and informal structures along with maintaining the inter
organizational relationships. In addition to this, the ability of the companies in developing
reward system for supporting the organizational ambidexterity is considered to be crucial in
enhancing the creativity inside the organizations. Heavey and Simsek (2017) mentioned that
the formal and informal managerial integration plays a substantial role in promoting the
organizational ambidexterity.

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Considering the individual level, the managers or the business executives operating in
the modern world of business, are observed to develop multiple cross functional interfaces for
accommodating the informal and formal coordination. Considering the required social capital
for the management of the organizational ambidexterity, Mardi et al. (2018) claimed that the
formation of relationships between the external and internal parties on the basis of knowledge
exchange and the leadership from the part of the managers of the organization that are task
focused and relational are notably important for the managers in supporting the
organizational ambidexterity an at the same time, the development of the complex strong and
weak ties for the efficient exchange of the knowledge which is supported by informal and
formal behaviours, are regarded as important for promoting the innovation and creativity in
the organizational setting.
With a look at the context of the human capital that supports the organizational
ambidexterity, Beverland, Wilner and Micheli (2015) claimed that the ability of the
individuals in coordinating the exploratory and exploitative functions are of great
significance in promoting the organizational ambidexterity in the organizational context.
Papachroni, Heracleous and Paroutis (2016) stated that the ability of the individuals in
reconfiguring the organizational assets is important at the organizational level for supporting
the organizational ambidexterity. Considering the social level, Karrer and Fleck (2015)
mentioned the high importance of developing a strong and compelling vision, participation in
the cross functional interfaces along with the transformational leadership in supporting the
organizational ambidexterity and in promoting the innovation and creativity in the
organizational context. Apart from that, Knight and Harvey (2015) claimed that the
cooperative behaviour, skills of multitasking and the undertaking of initiatives are important
for the success of the individuals in managing the organizational ambidexterity in a
professional manner.