NORTH SOUTH UNIVERSITY
“The Role of Creativity and/or Innovation in Proving Competitive Advantage for Small and Medium Enterprises”
Mr. Niaz Patwary (NzP)
1. Name: Md. Rezaur Rahman
2. Name: Dewan Tanjina Akter
3. Name: Ashraful Adib
Date of Submission: December 3, 2012
Letter of Transmittal:
3rd December, 2012
School of Business
North South University
Here is our research report on “The Role of Creativity and/or Innovation in Proving Competitive Advantage for Small and Medium Enterprises” that you guided us to prepare.
Throughout the research we tried to find out the impact of creativity and/or innovation in gaining competitive advantage for Small and Medium Enterprises.
By doing this research paper, we’ve come to know a lot of things regarding Small and Medium Enterprises. We hope our research paper will be fully granted by you.
Md. Rezaur Rahman
Dewan Tanjina Akter
Table of Content:
| Page no.
2. Research Objective
5. Literature Review
i. Creativity/Innovation in SMEs
ii. The connection between creativity and SMEs
iii. Competitive Advantage in SMEs
iv. Creativity/ Innovation and Competitive Advantage
| 6. Innovation Strategies for Small and Medium Enterprises
| 7. Methodology
8. Findings and analysis of the research
11. Work Cited
The purpose of this paper is to figure out the role of creativity and innovation in a small business as competitive advantage. It focuses on the importance of creativity and innovation strategies as well as their contribution to competitive strategies. In order to achieve success and to fulfill the needs and requirements, SMEs must continuously search for the development of its product and services through innovation and creativity. This will play a very important role in achieving competitive advantage. In this paper, theoretically the approach to the connection between creativity and innovation and competitiveness were applied. In order to examine the importance of the innovation strategies, analysis and synthetic methods were used. After a discussion of the relationship between success, innovation and creativity, it was found that innovation is one of the key factors for achieving a sustainable competitive advantage. Based on analyzed theory, it should be visible that sustained and continuous innovation and creativity in all the aspects of an organization can differ an SME from its competitors in a positive way which is very important in today’s modern way of doing business. Creativity and innovation strategies are in a positive relationship with competitiveness strategies and innovation has the key role. These strategies should be observed as one of the major factors in obtaining and achieving competitiveness.
Based on the recent articles on creativity, innovation and competitive advantage, we tried to find whether there is any sort of link between them or not. It was found that without a creative or innovative idea firm cannot have a competitive advantage over its competitors. Thus, the concept of innovation is valued in most organizations in order to respond to the external pressure from competition. Firms need to have creative idea in order to facilitate the innovation process. Firms are also...
Cited: 1. Abraham, J., & Knight, D. (2001). Strategic innovation: Leveraging creative action for more profitable growth. Strategy and Leadership, Vol.29, No.1, 21 – 26.
4. Amabile, T. (1983), The Social Psychology of Creativity, New York, Springer Verlag. Quoted in: Fillis, I. (2006). Art for art’s sake or art for business sake: an exploration of artistic product orientation, The Marketing Review, Vol.6, No.1, pp.29-40.
5. Barringer, B. R. & Ireland, R. D. (2006). Entrepreneurship: Successfully launching new ventures. New Jersey, Pearson Prentice Hall.
6. Baumol, W. (2002). The Free Market Innovation Machine: Analysing the Growth Miracle of Capitalism, Princeton University Press, Princeton.
7. Bell, M., Pavitt, K., (1992). Accumulating technological capability. The World Bank Annual Conference on Development Economics.World Bank, New York, pp. 257-281.
9. Blackburn, R. and Kovalainen, A. (2009). Researching small firms and entrepreneurship: past, present and future, International Journal of Management Reviews, Vol.11, No.2, pp.127-148.
10. Blumenthal, A. (1980). Wilhelm Wundt and the Making of a Scientific Psychology, Columbia University, New York.
11. Bolton, J. E. (1971). Report of the committee of inquiry on small firms. London, HMSO.
12. Bosma, N., & Harding, R. (2007). Global entrepreneurship monitor: GEM 2006 results. MA, USA: Babson College and UK: London Business School.
13. Branzei, O. and I. Vertinsky (2006). Strategic pathways to product innovation capabilities in SMEs. Journal of Business Venturing Vol.21, No.1, pp. 75-105.
14. Daniel, E., (1999). Provisional of Electronic banking in the UK and the Republic of Ireland Int. Journal of Bank Marketing. Vol. 17, NO. 2, pp. 72-82
18. Fillis, I. (2006). Art for art’s sake or art for business sake: an exploration of artistic product orientation, The Marketing Review, Vol.6, No.1, pp.29-40.
19. Fillis, I. and Rentschler, R. (2006). Creative Marketing: An Extended Metaphor for Marketing in a New Age, Palgrave Macmillan, Basingstoke.
20. Gilad, B. (1984). Entrepreneurship: the use of creativity in the marketplace, Journal of Creative Behavior, Vol.18, pp.151-161.
21. Gray, C. (2002). Entrepreneurship, resistance to change and growth in small firms. Journal of Small Business and Enterprise Development 9(1): pp. 61-72.
22. Gustafsson, A. and M. D. Johnson (2003). Competing in a Service Economy: How to Create a Competitive Advantage Through Service Development and Innovation. San Francisco: JosseyBass.
23. Harryson, S.J, (2008). Entrepreneurship through relationships: navigating from creativity to commercialisation, R&D Management, Vol.38, No.3, pp.290-310.
24. Hatten, T. S. (2006). Small Business Management. 3rd ed. U.S.A., Houghton Miffin Company.
25. Heunks, Felix, J. and Henri Roos, 1992, Entrepreneurs in a Changing Cultural Context. Tilburg: Tilburg University Press, pp. 4–13.
26. Heye, D. (2006). Creativity and Innovation: Two Key Characteristics of the 21st Century Information Professional, Business Information Review, Vol. 23, No. 4, pp. 252-257.
27. Hills, G. E. and Morris, M. H. (1998). Entrepreneurship Education: a conceptual model and review. Educating Entrepreneurs for Wealth Creation. Hants, Ashgate Publishing.
28. Hirst, G., Van Knippenberg, D. and Zhou, J. (2009). A cross-level perspective on employee creativity: goal orientation, team learning behaviour and individual creativity, Academy of Management Journal, Vol.52, No.2, pp.280-293.
29. Hyvärinen, Liisa, 1990, Innovativeness and its Indicators in Small- and Medium Sized Industrial Enterprises, International Small Business Journal 9(1), 64–79.
32. Julian B, Gary H. and Michael J. Management Innovation (2008). Academy of Management Review, Vol. 33, No. 4, 825–845.
33. Kao, John, J., (1991). The Entrepreneurial Organization, London: Prentice-Hall International.
34. Katz, J and Green, R (2011). 3rd ed, McGraw-Hill companies.
35. Kijkuit, B. and van den Ende, J. (2007). The organisational life of an idea: integrating social network, creativity and decision making perspectives, Journal of Management Studies, Vol.44, No.6, pp.863-882.
36. Ko, S. and Butler, J.E. (2007). Creativity: a key link to entrepreneurial behaviour, Business Horizons, Vol.50, pp.365-372.
37. Krugman, P. (1996). Making sense of the competitiveness debate, Oxford Review of Economic Policy, Vol.12, pp.17–35.
38. Kuczmarski, T. (1996). What is innovation? The art of welcoming risk. Journal of Consumer Marketing, Vol.13, No.5, pp.7– 11.
39. Larsen, P., & Lewis, A. (2007). How award-winning SMEs manage the barriers to innovation. Creativity and Innovation Management, Vol.16, No.2, pp. 142 – 151.
40. Lee, S.Y., Florida, R. and Acs, Z.J. (2004). Creativity and entrepreneurship: a regional analysis of new firm formation, Regional Studies, Vol.38, No.8, pp.879-891.
41. M. PORTER (1985), Competitive advantage, Free Press, New York.
42. Marshaley, J (2012). Competitive advantage through innovation, Philippine Daily Inquirer.
43. Martins, E. C., & Terblanche, F. (2003). Building organisational culture that stimulates creativity and innovation. European Journal of Innovation Management, Vol. 6, No.1, pp.67 – 74.
44. McMullan, J.S. and Shepherd, D.A. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur, Academy of Management Review, Vol.31, No.1, pp.132-152.
45. Moore, G. (2004). Darwin and the demon: Innovating within established enterprises. Harvard Business Review Vol.82 No.7/8, pp. 86-91.
46. Morris, M. H., Schindehutte, M. and LaForge, R. W. (2003) The emergence of entrepreneurial marketing: nature and meaning. University of Illinois, Chicago.
47. Mumford, M.D., and S.B. Gustafson (1988). Creativity syndrome: integration, application and innovation, Psychological Bulletin, Vol.103, 27-43.
48. Nooteboom, B. (1994). Innovation and diffusion in small firms: Theory and evidence. Small Business Economics. Vol.6, No.5, pp.327-347.
49. Nyström, Harry, (1979). Creativity and Innovation, Chicester, John Wiley and Sons Ltd.
50. OECD (2002), Small and Medium Enterprise Outlook. OECD Publications Service, France.
51. Oke, A., Munshi, N. and Walumbwa, F.O. (2009). The influence of leadership on innovation processes and activities, Organizational Dynamics, Vol.38, No.1, pp.64-72.
52. Perry-Smith, J.E. (2006). Social yet creative: the role of social relationships in facilitating individual creativity, Academy of Management Journal, Vol.49, pp.85-101.
53. Porter, M. 1998. Location, clusters and the new economics of competition, Business Economics, Vol.33, pp.7–17.
55. Rosa, J.A., Qualls, W.J. and Fuentas, C. (2008). Involving mind, body and friends: management that engenders creativity, Journal of Business Research, Vol.61, pp.631-639.
56. Roweton, W.E. (1989). Enhancing individual creativity in American business and education, Journal of Creative Behavior, Vol.23 No.4, pp.248-257.
57. Shalley, C.E., Zhou, J. and Oldham, G.R. (2004). The effects of personal and contextual characteristics on creativity: where should we go from here?, Journal of Management, Vol.30, pp.933-958.
58. Stalk, Jr. G., (2006). Hardball innovation Res. Technol. Manage.
59. Stein, M.I. (1974). Stimulating creativity: Vol. 1. Individual procedures. New York: Academic Press.
60. Sternberg, R.J. and O’Hara, L.A. (1999). Handbook of Creativity, Cambridge University Press, Cambridge, pp. 251-272.
61. Tidd, J., Bessant, J., Pavitt, K., (1997). Managing Innovation. Wiley, Chichester.
63. Veselic, R and Cingula, M. (2010). Contribution of Innovation Strategies to Entrepreneurial Competitiveness [Internet]. Available from: http://acta.fih.upt.ro/pdf/2010-4/ACTA-2010-4-03.pdf [Accessed 24 November 2012]
65. West, Michael A. and James L. Farr (eds.), (1990). Innovation and Creativity at Work; Psychological and Organizational Strategies, Clichester, Wiley.
66. Whiting, B.G. (1988). Creativity and entrepreneurship: how do they relate?, Journal of Creative Behavior, Vol.22, pp.178-183.
67. Winer, R.S. (2004). Marketing Management, Upper Saddle River, NJ: Prentice Hall Publishing Company.
Please join StudyMode to read the full document