The Role of Creativity Andor Innovation in Proving Competitive Advantage for Small and Medium Enterprises

Topics: Creativity, Innovation, Entrepreneurship Pages: 24 (8216 words) Published: February 24, 2013
NORTH SOUTH UNIVERSITY

Research Paper

“The Role of Creativity and/or Innovation in Proving Competitive Advantage for Small and Medium Enterprises”

Submitted To:

Mr. Niaz Patwary (NzP)

Submitted By:

1. Name: Md. Rezaur RahmanSection: 8ID: 1020495030
2. Name: Dewan Tanjina AkterSection: 8ID: 1020516030
3. Name: Ashraful AdibSection: 7ID: 1020090530

Date of Submission: December 3, 2012
Fall Semester

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Letter of Transmittal:

3rd December, 2012
Niaz Patwary
Lecturer
School of Business
North South University
Bashundhara, Dhaka.

Dear Sir,

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.

Thank you
Sincerely yours,

Md. Rezaur Rahman

Dewan Tanjina Akter

Ashraful Adib

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Table of Content:

Topic| Page no.|
1. Abstract| 4|
2. Research Objective| 5|
3. Hypothesis| 5|
4. Introduction| 6|
5. Literature Review| 7|
i. Creativity/Innovation in SMEs| 8|
ii. The connection between creativity and SMEs| 10|
iii. Competitive Advantage in SMEs| 11|
iv. Creativity/ Innovation and Competitive Advantage| 13| 6. Innovation Strategies for Small and Medium Enterprises| 15| 7. Methodology| 18|
8. Findings and analysis of the research| 19|
9. Limitations| 21|
10. Recommendation| 23|
11. Work Cited| 23|

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Abstract:

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.

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Research Objective:

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...

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