E.C 7

European Journal of Innovation Management
Building organisational culture that stimulates creativity and innovation

E.C. MartinsF. Terblanche
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E.C. MartinsF. Terblanche, (2003),"Building organisational culture that stimulates creativity and innovation", European
Journal of Innovation Management, Vol. 6 Iss 1 pp. 64 - 74
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Introduction
Building organisational Post-industrial organisations today are
culture that stimulates knowledge-based organisations and their
creativity and success and survival depend on creativity,
innovation, discovery and inventiveness. An
innovation effective reaction to these demands leads not
only to changes, in individuals and their
E.C. Martins and behaviour, but also to innovative changes in
F. Terblanche organisations to ensure their existence (Read,
1996). It appears that the rate of change is
accelerating rapidly as new knowledge, idea
generation and global diffusion increase (Chan
Kim and Mauborgne, 1999; Senge
The authors
et al., 1999). Creativity and innovation have a
E.C. Martins is Management Consultant in role to play in this change process for survival.
Organisational Diagnostics, Glenvista, Johannesburg, The result is that organisations and leaders try
South Africa. to create an institutional framework in which
F. Terblanche is a Senior Lecturer in the Department of creativity and innovation will be accepted as
Information Science, University of South Africa, Pretoria, basic cultural norms in the midst of
South Africa. technological and other changes. Authors like
Ahmed (1998), Martell (1989), Pheysey
Keywords (1993), Robbins (1996) and Schuster (1986)
Organisational culture, Creativity, Innovation, Attitudes have emphasised the importance of
organisational culture in this context.
Abstract Organisational culture appears to have an
influence on the degree to which creativity and
The purpose of this article is to present, by means of a
innovation are stimulated in an organisation.
model, the determinants of organisational culture which
influence creativity and innovation. A literature study
showed that a model, based on the open systems theory
and the work of Schein, can offer a holistic approach in Research problem
describing organisational culture. The relationship
In some organisations, action is taken to
between creativity, innovation and culture is discussed in
stimulate creativity and innovation. The right
this context. Against the background of this model, the
steps may have been taken, such as involving
determinants of organisational culture were identified.
personnel in decision making, recruiting and
The determinants are strategy, structure, support
appointing personnel with creativity
mechanisms, behaviour that encourages innovation, and
characteristics, setting standards for work
open communication. The influence of each determinant
performance and giving regular feedback, but
on creativity and innovation is discussed. Values, norms
creativity and innovation are hampered in some
and beliefs that play a role in creativity and innovation
way. The culture of an organisation may be a
can either support or inhibit creativity and innovation
contributing factor in the extent to which
depending on how they influence individual and group
creativity and innovation occur in an
behaviour. This is also explained in the article.
organisation (Johnson, 1996; Judge et al.,
1997; Pienaar, 1994; Shaughnessy, 1988;
Electronic access
Tesluk et al., 1997; Tushman and O'Reilly,
The Emerald Research Register for this journal is 1997). The current organisational culture and
available at the demands of creativity and innovation may
http://www.emeraldinsight.com/researchregister lead to a conflict situation.
The current issue and full text archive of this journal is
This leads to the question: What
available at
determinants of organisational culture have
http://www.emeraldinsight.com/1460-1060.htm
an influence on stimulating and promoting
organisational culture in organisations?
European Journal of Innovation Management
This central research question is subdivided
Volume 6 . Number 1 . 2003 . pp. 64-74
# MCB UP Limited . ISSN 1460-1060 into the following more specific research
DOI 10.1108/14601060310456337 questions:
64
Building organisational culture that stimulates creativity and innovation European Journal of Innovation Management
E.C. Martins and F. Terblanche Volume 6 . Number 1 . 2003 . 64-74
. What is the role of organisational culture behaviour, norms, values, philosophy, rules of
in organisations? the game and feelings all form part of
. How can the dimensions of organisational organisational culture (Hellriegel et al., 1998;
culture be described? Smit and Cronje, 1992).
. What is understood by creativity and Organisational culture forms an integral
innovation in organisations? part of the general functioning of an
. What is the relationship between creativity, organisation. A strong culture provides shared
innovation and organisational culture? values that ensure that everyone in the
. What determinants of organisational organisation is on the same track (Robbins,
culture have an influence on creativity 1996). The role that organisational culture
and innovation in organisations? plays in an organisation can be divided into
. How can a culture supportive of creativity the functions of organisational culture and the
and innovation be built? influence that organisational culture has on
The purpose of this article is to present, by the different processes in the organisation.
means of a model, the determinants of Furnham and Gunter (1993) summarise
organisational culture which influence the the functions of organisational culture as
degree of creativity and innovation in an internal integration and coordination. Based
on a literature study of the functions of
organisation.
organisational culture, internal integration
can be described as the socialising of new
members in the organisation, creating the
Method
boundaries of the organisation, the feeling of
A literature study, which was descriptive in identity among personnel and commitment to
nature, was undertaken. The aim is to the organisation. The coordinating function
describe the phenomena as accurately as refers to creating a competitive edge, making
possible. Literature in the managerial sciences sense of the environment in terms of
is used to describe organisational culture, acceptable behaviour and social system
creativity and innovation in organisations. stability (which is the social glue that binds
The demands that creativity and innovation the organisation together) (Martins, 2000).
place on the culture of an organisation are Organisational culture offers a shared system
derived from the literature study. of meanings, which forms the basis of
communication and mutual understanding. If
the organisational culture does not fulfil these
functions in a satisfactory way, the culture
Organisational culture defined and its
may significantly reduce the efficiency of an
role in organisations
organisation (Furnham and Gunter, 1993).
Organisational culture is defined in many Organisations use different resources and
different ways in the literature. Perhaps the processes to guide behaviour and change.
most commonly known definition is ``the way Organisational culture complements rational
we do things around here'' (Lundy and managerial tools by playing an indirect role in
Cowling, 1996). In this research influencing behaviour. Culture epitomises the
organisational culture is defined as the deeply expressive character of organisations: it is
seated (often subconscious) values and beliefs communicated through symbolism, feelings,
shared by personnel in an organisation. the meaning behind language, behaviours,
Organisational culture is manifested in the physical settings and artifacts. Rational tools
typical characteristics of the organisation. It and processes like strategic direction, goals,
therefore refers to a set of basic assumptions tasks, technology, structure, communication,
that worked so well in the past that they are decision making, cooperation and
accepted as valid assumptions within the interpersonal relationships are designed to do
organisation. These assumptions are things. The expressive practice of culture is
maintained in the continuous process of more a reflection of a way of saying things
human interaction (which manifests itself in (Coffey et al., 1994). An example is the role
attitudes and behaviour), in other words as that organisational culture plays in the
the right way in which things are done or mission and goal statements. Organisational
problems should be understood in the culture fills the gaps between what is formally
organisation. The components of routine announced and what actually takes place. It is
65
the direction indicator that keeps strategy on Against this background and the work of
track (Martins, 2000). Schein (1985), Martins (1987) developed a
model to describe organisational culture based
on the typical ideal organisation and the
Model to describe organisational importance of leadership in creating an ideal
culture in organisations organisational culture. Martins' model is based
on the interaction between the organisational
Several models have been developed to sub-systems (goals and values, structural,
describe the relationships between phenomena managerial, technological and psycho-
and variables of organisational culture. Some sociological sub-systems), the two survival
examples are the model of organisational functions, namely the external environment
culture as part of organisation reality (social, industrial and corporate culture) and
developed by Sathe (1985), which focuses on the internal systems (artifacts, values and basic
the influence of leadership, organisation assumptions), and the dimensions of culture.
systems and personnel on the actual and The dimensions of culture encompass the
expected behaviour patterns, the effectiveness following (Martins, 1987, 1997):
thereof for the organisation and the level of . Mission and vision (determines personnel's
personnel satisfaction brought about by these understanding of the vision, mission and
behaviour patterns. The criticism of this model values of the organisation and how these
is that it does not examine the influence of can be transformed into measurable
external factors on the organisational culture. individual and team goals and objectives).
Schein's (1985) model depicts the levels of
. External environment (determines the
organisational culture, namely artifacts, values degree of focus on external and internal
and basic assumptions and their interaction. customers and also employees'
Schein's model is criticised for not addressing perception of the effectiveness of
the active role of assumptions and beliefs in community involvement).
forming and changing organisational culture
. Means to achieve objectives (determines the
(Hatch, 1993). Some researchers see way in which organisational structure and
organisational culture in organisations against support mechanisms contribute to the
the background of the systems theory effectiveness of the organisation).
developed by Ludwig von Bertalanffy (1950)
. Image of the organisation (focuses on the
and adapted by several authors such as Katz image of the organisation to the outside
and Kahn who initially applied the systems world and whether it is a sought-after
theory to organisations in 1966 (French and employer).
Bell, 1995), Kast and Rosenzweig (1985) and
. Management processes (focuses on the way
Kreitner and Kinicki (1992) for application in in which management processes take
the organisational development field. The place in the organisation. It includes
systems approach offers a holistic approach, aspects such as decision making,
but also emphasises the interdependence formulating goals, innovation processes,
control processes and communication).
between the different sub-systems and
. Employee needs and objectives (focuses on
elements in an organisation, which is regarded
the integration of employees' needs and
as an open system (French and Bell, 1995).
objectives with those of the organisation
The organisation system model explains the
as perceived by employees/personnel).
interaction between the organisational sub-
. Interpersonal relationships (focuses on the
systems (goals, structure, management,
relationship between managers and
technology and psycho-sociology). This
personnel and on the management of
complex interaction, which takes place on
conflict).
different levels, between individuals and
. Leadership (focuses on specific areas that
groups within the organisation, and with other
strengthen leadership, as perceived by
organisations and the external environment,
personnel).
can be seen as the primary determinant of
behaviour in the workplace. The patterns of This model is a comprehensive model which
interaction between people, roles, technology encompasses all aspects of an organisation
and the external environment represent a upon which organisational culture can have
complex environment which influences an influence, and vice versa. This model can
behaviour in organisations. therefore be used to describe organisational
66
culture in an organisation and thus be used as procedures, new to the relevant unit of
background to determine which determinants adoption, designed to significantly benefit the
of organisational culture influence the degree individual, the group, organization or wider
of creativity and innovation in organisations. society''. It appears that the context in which
a new idea, product, service or activity is
implemented determines whether it can be
Creativity and innovation in regarded as an innovation within that specific
organisations context (Martins, 2000).
Innovation is often associated with change
The concepts of creativity and innovation are (Drucker (1985) cited in West and Farr, 1990;
often used interchangeably in the literature. Robbins, 1996; Hellriegel et al., 1998).
Consequently, it is important to analyse these Innovation is regarded as something new which
concepts in the context of this research. Some leads to change. However, change cannot
definitions of creativity focus on the nature of always be regarded as innovation since it does
thought processes and intellectual activity not always involve new ideas or does not always
used to generate new insights or solutions to lead to improvement in an organisation (CIMA
problems. Other definitions focus on the Study Text, 1996; West and Farr, 1990). An
personal characteristics and intellectual
example of change that cannot be regarded as

abilities of individuals, and still others focus an innovation is changing office hours in an
on the product with regard to the different exceptionally hot summer season.
qualities and outcomes of creative attempts In the research under discussion innovation
(Arad et al., 1997; Udwadia, 1990).
can be defined as the implementation of a
Creativity as a context-specific evaluation
new and possibly problem-solving idea,
can vary from one group, one organisation and
practice or material artifact (e.g. a product)
one culture to another and it can also change
which is regarded as new by the relevant unit
over time. Evaluating creativity should
of adoption and through which change is
therefore be considered at the level of a person,
brought about (Martins, 2000).
organisation, industry, profession and wider
The concepts of creativity and innovation in
(Ford, 1995). In the research under discussion
the context of this research (determining
the context of creativity is at the level of the
which determinants of organisational culture
organisation, and the concept of creativity can
influence creativity and innovation) can be
be defined as the generation of new and useful/
illustrated as in Figure 1.
valuable ideas for products, services, processes
According to Figure 1 creativity and
and procedures by individuals or groups in a
innovation can be regarded as overlapping
specific organisational context.
Definitions of innovation found in the constructs between two stages of the creative
literature vary according to the level of process, namely idea generating and
analysis which is used. The more macro the implementation.
approach (e.g. social, cultural), the more
varied the definitions seem to be (West and
Farr, 1990). Some definitions are general and Relationship of creativity and
broad, while others focus on specific innovation with organisational culture
innovations like the implementation of an
idea for a new product or service. In an Organisational culture seems to be a critical
organisational environment, examples of factor in the success of any organisation.
innovation are the implementation of ideas Successful organisations have the capacity to
for restructuring, or saving of costs, improved absorb innovation into the organisational
communication, new technology for culture and management processes (Syrett
production processes, new organisational and Lammiman, 1997; Tushman and
structures and new personnel plans or O'Reilly, 1997). According to Tushman and
programmes (Kanter (1983) cited in West O'Reilly (1997) organisational culture lies at
and Farr, 1990; Robbins, 1996). the heart of organisation innovation.
West and Farr (1990) define innovation as The basic elements of organisational culture
follows: ``the intentional introduction and (shared values, beliefs and behaviour expected
application within a role, group or of members of an organisation) influence
organization of ideas, processes, products or creativity and innovation in two ways:
67
Figure 1 Defining creativity and innovation perceive what is considered valuable and
how they should act in the workplace.
Organisational culture affects the extent to
which creative solutions are encouraged,
supported and implemented. A culture
supportive of creativity encourages innovative
ways of representing problems and finding
solutions, regards creativity as both desirable
and normal and favours innovators as models
to be emulated (Lock and Kirkpatrick, 1995).
Against the background of the systems
approach which sees organisations as open
systems consisting of different sub-systems
interacting with one another, Martins (2000)
explains the relationship between organisational
culture, creativity and innovation as follows.
Certain environmental circumstances,
strategic approaches, the values and actions of

top management, organisational structure and
technological cycles can be associated in the
following ways with organisational cultures
that support creativity and innovation:
. External environment (e.g. economy
and competitiveness encourage
continual changes in products,
technology and customer preferences)
(Kanter (1988) cited in Tesluk et al.,
1997).
. Reaction to critical incidents outside and
within the organisation, which is reflected
in the strategy (e.g. innovation strategy) of
the organisation (Robbins, 1997; Schein
(1990) cited in Tesluk et al., 1997).
(1) Through socialisation processes in
. Managers' values and beliefs (e.g. free
organisations, individuals learn what exchange of information, open
behaviour is acceptable and how activities questioning, support for change, diversity
should function. Norms develop and are of beliefs) (Amabile, 1988; Kanter, 1988;
accepted and shared by individuals. In King and Anderson (1990) and Woodman
accordance with shared norms, individuals et al. (1993) in Tesluk et al., 1997).
will make assumptions about whether
. The structure of the organisation, which
creative and innovative behaviour forms in turn allows management to reach
part of the way in which the organisation organisational goals (e.g. flexible
operates (Chatman (1991) and Louis structure characterised by
(1980) both cited in Tesluk et al., 1997). decentralisation, shared decision making,
(2) The basic values, assumptions and beliefs low to moderate use of formal rules and
become enacted in established forms of regulations, broadly defined job
responsibilities and flexible authority
behaviours and activity and are reflected
structure with fewer levels in the
as structures, policy, practices,
hierarchy) (Hellriegel et al., 1998).
management practices and procedures.
. Technology, which includes knowledge of
These structures and so on impact
individuals and availability of facilities (e.g.
directly on creativity in the workplace, for
computers, Internet) to support the creative
example, by providing resource support
and innovative process (Shattow, 1996).
to pursue the development of new ideas
(Tesluk et al., 1997). In this way The assumptions of personnel in the
individuals in organisations come to organisation on how to act and behave within
68
the sub-systems context, as explained above, will which creativity and innovation take place in
have an impact on the degree of creativity and the organisation. This influence can be
innovation in the organisation (Martins, 2000). divided into five determinants of
Based on the explanation of the relationship organisational culture. Each of these
between organisational culture, creativity and determinants is discussed briefly to describe
innovation, the question now arises as to which their influence in promoting or hindering
specific determinants of organisational culture creativity and innovation.
have an influence on the degree to which
creativity and innovation are encouraged and Strategy
stimulated in the organisation. An innovation strategy is a strategy that
promotes the development and implementation
of new products and services (Robbins, 1996).
Determinants of organisational culture Covey (1993) claims that the origin of creativity
that support creativity and innovation and innovation lies in a shared vision and
mission, which are focused on the future.
Based on a literature study it was found that Furthermore, the vision and mission of a
there is little agreement on the type of creative and innovative organisation are also
organisational culture needed to improve customer- and market-oriented, focusing on
creativity and innovation. There also seems to solving customers' problems among other
be a paradox in the sense that organisational things (CIMA Study Text, 1996).
culture can stimulate or hinder creativity and An example of a vision that emphasises
innovation (Glor, 1997; Tushman and creative and innovative behaviour is: `Òur
O'Reilly, 1997). Several researchers (Ahmed, company will innovate endlessly to create new
1998; Filipczak, 1997; Judge et al., 1997; and valuable products and services and to
Nystrom, 1990; O'Reilly, 1989; Pinchot and improve our methods of producing them''
Pinchot, 1996; Tesluk et al., 1997) have worked (Lock and Kirkpatrick, 1995).
on identifying values, norms and assumptions It is also important that employees should
involved in promoting and implementing understand the vision and mission (which
creativity and innovation. Very few empirical support creativity and innovation) and the
studies, and especially quantitative research, gap between the current situation and the
seem to have been done to support the findings vision and mission to be able to act creatively
of researchers, but several values, norms and and innovatively.
beliefs have been identified by researchers such Judge et al. (1997) describe successful
as Judge et al. (1997), Nystrom (1990) and innovation as chaos within guidelines; in
O'Reilly (1989) in their empirical research. other words top management prescribes a set
In order to synthesise the cultural values of strategic goals, but allows personnel great
and norms that influence creativity and freedom within the context of the goals.
innovation, as found in the literature, the Organisational goals and objectives reflect
following integrated interactive model was the priorities and values of organisations and
created (Martins, 2000). as a result may promote or hinder innovation
In studying the influence of organisational (Arad et al., 1997). Hall (cited in Arad et al.,
culture on creativity and innovation, it became 1997) found that personal and organisational
clear that the dimensions of Martins' model a goals that emphasise quality rather than
of organisational culture (1987, 1997) have a effectiveness improve the levels of innovation.
direct bearing on the influence of It appears that reflecting the value of
organisational culture on creativity and purposefulness in the goals and objectives of
innovation. Consequently this model was used organisations has an influence on creativity
as a starting-point in developing a model of the and innovation. Arad et al. (1997) mentions
determinants of organisational culture that that, apart from a few research studies,
influence creativity and innovation. Although sufficient research about the effects of
the newly developed model may illustrate only organisational and individual goals and
part of the phenomenon, it offers a starting- objectives has not yet been done.
point for improved understanding.
The model (Figure 2) shows that the Structure
dimensions that describe organisational Organisational culture has an influence on the
culture have an influence on the degree to organisational structure and operational
69
Figure 2 Influence of organisational culture on creativity and innovation

systems in an organisation (Armstrong, creativity and innovation. On the other hand,

1995). The structure seems to emphasise values like rigidity, control, predictability,
certain values which have an influence on the stability and order (mostly associated with
promotion or restriction of creativity and hierarchical structures) will hinder creativity
innovation in organisations. and innovation (Arad et al., 1997).
In the innovation literature, much has been It is especially the values of flexibility as
written about the structural characteristics of opposed to rigidity, and freedom as opposed
organisations and according to Arad et al. to control, that are emphasised in the
(1997) and the CIMA Study Text (1996) a literature. A high level of responsibility and
flat structure, autonomy and work teams will adaptability also accompanies an
promote innovation, whereas specialisation, organisational structure that allows for
formalisation, standardisation and flexibility. Examples of flexibility in
centralisation will inhibit innovation. organisations are to make use of a job rotation
As regards the influence of organisational programme or to do away with formal and
culture on a structure that supports creativity rigid job descriptions.
and innovation, values like flexibility, freedom Freedom as a core value in stimulating
and cooperative teamwork will promote creativity and innovation is manifested in
70
autonomy, empowerment and decision making. technology and creative people, are
This implies that personnel are free to achieve mechanisms that play this role.
their goals in an automatic and creative way Behaviour that is rewarded reflects the
within guidelines (described as ``chaos within values of an organisation. If creative
guidelines'' by Judge et al. (1997)). Personnel behaviour is rewarded, it will become the
therefore have the freedom to do their work and general, dominant way of behaving (Arad
determine procedures as they see fit within the et al., 1997). The problem is that many
guidelines provided. Management should also organisations hope that personnel will think
believe in personnel and encourage them to be more creatively and take risks, but they are
more creative by allowing them more freedom, rewarded for well-proven, trusted methods
in other words empowering them instead of and fault-free work. Personnel should also be
controlling them (Judge et al., 1997, p. 76). rewarded for risk taking, experimenting and
The literature study revealed that the generating ideas. Intrinsic rewards like
degree to which employees have freedom and increased autonomy and improved
authority to participate in decision making in opportunities for personal and professional
solving problems determines the level of growth may support the innovation process
empowerment, which is positively related to (Shattow, 1996; Amabile and Gryskiewicz
the level of creativity and innovation in an (1987) and Kanter (1983) cited in Arad et al.,
organisation (Arad et al., 1997, p. 4). 1997). It is also important to reward

The speed of decision making can also
individuals as well as teams (Tushman and
promote or inhibit creativity and innovation.
O'Reilly, 1997). Management should be
Tushman and O'Reilly (1997, p. 117) claim
sensitive to which methods of reward and
that cultural norms which lead to quick
recognition will inspire personnel in their
decision making (e.g. that speed is important
specific organisation to be more creative and
and that the work rate is fast) should promote
innovative (Tushman and O'Reilly, 1997).
the implementation of innovation.
An organisational culture that promotes
Co-operative teams are identified by some
creativity and innovation should allow
authors as having an influence on the degree to
employees time to think creatively and
which creativity and innovation take place in
experiment (Shattow, 1996). In organisations
organisations. Well-established work teams
where creativity and innovation are
which allow for diversity and individual talents
that complement one another should promote encouraged, personnel are, for example,
creativity and innovation (Arad et al., 1997; allowed to spend 15 percent of their time on
Mumford et al., 1997). Cross-functional teams generating new ideas and working on their
which encourage social and technical favourite projects. Emphasis on productivity
interaction between developers and and downsizing, which leads to more pressure
implementers can improve and promote on employees to work harder, is not
creativity and innovation. Another important conducive to creativity and innovation in
aspect is that team members should be able to organisation (Filipczak, 1997).
trust and respect one another, understand one Information technology as a support
another's perspectives and style of functioning, mechanism is an important resource for
solve differences of opinion, communicate successful innovation (Shattow, 1996). In
effectively, be open to new ideas and question organisations where it is part of the culture to
new ideas. Such effective teamwork is partly use computer technology such as the Internet
based on team members' skills and abilities and intranet to communicate and exchange
and partly on the shared values within the ideas, the chances of creativity and innovation
group (e.g. values about shared trust and taking place are improved (Bresnahan, 1997;
solving differences) (Shattow, 1996; Tushman Khalil, 1996).
and O'Reilly, 1997). Recruitment, selection and appointment and
maintaining employees are an important part
Support mechanisms of promoting the culture of and specifically
Support mechanisms should be present in the creativity and innovation in an organisation.
culture of an organisation to create an The values and beliefs of management are
environment that will promote creativity and reflected in the type of people that are
innovation. The literature study revealed that appointed. Apart from personality traits like
rewards and recognition and the availability of intelligence, knowledge, risk taking,
resources, namely time, information inquisitiveness and energy, a value like diversity
71
is of utmost importance in the appointment of balance should be reached in the degree to

creative and innovative people. Appointing which risk taking is allowed. This can be
people of diverse backgrounds should lead to achieved by spelling out expected results,
richer ideas and processes that should stimulate assigning the responsibility of monitoring and
creativity and innovation (Bresnahan, 1997; measuring risk taking to someone in the
Gardenswartz and Rowe, 1998). organisation, creating a tolerant atmosphere
in which mistakes are accepted as part of
Behaviour that encourages innovation taking the initiative, regarding mistakes as
Values and norms that encourage innovation learning experiences, and assuming that there
manifest themselves in specific behavioural is a fair chance of risks being successful.
forms that promote or inhibit creativity and Research by Nystrom (1990) indicates that
innovation. the most creative and innovative departments
The way in which mistakes are handled in in an organisation regard competitiveness as an
organisations will determine whether important aspect of their culture. According to
personnel feel free to act creatively and Read (1996, p. 226), competitiveness in
innovatively. Mistakes can be ignored, covered organisations has shifted to the creation and
up, used to punish someone or perceived as a assimilation of knowledge. In creating a
learning opportunity (Brodtrick, 1997). culture of competitiveness managers should
Tolerance of mistakes is an essential element reach out to internal and external knowledge,
in the development of an organisational encourage debating of ideas, create an
culture that promotes creativity and environment in which constructive conflict will
innovation. Successful organisations reward lead to information flow, support projects
success and acknowledge or celebrate failures, based on information flow and actively manage
for example, by creating opportunities to the choice of organisational design.
openly discuss and learn from mistakes (Ryan, Support for change is a value that will
1996; Tushman and O'Reilly, 1997). influence creativity and innovation positively
An organisational culture in which (Arad et al., 1997; Eyton, 1996; Glor, 1997;
personnel are encouraged to generate new Johnson, 1996; Tushman and O'Reilly, 1997).
ideas, without being harmed, and where the Managers can create a culture that supports
focus is on what is supported instead of on change by looking for new and improved ways
what is not viable, should encourage creativity of working, creating a vision that emphasises
and innovation (Filipczak, 1997). Fair change and revealing a positive attitude
evaluation of ideas will also support and towards change (Arad et al., 1997; Tushman
encourage creativity (Amabile, 1995). and O'Reilly, 1997). An example of a culture
Several authors (Arad et al., 1997; Lock and in which change is supported is to expect
Kirkpatrick, 1995; Samaha, 1996) indicate that personnel, when stating their annual objectives
an organisational culture that supports a for the year, to indicate how they intend
continuous learning orientation should changing their work methods.
encourage creativity and innovation. By Tolerance of conflict and handling conflict
focusing on being inquisitive, encouraging constructively are values that support creative
personnel to talk to one another (e.g. to clients and innovative behaviour in organisations
within and outside the organisation to learn (Mumford et al., 1997; Robbins, 1997; Judge
from them), keeping knowledge and skills up to et al., 1997). When there is conflict between
date and learning creative thinking skills, a different ideas, perceptions and ways in which
learning culture can be created and maintained. information is processed and evaluated, the
Taking risks and experimenting are process of handling conflict should be
behaviours that are associated with creativity handled constructively to promote creativity
and innovation. A culture in which too many and innovation. Understanding different
management controls are applied will inhibit individual thinking styles and training
risk taking and consequently creativity and personnel in the process of constructive
innovation (Judge et al., 1997). The confrontation will create a culture supportive
assumption that risks may be taken as long as of creativity and innovation.
they do not harm the organisation will not
encourage personnel to be creative and Communication
innovative by experimenting and taking risks An organisational culture that supports open
(Filipczack, 1997, p. 37). It is imprrtant that a and transparent communication, based on
72
trust, will have a positive influence on It may be concluded that there is a need for
promoting creativity and innovation (Barret, empirical research to support the theoretical
1997; Robbins, 1996). Teaching personnel research findings on the organisational
that disagreement is acceptable, since it offers culture determinants that support creativity
the opportunity to expose paradoxes, conflict and innovation in organisations.
and dilemmas, can promote openness in
communication. At the same time personnel
must feel emotionally safe to be able to act References
creatively and innovatively and should
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European Journal of Innovation Management

Building organisational culture that stimulates creativity and innovation

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example of change that cannot be regarded as

strategic approaches, the values and actions of

Figure 2 Influence of organisational culture on creativity and innovation

systems in an organisation (Armstrong, creativity and innovation. On the other hand,

organisation (Arad et al., 1997, p. 4). 1997). It is also important to reward

is of utmost importance in the appointment of balance should be reached in the degree to

organizational characteristics and organizational

Development Journal 32:3, 291-309. [Abstract] [Full Text] [PDF]

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