Creativity and Innovation in Malaysian Organization

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Table of Contents Page


1. Abstract2

2. Introduction2

3. Main Content 8

4. Conclusion18
5. References20


1. Abstract
Orgnizational creativity and innovation is a complex and multifaceted phenomenon and is influenced by many factors. It may be an environment or a culture which is almost spiritual forces that exists in an organization/company which drives value creation. From an organizational point of view, culture has multiple elements which can serve to supplement an organization’s capability towards creativity and innovation. Thus, inculcating a culture of creativity and innovation is seen as a vital requirement to provide organizations with necessary ingredients to innovate. Different approaches have been implemented with the aim of capturing a framework thriving under enabling conditions and in an atmosphere of receptivity.

This paper explores implication of creativity and innovation to the Malaysian organization environment. Culture, strategy, technology, and other management tools are important in generating effectiveness in the 21st century, creativity and innovation are what drive organizational success in many sectors. However, for creativity to take place, leaders must actively implement strategies that encourage it. Therefore, leadership is the catalyst and source of organizational creativity and innovation. In essence, for organizations to be able to achieve constant innovation, leaders must establish an environment conducive to renewal and build organizational culture that encourages creativity and innovation. Organizational creativity also depends on how leaders encourage and manage diversity in the organization, as well as develop an effective leadership structure that sustains the creativity and innovation process.

2. Introduction
Creativity and innovation is increasingly being recognized and emphasized as an important priority for business organizations throughout the world. This is so because business organizations need innovation to create as well as maintain their competitive advantages, especially when faced with social, economic and technological changes of unprecedented magnitude and variety.

The need for creativity and innovation of an organization is obvious and crucial for business organizations operating in a continuous uncertain and competitive environment. Companies that try to stand still in an uncertain and competitive business environment will not be able to survive long. Most importantly, to survive and succeed in the current competitive global business environment, companies need to be creative and innovative by producing a regular stream of innovations (Robbins and Coulter, 1999; Ahmed, 1998; Drucker, 1985; Kanter, 1983; and Porter, 1980).

Realizing the importance of creativity and innovations to organizations, more and more academics, politicos, bureaucrats and businesspeople alike have expressed great interest in the nature and role of innovations. As a matter of fact, most of the academics, politicos, bureaucrats and businesspeople agreed that innovations play a critical role in determining organizational performance, competitiveness and economic wealth (Kanter, 1983; Drucker, 1985; Caird, 1994; Johannessen et al., 2001; Darroch and McNaughton, 2002).

The growing concern for innovation in businesses is also reflected in the tremendous increase in literature emphasizing various issues on innovation. A review of previous studies appears to indicate that researchers tend to concur on several common research issues on creativity and innovation. Among the common research themes repeatedly emerging from the studies are: conceptual issues such as definitions of innovation, measurement of innovation, determining the dimensions of innovation; innovation sources...
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