Myassignment.live is not sponsored or endorsed by this college or university
The term enterprise culture refers to the deep rooted values and beliefs of organizations that helps in guiding and informing the decision and actions of all the member within organization (Prasad and Junni 2016). Hence, the organizational culture lays down the acceptable behavior and value within an organization (Anzola-Román, Bayona-Sáez and García-Marco 2018). On the other hand, the term enterprise creativity and innovation refers to generation of new ideas and also includes application of the same ideas into reality (Alves, Galina and Dobelin 2018). Innovation includes the process of transforming any concept into widespread commercial use and success. Creativity on the other hand includes the act of converting the new ideas into a reality (Liao et al. 2017). The organizational culture affects their level of creativity and innovation within the organization. Moreover there are different social and economic impacts of business innovations such as- reduction of overall impact on organization over the society and community as a whole and similar others (Azar and Ciabuschi 2017). The main aim of the paper is to discuss about the relationship between the enterprise culture and enterprise creativity and innovation and also to assess the social and economic impact of the innovations of businesses. The paper is therefore divided into two parts for addressing the relationship between enterprise culture and innovation and creativity and to assess the social and economic impact of the contemporary innovations of businesses.
According to Pauget and Wald (2018), the term organizational culture refers to the set of values, practices and expectations that informs and guides the actions and decision making of all the member within an organization. Therefore the term organizational culture includes the behaviors and beliefs that determines the way the employees of an organization behave and act toward each other and with the management and carry out their day to day operations. On the other hand, according to Busaibe et al. (2017), the term organizational innovation refers to the implementation of new organizational method or practices within the workplace. Moreover organizational innovation is important because it helps businesses in gaining a competitive edge over others and it also helps them in penetrating markets easily and faster. Apart from this, workplace innovation helps in creating better connections for developing markets that can lead to better opportunities. Further according to Warrick (2017), the term organizational innovation include introduction of something new whether it is a product, service, idea, technology, method or even processes within the existing business practices and methods. Contrary to this, the term organizational creativity or enterprise creativity according to (Felipe, Roldán and Leal-Rodríguez 2017), refers to the creation of useful, valuable and new products and services or ideas, processes and even procedures.
According to Elsbach and Stigliani (2018), a good organizational culture can help in creating greater awareness among people and also cause better motivation that directly impacts the creativity of people within the workplace. In fact, it has also been found out that a culture which fosters innovation and creativity are a constant requirement for the organization that aims at achieving a competitive advantage. Moreover Lambert (2016) supported the above views by stating that the organizational culture has a strong impact upon the innovation and also the success of the innovation that takes place within the organization. Additionally according to Tian et al. (2018), an organizational culture that supports the innovation comprises of two main elements including the people within the organization (their leadership styles, their behaviors, their shared values, their attitudes and their communication styles) and the infrastructure (including the processes, policies and system). An organization is said to have an innovative culture when they have the ability to respond to the environmental changes while also providing for a psychological safety, tool and processes to take advantage of the creative thinking of employees that is needed for innovating and also for gaining an economic and a social value through the introduction of new products, service or even processes.
Therefore an innovative culture provides a competitive advantage to the company. Organization can be understood as a system where the individuals who form the teams lie at its core and they also comprise the organization. When an individual gets impacted, the team as a whole gets impacted and further the entire organization gets impacted. The individuals and the teams get impacted by the vision, direction and strategy and the culture on the other hand is determined at the top by the executive teams and the CEO. It is their leadership style, approach, behavior, value and way of working that determines the organizational culture as a whole. Hence, in order to create an innovative and creative culture, it is necessary for the leaders to take the lead by setting their intentions, communicating the same to the entire organization and also by demonstrating their commitment to the innovation with the help of their involvement and behaviors in the process for achieving innovation and creativity.
Moreover it is the leaders duty to- create a shared understanding in the organization such that everyone understands the importance of creating an innovative culture, create a work environment that supports the innovation and creativity, build the innovation skills and introduce the innovation process and finally it is the duty of the leaders to measure the impact of the above mentioned activities. Further, according to scholars, the leaders can create a workplace culture that supports innovation and creativity by building clarity and alignment around the innovation process, by creating a psychological safety among the people, by encouraging dialogue and by challenging the assumptions. For instance, Unilever is said to have an innovative culture as it not only has the ambition to grow sustainably but also believes in building a culture of pioneering through continuous innovation and high performances. The company believes that sustainable businesses drive superior performances and therefore the company has the strategy for creating long term value for its stakeholders by engaging in continuous research and development. The company also has the vision of becoming a global leader in the sustainable business and for this purpose the company makes use of a future-fit and purpose led business model that helps in driving superior performances and also help in consistently delivering financial results.
Figure 1: Strategy of Unilever
Source: (unilever.com 2020)
Innovation helps in impacting the social and economic condition of the society and community at large by improving the standard of living of people, by solving several issues of individuals through the introduction of new product and services, generation of job opportunities, enhanced value proposition and similar others. Moreover, businesses also aim at reducing its negative impact over the environment with the help of innovation and creativity. For instance, the HSBC holdings has recently decided to open its innovation labs for the purpose of accelerating the development of the innovative data, robotic and cloud solution for it client. These labs will be aimed at enhancing the bank technology and will also provide for building creative co-development and partnership opportunities (gbm.hsbc.com 2020). The launch of these lab will also help in the creation of job opportunities for approximately 150 people each. Moreover the opening of these lab will coincide with the graduate and internship program of bank as the bank believes that for creation of an innovative and high performing culture, it is necessary to have the right people and right environment. Therefore these lab will help the company in gaining the right environment and the internship program will help them in attracting the right people.
Apart from this, the company is also known for its digital innovation globally. The company has been able to gain a competitive advantage in the Asia pacific region through its single technology platform, digital strategy of mobile first and through its global code approach. Therefore from the above example it is clear that innovation can help in improving the social and economic condition of the society as a whole. Moreover innovation also help in improving the economic growth by the overall productivity of businesses or through the generation of greater output with the same amount of input. Once, the productivity of businesses rise, more goods and services are produced and as a result the economy grows. Apart from this, business innovations can help in advancement of the society by solving different kinds of social problems and by enhancing the society ability to act with the available resources. Hence, the new products, services and technology continuously aim at meeting the social need and in leading to improved capabilities and in the better usage of resources and asset. Moreover businesses also adopt new and changed business method, practice and technologies for reducing it overall impact over the society. Further according to Suifan, Abdallah and Al Janini (2018), business innovation not only help in creating positive social and economic impact but it also helps in improving the ales of the business, in improving it customer relationship, in reducing cost and waste, in booting market position and also in improving the employees relations. For instance, the mining and metal industry create a lot of safety issues for it employee and society as a whole by not having proper tools and techniques in place that can help in ensuring the safety of the employees working in the mining and metal industry. However, the BHP Billiton company has been able to innovate and design such technology solution that provides better safety for the employees rather than just being limited to buying tool off shelf (bhp.com 2020).
Further the Unilever Company also helps in creating several economic and social impacts upon the society and environment at large with the help of their new products and services. Technology, science and product development all remain at the center of their plan to continuously provide the consumer with brands that can help them in improving their lives while also having a positive impact over the society and environment. Unilever Company helps in improving the wellbeing and health of people by combing innovation with superior experiences and sustainable living purpose, improving the health of the planet by reducing the overall; impact upon climate, regeneration of nature and also conservation of resources for the future generation. Unilever aims at contributing to a socially inclusive and fairer world by creation of brands that companion the human rights, distributes value fairly and stands up for equality (unilever.com 2020). The Unilever company also aims at delivering long term value by serving people everywhere and by being the fastest, low cost digitalized company. The company also provides opportunity to its employees to learn and grow in accordance with their culture of pioneering. Moreover the company has a cluster and category design team that works in client relationship with marketing and supply chain for ensuring efficient development of new products and services.
Therefore from the above discussion, it has been understood that there lies a close and directly proportional relationship between the organizational culture and organizational creativity and innovation. This is so because from the paper it has been understood that a flexible and adaptable workplace culture supports generation of new ideas within the organization. Moreover from the paper, the importance of innovation and creativity at workplace has also been understood such as- it help organization in gaining a competitive edge over others. Apart from this, it has also understood that there are several social and economic impacts of contemporary innovation of businesses including- reduced impact over the society and community, greater job opportunities, improved standard of living through better satisfaction of the needs of the customers and similar others. Moreover the economic and social impact have been understood in relation to examples of contemporary business for instance, Unilever Company is engaged in innovating new product and services for improving the standard of living of people, and for offering better value for money, and it also help in reducing its impact over the business environment. Apart from this, from the above discussion, it has also been understood that HSBC bank has been able to improve its financial position and market share through its digital innovation and the company has recently decided to launch innovative lab that will further help in creation of job opportunities for many people. Similarly several other examples of different companies have been understood from the paper.
Alves, M.F.R., Galina, S.V.R. and Dobelin, S., 2018. Literature on organizational innovation: past and future. Innovation & Management Review.
Anzola-Román, P., Bayona-Sáez, C. and García-Marco, T., 2018. Organizational innovation, internal R&D and externally sourced innovation practices: Effects on technological innovation outcomes. Journal of Business Research, 91, pp.233-247.
Azar, G. and Ciabuschi, F., 2017. Organizational innovation, technological innovation, and export performance: The effects of innovation radicalness and extensiveness. International Business Review, 26(2), pp.324-336.
bhp.com, 2020. Inside The BHP Innovation Centre. [online] BHP. Available at: <https://www.bhp.com/our-businesses/technology/inside-the-bhp-innovation-centre/> [Accessed 26 October 2020].
Busaibe, L., Singh, S.K., Ahmad, S.Z. and Gaur, S.S., 2017. Determinants of organizational innovation: a framework. Gender in Management: An International Journal.
Elsbach, K.D. and Stigliani, I., 2018. Design thinking and organizational culture: A review and framework for future research. Journal of Management, 44(6), pp.2274-2306.
Felipe, C.M., Roldán, J.L. and Leal-Rodríguez, A.L., 2017. Impact of organizational culture values on organizational agility. Sustainability, 9(12), p.2354.
gbm.hsbc.com, 2020. HSBC Data And Innovation Lab | Insights. [online] Gbm.hsbc.com. Available at: <https://www.gbm.hsbc.com/insights/innovation/data-and-innovation-lab> [Accessed 26 October 2020].
Lambert, J., 2016. Cultural diversity as a mechanism for innovation: Workplace diversity and the absorptive capacity framework. Journal of Organizational Culture, Communications and Conflict, 20(1), p.68.
Liao, S.H., Chen, C.C., Hu, D.C., Chung, Y.C. and Liu, C.L., 2017. Assessing the influence of leadership style, organizational learning and organizational innovation. Leadership & Organization Development Journal.
Pauget, B. and Wald, A., 2018. Creating and implementing organizational innovation. European Journal of Innovation Management.
Prasad, B. and Junni, P., 2016. CEO transformational and transactional leadership and organizational innovation. Management Decision.
Suifan, T.S., Abdallah, A.B. and Al Janini, M., 2018. The impact of transformational leadership on employees’ creativity. Management Research Review.
Tian, M., Deng, P., Zhang, Y. and Salmador, M.P., 2018. How does culture influence innovation? A systematic literature review. Management Decision.
unilever.com, 2020. Innovation In Unilever. [online] Unilever global company website. Available at: <https://www.unilever.com/about/innovation/innovation-in-unilever/> [Accessed 26 October 2020].
Warrick, D.D., 2017. What leaders need to know about organizational culture. Business Horizons, 60(3), pp.395-404.
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2022). Accounting Principles II. Retrieved from https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
"Accounting Principles II." My Assignment Help, 2022, https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
My Assignment Help (2022) Accounting Principles II [Online]. Available from: https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html
[Accessed 06 September 2022].
My Assignment Help. 'Accounting Principles II' (My Assignment Help, 2022) < https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html> accessed 06 September 2022.
My Assignment Help. Accounting Principles II [Internet]. My Assignment Help. 2022 [cited 06 September 2022]. Available from: https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
Are you confident that you will achieve the grade?
Our best Expert will help you improve your grade
If you are the original writer of this content and no longer wish to have your work published on Myassignment.live then please raise the content removal request.