IMPROVING BUSINESS COMPETITIVENESS BASED ON MANAGING CREATIVITY SYSTEM

Danijela Madzar () and Ines Milohnic ()
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Danijela Madzar: University of Mostar
Ines Milohnic: University of Rijeka

Economic Thought and Practice, 2019, vol. 28, issue 1, 193-208

Abstract: Strong market competition is a prerequisite for new business approaches and the improvement of competitiveness based on the management system and a strategic framework while choosing the interventions which stimulate creativity. The aim of the paper is to point out the role and importance of managing organizational creativity. It is intended to answer the basic research question of whether organizations that successfully manage creativity have a competitive advantage. The creativity implementation in an organizational context depends on a wide range of elements and has a whole new dimension in business that is reflected in the readiness to take risks and apply different creative methods and techniques, especially how (and how successfully) an organization applies the methods of fostering creativity from the establishment of multidisciplinary or diverse teams, rotation of the employees, introducing financial and non-financial stimulations for development of the creativity, and training employees for the development and the interaction of creative ideas. The paper is based on a basic hypothesis that there is a statistically significant difference in achieving the competitive advantage of those companies that use the organizational creativity management system and those which do not. Research results suggest that successful creativity management positively influences the company's competitive advantage. Organizations implementing the creativity management system have a higher level of profit per employee, as well as a higher level of their own profitability. Results of the research suggest that the surveyed companies mostly invest efforts in creativity management. Workplace satisfaction, feeling of job fulfilment and financial incentives all play an important role in encouraging individual creativity. On the other hand, diversity of work groups, sharing of ideas between team members and cooperation with the environment are factors that encourage individual creativity display.

Keywords: competitiveness; creativity; managing system (search for similar items in EconPapers)
JEL-codes: L22 M11 M21 M31 (search for similar items in EconPapers)
Date: 2019
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