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Creativity and Innovation in Economics

Titre: Creativity and Innovation in Economics

Essai , 2016 , 7 Pages , Note: 1,7

Autor:in: Jan Alexander Linxweiler (Auteur)

Gestion d'entreprise - Direction d'entreprise, Management, Organisation
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The following paper will analyze the positive as well as negative impacts of creativity and innovation management on organizational structures. In doing so, the necessary terminology and definitions of concepts and terms of economics and organizational creativity are introduced. Based upon this background, positive and negative arguments are delivered.

The positive argumentation will be characterized by argumentation deriving from concepts of diversity and intersections. It will be concluded that these aspects foster the mutual adjustment that generates net value. The negative arguments build upon this argumentation and point out the dangers of creative abrasion, conflict and organizational risk. The conclusion will show that, while creativity inherently entails the risk of economic inefficiency, it fosters communicative potentials within an organizational structure that can lead to an increase in value.

Extrait


Table of Contents

1. Background

2. Arguments in favor for the concept

3. Arguments opposing the concept

4. Conclusion

Objectives and Themes

This paper examines the influence of creativity and innovation management on organizational structures by analyzing both the potential value-generating benefits and the inherent risks of such strategies. It explores how diversity, as a catalyst for mutual adjustment, impacts group dynamics, communication, and overall organizational efficiency.

  • The impact of organizational creativity on business development
  • Economic definitions of value, wealth, and efficiency
  • The role of diversity (surface-level vs. deep-level) in creative teams
  • The concept of "creative abrasion" and its impact on conflict
  • Barriers to innovation and organizational risk management

Excerpt from the Book

Arguments in favor for the concept

How then is this additional value created? Heyne points out that economics rely upon “a process of continuing mutual adjustment to the changing net advantages that their actions generate” (Heyne, 2014:7). Within the literature of organizational creativity diversity is mentioned as the greatest catalyst for this mutual adjustment. Diversity is a social construct that identifies cognitive, technical or personal differences in a given organization (Justesen, 2001:56). However, there are different facets of Diversity that carry different implications.

There is, first of all, Surface Level Diversity. This facet focuses on perceivable differences among individuals. In doing so it supports the “inclination to in-group favoritism” (De Dreu, Bechtoldt & Nijstad, 2014:4). While the superficial assessment of coworkers lead to connection with as similar perceived individuals (in-group), it might lead to distancing to or discrimination of individuals who are perceived as different (out-group). Due to this “surface level diversity undermines group creativity and innovation because it undermines, in general, group cohesion and thereby the processes and performance requiring high levels of cohesiveness” (Nahapiet & Ghoshal, 1998 as quoted in De Dreu, Bechtoldt & Nijstad, 2014:4).

The informal structures that were built among demographic lines often change into more cooperative structures when people are getting to know each other (De Dreu, Bechtoldt & Nijstad, 2014:5).

Summary of Chapters

Background: This chapter defines core economic terms such as efficiency, wealth, and value, while establishing the foundational definitions of creativity and innovation in an organizational context.

Arguments in favor for the concept: This section explores how diversity acts as a catalyst for mutual adjustment and organizational value, contrasting surface-level diversity with deep-level cognitive diversity.

Arguments opposing the concept: This chapter addresses the risks associated with creativity, specifically focusing on creative abrasion, interpersonal conflict, and various structural barriers that impede innovation.

Conclusion: The final chapter synthesizes the findings, highlighting that while organizational creativity is inherently volatile and risky, it remains a crucial driver for communicative potential and long-term value.

Keywords

Creativity, Innovation, Organizational Structure, Economic Efficiency, Diversity, Surface Level Diversity, Deep Level Diversity, Cognitive Diversity, Creative Abrasion, Mutual Adjustment, Value Creation, Groupthink, Organizational Risk, Business Development, Communication

Frequently Asked Questions

What is the primary focus of this research paper?

The paper focuses on analyzing how creativity and innovation management impact organizational structures, specifically looking at the trade-off between generating value and the inherent risks involved.

What are the core thematic areas discussed in the work?

The work covers economic definitions of efficiency and value, the role of diversity in team dynamics, the psychological aspects of creative teams, and the barriers to fostering innovation in the workplace.

What is the central research question?

The central research question investigates how creativity and innovation management affect organizational performance and whether these strategies lead to a net increase in value despite the potential for inefficiency.

Which scientific methodology is utilized?

The paper utilizes a literature-based analytical approach, reviewing existing economic and organizational theories and frameworks to evaluate the impacts of creative management.

What topics are explored in the main body of the text?

The main body examines the definitions of economic efficiency, the positive role of cognitive diversity in teams, the negative phenomenon of creative abrasion, and the common barriers to creativity such as lack of time and social repression.

Which keywords best describe this study?

Key terms include organizational creativity, innovation management, cognitive diversity, creative abrasion, and value accumulation.

How is "Surface Level Diversity" distinguished from "Deep Level Diversity"?

Surface-level diversity refers to perceivable, demographic differences that often lead to in-group favoritism, whereas deep-level diversity relates to psychological characteristics, knowledge, and cognitive abilities that foster more proficient information processing.

What is "creative abrasion"?

Creative abrasion refers to the friction that occurs when heterogeneous groups work together to develop ideas; it is a double-edged sword that can lead to creative solutions but also to conflict.

What are the primary barriers to organizational creativity mentioned?

The paper identifies barriers such as inhibition or shyness, lack of motivation, time constraints, lack of opportunities, and social repression within the organizational environment.

What is the final conclusion regarding organizational creativity?

The author concludes that while organizational creativity is highly volatile and carries a significant risk of failure and conflict, it is essential for fostering communicative potential and ultimately increasing long-term value.

Fin de l'extrait de 7 pages  - haut de page

Résumé des informations

Titre
Creativity and Innovation in Economics
Cours
Economics of Accounting and Finance
Note
1,7
Auteur
Jan Alexander Linxweiler (Auteur)
Année de publication
2016
Pages
7
N° de catalogue
V341758
ISBN (ebook)
9783668316294
ISBN (Livre)
9783668316300
Langue
anglais
mots-clé
Finance Accounting Economics Creativity Innovation
Sécurité des produits
GRIN Publishing GmbH
Citation du texte
Jan Alexander Linxweiler (Auteur), 2016, Creativity and Innovation in Economics, Munich, GRIN Verlag, https://www.grin.com/document/341758
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