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ARTICLES

Effect of Creativity on Innovation: Do Creativity Initiatives Have Significant Impact on Innovative Performance in Korean Firms?

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Pages 320-328 | Published online: 10 Aug 2010
 

Abstract

In modern society, most companies exert great effort to raise their productivity and increase corporate levels of innovation. Many global companies in Korea emphasize creativity management for innovation and adopt various initiatives to stimulate creativity in employees. In this study, a structural equation model (SEM) was proposed to analyze the effects of basic skills, compensation systems, and external environment factors on creativity, and the effects of creativity factors on the innovative performance of an organization. In addition, based on the proposed SEM, the Organizational Creativity Index (OCI) was developed. One unique and important aspect of this research is the use of SEM. That is a powerful statistical technique that has not yet been fully utilized in studies of organizational creativity. Another contribution of this research is the development of the OCI. The results are expected to provide instructive information about how to improve creativity and innovative performance in various organizations.

This study is based on the Korean report that won the Student Paper Contest of the Korea Productivity Center in 2008, which was supervised by the first author. An earlier version of this article was presented at ISPIM 2008 conference.

This work was supported by the Korea Science and Engineering Foundation grant funded by the Korea Government Ministry of Science and Technology (No. R82–2007-000–00004-0; 2007). It was conducted at Center for Creative Engineering (CCE). We appreciate the support made by the members of CCE who were participated in a survey data construction and collection.

Notes

*Significant parameter at a 95% bootstrap confidence interval.

*Significant parameter at a 95% bootstrap confidence interval.

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