Be creative but not so much. Decreasing benefits of creativity in clustered firms

Abstract

Several previous studies have investigated creativity as an enhancer of innovation, their results showing that there is a positive relationship between the organizational creative climate and innovation. However, no research has been conducted on whether there is a saturation point beyond which an increase in creativity makes innovation performance decrease. In this article, we question the traditional positive relationship between creativity and innovation, and suggest that such a relationship is not linear, but has instead an inverted U-shape due to a saturation effect. We have developed a conceptual model to explain innovation performance considering creativity and network centrality, and it has been tested in the ceramic industrial cluster in Spain. Empirical findings support the inverted U-shaped relationship between creativity and innovation. The implications of these results in relation to creativity and innovation theory and practices are discussed.