Abstract
This study aims to evaluate the effects of individual creativity, group creativity, internal organizational characteristics, and external factors of knowledge creation toward organizational creativity of small firms in Indonesia creative industry. In addition, it evaluates the relationship between the organizational creativity and the performance. The study was carried out using a cross-sectional survey with 34 samples (convenience sampling). The correlation between key variables was analyzed using path analysis. Results indicate that organizational creativity is significantly influenced by group design creativity, while individual creativity, organizational characteristics, and external factors of knowledge creation have no significant effect on organizational creativity. The results of the study show that if the small creative industry wants to improve its performance, one of the creativity variables that needs to be optimized is the creativity of the design group.
Highlights
Organizational creativity plays a vital role in the organizational performance
The study investigation of the path coefficient is between individual creativity, group creativity, organizational characteristics, and organizational creativity, especially in the small firms’ creative industry
Organizational creativity is an important factor for organizational performance
Summary
Organizational creativity plays a vital role in the organizational performance. Marion[1] points out that organizational creativity is crucial for organizations to gain and sustain organizational effectiveness and competitive advantage. Robinson and Stern[2] postulate that the actual results of organizational creativity include organizational changes such as improvement (changes to what is already done) and innovation (new activities for companies). The absence of creativity causes an organization to fail to adapt to changes coming from both inside and outside the company.[3] In general, the purposes of changes of a company are included in aspects of performance of the company, such as improvement, innovation, organizational survival, and organizational effectiveness.[4] Organizational performance can be considered as an output of processes supporting creativity.[5] Based on such statements, it follows that organizational creativity is essential for continuous improvement of a company and for measure of the occurring changes, one of which is the performance of the company
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
