Abstract

The main purpose of this study is to determine the influence of organizational climate on employee’s creativityand innovation which is a competitive advantage for success and survival of organizations nowadays. Morespecifically the study looked at the different dimensions that constitute organizational climate and examined therelationship between them and employees’ creative behavior. This study also determined which among thedimensions of organizational climate could be the best predictor of employees’ creative behavior. The researchdesign was a quantitativeapproach, and a survey method was used to collect data. The structured questionnaireas a research instrument was distributed among Malaysian SMEs, performing in different economic sectors. Atotal of 100 employees constituted the sample; we collected 61 completed usable questionnaires. The data wereanalyzed with statistical package for social science (SPSS).The results of this study illustrate that organizational climate has significant influence onemployees’creativebehavior. According to the results, among the different dimensions of organizational climate, providingresources were the best predictors of employee’s creative behavior whichfollowed by mission clarity andleaders’ support.

Highlights

  • In response to today’s globalized knowledge economy organizations need to grapple with a number of technological and demographical forces to survive and be successful in this challenging and dynamic working environment, so they need to introduce more innovations in their business practices, products, and services than before

  • The result of Pearson product moment correlation shows that there exists a significant positive relationship between Organizational Climate (OC), and CB (Creative Behavior) [r= 0.614, p

  • This study aimed to contribute to the literature on individual innovation by providing the inventory of organizational climate determinants that may influence employees’creative and innovative efforts

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Summary

Introduction

In response to today’s globalized knowledge economy organizations need to grapple with a number of technological and demographical forces to survive and be successful in this challenging and dynamic working environment, so they need to introduce more innovations in their business practices, products, and services than before. In accord to Ahmad (1998, pp.30), “Virtually all companies talk about innovation and the importance of “doing” innovation, many try to “do it”, and only a few succeed in doing it”, because being innovative in the current competitive economy is not easy, and the question is “how organizations can enhance innovativenessin their corporations?” Employees’ creativity is one of the most important management principles which has attracted the attention of researchers in the area of business management as one of critical contributors of organizational success (George & Zhou, 2001; Tierney, Farmer, & Graen 1999; McLaughlin & Harris, 1997; Jong & Hartog, 2007; Hellman & Thiele, 2009; Tushman & Orielly, 1997; Martins & Terblunche, 2003). Using the organizational climate to provide suitable environment for creativity and innovation in order to empower organization is an idea that has been studied by several scholars since the middle of 1980’s (Ismail, 2005). Tushman and O’reilly (1997) support the argument and mention that the ability of organizations to provide a bonding between creativity and innovation with their climate and management process is the key to their success

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