Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Research Article: 2021 Vol: 20 Issue: 6S

Organizational creativity and its impact on achieving competitive advantageAn applied study in Al-Waha Company for soft drinks and juices

Mohammed Kareem Dughaim, University of Babylon

Kamil Shakeer Obayes, University of Babylon

Keywords

Organizational Creativity, Competitive Advantage

Abstract

The researcher dealt with the subject of organizational creativity and its impact on achieving competitive advantage, and tested the research in Al-Waha Company for soft drinks and juices, and applied the research in a sample of (160) individuals distributed over all departments in the company in question. The aim of the research is to shed light on organizational creativity and its impact in achieving advantage Competitiveness, determining the level of awareness of the researched company of the dimensions of organizational creativity and its role in achieving competitive advantage among working individuals, and verifying the validity of the impact relationship between the dimensions of organizational creativity and competitive advantage in practice, based on statistical analyzes search variables. The research concluded with a number of conclusions and recommendations, the most important of which is that the company is interested in organizational creativity by focusing on the human resource (motivating him to work and exploit his energies) and ends with providing products to suit the needs and desires of the customer (providing the desired product to him), and this leads to the satisfaction of human resources and the company’s success in The market and achieving its objectives, that the researched company maintain its relationship with its customers, by sensing their desires and needs and striving to achieve them more than their expectations and giving them a greater role in determining the nature of the final products they desire, and the need for the company to seek to conduct a periodic evaluation of the level of satisfaction of its customers because the nature of the relationship With customers in a state of change, which can contribute to raising the level of the production sector.

Introduction

The competitive business environment has undoubtedly increased the speed and rate at which organizations need creativity to maintain their survival and enhance their competitive position. The main organization of organizations, then, is how to stimulate the capabilities of human resources in them in order to formulate their creative ideas, and how to provide the conditions in which the members of the organization can implement their creative ideas.The competitive business environment has undoubtedly increased the speed and rate at which organizations need creativity to maintain their survival and enhance their competitive position. The main organization of organizations, then, is how to stimulate the capabilities of human resources in them in order to formulate their creative ideas, and how to provide the conditions in which the members of the organization can implement their creative ideas.

Organizational creativity in contemporary production organizations has been of great importance due to the role it plays in developing and directing working individuals as essential elements in the production process and their being a wealth that cannot be neglected in material and moral terms. Thus, organizational creativity plays a major role for the organization, as the survival and growth of the organization depends on To a large extent its ability to employ its capabilities and available resources and direct them. In line with what is happening in the environment of variables and developments related to the nature of the activities and work of the organization.

The Research Problem

The research problem is summarized in the lack of clarity of vision of the management of the company in question regarding the impact of organizational creativity in achieving competitive advantage.

The Importance of Research

1- Focusing on the ways, means and methods that contribute to maximizing the role of organizational creativity in light of the method that helps in achieving competitive advantage.

2- To draw the attention of the administrations to the role of the dimensions of organizational creativity and its role in achieving competitive advantage, this contributes to increasing the ability of organizations to enhance their competitive position in the market, and to face present and future challenges.

3- The research contributes to focusing on the importance of organizational creativity, as the human element represents the main pillar to achieve performance improvement in all economic, cultural and social fields.

Research Objectives

1- Knowing the level of organizational creativity in the researched organization.

2- Knowing the nature of the relationship between organizational creativity and competitive advantage in the organization under study.

3- Knowing the extent of the organization's ability to create a competitive advantage.

The Research Hypothesis

There is no significant effect of organizational creativity on competitive advantage.

Definitions of Organizational Creativity

It is defined as "the process of creating ideas or things, real or imaginary, and putting them into new and useful fields." Al-Assaf (2016), he defined “that it is an idea characterized by innovation and modernity that arises as a result of the administrative experience that is aware of the reality of the organization and the collection and analysis of comprehensive information about all the different parts of the organization, which requires the availability of creative capabilities to reach what is new and useful.” Abd Ali (2018) Who knew it that it is a process that includes looking at phenomena and problems with a new and unfamiliar perspective and relationships in which human resources interact and work on the environment of the organization and the general environment (Najwa & Hayat, 2018).

The Importance of Organizational Creativity

The importance of creativity and the need for it appear when the decision-makers in the organization realize that there is a discrepancy between the actual performance of the organization and the desired performance, which urges it to study and adopt new methods and methods, that is, the organization must adopt creative ideas, and use them as a tool for development and solving problems that the organization may suffer, to improve Performance of organizations and effectively achieving their goals (Qasim & Ahmed, 2011).

Dimensions of Organizational Creativity

1- Sensitivity to problems

2- Fluency

3- Authenticity

4- Flexibility

5- Risk and challenge

The Competitive Advantage

Definitions of Competitive Advantage

It is defined as “the organization’s reliance on cognitive processes with a clear administrative methodology to create value and maintain it for a long period of time” (Hussain, 2019; Amadeo, 2020) defined it as the means by which the organization can win its competition over others. And there are those who know it “It is the organization’s ability to reduce its production cost and achieve higher benefits through price compared to competitors and achieve greater value for the customer” (Twin & Anderson, 2020).

The Importance of Competitive Advantage

1- It gives the organization a qualitative and quantitative advantage over competitors, thus allowing it to achieve high performance results.

2- It makes the business organization superior in performance or in the value of what it offers to customers, or both.

3- Contribute to the positive impact on the perceptions of customers and other dealers with the organization and motivate them to continue and develop dealings (Bosalem, 2013).

Dimensions of Competitive Advantage

1- Cost

2- Quality

3- Delivery time

4- Building customer value

Differentiation

Research hypothesis test: (there is no significant effect of organizational creativity in competitive advantage)

The figure shows the presence of a positive and significant effect of the organizational creativity variable on the competitive advantage, as we note that the results of the model matching indicators were within the acceptance base assigned to them. The value of (RMR=0.043) was less than its acceptable range of (0.080). It is also clear that the value of the standard effect factor has reached (0.72), which means that the organizational creativity variable affects the competitive advantage variable by (72%) at the level of the research sample company, and this means that changing one deviation unit of organizational creativity in the research sample company will lead To a positive change in the competitive advantage by (50%). This value is considered significant because the value of the Critical Ratio (CR) shown in Table (1) of (12,877) is a significant value at the level of significance (P-Value) shown in the same table.

It is also clear from the figure that the value of the interpretation coefficient (R²) has reached (0.520), and this means that the organizational creativity variable is able to explain (52%) of the changes that occur in the competitive advantage in the research sample company, while the remaining percentage (48%) then it goes back to other variables that are not included in the research model.

Based on the foregoing, the null hypothesis can be rejected and the alternative hypothesis accepted, which states (there is a significant influence relationship for organizational innovation in competitive advantage).

A table 1 showing the paths and parameters of testing the impact of organizational creativity on competitive advantage.

Table 1
Paths And Parameters Of Testing The Impact Of Organizational Creativity On Competitive Advantage
Paths Standard gliding weights Appreciation Allamaaara Standard error Critical ratio Significance
S.R.W. Estimate S.E. C.R. P
ComAdv <--- OrgInn 0.723 0.715 0.056 12.877 ***
SP <--- OrgInn 0.837 0.933 0.05 18.759 ***
FL <--- OrgInn 0.897 1.041 0.042 24.906 ***
RC <--- OrgInn 0.917 1.007 0.036 28.244 ***
FY <--- OrgInn 0.846 1      
ORI <--- OrgInn 0.868 1.055 0.049 21.464 ***
QU <--- ComAdv 0.898 1.178 0.047 25.093 ***
LC <--- ComAdv 0.813 1.042 0.061 17.127 ***
DT <--- ComAdv 0.857 0.927 0.045 20.413 ***
DI <--- ComAdv 0.751 1      
BCV <--- ComAdv 0.747 0.793 0.057 13.818 ***

Conclusions and Recommendations

Conclusion

1- Adopting the dimensions of organizational creativity requires concerted efforts of departments and sections and cooperation between human resources to improve the flow of information, materials and products in order to obtain a high competitive advantage.

2- There is an impact relationship between indicators of organizational creativity and indicators of competitive advantage, and this contributes to paying attention to creative procedures and presenting new ideas for developing work, adding value to the company’s products and achieving customers’ desires, in addition to strengthening its efforts in adding new activities and production lines and deleting low-value activities have an impact in achieving The best positive results.

Recommendations

1- Work on training human resources on the skill in operating and maintaining all machines before any malfunction occurs in them, because this leads to reducing the level of waste of money and time, ie reducing costs and increasing flexibility in work.

2- The importance of having the objectives of competitive advantage within the vision and mission of the organization and its dissemination within the organization to define it for all human resources and provide all needs, capabilities and incentives in order to ensure that employees strive to achieve these goals.

References

  1. Abd, A., & Natalia, A. (2018). Functional analysis and its impact on enhancing organizational creativity, a case study at the University of Kufa. The Journal of the Kufa Studies Center: a refereed quarterly journal, 49.
  2. Amadeo, K. (2010). What is competitive advantage: Definition & examples of competitive advantage?
  3. Al-Assaf, M., & Ahmad, Hu. (2016). The impact of supply chain capabilities in achieving competitive advantage, case study: Kawar group of companies in Jordan. Master Thesis, Middle East University, College of Business, Department of Business Administration.
  4. Bousalem, A.B. (2013). The role of the policy of empowering workers in achieving sustainable competitive advantage, a field studies on the Sonatrach petroleum company. A master’s thesis, University of Setif, Faculty of Economics, Commercial and Management Sciences, Business Administration.
  5. Hussein, W., & Hussein, A. (2019). The strategy of human resources management, the modern approach to the sustainability of competitive advantage. Hamed Publishing and Distribution House, Jordan.
  6. Najwa, M., & Hayat, Q. (2018). The role of organizational creativity in achieving competitive advantage in the economic institution. Master’s Thesis, Faculty of Economic, Commercial and Management Sciences, Department of Management Sciences.
  7. Qasim, S., & Ahmed, H.A. (2011). Requirements for achieving organizational effectiveness within the framework of managing organizational creativity for business administration organizations. Tikrit Journal of Administrative and Economic Sciences, 7(21).
  8. Twin, A., & Anderson, S. (2020). What are competitive advantage business essentials?
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