There are several factors which are directly or indirectly linked in promoting the social and economic development. One of the key player which plays a pivotal role is the social and economic progress is enterprises. Business across the globe, whether it is operating at a small scale or large scale, drives economic stability and promotes social development. The success of an organization as a whole also impacts the social and economic aspects. But behind the success of an organization, there are several factors that unites together and brings the business at a competitive level. In this essay, three vital factors will be discussed which are Enterprise culture, creativity and innovation which are very important for any organization’s success and how these factors contributes in social and economic development. Also, the essay will also focus on the relationship between these three aspects (Cook, 2016).
Nowadays, the major determinant in an organization’s success is judged to be enterprise culture. Enterprise culture can be explained as the encompassment of rules, values, assumptions and beliefs in handling and the behavior of the stakeholders of an enterprise, which reflects not only internally but externally, the enterprise’s behavior. The culture of an organization with its norms and values is an essential element for ensuring the long term growth of an enterprise. It is the driving force which helps in smooth operation of any organization. Culture provides a stability within the social system and enables proper functioning of work environment. To feel united is one good reason why promoting a good company culture is important. Also, it solidifies the values and boosts the company morale. The work practices and environment within an organization drives every employee to work to their maximum potential and take the organization to a level which has its impact on a country’s economic and social development (Biemans, 2018).
It is important for any organization to establish practices that demolishes the stereotypical working environment and strives for creativity. Enterprise creativity refers to the idea that is put forward by a group of people working for the same organization. For example, a team which is working on the development, creation and marketing of a new product. Within a competitive environment, an organization which has unique thinking and creative ideas can only survive in a longer run. An organization which encourages work related ideas and suggestions will always be successful. Creativity not only drives organizational benefits, but along with the process, the employee also gets recognized for its contribution. This maximizes the impact an organization can create on the social and economic reforms as creativity drives organization success which in turn impacts on social development and boost the economy (Amabile and Pratt, 2016).
There are several contemporary organizations operating at global, offering the same services as others. In order to stand out of all the rivals, it is important for an organization to be innovative when it comes to its practices, environment, business processes etc. Organizational innovation is basically implementing new and innovative methods in the organization’s business practices, to enhance the utilization of knowledge available, improving the efficiency of the workflows and improving the services and good’s quality offered. The organizations need and vision of getting ahead of its contemporaries and to come out as a successful enterprise is one of the significant reason to integrate innovation in its business. Innovative enterprises are able to maintain their operations, offer services and develop products which are relevant and customer centric. This competitive edge helps every organization to excel thereby making shifts at the economic and social level (Rajapathirana and Hui, 2018).
The main agenda of every dominating organization is to attain organizational viability. In order to make sure of the rise of an organization in the global environment, the recovery to be successful depends on optimum efforts and contribution from everyone. To ensure this, all the three factors which are enterprise culture, creativity and innovation should be kept in check. These three has a direct inter dependency among themselves as an increase in one factor directly impacts the other. Creativity compliments innovation which means higher creativity is directly proportional to higher innovation and having an effective organization culture promotes creativity and innovation. Among the fraternity of research field, enterprise culture has been assumed to be a much important factor in facilitating or hindering the innovation and creativity. Research has proved that successful organizations are those who are creative, innovative and has a set cultural practice. It is also a fact that all these three factors cannot be developed just in a day. Organization’s culture develops once the business seeks to cope up with the difficulties in external adaptation and internal integration. The strength of any organization’s culture is in direct correlation with the profit level in a company. According to Minessence group, enterprise culture is eight times more influential on variation of performance than any other corporate level strategy. Having a robust culture, creates an environment for people where they can utilize their maximum potential and come up with creative ideas and innovative products. One can easily argue that, organizations culture is an important aspect when it comes to promoting creativity and driving innovation (Sarooghi, Libaers and Burkemper, 2015).
Any business moving towards excellence is directly proportional to the increase in the social and economic development. The three factors indicated above also contributes into nation’s excellence and development. Any organization that is focusing on developing the culture within an organization which stimulates creativity and innovation is imperative for seeking competitive edge. Culture plays an important role in promoting economic and social development through the choices that employees or people make in order to accommodate scarce resources skillfully. This action takes place through proximate factors like the allocation of capital, participation of labor market, or adopting new technologies. So in order to know how culture influences the economic and social activity, the focus should be given on describing how culture is affecting these proximate factors (Bain and Kleinknecht, 2016).
Every corporate has different culture and may vary from region to region. Some may be fast-paced, competitive, while some may be more driven towards goals. The current marketplace scenario is changing dynamically, and it is a fact that the organizations that are geared to handle these continual changes are more likely to be successful and survive in the long run. To know how culture is affecting the economic and social climate, there are several factors that needs to be considered which are playing an important role for these changes. For example, the use of technology is causing huge disruptions at global level. The technology which was trending few years back is now obsolete. So the organization which permits and promotes such culture where people can adopt to new technologies and everyone has the opportunity to scale themselves as per the trending technology, will always be at advantage. The culture which is always open to change, has agility and promotes lifelong learning will always impact social change. Technology is driving the economy, so the organization culture which adopts the technology effectively will be advantageous for the organization as well as the economy (Ashikali and Groeneveld, 2015).
One of the important aspects that promotes social and economic development is innovation. In terms of economy, innovation can be described as the process of developing, applying ideas and technology that promotes goods, services and enhances more efficient production. Promoting innovation means inviting everyone to participate and using the appropriate mechanisms, systems and tools for innovation. In today’s market, the top companies are those who are promoting innovative environment. For example, Facebook, Google, Apple, Microsoft, Amazon etc. all organization are at the top of their game as they offer innovation in their product. One of the classic examples of innovation which lead to economic and social change was the introduction of steam engine technology. This innovation revolutionized the transport industry and enabled mass production. This bought several economic reforms and created several jobs thereby impacting the social development. In recent days, technology has created the same impact and has transformed the way businesses were done in the earlier days (Zhou, 2015).
Organizations which are practicing innovation as their prime motive has been able to sell their products more efficiently which opened new markets and several new business models emerged. Innovation, if explained in simple terms, leads to higher productivity. It means that the same amount of input will generate more output than before. More output leads to the rise in productivity impacting the volume of goods and services produced which helps an economy grow. As the productivity of businesses and workers increases, there is a decline in the price of products and rise in the wages of workers which leads to improvement in standard of living. Also, there is a renowned focus on alliances and partnerships across organizations operating in different sectors. Having the innovative capability to share the knowledge, capabilities and technologies always needs a different skill set and leadership which creates an impact at social scale. This also leads to people learning new technology and several new employment opportunities are created which affects the social development (Arkolakis et al., 2018).
When it comes to creativity, it means the ability to think about new ideas and implementing them into real life. The need of every organization is to promote the imaginative process which will benefit the organization as a whole. While innovation talks about productive process, creativity is all about imaginative process. A lot of creativity is observed in improving the business operations or offering a service in a unique way than before. Creativity for an organization helps in promoting better quality products, provide more value, improves the staff retention, boosts motivation and facilitates recruitment. One of the finest examples of creativity nowadays is Netflix. The ability of creative thinking of a person has revolutionized the way traditional media industry was operating earlier. The introduction of Netflix was seen as a creative destruction which changed the preference of the people consuming media. Taking advantage of the ever developing and rapidly evolving mobile technology, the owners were able to display their creative thinking ability and developed a video streaming platform. This thinking lead to a new economic reform, as the consumers of Netflix were reaping the benefits of disruptive, intense and cut-throat competitive market in the form of creative product which was better, faster and cheaper. Netflix was able to build its own audience with a creative thinking ability and became one of the largest media platforms. The economy observed changes with the rapid investment made in Netflix. Also, offering wide variety of content made an impact at the social aspect as well. A whole new audience and opportunity for other media industries to display their content with the help of this platform made drastic impact on social development (Chua, Roth and Lemoine, 2015).
The facts discussed above are evident of the fact that there is a direct dependency on economy and social development when the culture, innovation and creativity is considered. Also, if economy is affected, a change can also be observed in the organizations culture, innovation and creativity. As, the organization starts taking measures to tackle the economic changes which may impact these three factors. Also the three factors equally complement each other, as with an effective organization culture, every employee is encouraged to present their creative thinking and ability, and this creative thinking promote innovation among employees. In order to make sure that culture is maintained, creativity is promoted and innovation is appreciated, it is important to focus on some aspects like hiring the right peoples, encouraging experimentation, providing a forum to express ideas, integration of new ideas into the businesses, providing a structured process of thinking etc. All these aspects will account for promotion of the three factors. So, it can be analyzed that all these three factors are important and correlated with each other and also helps in promoting and development of economy and uplifts social stature at a global level (Shalley and Gilson, 2017).
References
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