Nurturing Creativity through Interaction

Question 2

‘Innovation is an interactive process and is socially embedded’. Discuss this statement and include examples from inside the firm and inter-firm relations.

Innovation management is the process of managing change at the organisation through creative strategic planning and technological advancement so that the companies can run their operations in a unique way. In the recent era of globalisation, all the corporate firms are looking for great innovation both technical and non-technical for running the business sustainably. This further helps the firms to retain the customers and strengthen their client base to sustain in the market and expand the business activities across the globe. In this context, innovation is an interactive process, where the stallholders including the CEO of the company, board members, management team, staff, employees and technicians, as well as suppliers and distributions, consumers, government and social communities as a whole try to interact with each other for information sharing and data exchange so that it would be possible for the organisations to renovate the operations and provide high quality products and services to the ultimate users. Hence, innovation is the process, where interaction plays am important role, for information gathering and sharing authentic data related to the market, external environmental activities and competitors. For creating innovative environment of the business, it is essential for the leaders to enhance cooperative working practice and encourage the employees to communicate and work as team through sharing knowledge and experience, which in turn provides a scope to the staff members to develop collaborative decision and creative solutions to the business. Hence, innovation is considered as interactive process for information sharing, exploring new alternative and developing creative solutions for the business to fulfil the aim and objectives.

Innovation process is also socially embedded where the decision are taken collaboratively by engaging the external and internal stakeholders of the business. Social embedded refers to dependence on the stakeholder’s decision where the stakeholders are engaged with each other for enhancing business innovation and creativity. For example, the internal relationship between the stakeholders at the organisational workplace enhances the innovative business process. The famous organisation Apple is successful to providing the latest technological products including gadgets, smartphones, laptops and tabs, watches and others, where innovation is a key factor to business success. The technicians, internal staff in the research and development department, operational management team, manufacturer and suppliers is collaborating with each other for develop strong relationship and exchange information and market data for renovating the business. Through sharing information among the departments of Apple, the CEO and board members focus on enhancing their innovative process for creating new products and providing the best services to the customers. Hence, the interaction in the firm is essential to improve organisational innovation and creativity in designing the products and services. Hence, it can be stated that, innovation is an interactive and social embedded process where the organisational corporate leader aim at enhancing communication and collaboration with the external and internal stakeholders of the business to exchange market information, gather data about new technological advancement and latest software system which provide a scope to the company Apple to renovate their products with latest software and creative design for serving the clients across the globe.

Additionally, through enhancing interaction and social embedded, it is also possible to develop inter-firm relations, which provides a scope to the organisations to manage their services creatively and run the operational activities in a unique way. in the recent era of globalisation, there are the practices of joint venture or merger & acquisition, where the organisation are trying to merge with other multinational corporations for enhancing their innovation and technical creativity to run their business sustainably. For example, “Caradigm” venture between Microsoft Corporation and General Electric (GE) in 2011 is considered to be a great innovation in the market. The Caradigm project was launched to integrate the Microsoft healthcare intelligence product with various GE health related technologies. This is one of the great examples of joint venture where the organisations GE and Microsoft are able to develop intra-firm relation for better technical advancement and innovation to serve the customers efficiently. Additionally, Daimler and BMW are also trying to operate innovatively together in the global automotive industry to enter in different areas of modern mobility from ride hailing, car sharing, smart parking and charging stations. This is also another great innovative practice to enhance environmentally sustainable automotive products and serve the customers through creative charging stations, smart parking and car sharing activities. Hence, it can be stated that, innovation is interactive and social embedded process to develop creative team for maximising organisational excellence and running their operations in a unique way.

Question 5

‘Networks and social capital have become increasingly important in relation to innovation’. Discuss.

In the recent era of digitalisation and intense competitive market, the multinational corporations focus on enhancing business innovation and creativity in serving the customers across the globe. In order to maximise innovation and business creativity, the companies try to enhance the principles of knowledge management and provide training and developmental programs to the internal stakeholders for maximising their performance and productivity. The performance of the staff and productivity have crucial impacts on the organisational innovation management and thus it is mandatory for the business firms to maintain good working team in the workplace and ensure innovative process to serve the customers in near future. For fulfilling the business aim of gaining high competitive advantage, the companies try to renovate the products and services to satisfy the clients where it would be possible to deliver high quality products and creative services to all the service users in the market. In such a business situation, network and social capital have become increasingly important for the corporate leaders to exchange information and ensure knowledge management. The social network and social capital development have crucial impacts on the business activities, where the stakeholders are capable to working efficiently and utilising their knowledge and skill set to fulfilling the brand objectives in near future. Through knowledge management, providing training programs and online skill development activities, creating social media links and enhancing market communication are the major practices of the business firms to develop social capital and network in the market, where it is possible for the stakeholders to gather vast range of information and data related to the business and utilise own knowledge for developing unique solutions successfully.

Social capital is considered as a set of shared values which allows the individuals to work together in a group for maximising effectiveness and efficiency of the organisational stakeholders for running the operations in a systematic and creative way. The common purpose of creation of social capital is to manage knowledge and skill set of the employees and enhance their efficacy to perform better in future. Social capital is hereby effective for idea generation and exploring new alternative solutions to run the business successfully. It is also beneficial to interact with the people in the society and gather vast knowledge and understanding about the business management. Through enhancing communication and cooperation among the employees, managers and researchers and technicians, it is possible to explore new alternative solutions and improve business creativity in near future. Social capital and creating network are hereby possible through continuous communication, engagement with diverse stakeholders and cooperative decision making practice which further influence the corporate leaders to improve innovative business process for maximising the organisational goal and objectives. Social capital create a social network, through which the employees managers and other stakeholders can engage with each other and share the information and data for better management of the business activities. In this regard, social media is also playing an important role in creating the social network, which is beneficial for the stakeholders to be engaged with each other and ensure knowledge management. The individuals are communicating and cooperating with other colleagues, senior team to access new creative strategies of business and information to explore new alternatives. The innovation becomes and one forum where the individuals can utilise the latest technique for business innovation process and thus the networks and social capital have become increasingly important in such a business context for ensuring innovative process management.

The social networks such as Facebook, YouTube, Instagram and LinkedIn are utilised for managing social network and this is important for the stakeholders to manage their knowledge and grab new information and business scope for showing own creativity and technological innovation to contribute proficiently in the business firm. Social capital is hereby beneficial for the organisations to manage diversity and equality in organisations, where the individuals are accepting new culture and diverse practices in the business through communication and collaboration. Values, norms and respect for each other are also managed well through social capital and network which further provides a scope to the organisations to manage their stakeholders and ensure creative decisions making practice for achieving future success. The participation, sense of belongingness, managing transparency and accountability are also other advantages of managing social capital, where the individuals try to engage with each other through social network and exchange knowledge and skills set for better performance. Hence, for enhancing innovation and creative process generation, networks and social capital have become increasingly important in the recent era of digitalisation and globalisation.

Question 6

To what extent is investment in social capital important in work processes which are only or mostly virtual? How is it possible to build social capital in such contexts?

Investment in social capital is one of the crucial factors in the organisations, where the multinational corporations try to create social capital and invest adequate capital for creating social network for knowledge management and running the business process efficiently. Investment in social capital is hereby beneficial enhance the value of human capital, where the knowledge and skill set of the individuals can be maximised. Moreover, through social capital investment, it is possible for the corporate leaders and managers to encourage the creativity of the employees and motivate them for better performance. Continuous support, personal network, knowledge sharing and improving own capability is helpful to ensure human capital and the leaders can manage knowledge in the organisations. In addition to this, investment in social capital is also beneficial to improve working culture of the company and enhance wellbeing of the individuals in long run.

The individuals can get personal and professional skill developmental scope as well as create structural capital to run thee business creatively. Under the structural capital development, social capital is also playing an important role to develop organisational culture with learning and training development, enhance working environment, managing leadership and management style as well as develop good organisational structure. Hence, through investment in social capital and managing social network, the corporate leaders can engage the stakeholders in the business and develop suitable structure and corporate culture of the organisation for running the business process innovatively. Thus, for structural capital management, it is essential to invest in social capital, where the corporate leaders can follow transformational leadership style with continuous motivation and inspiring the employees to contribute with their full capabilities.

Investment in social capital is increasing over the period of time, where the multinational corporations enhance social bonding and networking so that the individuals can engage with each other and enhance the knowledge sharing activities in the workplace. It is also possible to improve training and educational program, knowledge transfer, gathering vast information about competitive firms, creating new brand image innovatively, and managing the customers and suppliers. Hence, the investment in social capital is mandatory for ensuring innovation and creativity to run the operational activities uniquely in the market and fulfil the organisational aim. For example, the organisations such as Apple, Microsoft as well as other electronics companies focus on managing social network and engaging the stakeholders with the activities, for enhancing their innovation and invest in knowledge management practice. The organisations also develop SAS program to involve the stakeholders and provide learning and training programs to the individuals for developing their knowledge and adopting new technical skill set for better management. Thus, the companies focus on raising investment in social capital for better innovation management, so that the companies can handle their operational excellence and secure future sustainable development. For developing social capital, it is necessary to create network proactively, be strategic with the organisational operational management, creating various network with diverse culture and educational background, dedicating teamwork, creating good bonding and corporate relationship, exchanging information and managing trust. Through these activities, it is possible for the organisations to invest in social capital and in the recent years, social media is also playing an essential role for managing social capital. For example, the social media such as Facebook, YouTube group, Instagram, LinkedIn and twitter are effective platform for the individuals to handle the social activities and develop good social network by involving the individuals. It further helps to enhance communication and cooperation among the participants and share important news, knowledge and skill set with each other.

Hence, in the recent business context, creating social capital is crucial, where the corporate leaders invest in social capital for managing employment pool and hire the experienced staff members for the organisations. For example, Facebook and LinkedIn are highly utilised social media platform for the business leaders to retain the efficient staff and ensure knowledge management. Moreover, SAS programming and other online virtual portals are there through which it is possible to arrange training and development programs and maintain social capital successfully. Thus, investment in social capital provides a scope to the business leader to improve connectivity, enable trust, foster cooperation, and enhance communication and authenticity in management which further helps the business firms to enhance their creativity and technical innovation.

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