Making Innovation Happen in Organizations: Individual
Creativity Mechanisms, Organizational Creativity Mechanisms
or Both?
Sundar Bharadwaj and Anil Menon
Marketing managers increasingly face a product innovation dilemma. Managers
will have to sell more with fewer new products in an environment where new
products are providing lower revenue yields. Therefore, understanding what
drives successful innovation is of paramount importance. This paper examines the
organizational innovation hypothesis that innovation is a function of individual
efforts and organizational systems to facilitate creativity. Our model formulates
creativity as a property of thought process that can be acquired and improved
through instruction and practice. In this context, individual creativity mechanisms
refer to activities undertaken by individual employees within an organization to
enhance their capability for developing something, which is meaningful and novel
within their work environment. Organizational creativity mechanisms refer to the
extent to which the organization has instituted formal approaches and tools, and
provided resources to encourage meaningfully novel behaviors within the orga-
nization. Using data collected from 634 organizations, we find support for this
hypothesis. The results suggest that the presence of both individual and organi-
zational creativity mechanisms led to the highest level of innovation performance.
The results also suggest that high levels of organizational creativity mechanisms
(even in the presence of low levels of individual creativity) led to significantly
superior innovation performance than low levels of organizational and individual
creativity mechanisms. The paper also presents managerial and academic impli-
cations. This study suggests that it is not enough for organizations to hire creative
people and expect the innovation performance of the firm to be superior. Simi-
larly, it is not enough for firms to emphasize management practices to enhance
creativity and ignore individual mechanisms. Although it is true that doing either
will improve innovation performance, doing both should lead to higher innovation
levels. Our understanding of what and how creativity influences innovation
performance can be greatly enhanced by additional research that integrates the
intrinsic and extrinsic drivers of creativity. Research that examines the role of
team creativity efforts in enhancing innovation performance is also vital to an
overall improved understanding of creativity, learning, and innovation within
organizations. © 2000 Elsevier Science Inc.
Address correspondence to Sundar Bharadwaj, Emory University, Rob-
ert C. Goizueta Business School, Atlanta, GA 30322-2710, USA.
J PROD INNOV MANAG 2000;17:424 – 434
© 2000 Elsevier Science Inc. All rights reserved. 0737-6782/00/$–see front matter
655 Avenue of the Americas, New York, NY 10010 PII S0737-6782(00)00057-6