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Creativity and Innovation: The Leadership Dynamics

This paper explores the important role of leadership in the innovation process of organizations. It argues that while culture, strategy, technology, and other management tools are important in generating effectiveness in the 21 st century, creativity and innovation are what drive organizational success in many sectors. However, for creativity to take place, leaders must actively implement strategies that encourage it. Therefore, leadership is the catalyst and source of organizational creativity and innovation. In essence, for organizations to be able to achieve constant innovation, leaders must establish an environment conducive to renewal and build organizational culture that encourages creativity and innovation. Organizational creativity also depends on how leaders encourage and manage diversity in the organization, as well as develop an effective leadership structure that sustains the innovation process. The models many organizations have used in the past no longer seem adequate for effectiveness and success in the 21 st -century organizational environment. The situation in their sector has changed from when the environment and processes were stable or slow. 1 In many sectors today, work processes are changing at a much faster pace as organizations face the challenges of rapidly changing technology, globalization, uncertainty, unpredictability, and turbulence. 2 In the past, because of monopoly to technology, market, or brand, they could expect to be successful for a long time despite inability or refusal to innovate. However, due to the volatile environment in these sectors, many such organizations are failing and need creativity and constant innovation to remain competitive and successful. This means that they must recognize and harness the creativity and leadership that exist in the organization to manage its innovation processes. Strategic design, technology, culture, and organizational strategy may not be able to sustain them very long unless organizations also establish a structure that continuously develops creative leaders to run and sustain the process. This strategy will help the organizations establish environments that are conducive to renewal, build organizational culture that encourages innovations, and establish organizational diversity that in turn helps these organizations remain competitive. The Importance of Leaders in the Innovation Process Scholars have shown how organizational structure, strategy, technology, culture, and other management tools help bring effectiveness and competitive advantage to organizations. 3 They also show that in the 21 st -century organizational environment, creativity and innovation are the primary sources of competitive advantage. However, these authors say little about the role of leadership in the innovative process. Creative and effective organizations do not emerge by accident. They require leaders to drive and control deliberate changes in structure, culture, and process in order to transform them into creative, effective, and productive ones. Even though many organizations look for competitive advantage in their structure, strategy, technology, and culture, leadership is the most important source of competitive advantage. Organizational leaders usually decide what happens in the organization and give the direction, vision, and momentum that bring success. Therefore, leaders are the catalyst that create and manage the environment,