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Indispensable components of creativity and innovation, on FMCG companies’ competitive performance: A Resource-Based View (RBV) of the firm

Valaei, N, Rezaei, S, Bressolles, G and M. Dent, M (2021) Indispensable components of creativity and innovation, on FMCG companies’ competitive performance: A Resource-Based View (RBV) of the firm. Asia-Pacific Journal of Business Administration. ISSN 1757-4323

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Purpose- In the hyper competitive world, while the essence of strategy making is often focussed on environmental and market-based analysis or the structure of the market, the important rôle of resources and capabilities in determining firm performance and overall strategy formulation within Small and Medium-sized Enterprises (SMEs) begs attention. Grounded in the resource-based view (RBV) of the firm, organisational improvisation theory, and componential theory of creativity, the purpose of this research is to look beyond the determinants of creativity, innovation and proposes a theoretical model investigating organisations formative performance in strategy formulation.
Design/methodology/approach- A total of 210 valid paper-and-pencil questionnaires were received from Fast Moving Consumer Goods/Small and Medium-sized Enterprises (FMCG-SMEs) to empirically test the proposed model. Structural equation modelling approach was performed to assess the model fit, measurement and structural models for exogenous and endogenous constructs, and test of nonlinearity.
Findings- The results imply that intrinsic motivation, extrinsic motivation, creativity-related processes, and expertise as the firm’s capabilities positively influences improvisational creativity; and creativityrelated processes and expertise also positively impacts on compositional creativity. Surprisingly, intrinsic and extrinsic motivations are not conducive to compositional creativity and the relationships between extrinsic motivation and improvisational creativity as well as improvisational creativity and performance are nonlinear. Furthermore, both improvisational creativity and compositional creativity are found to be predictors of innovation in FMCG-SMEs.
Practical implications- Thus, organisations and specifically FMCG-SMEs can increase the level of improvisational creativity if they formulate strategies to motivate employees both intrinsically and extrinsically and further, they can boost the level of compositional creativity in their companies through hiring and nurturing experts.
Originality/value- Less attention has been paid to motivation, creativity, innovation, performance and strategy linkages as the prominent source of competitive advantages among FMCG-SMEs especially in developing countries. Theoretically, through introducing extrinsic motivation as the predictors of improvisational creativity and innovation, from strategic management perspectives, the empirical findings of this research illustrate that resources and capabilities (RBV) lead to improved competitive performance within the FMCG-SMEs. This study also provides empirical evidence for the nonlinear nature of the relationship between motivation and creativity

Item Type: Article
Additional Information: Valaei, N., Rezaei, S., Bressolles, G. and Dent, M.M. (2021), "Indispensable components of creativity, innovation, and FMCG companies' competitive performance: a resource-based view (RBV) of the firm", Asia-Pacific Journal of Business Administration, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/APJBA-11-2020-0420
Uncontrolled Keywords: 1503 Business and Management, 1504 Commercial Services
Subjects: H Social Sciences > HF Commerce > HF5001 Business
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Business & Management (from Sep 19)
Publisher: Emerald
Date Deposited: 28 Jul 2021 09:18
Last Modified: 04 Sep 2021 05:14
DOI or ID number: 10.1108/APJBA-11-2020-0420
URI: https://researchonline.ljmu.ac.uk/id/eprint/15287
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