Academy of Strategic Management Journal (Print ISSN: 1544-1458; Online ISSN: 1939-6104)

Review Article: 2021 Vol: 20 Issue: 6S

Creativity and Crisis Management with Experiences of Some Countries

Ihab Malik Raji Al-Ameedee, Babylon University

Haitham Obaid Abd Alzahrh, Babylon University

Abstract

 The research aims to address the cognitive pillars of both creativity and crisis management, with an attempt to find the relationship between them by clarifying the role that creativity can play in managing crises faced by organizations in a way that is consistent with the requirements of the modern business environment. A basic hypothesis has been put forward: Creativity can help organizations manage crises in a way that is consistent with the requirements of the modern business environment. The research sample is represented by a group of managers of a group of joint stock companies listed in the Iraqi Stock Exchange on the data for the financial year ending on 12/31/2020. A questionnaire was designed in line with the objectives and hypothesis of the research, The data was analyzed using a variety of statistical methodologies. The study also came to a number of conclusions, the most noteworthy of which were as follows: Creativity has a positive impact on the economy and society, as it contributes to its stability, increase its growth and profitability, and achieves successes not only at the local level but also at the international level, and creativity helps in managing crises in a way that enables economic units to Meeting the requirements of the modern business environment and the accompanying rapid and successive changes.

Keywords:

Modern Business Environment, Managing Crises, Successive Changes

Introduction

In recent years, Due to technological advancements and the advent of globalization and privatization, which have had a significant impact on the business climate and the competitive environment of local businesses, interest in the topic of creativity has intensified, Organizations that are international and global Because of its importance in the macroeconomic growth of the country, as well as the growth and expansion of organizations and their access to financial and material resources, interest in this topic has grown. One of the most significant subjects is creativity, which is becoming increasingly crucial as the pace of change in the business environment accelerates; the importance of this topic has increased as one of the options that the organization resorts to. To adapt and adapt to the requirements of competition and change, creativity is the ability to create new ideas and transform these non-stereotypical or imaginary ideas into real ideas that help in the development of society, and creativity is not limited to one aspect or one type, but the types of creativity are different and each has characteristics that distinguish it and the research will address The concept and importance of creativity, types of creativity, the concept of crisis, its characteristics and causes, the relationship between creativity and crisis management with the experiences of some countries.

Research Problem

Organizations operate in a highly competitive changing environment, which increases the uncertainty of the surrounding conditions, which leads to an increased likelihood of these organizations facing crises that threaten their ability to survive, grow and continue. In order to confront and overcome crises, appropriate methods of creativity must be followed to provide the necessary information to manage the crisis.

Objectives of the Research

The research aims to address the cognitive pillars of each of creativity and crisis management, with an attempt to find the relationship between them by showing the role that creativity can play in managing crises faced by organizations in a way that is consistent with the requirements of the modern business environment.

Importance of the Research

The importance of the research lies in the importance of the variables it dealt with, as two basic variables were addressed, namely creativity and crisis management, with an explanation of the role that creativity can play in rationalizing crisis management because of the information it provides that helps the administration in confronting and finding effective solutions to crises in order to preserve the achievements of organizations.

Research Hypothesis

The study is based on the assumption that: Creativity can help organizations manage crises in a way that is consistent with the requirements of the modern business environment.

Research Sample

A group of managers from a company represents the research sample, of joint stock companies listed in the Iraqi Stock Exchange on the data for the fiscal year ending on 12/31/2020.

The Concept and Importance of Creativity

1. Creativity is seen as the ability to create new ideas and transform these non-stereotypical or imaginary ideas into real ideas that help in the development of society, and creativity is not limited to one aspect or one type, but the types of creativity are different, and each has characteristics that distinguish it (Ashen, 2017).

2. Creativity expresses the creation of new phenomena that did not exist or were previously applied, and the phenomenon may express a tangible material thing, or just an emotional idea. Thus, creativity is the production of ideas, while innovation is the application of them. In this article, indicators, levels and types of creativity will be presented, in addition to the difference between intelligence and creativity (Volker, 2004).

3. Creativity can result from a difficult living environment, in which there are only the basics of simple living, and not, as some often assume, that creativity is born in luxurious countries where all the means of psychological comfort and luxuries are available, and creativity can also result from psychologically unhealthy people. Many of the psychologically disturbed in the world were creative, such as Van Gogh and Dostoevsky. The types of creativity and its indicators are many, but they are often correct, including the following: (Tan, 2009)

4. High IQ: That is, the individual has an above-normal IQ.

5. Achievement: Achievement is defined in Arabic as the completion or completion of tasks, but idiomatically it means the possibility of reaching success on a personal and social level.

6. Authenticity: Authenticity means honesty, hard work and diligence.

7. The ability to express ideas: whether verbally, drawing, singing.

8. Not to be afraid of criticism: that is, the individual does not feel afraid of people's words and opinions.

9. The creative personality has features that distinguish it from others, and make it move towards creativity by planning, building, implementation, and continuity, where the creative personality is characterized by flexibility and openness in thinking, and not closing in on one way to do things, and this characteristic helps innovation, because it is looking for more than one answer One or a solution to a problem (Ramadan & DeVaan, 2015)

10. Positivity is a necessary characteristic of creativity, as it is a basis for a person to be flexible and curious about the world. A positive personality has the incentive to search for solutions, details, and questions, while a negative personality blocks possibilities and looks at the world with curiosity. In addition, the creative personality tends to believe in the value of his ideas in the field related to him, so he has the courage to pursue their realization, without worrying whether these ideas are right or wrong (Al-Khudairi, 2013).

• Creativity contributes positively at the individual and collective level, as its importance lies in the following: - (Cox & Hoover, 1998)

A- Activating the mind more and liberating the mind to make it more accommodating of knowledge.

B- Learn to process more efficiently and think in an unconventional way, liberating the mind from old patterns and habits of thinking.

C- Providing alternative ways of thinking and revealing the hidden aspects of the personality, which increases the individual's connection to himself, and this leads him to uniqueness through the manifestation of inner talents and abilities.

D- Increasing the feeling of empathy with others.

Types of Creativity

There are many types of creativity, With this massive and rapid advancement in the globe, creativity has no bounds in numerous disciplines, and hence forms of creativity cannot be counted, in every field there are various creators, and among the types of creativity: (Ramadan & DeVaan, 2015)

1. Technological creativity: This creativity may be found in all aspects of the digital, technical, and media worlds.

2. Scientific creativity: All scientific disciplines, such as mathematics and psychology, are included.

3. Literary creativity: This results in literary works such as novels and poetry.

4. Industrial creativity: This is in the operational fields and factories.

5. Craftsmanship: What is meant by crafts is the craft professions. Linguistic creativity: what is meant by the skills of speech and public speaking.

6. Creativity can also be divided into the following types: (McFadden & Laughlin, 2015)

A. Types of creativity according to the decisions taken: It is divided into the following:

B. a. Collective creativity: It is with the participation of the members of the organization for the opinions of its employees.

1. Individual creativity: It is issued by the senior management.

A. Types of creativity according to its source: It is divided into the following:

B. External creativity: The organization obtains ideas from external sources of similar activity or research centers and others.

C. Internal creativity: It expresses the innovations adopted by the organization and the source of ideas in them within the organization, such as senior management, employees and departments of the organization.

1. Types of creativity according to its fields: It is divided into the following:

2. Technological innovation: It is related to the creation of a new tool, method or product, followed by changes in the technologies used by the organization.

A. Administrative creativity: refers to the changes that occur in the organizational structure and operations of the organization, and this type of creativity supports the process of generating and delivering products.
3- Types of creativity according to the type of resulting ideas: It is divided into the following: (Kagyu & Hughes, 2010).

B. Mental creativity: This type is based on the mind; Any formation of new ideas, theories or scientific reflections, whether in terms of the internal content or the product that presents unusually information and facts.

C. Scientific creativity: This type of creativity has three forms: (1) Quantitative creativity: It is an arithmetic or conceptual expansion of an existing phenomenon or an existing state. (2) qualitative creativity: it means an objective expansion or expansion of the content. (3) Quantitative / qualitative creativity: It means the expansion of form, as it has a great impact on humanity to achieve a greater amount of creativity.

D. Scientific mental creativity: It means mixing theory with practice in a state of equilibrium drawn between the two sides, such as musical melodies.

The Concept of Crisis, its Characteristics and Causes

The crisis is viewed as a circumstance in which the decision maker loses control over himself or his future directions, in which events unfold and the causes and effects are interwoven. As a result, the crisis is a unique circumstance that threatens the business, reputation, image and relations of the organization and harms its audience, which could affect its future in the market (Al-Haddad, 2004).

Thus, The crisis is a "odd" and "unexpected" scenario, one that is extremely dangerous and quick, with a series of events in which the outcomes disintegrate and the reasons are unclear, jeopardizing an individual's, organization's, or society's ability to exist. Information, uncertainty, and an uncertain future are all part of the crisis, but it is not the sole threat, but also the possibility of change, making it a "complicated" idea with verbal syndrome and two opposing parties to reconcile. (Stoddard & Munches, 2009).
Several characteristics characterize the crisis, the most prominent of which are as follows: - (Malaya, 2011)

1. The unexpected and violent nature of the crisis, which poses a major danger to the current situation.

2. The rapidity of events and their outcomes, which creates a tremendous lot of strain in connection to the amount of time available to cope with the issue, as well as grave repercussions that threaten to destroy the situation.

3. The intertwining of causes and consequences, as well as the supporting and opposing forces of the crisis, which adds to the crisis' complexity.

4. Uncertainty as a result of a lack of information and knowledge, and thus a poor capacity to foresee the direction of the crises' progress, resulting in high confusion and ambiguity, as well as exceedingly difficult decision-making and selecting the best option.

5. Tension, worry, distrust, bewilderment, and the fear of losing control reign supreme..

6. A critical juncture where both the threat and the opportunity are present.

7. Knowledge of the causes of the crisis contributes to achieving a correct response that is reflected in making an effective and quick decision, and every crisis has causes that result in the most important of which are the following: (Stoddard & Munches, 2009)

8. Misunderstanding: a mistake in receiving and understanding the available information about the crisis as a result of its lack or overlap.

9. Miscalculation: Either by doubting the information or giving an exaggerated value to the information, as a result of excessive self-confidence.

10. Mismanagement: due to randomness, administrative despotism, or lack of systems for administrative processes.

11. Conflict of interests and goals: due to the difference in personality, interests, or tendencies of the parties to the conflict, and then their goals and means of achieving them.

12. Human errors: Weak ability and desire of the parties to the crisis to deal with them, due to lack of training, lack of experience or low motivation.

13. Rumors: The use of false and misleading information in a timely and atmosphere of tension and anxiety leads to a crisis, due to the lack of facts among the public or the confusion of officials.

14. Desperate: frustration, inability or loss of hope in solving problems, which is attributed to administrative repression or deterioration in administrative systems.

15. The desire for blackmail: exposing the decision-maker to psychological, material and personal pressures and exploiting his mistakes in order to create a crisis, and as a result of the absence of religious and moral motivation.

The Relationship between Creativity and Crisis Management with the Experiences of Some Countries

At a time when crisis industry or crisis management represents the science and art of controlling others through the events of the situation and directing it to serve the goals of the crisis makers with the aim of subjugation and extortion after creating a controlled organized chaos, so it is sometimes called “the art of making conspiracies,” which helps in the presence of an atmosphere of anxiety Tension and doubt management is the science and art of controlling the situation and directing it to serve legitimate goals through managing the crisis itself in order to control its pressure, course and trends (Malaya, 2011( .There are five basic elements in crisis management through creativity, and these basic elements can be clarified as follows: (Thompson et al., 2008), (Zimmer et al., 2008)

a. Prior authorization of the involved managers is critical in making a decision to establish a suitable crisis management strategy ahead of time, as well as the speed with which it is implemented.

b. Decisive action is required since crises strike at an unanticipated rate and leave a slew of difficulties, necessitating an effective, decisive, and positive response, hence lowering the scale of the crisis..

c. Appropriate management behavior before to, during, and after crises in order to quickly repair the organization's reputation by prompt and careful action, as well as brief and significant remarks that deserve to be heard and repeated.

d. The human side in words and deeds, such as some managers' coldness and arrogance following crises that leave victims, which is a source of anger and frustration, legal prosecution, and unfavorable media coverage, say sorry and repent frequently, and support the victims.

e. Direct and personal dealings with victims and those who are directly affected, such as employees and customers, which reduces the power of opponents and media pressure, as not avoiding responsibility provides a solution and an opportunity to restore the organization's reputation, as well as strengthens its affiliation with it.

2. The experiences of some countries in using creativity to manage crises can be illustrated through the following: (Kagyu & Hughes, 2010), (Stoddard & Munches, 2009(

a. The experience of India: When talking about the experience of India, we mention the pioneers in the Indian industry such as (Tata, Albany, Software, Murthy) after the growth of the economy in 1990, which helped to create new projects as a result of the increase in the population of working age and the growth rate was 7% Annually and if it continues, there is a need for a million jobs per month, the population is twice the population of the United States. India and now there are nearly (70,000) students in NEN and the study conducted by (Lega Tom Institute) 2011 found that Indian businessmen are optimistic about the future of their country despite the problems in the field of implementation of contracts and dealing with building permits and trade across borders and the biggest obstacle is the lack of authority and structure Infrastructure, roads, water, and public transport, which are among the responsibilities of the government, have generated protests, and project owners will benefit from them to create new job opportunities and move for the better.

b. America's Experience: Clark University is working on local entrepreneurship serviced by the innovation movement and encouraging business among black students before graduation through the use of technology, education models, re-engineering and access to capital and achieved great success, followed by Ron University / Bennett College. There is a rebirth of black entrepreneurship and it began to grow in American universities and focused on young people, men and women and using their minds to change the economies of their society.

c. Turkey’s experience: A case study starting to study the internal entrepreneurial spirit in terms of innovation, adventure and self-renewal with the danger of the environment and examining the enemies and external determinants of development. The performance of industrial companies in Turkey is multi-dimensional (financial and non-financial measures) and based on the data of (331) manufacturing companies that showed the results Environmental factors have a statistically significant impact on entrepreneurship development activities, and significantly negatively with profitability associated with self-renewal. The positive dimensions are morally related to innovation, risk-taking, and growth is largely with new businesses only. Ventures and innovation are positively associated with customer and employee satisfaction and are considered major non-financial measures for companies. Where companies seek as much as possible to achieve customer satisfaction to the fullest.

The Applied Aspect of Research

Presentation and Analysis of the Survey Results

During this paragraph, the characteristics of the research sample will be discussed, in addition to discussing the results of data analysis, as shown as follows:First - Characteristics of the research sample: The distribution of the research sample can be clarified by years of experience, academic qualification and gender, as shown in the following Table 1:

Table 1
Distribution Of The Research Sample According To Years Of Experience, Educational Qualification And Gender
Percentage The Number General Data
13.30% 4 Years of Experience
40% 12
46.70% 14
36.70% 11 Qualification
63.30% 19
83.30% 25 Gender
16.70% 5

It is noted from the above table that the members of the research sample have sufficient experience in practice, as the percentage of those who have experience exceeding 20 years amounted to 46.7%, which qualifies them to answer the questionnaire realistically. 36.7%, as well as 63.3% of graduate degree holders, which gives researchers a perception of the possibility of obtaining objective answers from them. The percentage of males reached 83.3% and the percentage of females 16.7%, which means that males bear additional burdens than those borne by females.

Second - Results of data analysis: For the purpose of analyzing the responses of the research sample members in the questionnaire, statistical methods were relied upon, including descriptive statistics, which includes weighted arithmetic means, standard deviations, and percentage weights to determine the extent of consistency in the responses of the research sample and its characteristics, and the arrangement of variables according to the least dispersed and the best homogeneous.

Descriptive Analysis of the Research Variables

A descriptive analysis of the variables of the research hypothesis can be carried out in relation to the statement of the role of creativity in crisis management, as shown in the following Table 2 :

Table 2
Descriptive Analysis Of The Research Hypothesis Variables
Number The details Standard Deviation Percentage Arithmetic Mean Paragraph Arrangement
1 The director of the organization uses brainstorming sessions to face crises. 0.466 75.20% 3.76 12
2 The director of the organization explains the crisis clearly by presenting a set of questions. 0.447 72.00% 3.6 15
3 The director of the organization creates the appropriate atmosphere for brainstorming sessions. 0.426 68.52% 3.426 16
4 The director of the organization accepts ideas that may seem strange or abnormal. 0.461 74.28% 3.714 13
5 The director of the organization records all the ideas put forward in a list according to priorities. 0.535 86.24% 4.312 2
6 The director of the organization works to make the atmosphere of the meeting fun. 0.415 66.88% 3.344 17
7 The director of the organization avoids evaluating the proposed ideas. 0.522 84.00% 4.2 3
8 The director of the organization works on developing the proposed ideas 0.397 64.08% 3.204 18
9 The organization manager has the ability to manage the brainstorming session to achieve the set goals. 0.449 72.10% 3.605 14
10 The director of the organization proposes new horizons to encourage individuals to express their opinions and suggestions. 0.578 93.10% 4.655 1
11 The director of the organization discusses the proposed ideas first-hand. 0.484 78.00% 3.9 9
12 The director of the organization gives the participants the opportunity to build on the ideas that have been shared. 0.501 79.76% 3.988 7
13 The manager of the organization has the ability to combine similar ideas. 0.488 78.40% 3.92 8
14 The director of the organization documents the results that are agreed upon to solve the crisis. 0.499 80.40% 4.02 6
15 The director of the organization divides the crisis facing the organization into main and sub-axes. 0.375 62.58% 3.129 19
16 The director of the organization controls the workshop to achieve the set objectives. 4.649 77.32% 3.866 10
17 The director of the organization contributes to the installation of available alternatives to find appropriate solutions. 0.512 82.24% 4.112 5
18 The director of the organization discusses with the workers how to reduce the negative factors that increase the crisis. 0.357 62.00% 3.1 20
19 The director of the organization works to collect general ideas about the crisis and the possibility of its application. 0.528 83.10% 4.155 4
20 The director of the organization employs the positive factors well to face the current crisis. 0.473 76.28% 3.814 11
21 overall average 0.678 76.66% 3.833 -

It is noted from the above table that the paragraph (the director of the organization uses brainstorming sessions to confront crises) has obtained an arithmetic mean of 3.760 and the percentage is 75.20% with a standard deviation of 0.466 and sequence 12, either a paragraph (the director of the organization explains the crisis clearly by presenting a set of questions) The arithmetic mean reached 3.600 and the percentage was 72.00% with a standard deviation of 0.447 and sequence 15, while the paragraph (the director of the organization creates the appropriate atmosphere for brainstorming sessions), the arithmetic mean reached 3.426 and the percentage was 68.52% with a standard deviation of 0.426 and sequence 16, as well as the paragraph (the director of the organization accepts Ideas that may seem strange or abnormal) the arithmetic mean reached 3.714, the percentage reached 74.28%, with a standard deviation of 0.461, and the sequence is 13. With regard to the paragraph (the director of the organization records all the ideas presented in a list according to priorities), the arithmetic mean reached 4.312 and the percentage was 86.24% with a standard deviation of 0.535 And sequence 2, either a paragraph (the director of the organization works to make the atmosphere of the meeting fun), the arithmetic mean was 3.344 and the percentage was 66.88% with a standard deviation of 0.415 and the sequence was 17, and for a paragraph (the director of the organization avoids evaluating the Thought proposed) the arithmetic mean reached 4.200 and the percentage reached 84.00% with a standard deviation of 0.522 and the sequence 3, as well as the paragraph (the director of the organization is working on developing the proposed ideas) the arithmetic mean reached 3.204 and the percentage was 64.08% with a standard deviation of 0.397 and the sequence 18, either paragraph (the manager has The organization has the ability to manage the brainstorming session to achieve the set goals) the arithmetic mean reached 3.605 and the percentage was 72.10% with a standard deviation of 0.449 and the sequence 14, while the paragraph (the director of the organization suggests new horizons to encourage individuals to express their opinions and suggestions) the arithmetic mean reached 4.655 and the percentage was 93.10 % with a standard deviation of 0.578 and sequence 1, either for a paragraph (the director of the organization discusses the proposed ideas first-hand), the arithmetic mean reached 3.900 and the percentage was 78.00% with a standard deviation of 0.484 and the sequence was 9, and with regard to the paragraph (the director of the organization gives participants the opportunity to build on the ideas traded), the mean reached Arithmetic 3.988 and the percentage 79.76% with a standard deviation of 0.501 and sequence 7, as well as the paragraph (the director of the organization has the ability to integrate similar ideas) the arithmetic mean reached 3.920 And the percentage is 78.4% with a standard deviation of 0.488 and sequence 8, as for a paragraph (the director of the organization documents the results that are agreed upon to solve the crisis), the arithmetic mean is 4.020 and the percentage is 80.40% with a standard deviation of 0.499 and sequence 6, and for a paragraph (the director of the organization breaks up the crisis facing the organization To main and sub-axes) the arithmetic mean reached 3.129, the percentage reached 62.58% with a standard deviation of 0.375 and the sequence 19, either a paragraph (the director of the organization adjusts the workshop to achieve the specified goals) the arithmetic mean reached 3.866 and the percentage reached 77.32% with a standard deviation of 4.649 and sequence 10, as well as the paragraph (The director of the organization contributes to the installation of available alternatives to find appropriate solutions) the arithmetic mean reached 4.112 and the percentage was 82.24% with a standard deviation of 0.512 and sequence 5, either a paragraph (the director of the organization discusses the workers in how to reduce the negative factors that increase the crisis) the arithmetic mean reached 3.100 And the percentage is 62.00% with a standard deviation of 0.357 and sequence 20, and for the paragraph (the director of the organization works to collect general ideas about the crisis and the possibility of its application), the arithmetic mean reached 4.1 55 and the percentage is 83.10% with a standard deviation of 0.528 and sequence 4, and finally the paragraph (the director of the organization employs the positive factors well to face the current crisis), the arithmetic mean reached 3.814 and the percentage is 76.28% with a standard deviation of 0.473 and the sequence is 11.

Accordingly, the arithmetic mean for all paragraphs was 3.833 and the percentage was 76.66% with a standard deviation of 0.678, which indicates the acceptance of the research hypothesis with regard to the following paragraphs:

The director of the organization uses brainstorming sessions to face crises.

1. The director of the organization clearly explains the crisis by presenting a set of questions.

2. The director of the organization accepts ideas that may seem strange or abnormal.

3. The director of the organization gives the participants the opportunity to build on the ideas circulated.

4. The director of the organization has the ability to integrate similar ideas.

5. The director of the organization documents the results that are agreed upon to solve the crisis.

6. The director of the organization contributes to the installation of available alternatives to find appropriate solutions.

7. The director of the organization collects general ideas about the crisis and the possibility of its application.

Conclusions and Recommendations

Conclusions

During this research, a set of conclusions were reached, which are as follows

1. Despite the multiplicity and diversity of forms of creativity, it aims to strengthen the innovative capacity of business organizations by increasing their initiatives and their willingness to adopt risks, to provide new products and services.

2. Creativity has a positive impact on the economy and society, as it contributes to its stability, increase its growth and profitability, and achieves successes not only at the local level, but also at the international level.

3. Creativity has become an important feature as a strategy for growth and competitive advantage, because it uses entrepreneurial strategies and management with entrepreneurial behavior that challenges bureaucracy and encourages creativity.

4. Creativity helps in managing crises in a way that enables economic units to meet the requirements of the modern business environment and the accompanying rapid and successive changes.

Recommendations

Based on the conclusions that have been reached, the research recommends the following:

1. It is necessary to emphasize the importance of the strategic orientation of the creative leaders in the Iraqi organizations and the executive leadership, as they have the right to formulate and succeed the organization’s strategy and to move away from the strict formal system at work and to give the appropriate flexibility in a way that contributes to the development and achievement of outstanding performance.

2. Using quantitative methods and scientific programs to know how to exploit resources (with the opportunities they represent), and where weaknesses (threats) lie, and try to reduce their effects.

3. There is a need to measure the level of performance in our major organizations to know the extent of excellence, creativity, innovation and an attempt to change reality for the better, and the continuous evaluation of the pioneering leaders in the board of directors and executive leadership according to the dimensions of strategic direction will serve the objectives of the business organization and stakeholders.

4. The information of each organization should be published to know its progress and refer to it when needed.

5. Because of the rapid developments and technological progress, business organizations must constantly follow up on international, regional and local organizations and learn about the latest developments to benefit from them.

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