Case study
Managing innovation in the creative industries: A cultural production innovation perspective
Yi-Long Jaw
Professor, Graduate Institute of International Business, National Taiwan University, Taipei, Taiwan
Chun-Liang Chen
Assistant Professor, National Taiwan University of Arts, Banciao Dist., New Taipei City, Taiwan
Shi Chen
Postgraduate Student, College of Management, National Taipei University of Technology, Taipei, Taiwan
PP: 256 - 275
Abstract
The purpose of this paper is to constraint existing nonprofit organizations encounter when attempt to bring a social enterprise into their existing organization. Motivated to alleviate funding uncertainty constrains executives awareness of the complexity and the potential disruptive nature of the social enterprise innovation. Given this initial constraint, creating a social enterprise may lead to culture clashes, resistance, and highlight managers' inability to develop effective systems to manage and monitor the new venture, leading to uncertainty and the inability to use the social enterprise for its intended purpose. When adopting an innovation, problems and uncertainties arise not because of the adequacy of the innovation but due to factors that constrain: (1) executives ability to assess the innovation and (2) internal stakeholders' willingness to use it.
Keywords
innovation, innovation adoption, change, non-profit organizations, social entrepreneurship, uncertainty
Article Text
Creative industries now form a distinct economic sector in which the creation, production, and marketing of goods and services are combined. Defined most influentially by the Department for Culture, Media and Sport's (DCMS) Creative Industries Taskforce in 1998, creative industries are based upon activities that have their origin in individual creativity, skill and talent (DCMS, 1998). Moreover, they have the potential for wealth creation through the generation and exploitation of intellectual property and content. According to this definition from the DCMS (1998), creative industries include the following sectors: the performing arts, advertising, architecture, the art and antiques market, crafts, design, designer fashion, film and video, interactive leisure software (such as computer games), music, publishing, software and computer services, and television and radio. The growth of creative industries has been facilitated in part by the growing popularity of leisure and entertainment activities in advanced industrial economies. By providing an "experience," creative industries represent a new and growing source of value in many economies (Aoyama, 2007). Such industries produce consumer goods that convey lifestyles and values with both informative and entertainments functions, and produce creative services that cover intangible activities, such as the promotion of the performing arts, films, and values.
Culture has become an important source of economic growth and job creation, particularly within advanced urban economies (Pratt, 1997; Kloosterman, 2004; Currid, 2007a, b). This has raised questions as to the objectification of culture for economic purposes, particularly as the policy discourse around creative industries shifts from a cultural to an innovational perspective (Garnham, 2005). Our preference is for the term "creative industries," which allows us to take a more product and process-oriented approach towards this issue (Pratt, 2007). Hence, innovation and creativity are not only the prerogative of high-tech firms, but are also very much part of such high-concept activities as producer services, consumer services and creative industries (Brandellero and Kloosterman, 2010). Moreover, the rapid pace of technological change in creative industries has had a significant impact on how they operate and will continue to do so. In particular, the massive development of digital media and the digital convergence of previous creative works have rendered some traditional sector boundaries partially obsolete. For example, in the UK's creative economy, a challenge for the performing arts sector is how to exploit the opportunities offered by broadcasting and other new technology (DCMS, 2007). Despite a growing number of reports on creative industries, many questions have yet to be fully addressed; for example, are such industries capable of developing original and unique cultural products and creative services with sustainable effects (German Commission for UNESCO, 2007)? To date, very few studies deal with innovation within creative industries (Miles and Green, 2008). Discussion of content innovation has rarely been articulated in innovation studies: it is more commonly encountered in cultural studies of various kinds, and even then is often not portrayed as innovation (e.g. Wright et al., 2002; Zackariasson, et al., 2006). Furthermore, research has pointed to the need to explore innovation among creative industries in relation to the idiosyncrasies of the sector (see Handke, 2008), such as the presence of "soft innovations" linked to changes of an aesthetic nature, as opposed to more widely used definitions of innovation that refer to changes in the functionality of products and process (Stoneman, 2009). Tran (2010) noted that future research could investigate types of innovation to compare alternative approaches to symbolic value creation.
The aim of this study is to identify cultural production innovations according to their aesthetic nature and explore neglected innovation phenomena in the creative industry. Moreover, this study examines innovation from a perspective of soft side innovation, not only from a technology viewpoint. Here, "cultural production innovation" is defined as the process by which cultural products (goods, services, artifacts, visual/ experiential objects, and art forms) are created, transformed, and diffused in the constitution of consumer culture (Lash and Urry, 2002). The wider term covers related items, i.e. cultural products, cultural concepts, and process of production, through the cultural diamond of innovation model development by Miles and Green (2008). For example, cultural production innovation can take place in the ways in which content is produced, including the more or less active engagement of the 'audience' in production. This paper also compares and analyzes the differences of competitive strategies and organizational characteristics in creative sectors. It constructs new forms of an innovation analytical model that reflect the highly dynamic and aesthetic nature of creative industries (Miles and Green, 2008). Finally, this paper proposes insights that can contribute to theoretical and practical discussions on how firms build competitiveness through industrial innovations. To this end, we attempt to answer the following questions, and thereby fill key research gaps in the existing literature: 1) what are the cultural production innovations in creative industries; 2) why can firms achieve these cultural production innovations continuously; 3) how can cultural production related innovations be managed and what are the differences among competitive strategies to sustain such a market; 4) and finally, how can we best analyze the works of cultural production innovations in creative industries.
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