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This chapter aims to demonstrate the significant connections between innovation and creativity, innovation and the culture of quality management, and creativity and the culture of quality management globally as a response to the Crisis and Post-Crisis Period. Since issues related to innovation, creativity, quality, and quality management have recently attracted more attention than other topics globally, considering psychological factors was of great importance, too. The methodology of the research involved collecting data and information about innovation, creativity, and ISO standards application globally, in higher-income, medium-income developing, and low-income developing countries. The main finding of this study is that there are relationships between innovation and creativity, between innovation and ISO standards application, and between quality management and creativity. The main conclusion of the study is that quality management, which reflects and refers to the notion of exceeding customer expectations by enhancing the quality of goods and services, is correlated with culture, innovation, and creativity as a response to the Crisis and Post-Crisis Period.
*Address all correspondence to: enrikoceko@yahoo.co.uk, enriko.ceko@cit.edu.al
1. Introduction
In the neoclassical theory, land, labor, and capital were considered, but capital is divided into fixed capital, labor capital, and financial capital. Regarding the factors of production in the classical theory (Adam Smith, etc.) of economic studies, the factors of production were considered land, labor, and capital. In the Marxist theory (Karl Marx, Frederik Engels, etc.), it was considered labor, the subjects of work, and the means of work. In environmental economics, production factors were known beginning in the latter half of the twentieth century, in addition to matter, energy, and design intelligence, the entrepreneurial spirit started to be discussed as a factor in production (entrepreneurship).
While this chapter emphasizes that innovation is a quality shared by employees as well as entrepreneurs, some academics regard innovation as a component of entrepreneurship. Accordingly, for innovation to occur, subjects or companies must establish the framework in which employees can carry it out.
Creativity is a prerequisite for innovation and cannot happen without it. When there are enough and the right conditions, an individual can move from creativity to innovation. This person is distinguished by their creative abilities. If the invention is sound, the market will experience a competitive and comparative economic advantage, which is further aided by ongoing quality improvement and the adherence to and use of quality management systems and standards.
During the pandemic period, when the traditional view of factors of production where labor, land, and capital were treated as the most important factors is almost finished, as well as discussing only entrepreneurship, since entrepreneurship is the most recent factor of production, the combination of early factors of production (land, labor, and capital) with modern factors of production (entrepreneurship and technological innovation) made it possible for many entities operating in different sectors of the global economy to succeed [1].
For this reason, the components of products that were also taken into account in this study include labor, land, capital, entrepreneurship, and innovation.
The past economic crises, particularly the one from 2007 to 2013, natural disasters with a focus, pandemics, particularly the COVID-19 virus, have all increased the value of a culture of quality management, innovative activities, and creative ideas, which, when combined, have positive economic effects.
Inventions, as well as new ideas and concepts, were already associated with creativity. Currently, creativity receives more attention across several fields. This attention was mostly focused on the social sciences, humanities, economics, entrepreneurship, health, agro-processing, education, engineering, philosophy, and so on, and is primarily focused on ideas produced by the actions of both individuals and groups of individuals [2].
Typically, innovation is defined as the combination of new features that leads to meliorated and/or newly discovered goods, innovative processes, procedures, regulations, record keeping, manipulations, manufacturing, improved penetration in existing markets, introduction to new markets or clients, actualization of new models of resource usage, meliorated business models, and so on.
In most cases, this is closely related to how creativity and innovation are supported, the effectiveness of entrepreneurial activities (processes, procedures, regulations, orders, products, services, methodologies and methods, tools, technologies, etc.), the human resources involved in these creative and innovative processes, as well as the processes of quality and its management. The resulting goods and services are marketed to clients as standalone goods and services or in combinations, primarily through B2B, B2C, and B2G. These products are one-of-a-kind shoes of the highest caliber at reasonable pricing.
This enables these products to enter the market more quickly and with lower marketing expenses. Innovation does not need to result in an invention. It is sufficient to have a product or service with a more practical application approach. Making decisions to address issues related to enhancing the quality of life is today the primary objective, and this unquestionably involves innovation. Therefore, new, novelty, and innovation all refer to the creativity that is shown in both individual and group activities.
It makes sense that a business would need to make quality and cultural investments to attain, maintain, and manage creative and innovative operations.
The values of the previous work’s accomplishments and successes, as well as its ongoing improvement, comprise the quality culture. It is precisely this approach to culture in general and to the culture of quality in particular that makes it possible, through interventions that correct and prevent low quality, to make it possible to offer quality goods on the market at the most suitable prices for economic agents. It is precisely this culture that makes it possible to improve the quality of the products and services provided by various entities.
Successful businesses around the world appear to have had and now have a focus on “doing the job well the first time.” This is demonstrated by (1) the development of human resources both individually and within work groups, (2) the establishment of tolerance and respect as the cornerstones of organizational communication activities, (3) managerial responsibilities and procedures, and (4) entrepreneurial activity, as fundamental, main values that unquestionably have a positive impact on the economy.
They are precisely ISO standardized, which technically embodies the quality culture. Both the public and private sectors have shown an increasing interest in ISO standards in recent years, particularly during the pandemic. This was because these standards were primarily concerned with the improvement of processes, procedures, regulations, and data retention, which enables the further improvement of product and service quality to meet consumer expectations.
The incorporation of managerial functions, such as planning, budgeting, leadership, motivation, and control, into an organization’s day-to-day operations enables it to further define and improve its quality policies, objectives, and responsibilities. These managerial functions can be strategic, operational, or applied, and they enable an organization to put these policies, objectives, and responsibilities into practice through ongoing improvements in the caliber of its products and services. This occurs every day. This is precisely what ISO standardization and quality management system are for.
The reason why the literature on quality and its management, creativity and creative abilities, innovation and novelty, and so on, continues to advance, expand with new knowledge, and develop more and more on a scientific basis is that these concepts when applied with care and intelligence, enable all types of public and private entities to achieve, maintain, and manage economic success. This phenomenon of the global economy existed for at least the last 20 years of the twentieth century and the twenty first century in markets where supply is much more than demand.
2.1 Main 2020–2030 megatrends and how the world has responded to the crisis and the crisis period and later too
The following megatrends will dominate the next 10 years:
Economic growth associated with the shift of economic power.
Significant changes in business practices and investment strategies are anticipated in the economy of developing nations.
The yield of agricultural and livestock goods will be impacted by global warming, which will result in changes in food product pricing. Communities lacking enough financial resources will be impacted by this.
Artificial intelligence, machine learning, and digital (r)evolution will be buzzwords of the day.
Compared to the US, Asia has a larger population over 65.
As this segment of the population continues to grow, there will be more persons over 65 in Asia by 2042 than in the Eurozone and North America put together.
Social changes, which present both challenges and opportunities for governments and human society, will come before changes in the world’s demographics.
It is these tendencies specifically that have brought and will continue to bring significant, widespread, and quick changes and advancements in technology, structure, and superstructures, bringing undeniable influences and effects on international markets and societies that are increasingly global.
At now, metropolitan regions are home to more than 50% of the world’s population. There will probably be 5 billion of them by the year 2050, according to estimates. The African continent, Asia, and so on, will see a significant portion of this urbanization process, which will result in significant political, economic, social, cultural, legal, environmental, and other transformations in various regions of the world.
As a result, humans are heading in the following directions in the face of these quantitative and qualitative changes, which are the megatrends that will influence every part of humanity’s lives for at least the next 50 years:
Information and technology have undergone a revolution.
Increasing and broadening of the flexibility of both public and private organizations that are looking to adopt innovative technologies and processes.
The development and growth of knowledge, competencies, and learning gained from market competition.
Increasing worldwide offer and competitiveness.
The use of a variety of tactics and settings by commercial entities.
Pay attention to the knowledge economy.
Systematic upgrades to manufacturing, distribution, and redistribution.
A greater requirement for the integration of policies.
An increase in global output and investment.
Shifts in the economy’s structure.
Investment in and development of competencies and knowledge.
The application and growth of systems for creativity, innovation, and quality management.
2.2 Factors of production
The inputs utilized in the production process for financial gain are included or described as factors of production. As previously noted, the factors of production in this essay are as follows: (1) land, (2) labor, (3) capital, (4) innovation, and (5) entrepreneurship. (Although some authors include entrepreneurship innovation, innovation is not a sole attribute of entrepreneurs, but of employees and other individuals who are not involved in business activities as well).
It is clear, the cyclical nature of the economy and the cyclical use of production factors have been and continue to be closely related to world history regarding factors of production since preparing the paper carefully followed the developments of the global economy for at least the last 40 years and read the literature on the history of the development of the global economy for at least the last 600 years.
The use of physical factors—land, labor, and capital—that have always been regarded as fixed factors of production was 1 cycle that is currently understood. The other cycle is the use and management of creativity, innovation, and entrepreneurial skills, knowledge, and competencies—that are regarded as non-fixed factors of production. It has been the cycle of use, exploitation, and management of land, labor, and capital that has predominated in some historical and economic development periods, while it has been the cycle of use and management of skills, knowledge, and competencies related to creativity, innovation, and entrepreneurship in other historical and economic development periods. The stages of applying these components, which are the stages of entry, growth, maturity, and decline, are what lead to all of this. One cycle enters the entry phase if it is in the decline phase, and the other cycle enters the endpoint phase if it is in the peak maturity phase.
Nowadays, there is a significant quantity of territory (land) in almost every nation that is not utilized, exploited, or managed. Unemployment is extremely high everywhere in the world and primarily affects young people. A lot of free money is also available around the globe, both in banks and in people’s pockets, but it is not being invested.
Therefore, it is evident and simple to see that the cycle of use, exploitation, and management of land, labor, and capital is in decline or may have even reached the end of the decline phase. In contrast, the cycle of exploitation, use, and management of creativity, innovation, and entrepreneurial skills is rising or even at its peak. It is difficult to predict how long this phenomenon will last, during which the cycle of the use of fixed factors of production will be declining and the cycle of non-fixed factors of production will mature. However, one thing is certain: When 1 cycle reaches its growth peak, the other cycle reaches its endpoint, and vice versa.
One of the key components for increasing productivity and economic growth has been, is, and will continue to be the rapid technological advancement and the accumulation of skills, knowledge, and competencies; in this regard, systems and networks that effectively and efficiently disseminate information, skills, knowledge, and competencies are crucial. For this, policies about education, science, industries, and technologies as well as incentives for investments in research and development, ongoing training, support for systems of creativity, innovation, and quality management, as well as infrastructure for these purposes are necessary [3, 4].
2.3 Creativity
Years of quality management experience have shown that creative (1) processes, (2) procedures, (3) goods, (4) services, (5), and so on, are an important components of creativity or contain it [5, 6, 7]. This demonstrates, in essence, that creativity is what initiates first and establishes the conditions for inventive activities to occur, acting as a continuous mental and psychological process for problem identification and solution selection [8].
The process of creativity, which consists of several stages and is characterized by a thinking process where (1) fluid, (2) flexible, (3) original, and (4) elaborative ideas emerge in human brains, includes problem definition, data, figures, and information collection, selecting the best solution among several of them, and from this point creating improved or newly discovered products and services.
Organizations need management expertise and practices, motivation, knowledge, mental acuity, techniques, procedures, people with flexibility and imagination to approach issues, and internal access to the organization related to the elements external (e.g., threats to leave the job or income) and internal to achieve and maintain creativity (such as job satisfaction, employee development).
At this point, employee motivation practices include:
Choosing the right challenge to present to individuals;
Achieving objectives, creating conditions for people’s autonomy to choose the best tools;
Balancing human, financial, and material resources, as well as time;
Creating an environment that supports working groups that support each other;
Evaluation, supervision, and mercy;
Support for organizations, sharing of information and knowledge, as well as collaboration [15].
A sign of entrepreneurship studies and the social and psychological skills, knowledge, and competencies of entrepreneurs is the ability of employees and businesspeople to use creativity to realize products and services with improved and new features. This is accomplished using processes of continuity, brainstorming, conceptions, support, and confidence [9].
According to some authors [10, 11, 12], creativity and knowledge creation are essential for successful organizations. These authors also emphasize how communication, infrastructure, technology, and training all play important roles in this process.
Parallel to this, the idea of the “creative class, an important driver of the economies of the modern era,” in conjunction with the “3 T regions” (Technology development, talent empowerment, and tolerance for differences), leads to a high concentration of creativity among professionals who strive to have a higher position of economic development [13].
2.4 Innovation
According to an OECD report [14] and numerous authors [15, 16, 17, 18, 19], business is an innovative process that involves human, financial, and material resources as well as the capacity to produce, using skills, knowledge, and managerial and entrepreneurial competences that are developed during a long and important creative process, although at the beginning, the process can be when subjects submit their goods and services to the market, innovation appears to be a process of the practical implementation of ideas brought by the market, and when these subjects work diligently and consistently to enhance their goods and services. Innovation is defined as “an improvement or something new that presents and brings back value” by the ISO 56000:2020 Standard [20].
Improvement, invention, and dissemination—three components of innovation—are shared by all authors who have looked at various facets of this topic [21]. While innovation cannot be viewed as only an invention [22] or as if every innovation is an invention in and of itself [23], not all innovations necessitate dealing with the invention [24].
The creation, distribution, and application of skills, knowledge, and competencies within a system can be positively impacted by laws, procedures, and processes, but excessive bureaucracy and a plethora of restrictions are detrimental to innovation [25].
There are three stages to the innovation process: idea generation and idea empowerment, problem resolution and decision-making, and implementation [26].
The primary drivers of innovation are significant system failures, chance, and earnest efforts made by numerous economic agents. Along with this, there are the movements and demographic shifts, the shift in people’s attitudes toward innovation and other topics, and the degree of knowledge, skills, and current scientific capabilities, which are important sources of innovation [27].
The tools and techniques used for problem-solving and decision-making, activities that include agents of many and different economics, and this constitutes a very important aspect regarding the outcomes of public and private entities, which are all included in this aspect and are therefore essential to the success, efficiency, and effectiveness of innovations.
The innovative aspects of products and services are brought to the attention of consumers by combining marketing with its components (advertising, publicity, public relations, and promotion), a process that involves communication, a process that includes the generation of ideas, the work of individual and group intellectuals, and so on, and mostly this mental and intellectual work, innovative technological changes rather than any activity that is necessarily and primarily related to the use of fixed factors of production, land, labor, and capital [28].
The connections between management, leadership, entrepreneurship, inspiration, and creativity have been studied by several authors [29, 30, 31, 32].
According to certain writers, the Triple Helix model [33] serves as an infrastructure for innovation, which fosters interaction and the development of the knowledge economy [25, 34]. They contend that those engaged in science and academia are those who produce and disseminate knowledge. These are the facts that the market’s economic agents gather and apply [33]. The company generates and offers funding and opportunities for the development of skills, knowledge, and competencies to support innovation, and the government creates and provides incentives to promote and foster innovation [25].
Every incident involving such things as pandemics and natural calamities fosters standard-setting, innovation, and creativity. The growing interest in innovation has been observed during the Covid-19 pandemic period in the areas and industries of public health, education, distant labor, electronic commerce, and so on [35].
2.5 Concepts of quality and quality culture
Quality, which is ultimately connected to consumers’ expectations for the features of goods and services, demonstrates that it is also connected to customers’ perceptions, which are conditioned and subjective. Since meeting customer demands at a particular level is essentially what customers desire, quality is defined by ISO standards as doing so.
It was Edward Deming who first suggested that cost-cutting must accompany productivity development to enhance quality. This approach to quality improvement calls for the use of administrative functions, proper processes, and procedures, as well as design and testing methodologies. Quality is what buyers search for in goods and services, according to Peter Drucker. Consumers are always willing to pay more for quality than for the money that producers wish to receive. This leads to the perspective that the essence of quality and quality culture is being able to satisfy consumer requests.
The relationship between quality, quality management, and quality culture and the organization’s management, in general, has to do with the strategy of placing the customer at the heart of the business and attending to their demands—a long-term dedication to the client, collaboration, the kaizen approach (constant improvement), ongoing training for employees during their tenure with the organization, setting up the right conditions for the fulfillment of freedom of action through control, empowerment, and involvement of employees, and so on. This quality system encompasses factors such as employees, workplace health and safety, the manufacturing process, organizational finances, information creation and management, research and development, procurement practices [2, 36].
The relationship between management principles and ISO 9001 is depicted in the image below (Figure 1):
Figure 1.
The management principles and ISO 9001 relations [37].
The values necessary to realistically implement continuous improvement are related to quality. For this, several factors are required, through which it is possible to develop the organizational philosophy, the workgroup culture, the mobilization and motivation of people involved in creative and innovative projects, and so on. Many scholars in the field of quality management characterize this as a social conflict that keeps the organization’s members united [38].
In the jargon of quality management, this is exactly what subject culture means; it is what ties individuals in an organization together and connects them to the values they support and develop, with how these people naturally use organizational structures, controls, and mechanisms, and so on [39]. This culture encourages you to strive for excellence and creates a setting where everyone in the company is committed to raising quality. Now, each employee sees himself as a customer, a supplier, and an employee. It’s a great creative idea to strive to complete everything as well as you can right away.
First, from this perspective, it should be made clear that it is not claimed that since there is room for improvement, there is no reason to do everything well from the start, as this mentality increases costs for the organization. Instead, the approach aims to evaluate every step of the creation of products and services in every organization where a quality culture exists and is functional, as this prevents the passing of time [40].
Thus, the improvement of both individuals and organizations along the path of continuous realization of goods and services, the development of a climate of respect and tolerance among employees, and the development of entrepreneurial skills, knowledge, and competencies are all closely related to quality, its management, and quality culture (4). The capabilities of the organization and proof that these capabilities are regarded and used properly.
The domains that are known and valued by every individual who comprises the organization and who identifies themselves with these domains are what constitute the quality culture, which is manifested in the quality of products and services [41].
The main principles of “achieving goals through training” and “bringing benefits through value and opportunities” [42], which aim for excellence, recognition, and application of best practices and experiences to achieve and maintain standards, are precisely these approaches to quality and quality culture that set Europe apart. This is a managerial strategy that makes it possible for the beliefs, values, and principles of the people who make up the organization and all other interested parties to create and use the culture of this organization. Goals, strategies, and operational objectives are clearly defined, and individuals are responsible for predetermined and defined processes and procedures.
In this regard, many studies have recently been conducted on quality, quality management, quality culture, and their significance for attaining and maintaining competitive advantages, corporations’ social responsibility, sustainability, and organizational continuity, as well as the ethics of business activity and raising standards of living, among other topics [2, 39, 43, 44].
2.6 Relationships between creativity, innovation, and quality management in psychological terms
Technology, business, social systems, economic development, and policy formulation are just a few of the contexts in which creativity, innovation, and quality management have been explored. As a result, there are many different ways to conceptualize creativity, innovation, and quality management, including the psychological approach.
The study of conscious and unconscious phenomena, such as feelings and thoughts, is included in psychology’s scope as a discipline that examines the brain and human behavior. As a whole, psychology is a significant academic discipline with a broad scope that blurs the lines between the humanities and the natural sciences. While social scientists seek to comprehend the behavior and attitudes of individuals and their groups in specific situations, psychologists seek to comprehend the properties of the brain by relating the activity of the brain and its properties to neuroscience, in their daily lives and aspects of organizational life [45, 46].
In addition to health-related techniques, psychological knowledge is used to comprehend and resolve issues in a variety of human endeavors, including industrial and organizational settings [47].
I/O psychology is the study of, and application of, psychological theories and principles to the working environments of organizations [48]. Initially known as economic psychology or business psychology, industrial psychology, employment psychology, or psychotechnology [49], and emerging as I/O psychology between 1960 and 1970, industrialists applied the young field of I/O psychology to the study of scientific management techniques for enhancing workplace efficiency.
It became a part of Division 14 of the American Psychological Association’s Society for Industrial and Organizational Psychology in 1973 [49]. The goal of this profession is to improve how people behave in work environments and procedures. Personnel psychology is one of I/O psychology’s subfields. To recruit and assess employees, personnel psychologists specifically attempt to use psychological methodologies and concepts. Another branch of psychology is called organizational psychology, which looks at how the workplace and various management philosophies affect workers’ productivity, job satisfaction, and motivation [50].
I/O psychology studies are currently concentrating on creativity, innovation, and quality management as well. The activities and studies related to this field (human engineering psychologists) are practically connected to the problem-solving and decision-making approach, such as how to organize work, choose workers, design machines that are easy for people to use, create and innovate new products/services or improve existing ones, and apply the updated standards, procedures, processes, and good practices aimed at competitive advantage achievement.
In fields as diverse as technology, health, and tourism, innovation is acknowledged as the cornerstone of development and wealth [51].
The discipline of psychology, which studies every aspect of human experience, has a favorable impact on creativity, innovation, and crisis management.
Information on the psychology of innovation discusses the traits of innovators and creative solutions to everyday issues that are grounded in psychological science. The promotion of innovative workplaces highlights the significance of setting expectations, defining metrics, and fostering a positive work environment for employees [52]. Other methods focus on how creativity and innovation interact within larger sociocultural contexts [53].
Some studies claim that to innovate, people must alter their behavior; therefore, in addition to qualities like creativity, it is also necessary to be able to encourage behavior change [54].
Understanding the distinction between original thought and actual innovation—thought that is helpful, implementable, and likely to have a significant impact on the field—is necessary if companies are to be vibrant, innovative, and productive [55].
The most intriguing definition of innovation is thinking differently [56]. People with creative skills engage in more diverse thinking, and they can produce thoughts and reactions that are different from those of ordinary people [57]. They think differently than other people do, and they approach problems differently as a result. They have the capacity for unusual thought and the ability to initiate dialog, promote debate, and present options that may not have previously been considered. Nowadays, according to many psychologists, an action must possess at least two qualities to be considered truly innovative.
It ought to be special and practical. An idea needs to be practical, solve issues, and benefit people in some way to be considered creative [58]. The application of creativity by the organization’s staff is essential to developing an innovative culture. By using the adage “If you throw anything at a wall, you can better determine what goes on that wall,” many ideas can be produced.
However, truly innovative solutions can bring a more accurate definition and redefinition of problems in the organization and/or open a completely new way of looking at its solution. Creativity can bring solutions to problems carried over and newly born in the organization by offering clear solutions and reconsidering the ways of doing business [59].
This means that the solutions that are ultimately found may not be what was initially regarded to be the best course of action. Innovative and creative ideas have the power to transform an organization and fundamentally alter the way that individuals and teams approach problems, look for answers, and reach choices. First, according to this perspective, effectiveness and efficiency are key components in the concept of innovation and the capacity for productivity.
It can inspire creativity in even the wise in a period of increased output. Simply challenging people to think creatively can boost their enthusiasm and encourage them to engage in innovative work. It has been observed that the existence of an innovative approach in an organization causes other individuals who have not previously engaged in innovation to rethink how they view issues and potential solutions, uncovering new approaches, resources, and possibilities. According to this perspective, in a workplace where innovation is present, employees contribute more ideas, many of which are unique and useful.
Divergent thinking can be learned through close contact with people who possess creativity and invention, according to some studies, which also suggests that creativity and innovation might be “contagious.” [60].
In general, creativity is a part of innovation but cannot be confused with it because innovation has to do with creative ideas to bring certain and obvious improvements to particular products and services where innovation is necessary due to market need. Innovation typically starts with creative thought, and in this sense, creativity—whether it be individual or collective—brings innovation. Innovation is a prerequisite for creativity, but it is not a sufficient condition [61].
It takes more than just having an idea, coming up with one, or coming up with original ideas for innovation to occur. Knowledge is put to use to bring about changes through novel, distinctive methods, resulting in the introduction of new goods and services to the market for consumers. The fact that innovation, like many administrative and entrepreneurial responsibilities, necessitates particular methods, procedures, norms, record-keeping, and discipline is one of the most crucial facets of this topic [13].
With this strategy, the emphasis is now on the existence and ongoing development of processes, procedures, regulations, and record-keeping for the development and application of skills, knowledge, and competencies, which lead to significant positive organizational changes, to achieve, maintain, and manage improved products and services, and to improve in the near, medium, and distant future, as an added value of the organization’s activity, which is essentially the organization’s business.
Through these various perspectives, creativity is typically seen as the foundation for innovation, and innovation is the successful implementation of creative ideas within an organization [61]. However, to be competitive, organizations must use quality management principles and standardize their processes and procedures, and the goods and services they provide [37].
Researchers have now succeeded in defining several innovation types:
A shift in how the company is conducted in terms of creating and managing value.
The advancement of marketing techniques through novel approaches, such as product design and packaging.
Reorganization of organizational structures, functions, protocols, rules, and record-keeping practices.
Novel processes that use new or improved techniques to carry out manufacturing and service or deliver them to the end users.
Products that are largely or entirely innovative, including enhancements to technical and functional features, how goods and services are presented, and so on.
Cutting-edge services, which are comparable to product upgrades.
Innovative supply chains, where improvements are made to the quality, safety, and assurance of goods from the point of entry to the point of exit.
Financial innovation, which is demonstrated by the creation of new financial services and products.
The improvement of quality, the opening of new markets, the expansion of the variety of goods and services, the reduction of business costs, the improvement of processes, procedures, regulations, and record keeping, the reduction of the use of materials, energy, and water in technological processes, environmental protection, and compliance with laws and bylaws all seem to be related to investments in innovation today. All of these objectives are guided by the concept of continuous improvement, which is one of the core tenets of quality management.
Aspects of personality theory suggest that human personality is made up of five broad dimensions: openness, conscientiousness, extroversion, agreeableness, and neuroticism. Some personality traits are also linked to creativity, innovation, and quality management.
Each of these factors constitutes a segment where the person may receive a high, low, or indifferent rating for each component. Being open to new experiences is a crucial skill that is closely linked to flexibility, creativity, and quality management.
Having said that, those who exhibit this trait more strongly are more receptive to novel situations and concepts. However, other personality traits have a significant part in creativity, innovation, and business management. They tend to strive for innovation and find fulfillment in the fact that they try new things, meet new people, view problems from other angles than those they have previously encountered, and so on.
Intrinsic drive, curiosity, and perseverance, for instance, can all influence how much people are inclined to investigate unique concepts and look for inventive solutions while using established standards, procedures, and processes.
TQM may be explained by nine essential psychological processes, including identification, equity, equality, consensus, instrumentality, rationality, development, group dynamics, and internalization, according to many studies [62].
Total Quality Management is used by around 75% of Fortune 1000 organizations, according to research. The survey results indicate that 87% of respondents believe they have had a favorable experience with total quality management. In these situations, TQM is related to improving the financial condition, relationships with employees and among themselves, product and service quality, customer satisfaction levels, and so on. It was determined through research of 54 companies that use total quality management that their performance was better than that of groups of comparable organizations that do not use total quality management.
Companies that use these programs are more admired are seen as being more inventive, and have higher management quality ratings than other companies [63].
The qualities of innovation, creativity, and quality management are shown below (Table 1) along with their relationships.
Creativity, innovation, and quality management
Techniques of creativity
Innovation
Quality management
1
Finding and respecting aim & approach;
1
Radical changes: “brings an innovative design that affects production and related components”
1
Total product/service features;
2
Forming abilities;
2
Quality management;
3
Supporting getting of new specific knowledge;
3
Quality management systems;
4
Business management, and “total characteristics of products and services are:
Based on strategy—TQM is considered an important part of the business’ vision, mission, objectives, action plan, etc.
Client in focus and center of attention;
Attempt to realize the connection between clients’ requirements with product/service features;
Scientific problem-solving framework—problem-solving tools and techniques;
Long-term commitment—quality is a journey, not a destination;
Teamwork—setting quality improvement objectives, and processes;
Continuous improvement process—a quality achievement never ends;
Education and training—of employees to achieve total quality;
Freedom through control—to express views, perform quality improvement actions;
Unity of purpose—based on the objectives of the organization;
Employee involvement and empowerment—through competencies, and quality management.
4
Promoting & motivating experimentation;
2
Additional innovation: “improvement of a previously defined design: The improvement is observed in individual elements, but the basic concepts of the design and realization of the production of the product and service, as well as the connections between them do not change.”
5
Constructing promotes the environment, specific promotion inside organizations;
6
Promoting risk-taking initiatives;
7
Mastering auto-competition;
3
Architectural innovation: “innovation that changes only the relationships between them [the core design concepts]”
8
Promoting supportive values and ideas on creative ideas;
9
Offering chances to choose and explore;
10
Offering conditions for the development of auto-management;
4
Modular Innovation: “innovation that changes only the core design concepts of a technology” [66].
11
Learning approaches, helping the performance of creativity;
12
Supporting and establishing a balanced environment” [67]
Table 1.
Relations between innovation, creativity, and quality management [64, 65].
3. Research framework, the purpose of the case study
The amount of innovation, originality, and ISO certifications in the form granted for each nation for which data could be gathered served as the framework for the study of the global entrepreneurship ecosystem [68].
The purpose of this research is to fill this gap in the literature regarding the relationships between creativity and innovation, creativity and quality management, and quality management and innovation. Additionally, this research has adopted a theory-building approach with the following objectives [68]:
RQ1: Is there any relationship between innovation and creativity?
RQ2: Is there any relationship between quality management and innovation?
RQ3: Is there any relationship between quality management and creativity.
Despite acknowledging the value of quality management, creativity, and innovation in business, previous theoretical and empirical research has not been able to scientifically explain how these factors interact and influence one another. Therefore, the purpose of this study is to develop a theory that, supported by data, facts, conclusions, and analysis, confirms the relationships among quality management, creativity, and innovation.
In contrast, this study considers (1) labor as non-homogeneous, as it is in reality, and (2) land as it is in reality, not homogenous, in opposition to practically all traditional studies connected to the components of production (as each country has specific topsoil, soil, and subsoil, which affect production, capital flow, and human resource management). (3) Economic agents, people, and families are taken into account as they are, not as consumers of the same or comparable goods and services in the same quality and quantity; (4) changes in income and prices are viewed as ordinary occurrences rather than as solid; (5) shifts in public and private sector management as a result of managers’, owners’, and employees’ varying levels of experience; (6) knowledge, skills, and competencies are not distributed equally; and (7) capital is not a requirement for job simulation. These qualities are precisely what bring this art so closely to life.
4.1 Selection of case
Three key factors have been considered in this study: theoretical elements, appropriate existing data that might be further processed by the study’s author, and actual examples of the connections among quality management, creativity, and innovation. The study questions were created in light of this. These are the research queries:
RQ1: Is there any relationship between innovation and creativity?
RQ2: Is there any relationship between innovation and quality management?
RQ3: Is there any relationship between creativity and quality management?
Based on these research questions, three pairs of hypotheses were constructed:
Relationships between innovation and creativity (RQ1).
H01 – There is no relationship between innovation and creativity.
H11 – There is a strong relationship between innovation and creativity.
Relationships between innovation and quality management (RQ2).
H02 – There is no relationship between innovation and quality management.
H12 – There is a strong relationship between innovation and quality management.
Relationships between creativity and quality management (RQ3).
H03 – There is no relationship between creativity and quality management.
H13 – There is a strong relationship between creativity and quality management.
4.2 Collection of data
Data about creativity taken from The 2020 Creativity Index Report (Table 2).
Data about innovation taken from the Global Innovation Index Report 2020 (Table 2).
Data on the application of the ISO standards—ISO Report 2015-2020 (Table 2).
The ISO standard index for every country was calculated by dividing the total number of business entities in the country by the number of emissions certified with ISO standards for each country, as given in a table (Table 2).
Only the following two forms of data were used in the development of this study: (1) indexes and international websites and (2) data that the author processed on the ISO Certificates Index calculated for each country [64, 65].
4.3 Analysis of data
The number of businesses in each nation that are ISO-certified was gathered from the ISO website.
The total number of business entities was gathered from numerous websites and other written materials including houses of society, yearly reports of the nation, institutes of statistics, and so on.
To create the ISO index, the total number of businesses in each country was divided by the number of companies that were ISO-certified (Table 2).
The creative index (Table 2) was used to gather the information for the World countries’ creative rankings [69].
Data on the Global Innovation Index (Table 2) were taken from rankings of World nations’ innovation performance (World Intellectual Property Organization, 13th Edition).
A regression analysis was done between the Innovation Index and the Creativity Indices (Table 2, together with the respective Figure 2 and regression tables), Innovation Index and ISO Standards Index (Table 3, together with the respective Figure 3 and regression tables), and among Creativity Index and ISO Standards Index (Table 4, together with the respective Figure 4 and regression tables).
The relationship among quality management, creativity, and innovation has been the subject of three significant conclusions from this study. This is not just due to the theoretical approach, but also because this study’s conclusions are the first to be statistically confirmed and show a strong link among quality management, creativity, and innovation.
In this study, an ISO certificate index is used to rank nations based on the number of ISO certificates issued in a country divided by the number of business organizations already operating there during the same period [64, 65].
The idea that land, labor, and capital are the most important variables in both the management and economic aspects of an enterprise appears to be outdated in the twenty-first century. Considering only entrepreneurial ability, the fourth factor of production is not a viable option because it cannot include the elements of innovation and creativity, which are the traits shared by both employees and employers as well as business owners and employers.
Quality, creativity, and innovation may and should be the foundation for gaining, retaining, and managing economic advantages throughout the short, medium, and long term, as evidenced by events over the past at least 45 to 50 years in a world that is becoming more international. The study’s findings demonstrate unequivocally that nations with high ISO standards also tend to have high levels of both creativity and innovation indices.
Although previous studies have demonstrated the value of quality management, creativity, and innovation, few studies address the psychological aspects of this relationship. Additionally, there are no statistically supported explanations for how quality management, creativity, and innovation interact to produce economic benefits.
The level of innovation, creativity, and ISO standard certificates in the worldwide entrepreneurial ecosystem served as the research’s framework.
The main findings of a regression analysis of the relationships between innovation and creativity, innovation and ISO 9001 standards, and creativity and ISO 9001 standards are that there is a significant relationship among innovation and creativity, innovation and ISO 9001 standards, and creativity and ISO 9001 standards as well.
Theoretical and practical consideration
In terms of the theory, the final findings suggest a fresh direction for further investigation into the connections among quality management, creativity, and innovation, as well as among other economic indicators, and so on, which is still regarded as uncharted territory.
According to the research, it is crucial to treat quality management, creativity, and innovation as a triple platform that paves the way to better economic advantage for both individual firms and a nation’s economy.
This essay aims to draw attention to current issues by recognizing the connections between creativity, innovation, and quality control as well as the options for dealing with them. This paper’s research opens a window for academics and other practitioners in these fields as we are now much closer to being able to design studies that will provide better answers to such questions. While questions of the processes that facilitate these relationships are the subject of further investigation, there is currently enough information available to provide some definitive answers to the questions of these relationships.
This study, one of the first to highlight the connections between quality management, creativity, and innovation, first and the psychological aspect of these relationships, was conducted using extensive data on ISO certificates issued for each country as well as data on quality management, creativity, and innovation for 2020. Reliable data on some business entities registered in the countries are also taken into consideration. To conduct a comprehensive investigation of these correlations, however, more data are needed for different periods of combination research involving psychological techniques that might be started from the perspective of creativity.
Studies that take into account both the quality and amount of investments can be started from the perspective of innovation.
Combination studies on the industries most impacted by the interaction among creativity, innovation, and quality management can be started from the standpoint of quality management.
The paper suggests that the following studies should:
Within the design, ask the right process questions and gather information to show how creativity, innovation, and quality control are related globally.
Information from correlational studies should be sufficiently detailed to provide information on current organizational business aspects, such as human resources, strategic management, organizational behavior, supply chain management, marketing strategies, the digital economy, and areas that call for a complete eclipse of the required changes.
Considering that researchers should not take into account every possible interaction but instead strive for data collection efforts to evaluate the interactions of specifically identified variables, conceptualize potential interactions between variables that may be particularly pertinent to the topics under study [70].
This study reveals a substantial correlation between quality management and creativity, between quality management and innovation, and between creativity and innovation, drawing three significant conclusions for the first time. These findings are not merely theoretical assertions; they have been statistically supported by the use of regression analysis for the three examples, in a comprehensive manner that takes into account the psychological components of the problem.
The ISO index used in this study ranks nations according to the ratio of business entities present in each nation over the same period to the number of ISO certifications issued in that nation [64, 65].
Strong statistical links between innovation and creativity, between creativity and ISO certification, and between innovation and ISO certification suggest that, in addition to the effective and efficient use of other production factors (labor, materials, etc.), the promotion of creativity, innovation, and quality management as a non-fixed factor is necessary to achieve a competitive and comparative advantage.
The relationship between the cultures of innovation, creativity, and quality management is strong at the global level, and this mostly pertains to the cultures of entrepreneurship and conducting business in reaction to the crisis and the immediate aftermath of the disaster.
This study clarifies and confirms that natural resources do not constitute any barrier regarding productivity and levels of economic growth, despite the belief of some experts that the world is headed toward poverty because natural resources are unchangeable (fixed).
There are at least two ways to increase the productivity of the global economy while avoiding the constraints of fixed factors of production (land, labor, and capital), first by using quality management, creativity, and innovation, and second by combining these three approaches both individually and with other entrepreneurship-related components.
There is a propensity to innovate and develop to reduce the use of fixed factors of production, which gives rise to the idea that technical advancements enable fixed forces of production to no longer serve as constraints on productivity growth and global economic expansion. The connections between quality management, creativity, and innovation can also be explained using the same logic and justification.
The factors of production and the cycles of their usage are tied to the history of economic philosophy, economic systems, and the growth of the global economy. One of these cycles involves the use of fixed factors of production like land, labor, and capital, while the other involves the use of quality control, innovation, and creativity (skills, knowledge, and entrepreneurial competencies—non-fixed factors of production). The cycles of fixed and limited factors of production (land, labor, and capital) have dominated at certain points in world history and economic development, whereas the cycles of non-fixed factors of production (innovation, creativity, focus on quality, and entrepreneurial spirit) have dominated at other points in world history and economic development.
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Written By
Enriko Ceko
Submitted: 16 January 2023Reviewed: 03 May 2023Published: 30 June 2023
Open access peer-reviewed chapter
