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Research has been carried out in order to examine the potential for creativity and

innovation within events and events organisations. The links between innovation,

creativity, and entrepreneurship will be critically assessed using examples of how these

are demonstrated in the events industry. Key theoretical concepts of innovation and

creativity will also be discussed.

The events industry has grown considerably over the last 100 years. The exhibitions

sector alone contributes £9.3 billion to the UK economy with over 1,800 exhibitions

taking place each year. (EIA 2007). This is a successful and diverse industry where the

market is becoming more and more competitive. Due to the evolving nature of this

industry, Event Companies are having to continually reinvent themselves in order to

produce unique and memorable events. There is an ongoing need for event managers to

be more innovative and creative with their ideas in order to survive in the market place.

Cooper & Edgett (1999) argue that innovations are critical for not only survival but also

for long term stability and profitability.

Kuczmarski (2003 P.536) defines innovation as

“A mindset, a pervasive attitude, or a way of thinking focussed beyond the

present into the future.”

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This author also claims that product and service innovations will prove beneficial to a

company in terms of greater profit margins and higher stock prices.

Kuczmarski’s definition of innovation is somewhat vague as it fails to address how

innovation is achieved. Drewery (2005 p.5) offers a more straightforward definition

which explains how innovation and creativity can be linked. The author suggests that

“Creativity is about the generation and sharing of ideas and innovation is the

process whereby creative ideas are implemented.”

Maital and Seshadri (2007) also believe that innovation is linked to creativity. The

authors argue that innovation is where creative ideas are applied to every aspect of the

company’s value chain in order to discover superior ways of creating value for its

customers.

It can be noted that creativity and innovation are often used synonymously however the

two words can be described as two separate activities in a company.

It is evident that a successful events company will demonstrate a combination of

innovation and creativity when producing a unique event. Original ideas are essential in

the events industry as customer expectations have become higher than in the past.

(Martin 2005)

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This point is well illustrated by Tassiopoulos (2005) who argues that creativity is a

valuable skill to have in the events industry. The author suggests that there is a lack of

originality where events tend to redo what has been done before. The author notes that

producing a more unique event will encourage customer spending and distinguish the

event from its competition.

Other authors such as Tidd, Bessant, and Pavitt (2005) confirm this point. These

authors talk about how product life cycles have become shorter, advising that businesses

should be replacing their products with more improved versions in order to maintain

competitive advantage.

Although most authors agree that creativity brings many benefits to a company, it is

important to examine any potential limitations or unintended consequences of creativity

that offset these benefits. It can be argued that creativity involves an element of risk

taking.

Dewett (2004) discusses the risks of creativity and implications that they may have on

employees. The author notes that creative ideas may cause disturbances in work

routines. This point is well illustrated by authors such as Shalley, Zhou, and Oldham

(2004) who advise that individuals may get carried away with developing new ideas

therefore paying less attention to their current day to day activities. This idea of

employees being distracted, only focussing on creative ideas could have an effect on the

organisation’s productivity.

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It can also be noted that employees may fear potential negative outcomes of their

creative ideas. Silver cited in Dewett (2004) argues that new ideas carry the possibility

of failure and employees may feel threatened by this. The ways in which an

organisation can deal with these risks in order to harness creativity will be discussed

later.

It must be acknowledged that most of the literature written about creativity argues that

creativity is a useful tool to have in a company. There has been less research done to

suggest the costs of creativity for the organisation and its employees.

Businesses can demonstrate innovation in a number of ways to stay competitive. It is

not just product innovation that can secure a competitive edge in the market place. The

ways in which a company deliver a product can also be strategically effective.

A model by Utterback (1994) identifies the different types of innovation businesses can

use as belonging to four main categories-Product, Process, Position, and Paradigm.

Product innovation is described by this author as changes in products or services offered

by a company.

For example Junction Networks is a company that has recently designed MyonSIP, a

new, innovative on demand phone system which has been produced to improve the

event experience for organisers and delegates in the conference and meetings industry.

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It is used as an effective communication tool that has an instant messaging style online

interface. This company won the award of internet telephony product of the year due to

its innovative and creative ideas. (2009 junction networks)

Another example of product innovation is found in the work of Mackellar (2006) who

completed a case study on the 2003 Northern Rivers Herb Festival. This study was

devised to demonstrate innovative activity that can occur in a regional event. The

festival had developed innovative products such as new lines of crop and new types of

herb based produce that had not been offered before by other festivals.

There are many other examples of how events companies are demonstrating innovation

and creativity through their products. Light Fantastic in Milton Keynes for example is a

unique event that has been nominated for the most outstanding spectacle. It attracted

over 160,000 people, keeping its customers engrossed in the unique entertainment

offered. The event included a lantern parade with French aerialists and acrobats

suspended from a 150ft crane. (The Main Event 2009)

Process innovation is concerned with the changes in the way a company manufactures a

product. For example The UK based event organiser Montgomery’s International Food

Exhibition established itself in 1979, attracting over 26,000 professionals from 101

different countries. Due to the management’s innovative approach, the brand is now

one of the leading events on a global scale having recognised opportunities to expand to

diverse countries such as Hungary and Poland. (EIA 2007)

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Rockness festival has also demonstrated process innovation in terms of its ticketing

options. Production managers of this event have recognised the difficult economic

conditions that have impacted on this industry and have seen this as even more reason to

come up with more creative ideas to deliver value for money to their customers. In

order to be more flexible different ticket options have been introduced to suit every

budget. (Eccles 2009).

The Glam Show is also a unique event which has demonstrated process innovation. It

has distinguished itself from other exhibition events by using creative themes in

delivering its products. Most exhibitions traditionally have used a trade show model to

sell their products whereas The Glam show has dramatically themed its decor with

special lighting and design techniques to add to the customers experience. (Ryan 2009)

Tidd et al (2005 P.10) describes position innovation as “changes in the context in which

the products/ services are introduced.”

In terms of events, this could be described as the way in which an event is seen by

others.

The emergence of boutique festivals, for example, has demonstrated new innovative

ideas and themes in which to attract new audiences and cater for demographics that may

have been overlooked in the regular festival circuit.

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Hydro Connect festival for example is a smaller more exclusive festival that has

rebranded itself to attract a newer market. It aims to attract the more affluent and

mature festival goer, offering a range of gourmet food and luxurious accommodation

options that other commercial festivals do not offer. (Virtual festivals 2009)

Although this is an example of position innovation it could be argued that the company

has also demonstrated Paradigm innovation which is “changes in the underlying mental

models which frame what the organisation does.” (Tidd 2005 P.10)

Utterback’s (1997) attempt to categorise innovation provides some understanding of

different types of existing innovation. However, this model could be misunderstood or

confuse the reader as each definition of innovation is somewhat similar and dividing

lines can become blurred.

Having considered that innovation in event companies is an essential part of business

success, it is now important to examine how the structure of an events organisation may

stimulate or harness creativity and innovation.

It is evident that event managers do not always adopt the idea of innovation as a top

priority in their company culture. (Kuczmarski 2003) This could be due to the current

economic climate as some mangers may see innovation as costly and timely. A study

devised by Zhao (2005) exploring the synergy between entrepreneurship and innovation

showed that some organisations can have problems implementing innovation. The

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study confirmed that some managers feel that funding product development can be a

problem especially within small businesses.

Kuczmarski (2003) supports this view noting that erratic economic conditions has lead

to companies drifting away from innovation and product development to find more

short term solutions to business survival.

It can be seen that Event Companies that have been affected by the economic climate

may be reluctant to fund innovations. However some managers believe that the

recession is an opportunity to offer something that is different and more unusual than

their competitors. Jim King, Event Manager of Rockness states that:

“Some companies will struggle and it will be survival of the fittest and the

most creative. Creativity comes out of recessions and this business thrives

on creativity” (The main Event 2009)

Hugh Phillimore, promoter of The Cornbury Festival talks about having to cut costs

wherever possible without compromising the quality of the festival. This festival has

been using scouts and brownies to pick up litter which has saved the festival £20,000.

This promoter confirms that cutting costs has encouraged the management to think

more creatively, which is something that they overlooked before. (The Main Event

2009)

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Although the current climate may be a difficult time for Event Companies, it can be

noted that this is the crucial time for companies to embrace creative ideas in order to

survive in this turbulent industry.

The extent to which Creativity and Innovation is demonstrated will depend on the

organisational structure of the company. (De Jager 2004) The culture of a company

reflects its characteristics and values. It is shown that there should be a shared vision

communicated to employees that supports innovation.

Drewery (2003) emphasises the importance of communication, advising that a clear

leadership strategy should be present to ensure that employees understand their role as

well as the company’s goals.

Some authors such as Arrad et al (1997) argue that factors which encourage innovation

are primarily flat company structures and sub committees who have a right to make

independent decisions. This author alleges that a centralised structure with

standardisation across the firm will discourage innovation. Furthermore it can be

assumed that an events company with a decentralised and less hierarchical structure will

prove conducive to innovation.

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It is apparent that giving staff the freedom to express their ideas will ultimately

empower staff thus stimulate creativity. The literature on this topic also suggests that

effective team work will enhance creativity.

Martins and Terblanche (2003) believe that diversity in teams where individual talents

complement one another will encourage creativity. The author states that it is vital that

members respect one another and be open to each other’s ideas.

Although it is evident that effective team work involves the sharing of ideas, it must be

noted that the conflicts of ideas should be handled constructively. Martins and

Terblanche (2003) advise:

“Understanding different individual thinking styles and training personnel

in the process of constructive confrontation will create a culture supportive

of creativity and innovation.”

The work of Shalley and Gilson (2004) examined different teams’ engagement in

creative processes. The study looked at teams that socialise in and out of work,

separately and together. Results showed that the teams that socialised more frequently

were more engaged in creative processes. These are interesting findings that suggest

that socialising within teams in a more relaxed environment encourages ideas to flow

more easily therefore enhancing creativity.

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As discussed earlier, creative ideas can be linked with risks to employees such as fear of

failure. Drewery (2003) advises that these risks can be overcome if management

provides a supportive working atmosphere that is tolerant of mistakes. This will

encourage staff to feel more comfortable in expressing their ideas. It can be seen that

there are many ways in which companies can overcome problems faced when

implementing innovation.

Zhao (2005) for example has developed a model from Bartol et al (2001) that illustrates

how entrepreneurship and innovation can be fostered through company strategy and

culture. The “5 Ss” model provided by this author stands for Strategy, System, Staff,

Skills, and Style. This model offers similar views to Drewery (2003) and Martins

(2003) regarding approaches to harnessing innovation. However Zhao (2005) identifies

another means to encourage staff to be innovative. The author claims that as well as

providing a supportive atmosphere for innovation, managers should provide a reward

system. This could be seen as an added incentive in motivating staff to demonstrate

innovative behaviour.

It can now be assumed that the culture and structure of an events company is crucial to

its successful implementation of innovation. However it is important to examine how

entrepreneurship can be linked with innovation. These links will be discussed further.

Many authors have had difficulty in defining entrepreneurship as it covers such a broad

spectrum of activities. Johnson (2001) suggests that entrepreneurship involves

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gathering ideas, turning and developing them into products and services and then taking

them to the market.

Baum et al (2007 P.5) claim that:

“Entrepreneurs convert technological and organisational innovation into

better products and services and motivate established competitors to

improve products and processes.”

Authors such as Zhao (2005) have suggested that there is a link between innovation and

entrepreneurship. This author states that entrepreneurs hunt for opportunities while

innovations supply the tools by which they may succeed. Therefore it is evident that

there is an overlap between innovation and entrepreneurship.

A study by this author addressed the relationship between entrepreneurship and

innovation and the crucial factors that affect their development. The perceptions of

managers regarding the link between innovation and entrepreneurship were recorded.

Results showed that the two are complementary and one cannot function without the

other. It is apparent that innovation and entrepreneurship are both crucial to business

success and sustainability. Moreover, organisational culture will clearly affect the

development of entrepreneurial activity and innovation.

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Having examined the literature, it can be assumed that creativity and innovation can

bring many benefits to a company. Benefits include sustainability and profitability,

allowing the company to maintain its competitive place in the market, encouraging

customer spending, meeting customer expectations, and creating value for customers.

It is important to note that creativity in the work place can bring certain disadvantages

to a company such as risks to employees or to the company itself. However managers

can deter these risks by providing a tolerant and supportive work atmosphere. It could

be suggested that not much work has been done to investigate the negative effects that

creativity may cause. Further study on this subject could improve a wider

understanding of this.

There is consistent evidence to show that Events Companies are continuing to

demonstrate innovative practice in terms of processes, products, and services. They are

continually seeking creative ideas in order to deliver unique products to their customers

and to sustain a competitive position in the market. It can be argued that the current

economic climate has not deterred Event Companies from practicing innovation,

similarly it has encouraged them to be more competitive and creative than before to

survive in the market.

Research strongly suggests that the structure of an Event Company can either promote

or hinder creativity. It is evident that companies that want to harness creativity must

have a management that are entrepreneurial in nature and demonstrate an effective

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leadership strategy to staff. Decentralised and less hierarchical structures are seen to

promote creativity while standardisation in a firm is shown to hinder creativity. It must

be acknowledged that staff working in teams will promote creativity and innovation.

Many authors such as Zhao (2005), Drewery (2005), and Martins & Terblanche (2003)

all agree that freedom of ideas will empower staff and encourage them to produce

creative ideas.

To summarise, evidence has suggested that there are clear links between creativity,

innovation, and entrepreneurship. Innovation and entrepreneurship are shown to be

positively related to each other in the way that they interact. They are also

complementary to each other, meaning that both should be present in a company to

ensure business success. It is shown that innovation and creativity are also linked in a

way that creativity is the building of ideas and innovation is the foundation to where

these ideas can be developed.

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References

Arrad, S., Hanson, M.A., Schneider, R.J (1997) A framework for the study of

relationships between organisational characteristics and organisational innovation The

Journal of creative behaviour Vol.31No.1, pp.42-58 [i.p.8]

Bartol, K., Martin, D.,Tein, M., Matthews, G. (2001) Management: A Pacific Rim

Focus. McGraw Hill, Sydney [i.p.9]

Baum, R., Frese, M., Baron, R (2007) The Psychology of Entrepreneurship. Lawrence

Erlbaum Associates Inc, New Jersey. [i.p.10]

Cooper, R. G., Edgett, S. J.(1999) Product development for the service sector.

Cambridge, MA:Perseus [i.p.1]

De Jager, B. (2004) “Enabling continuous improvement an implementation case study”,

International Journal of Manufacturing Technology Management Vol.15, No.3 pp 315-

324

Dewett, T (2004) Employee creativity and the role of risk European Journal of

Innovation Management Vol. 7, No. 4 pp.257-266 [i.p.3]

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Events Management Y3

Drewery,K (2003) Harnessing Creativity and Innovation: The Work Foundation P.5

[i.p.2,8,9,12]

Eccles, C. (2009) Business thrives on creativity: The Main Event Issue 25 February

2009 P.1 [i.p.5]

EIA (2007) Exporting Events Excellence:

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3/11/09 [i.p.1]

Johnson, D. (2001) “What is innovation and entrepreneurship?” Lessons for large

organisations, Industrial and Commercial Training, Vol. 33 No.4, pp135-140 [i.p.10]

Junction Networks (2009) http://www.onsip.com/ accessed 4/11/09 [i.p.4]

Kuchsmarski, T.D (2003) What is innovation and why aren’t companies doing more of

it? Journal of Consumer Management Vol.20, No. 5 pp536-541[i.p.1]

Mackellar, J. (2006) An integrated view of innovation emerging from a regional

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[i.p.4]

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Maital, S., Seshadri, D.V.R (2007) Innovation Management: Strategies, concepts and

tools for growth and profit. Sage Publications Ltd, London. [i.p.2]

Martin,C. (2005) Tough Management Mcgraw Hill Books, New York [i.p.2]

Martins, E.,Terblanche, F (2003) “Building organisational culture that builds creativity

and innovation” European Journal of Innovation Management, Vol 6, No 1 pp64-74

[i.p.8,12]

Ryan, C. (2009) Making Waves: www.standoutmagazine.co.uk P.23 [i.p.5]

Shalley, C., Gilson, L (2004) A little creativity goes a long way: An examination of

teams engagement in creative processes. Journal of Management Vol.30 No.4 pp 453-

470 [i.p.9]

Shalley, C., Zhou, J., Oldham, G (2004) The effects of personal and contextual

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European Journal of Innovation Management Vol. 7, No. 4 pp.257-266 [i.p.3]

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Tassiopoulos, D (2005) Event management A professional and developmental approach

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The Main Event (2009) Milton Keynes event nominated for award: Issue 25 p.8 [i.p.4]

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[i.p.2,4,5-6]

Utterback, J (1994) Mastering the dynamics of Innovation Harvard Business School

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Virtual Festivals (2009) Virtual Festivals top ten boutique festivals:

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Zhao, F (2005) Exploring the synergy between entrepreneurship and innovation,

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