Creative Climate: A Critical Success Factor for 21st Century Organisations

Organisations often fail to recognise the internal factors that lead to better strategy development and facilitate implementation thereby increasing business performance. The critical success factors of creative culture, learning orientation (LRN), entrepreneurial orientation, market orientation (MKT) and organisational flexibility can be as important to performance as external factors such as the economy or competition. This paper takes a holistic perspective and examines the relationships between these factors and performance. All five of these factors are highly correlated with each other and with organisational performance. As a whole, the factors account for 30% of the variation of organisational performance. In addition, the study demonstrated the moderating effects of creative climate with LRN and its minimal moderating effects with MKT.