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ISSN : 1738-3110
Marketing Organization's Regulatory Focus and NPD Creativity: The Moderating Role of Creativity Enhancement Tools
Son, Jung-Min
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Abstract
Purpose - Because creativity, which is an intangible resource embedded within the company, can offer a competitive advantage, most companies have an interest in promoting creativity among their employees and division(e.g., marketing organization). Creativity renders a sustainable competitive advantage to a firm because it is a strategic resource that is valuable, flexible, rare, and imperfectly imitable or substitutable. Although most companies broadly recognize the importance of creativity, the methods for developing creativity remain elusive. Therefore, the present study investigates how to structure incentives to motivate employees to be more creative and how to develop tools to facilitate creativity. In detail, the present study aimed to examine the relationship between the regulatory focus of marketing organizations(e.g., promotion focus vs prevention focus) and creativity of marketing organizations. In addition, the present study set out to examine the moderating role of interaction of financial reward and creative training in addition to investigating the direct relationship between creativity and regulatory focus in New Product Development(NPD) context. Research design, data, and methodology - The data used to test the hypotheses are drawn from a survey of full time NPD project members(including project manager, designer, engineer, and marketer). The present study utilized data obtained mainly from a database compiled by the Korea Investors Service-Financial Analysis System which provides comprehensive corporate and financial information on firms listed on the Korea Stock Exchange. A study population comprising 1,000 South Korean firms was obtained from this database. We selected 864 firms from the database, and the firms have experiences of new product development project. We collected a total of 162 responses, for a 18.8% response rate. After we excluded 14 questionnaire because of incomplete responses, a total of 148 questionnaire remained(final response rate: 17.1%). Working with a sample of 148 responses in South Korea, hierarchical moderated regression is employed to test research hypotheses(<H1>The relationship between promotion focus and creativity of marketing organization, <H2>The relationship between prevention focus and creativity of marketing organization, <H3>The moderating effect of joint influences(interaction between financial rewards and creativity training) on the relationship between promotion focus creativity of marketing organization, <H4>The moderating effect of joint influences(interaction between financial rewards and creativity training) on the relationship between prevention focus creativity of marketing organization). SPSS 18.0 and AMOS software were used in the data analysis. Results - The empirical study confirmed that promotion focus of marketing organization is positively related to creativity of marketing organization. Also, prevention focus of marketing organization is positively affected to creativity of marketing organization. In addition, the interaction between financial rewards and creativity training moderated the relationship between regularity focus(e.g.), promotion focus vs prevention focus) and creativity of marketing organization. These results suggest that managers can improve the performances of their creative efforts by providing the use of financial rewards and creativity training in combination. Conclusion - Based on results of this study that examine the effects of regulatory focused creative efforts on creativity of marketing organization, promotion focus is helpful with marketing organizations to enhance their service innovation and performance. Prevention focused organization should allow monetary rewards and creativity training to increase their creativity for innovation of new products.
- keywords
- Promotion Focus, Prevention Focus, Creativity, Financial Reward, Creativity Training
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