How formalization impedes employee creativity and organizational innovation: A case of advertising agencies in Pakistan

Bilal, Atif; Mushtaq Ahmad, Hafiz; Majid, Faiza

Abstract

Based on control-creativity paradox, the study aims to investigate the relationship between formalization, creativity and innovation. Using survey-based questionnaire the data were collected from 309 creative departments’ employees of the advertising agencies in Pakistan. The data was analyzed using Regression for direct hypotheses and Model 4 of the Process Macro for the indirect hypothesis. The results indicate that formalization has a negative association with employee creativity, indicating that high formalization in organizations leads to low idea generation. The formalization also suppresses organizational innovation indicating that formalization stifles the idea implementation in organizations. The mediation analysis also revealed that formalization negatively influences the employee creativity, which consequently hinders organizational innovation.

• Journal Article Type: Article
• Acceptance Date: May 1, 2018
• Online Publication Date: May 5, 2018
• Publication Date: Jun 1, 2018
• Deposit Date: Nov 17, 2023
• Journal: NUML International Journal of Business & Management
• Print ISSN: 2410- 5392
• Electronic ISSN: 2521-473X
• Peer Reviewed: Peer Reviewed
• Volume: 13
• Issue: 1
• Pages: 66-78
• Public URL: https://uwe-repository.worktribe.com/output/11390872
• Publisher URL: https://nijbm.numl.edu.pk/index.php/BM/issue/view/39