The Unintended Consequences of Corporate Innovation

According to a recent survey of over 1,500 chief executive officers, creativity is the single most important leadership skill needed for enterprises to navigate today’s complex global business environment.[1] This is not surprising; innovative company culture has many benefits. However, research in psychology and organizational behavior suggests that a strongly innovation-focused culture could have unintended negative consequences. For example, past studies have found that innovative thought can lead to more dishonesty and risk-taking.[2],[3]

These downsides of creative culture could develop in many parts of the company. However, the greatest opportunity for self-interested behavior may exist when … Read more