CORPORATE INNOVATION FOR BALANCING OF RISK AND CREATIVITY IN BUSINESS MANAGEMENT

Abstract

In today’s dynamic business environment, corporate innovation is vital for maintaining competitive advantage, enhancing operational efficiency, and meeting evolving market demands. Innovation inherently carries financial, operational, and market risks, creating a need to balance creativity with effective risk management. This study investigates the relationship between corporate innovation, risk management practices, organisational culture, and leadership in fostering creativity while maintaining operational discipline. Drawing on Ambidexterity Theory, Innovation Diffusion Theory, and established risk management frameworks (ISO 31000 and COSO ERM), a mixed-methods approach was employed. Quantitative findings reveal strong organisational support for calculated risk-taking (mean = 4.3), creativity (4.5), flexible innovation processes (4.1), and management encouragement of experimentation (4.2). Qualitative insights highlight structured flexibility, learning from failures, and recognition of creative contributions. Results indicate that visionary leadership, a supportive innovation culture, and structured processes enable firms to convert creative ideas into tangible outcomes while mitigating associated risks. Aligning innovation with strategic objectives and integrating risk management framework enhances resilience and competitive performance. The study concludes that fostering innovation without compromising stability requires balancing creative exploration with risk-aware practices. These findings offer actionable guidance for leaders to cultivate environments where innovation thrives sustainably, demonstrating that effective risk management and a strong creative culture are essential for longterm business success.