OriginalScientificArticle DifferencesintheImplicationsofOrganizational CreativityRegardingtheSizeofEnterprises intheTourismSector:TheCaseofBosnia andHerzegovina DanijelaMadžar UniversityofMostar,BosniaandHercegovina danijela.madzar@fpmoz.sum.ba InesMilohnić UniversityofRijeka,Croatia ines.milohnic@fthm.hr IvanMadžar UniversityofMostar,BosniaandHercegovina ivan.madzar@fpmoz.sum.ba Thepurposeofthepaperistoindicatetheimportanceanddifferencesintheimpli- cationsoforganizationalcreativityregardingenterprisesizeinthetourismsector.In theprocessofcreativitymanagement,it isessentialtodevelopthecapacityforcon- tinuous change and frequent adjustment while preserving the identity and value of the organization.The paper is based on a basic hypothesis thatthereare significant differences in managing organizationalcreativity associated with enterprise size in tourism. Research results have shown that larger companies are more likely to suc- ceed in managing creativity, which is explained by their access to human, material andfinancialresources.Ingeneral,thebehaviourofenterprisesinBosniaandHerze- govina,andespeciallyinthetourismsector,isarelativelyunexploredphenomenon. Theresultsoftheresearcharesignificantasthereisnorelevantresearchontheman- agement of creativity in the service sector as a whole and the tourism sector of the Federationof Bosnia and Herzegovina. Keywords: management,organizationalcreativity,enterprisesize,tourism https://doi.org/10.26493/2335-4194.14.217-226 Introduction The primary challenge of managing any organization isencouragingcreativityandinnovation,especiallyin today’s era of quick change and continuous develop- ment. In the mere process of managing, it is essen- tial to constantly develop the capacity for continuous changes and frequent adjustments while maintaining identity and the organization’s worth. Other than the previously stated, it is of high importance to recog- nize people’s ability to adjust and create new products andservices.Lookingthroughthescientificandtech- nologicalprismaswellasthrougheconomicdevelop- ment, tourismhasbecome one ofthe most propulsive activities of economic evolution in the world. Tourismanditsmultiplicativefunctionscontribute tothegrowthanddevelopmentofallotherindustries. Inthemoderntouristbusiness,itisveryimportantfor enterprisestohavemanagementthatwillcontinuously Academica Turistica, Year 14,No. 2,December 2021 |217 DanijelaMadžar etal. Differences intheImplications of Organizational Creativity exploretrendsand endeavourto adjustthe company’s businesses to those trends. Traditionally it has been thought that only some aspectsofabusinessarethecreativeones,suchasde- velopment and designing new products, or forming marketing messages, but creative enhancements are possible even in planning, leading projects, person- nel managing, interpersonal relationships within the enterprise, and also in client/customer relationships (Carmeli,2004).Organizationalcreativityisbestun- derstoodas the ongoingconstitutingand legitimating ofideasaspeoplelearninandfrompracticeandcon- necttheirunderstandingstotheideasofothersinnew ways(Coldevinetal.,2018).AccordingtoSirkovaetal. (2014) employers provide their employees with suffi- cientspacefortheuseanddevelopmentofcreativityat workandalsogivethemfreedomwhensolvingprob- lemsandpresentingtheirown ideas. Oneofthemostimportantpreconditionsforlong- term tourism development is responsible and good qualityplanningalongwithaffirmationofculturalval- ues.It is necessaryto developadditionalserviceswith sophisticated and competitive products along with a tourist offer that pleases the guest with its specificity. The ability to recognize and deal with the changes that modern trends bring is a crucial element for all enterprises in tourism. In the future, all trends in tourism should be unquestionably open to creativity, knowledge, and innovation. They should activate en- trepreneurial abilities, and connect all elements (cre- ativity,knowledge,innovation)aswellasstocksinthe market.Furthermore,they should integrateresources to achieve further development and competitiveness. In that way, recognition and uniqueness in the con- temporarymarketarecreated. The goal of this paper is to point out the impor- tance and differences in the implications of organiza- tionalcreativityregardingthesizeoftheenterprisein the tourism sector. h1 There are significant differences in managing organizational creativity which are connected withthesizeofanenterpriseintourism. With the given hypothesis it is expected to prove the connection between the size of an enterprise and managing organizational creativity. Theoretical con- siderations connected to this hypothesis are different depending on whether we look at smaller enterprises as being more flexible and innovative which resultsin profitability and achieving competitive advantages. If weconsiderthemtohavefeweravailableresourcesfor encouragingcreativityitmeansthatbiggerenterprises are more competitive and profitable. Enterprisesintourismhavetheirownspecificchar- acteristics. In the process of management, it is neces- sarytotakeintoconsiderationthefactorofseasonality duetowhichthemajorityoftheactivitiesareconcen- trated in a short period. Enterprises in the sector of tourismneedtodirecttheircapacitytothetimewhen the largest demand is estimated because because it is the capacities that cause service inflexibility as well as an inability to adjust. Accordingly, demand for ad- justmentresultsinemployeereduction.Enterprisesin tourismarecloselyrelatedtothefurtherdevelopment oftouristdestinations,theyrepresenttheoutlineofor- ganizing travelsand tourism in general,and they also have an immediate influence on destination develop- mentaswellastheregionitself.Enterpriseoperations intourismandcateringarecharacteristicbecausethey aresuitableforestablishingbusinessrelationsbetween hotelsandallotherbusinesssubjectsthatoccurinthe processofprovidingservices.The goalofasuccessful business is equally useful to managers, organizations, andownersoftheenterprises. LiteratureReview Organizational creativity represents internal strength that leads to discovering new products, manufactur- ingprocesses,marketniches,andclient-supplierbusi- ness relations. In that way it builds the competitive advantageof different enterprises over their competi- tors.Creativityistheabilitytomakeneworiginalcon- tent (ideas, conceptions, techniques, methods, mod- els,products,andorganizations)whichshouldbeper- ceived as relevant and valuable for society by the en- vironment (Horng et al., 2015). In light of the emer- genceandreproductionofcreativityasapowerfuldis- positive (Reckwitz, 2017), ‘being creative’ is no longer anoptionbutadeeplyrooteddesireandimperativeat the same time: organizations want to be creative, and 218 | Academica Turistica, Year14,No. 2,December 2021 DanijelaMadžar etal. Differences intheImplicationsof Organizational Creativity they have to be creative. According to authors Fred- eriksenandKnudsen(2017),creativityshouldsuccess- fully serve the process of advising organizations on how to seek and secure ideas for innovation of prod- uct/service performance. The creativity of society de- pends on two types of factors, external and internal, whichinclude(Srića,1992): • Microfactors–they actwithin theorganization; • Macrofactors–theyoriginatefromthesocialen- vironment. The main microfactors arethemotivation forcre- ative work, personnel structure, quality of innovation potential,thewayofrunninganorganization,modern management technique application, encouragement of creative thinking, etc. The macro climate creativity of a country is formed by a whole set of political and economic features of its space. It includes the level of democratization, freedom of thought expression, leg- islative systemstability, statelegislation,and thequal- ityoftheinfrastructure.Studiesonorganizationalcre- ativity,however,aremainlyinterestedinexploringthe variables through which creativity both within and of organizations can be fostered (Sonenshein, 2013; An- derson et al., 2014; George, 2007). Features of an en- terprise in tourism include complexity, multidimen- sionality, susceptibility to changesin the external and internal environment whose further development is conditioned by knowledge, service quality, available resources, and innovation. To move towardscontinu- ous enterprise development in tourism and catering, onemustequallypayattentiontobothinternalstake- holders (employees) and the external stakeholders such as service users, suppliers, local population, etc. The company’s managementhas even greaterrespon- sibilities.Theyhavetofindnew,creativeapproachesto business and provision of services, as well as achiev- ing set goals for profit increase and competitive ad- vantages.Theyalsohavetofindroomforresponsi- ble management in correlation to sustainable devel- opment.AccordingtoEvansetal.(2003),managersin the tourism sector meet with special challenges that can be observedthrough: • Resourceimmobility; • Reallocation of resources; • Theconstantconflictbetweenresourcesandcom- petitiveness; • Ownership and controlof resources; • Seasonality; • Low rewards; • Capacity constraints; • Time. Creativityinanorganizationisacomplexandmul- tifaceted process. Creativity, along with innovation, is accentuated as the most important factor of organi- zational success (Wong and Pang, 2003). Creativity within an organization is an initiator and key factor fordevelopingpersonal,professional,entrepreneurial and social skills (Goldstein, 2016). Attribution of or- ganizationalcreativityisanongoing,playfulandrisky interactive accomplishment between an organization and its environment (Koch et al., 2018). According to GiuraandVasile(2017),creativityisthevitalsourceof anorganization,especiallyinatimewheninnovation is the main element of anything that relates to busi- ness success. It is of high importance that the main focusoforganizationmanagementisdirectedtowards factors that encourage the creative manifestation of humanresourcesonalllevelsindifferentprocessesof theorganization. It is very important to highlight that one should never say that some individuals are creative and oth- ers are not, but the assignment distribution should be divided in a way that does not violate the stability of the organization. On the other hand, if there are em- ployees that do not indicate a creative approach they shouldbetrainedonhowtoperformthegivenassign- ments in a new and different way (Zhu et al., 2014). An empirical study on managing organizational cre- ativity (Slavich & Svejenova, 2016) done from 1990 to 2014, showed that managing creativity includes man- agingmutuallyconnectedprocessesaswellasdual processes,suchasprocesses–outcomes,individuals– teams,etc. It is also important to point out that regardless of whether the organization in some way measures the creativity of its employees, it is necessary to actively work to encourage and understand the creative be- haviourofemployeesasamultipurposephenomenon Academica Turistica, Year 14,No. 2,December 2021 |21 9 DanijelaMadžar etal. Differences intheImplications of Organizational Creativity Creativeculture Perseverance Organizational support Equality Motivation Promotion Knowledge sharing Creativeresult Workingenvironment Figure1 ModelofMeasuringEmployeeCreativity and the contextual factors influencing it. In addition totheabove,certainmodelsandmethodsofmeasure- ment are certainly conditioned by different samples, organizations and, of course, cultures. In any of the cases mentioned, the most important thing is to pro- mote the idea in interrelationshipswithin the organi- zationthatcreativity,innovationintheworkplaceand an entrepreneurial spirit are vital and crucial to indi- vidualandorganizationalsuccess.Themodelisbased on the componential theoryof organizationalcreativ- ity and expanded with elements of the working envi- ronment(equality,motivation,knowledgesharingand promotion) which contribute the most to creative re- sults. The successful creative team is directed towards quality. The team leader has to create the notion that anything could be better than it already is. Special at- tention is given to the individual talents of the mem- bers to give them the possibility to excel. In the cre- ative team, the leader should create an encouraging environment for the development of new ideas. The creative team seeks for freedom, independence, and authority, as well as responsibility for the results pro- vided.Thesuccessofthecreativeteamdependsonthe free flow of information. While in the authoritative organizationthemanagersaretheoneswhoblockin- formation,inthecreativeteamtheconversationisled openly and unrestrictedly in an atmosphere where it iseasiertosolveeventhehardestproblems.Managing successful groups is based on leadership by example. The leaders of creative teams have a vision and they knowhowtoencouragetheirassociatestoacceptand follow their ideas. They are devoted, original, inde- pendent, flexible and confident. Leadership by exam- pleisoneofthemostimportantmethodsofmanaging a creative group which shows how our behaviour can impactothersandtheorganizationitself(Srića,2016). In the last few years, creativity has been closely related to tourism development, especially when it comestocreatingnewtouristicproductsandservices. Richards (2011) highlights that the mere concept of creativity is impossible to define, but it is integrated into tourism through different things, such as people, products,processes,andplaces.Hethinksthatthere arethreetypesofcreativedevelopmentintourism: creative events, creative space, and creative tourism. Asagoalofcreativemanagement,Srića(2016)defines twowaysthatshouldbeappliedatthesametime: • Recognitionandremovalofanyobstaclestocre- ativity, and • Creationofanencouragingenvironmentforcre- ativity. When we talk about the size of the enterprise, the sector of small and medium enterprises has the fun- damental advantage. They have reduced barriers that are caused by hierarchy as well as developing greater flexibility in the process of decision making, a shorter period for feedback on customer needs, and easier establishing of partnerships with enterprises suitable for achieving business results (Paunović & Prebežac, 2010).Themanagementofanorganizationisthemost 220 | Academica Turistica, Year 14,No. 2,December 2021 DanijelaMadžar etal. Differences intheImplicationsof Organizational Creativity important factor that influences creativity within the organization through organizational culture and at- mosphere (Scott & Bruce, 1994), strategy, structure, a reward system or resources (Woodman et al., 1993), as well as through the direct effect of their behaviour and their creativity (Baer et al., 2003) and success- ful motivation of the employees (Tierney et al., 1999). Rowe (2004) asserts that creative leaders are the ones who can manage the future because they are ready to confront the unknown and they see problems as challenges.Theyunderstandtheworldaroundthem, makealliances,recognizetheimportanceofsocial re- sponsibility, manage complexity and use contempo- rarytechnologyandemboldencreativity. Guetal.(2017)saythatorganizationalcreativityis an intermediary relationship between leadership and innovativeemployeebehaviour.Theeconomicsignif- icanceofcreativityisrecognizedbybothorganizations and the economy as a whole. According to numerous researchesaswellastheopinionsofmanyexpertsand practitioners,thecoreneedofamodernorganization and its main source of innovation is the creativity of stakeholders.Accordingly, all the stakeholderswithin the organization have to participate actively, encour- age and createnew ideasand services. Methodology Different scientific research methods have been used throughoutthepaper.Byusingthehistoricalmethod, professional and scientific literature has been anal- ysed. Through empirical research and survey meth- ods, primary data have been analysed. Through sta- tistical methods, the main, general relations set out in the hypothesis have been established. Within col- lectedandsystemizeddata,bythemethodofabstrac- tion, the relevantdata is separatedfrom the irrelevant data, which has led to new theoretical cognitions and the contribution to the practice. Empirical research was carried out in enterprisesin the tourism sector in the Federationof Bosnia and Herzegovina which met the criteria of the generaldefinitionof large,medium and small enterprises for the entity territory (Law on accounting and auditing of fbih). The data was col- lected using a survey questionnaire. The distribution ofthequestionnairewascarriedout by e-mail. The questionnaire was partly constructed on the basis of the Creativity Audit Questionnaire – I create project eu, and the part related to the use of creative techniques was based on the Community Innovation Survey. The questionnaire consists of three intercon- nected structural units. The first part includes ques- tions related to the basic characteristics of the sur- veyedbusinessentitiessuchasthenumberofemploy- ees, ownership, age, business results and work expe- rience of the surveyed manager. In the second part, the respondents were asked questions about creative potential and ways of managing creativity, while the third part deals with the competitive advantages of the company. The part of the survey questionnaire thatdealswithorganizationalcreativityisdividedinto sub-sections.Theanswerstothequestionswithinthis group are constructed in the form of a Likert scale ranging from 1 to 5 with higher values suggesting a higher degree of agreement with the proposed state- ment. In the first subgroup, respondents were asked questions about the individual creativity of employ- eesofthe businessentity.In thiscontext,respondents were asked questions related to personal character- istics and characteristics of the work environment that encourage individual creativity. In the second subgroup,emphasiswasplacedontheroleofwork teams in fostering creativity. Respondents were asked to comment on issues such as how to communicate within the team, procedures for making team deci- sions, sharing ideas among team members, and team size,thathavebeenidentifiedintheexistingliterature as potential determinantsof creativity development. Usingdataonbusinessentitiesinthissector,asur- veyquestionnairewassentto491businessentities.The subjects whose e-mail was unknown received their questionnaires in writing. The target group was the managers in this sector. The database formed in the end included 126 enterprises,or 26 of business enti- tiesinthesector,thathavebeenthesubjectofresearch. In data processing, an econometric method of linear regressionwithendogenoustreatmenteffectwasused, which makes it possible to estimate the average effect of a particular process such as creativity management onadependentvariableofinteresttogetherwithother linearregressionparameters. Academica Turistica, Year 14,No. 2,December 2021 |221 DanijelaMadžar etal. Differences intheImplications of Organizational Creativity Table1 Descriptionof Variables Category Label Title(Abbreviation) Description Dependent variable y 1 Anindicatorof creativemanagement success (creatmng)–dependentvariable oftheselectionequation Categorical variable( –thecompany succeedsin ap- plyingthe methods for creativity encouragement dur- ing the last three years before the research) Independent (control) variables x 1 Headquarters/location of theenterprise (hq) Categoricalvariable( –thecompany islocatedina touristcentre) x 2 Quality(qty) Categoricalvariable(incompetitivenessbuildingthe companyvaluesthequalityoftheoffer) x 3 Manager’swork experience(exp) Manager’syearsofwork experience x 4 Thesizeoftheenterprise(sz) Numberofemployees ThesizeoftheenterprisewasdeterminedbyEuro- stat classification, according to which micro-business subjectshavefewerthan10employees,smallbusiness subjects between 10 and 49 employees, medium-big business subjects have 50 to 249 employees, and big business subjects more than250 employees. Results Consummation realized by the tourists is important for supporting the business activity level for service providers who operate outside the traditional tourist domain.It was estimatedthat in 2016, the tourist sec- torintotalwas2.7of gdp,whichisalmost10.4of totalexportactivity in tourism.Itis veryimportantto point out that tourism achieved this kind of partici- pation in gdp within a very short period. This kind of significant growth happened in the last five years, which proves the development of tourism in Bosnia and Herzegovina. In the Federation of Bosnia and Herzegovina, we differentiatetwolawsonwhichtheenterpriseclassifi- cation is based, the Law on Accounting and Auditing in the Federation of Bosnia and Herzegovina and the SmallBusinessIncentiveLaw.Takingthisintoconsid- eration, the definitions of an enterprise are provided by law in Bosnia and Herzegovina, and they should be accepted without introducing any changes. Legal persons are being classified depending on the average numberofemployees,overallannualrevenue,andthe value of the property. All of this is determined on the dayofassemblyoftheannualfinancialreport.Busi- Table2 GeneralCharacteristicsoftheEnterprises Characteristic Average Minimum Maximum Profit level in () ,. –,. ,. The numberof employeesin     Manager’s years of work experi- ence    ness subjects have to fulfil at least two out of three given criteria. In this research, we used the average numberofemployeesandtotalincome. Table2containsaverage,minimumandmaximum values on the answers from the questionnaire. As one can see from the table, the average surveyed busi- ness subjects belong to the small enterprise group since the average number of employees is 23, which showsusthatthesamplemainlyincludesmicro,small, and medium-big enterprises.The vast majorityof the world economy is made up of small and medium-big companies, so the results are understandable. During 2016,therewasapositiveprofitlevelworth44,008Eu- ros(€), eventhoughthesamplecontainedcompanies thatoperatedwithaloss,aswellasthosewhoachieved apositiveresultofmanagement. Existing literature does not have a unique point of viewabouttheimpactoftheenterprisesizeonitsprof- itability.Accordingtoonepointofview,smallerenter- 222 | Academica Turistica, Year 14,No. 2,December 2021 DanijelaMadžar etal. Differences intheImplicationsof Organizational Creativity Table3 Results Item Dep. variable comp comp Treatmant Kreatmng .*** .*** Initialequation hq .** .** qty –. –. exp .** .** sz –. –. Selec.equation qty .** .** sz .*** .*** Diagnostic Waldtest .*** .*** Numberofobs.   ρ –.*** –.*** prisesaremoreflexibleandpronetorisk,andinaccor- dancewiththattheyaremoreinnovativewhichallows themhigherlevelsofcompetitivenessandhigherrates of profitability (Schumpeter, 1934). According to an- other point of view, smaller enterpriseslack resources that are necessary for competing on the market be- cause innovation is the key element of precedence, therefore allowing bigger enterprises to be more suc- cessfulandmorecompetitive(Schumpeter,1942).The size of an enterprise can be connected to scales of economy which enable lower costs and higher rates of profitability. For the above reason, there is no ex- pectedsignforthisvariable. Twoindicatorswereusedtomeasurecompetitive- ness(comp1andcomp2).Thefirstindicatorisdefined as the level of profitability per employee. In its selec- tion, the findings from the analysis of the theoreti- calliteratureweretakenintoaccount,whichpointout that profitability is the final indicator of competitive- ness. In constructing the competitiveness indicators, the fact that the absolute values of profitability can have large deviations with regard to the size of the company was taken into account, and the values of profitabilitywerenormalizedbydividingthembythe numberofemployeeswithinthecompany.Inaddition tothisindicator,therelativeprofitabilityindicatorwas used in the analysis, which was defined as the ratio of the company’s profitability and the average profitabil- ityinthesample.Inthisway,anotherimportantfea- ture of competitiveness is taken into account, which states that it is a relative concept. Variable–thesizeofanenterpriseisdefinedasthe number of employees. As previously stated, smaller enterprises are characterized by flexibility, absence of aversion to potential risk, and a desire for a market breakthroughsoanaturallyhigherlevelofinnovation andcreativityisexpected.Ontheotherhand,smaller enterpriseslackresourcesnecessaryforinnovationde- velopment as wellas a means for developing a reward systemsothattheexpectedsingcannotbe defined.A significant coefficient of this variable would validate theresearchthesis. By using the likelihood ratio test it is possible to determine the existence of the stated correlation. The thesis would represent the absence of the correlation between the unexplainable parts of the two regres- sions. It would presuppose that the correlation’s co- efficient valuesρ = 0. The second test that could be appliedis theWaldtestof variablesignificance. Thesizeoftheenterprisecarriesapositivesignand it is statistically significant. Ceteris paribus, the col- lected finding can be interpreted as compatible with the assumption about easier access to resources. Hu- man, material, and financial resources are considered to be necessary for creativity improvement. The the- oreticalassumptionsaboutconductinginnovationac- tivitieswithinbiggerenterprisescanalsobeconnected to the obtained result. The obtained results suggest that economies of scale offer higher resource alloca- tionsinpromotingcreativity. Variablesthatcontrolthestimulatingdeterminants of creativity arestatisticallysignificantwith apositive sign. The obtained results support existing researches that emphasize cultural and educational importance in managing creativity. Other than this, sharing ideas andknowledgewithinthedepartmentandamongde- partments within the organization and its surround- ings brings success. Financial rewards and nonfinan- cial stimulihavea positiveeffectaswell. Theobtainedresultsprovidesupporttoexisting research that emphasizes the importance of cultural, educational and other diversity to encourage creativ- ity.Sharingofideasandknowledgewithinthedepart- ment, between departments within the organization Academica Turistica, Year14,No. 2,December 2021 | 223 DanijelaMadžar etal. Differences intheImplications of Organizational Creativity and between the organization and its environment also contributes to the success of the creative process. Incentives such as financial rewards or non-financial incentives also have a positive effect on the success of creativitymanagement. Managerial experience has a positive impact on a company’s competitive advantage. Experience is also valuableinresolvingconflictswithintheorganization, initiating processes such as managing creativity, im- proving competitivenessin existing marketsandpen- etratingnew ones. The results show that bigger enterprises are more successful due to having easier access to human, ma- terial,andfinancialresources.Managingcreativityin- creasesby0.04ifthereisoneemployeemore,which provesthe hypothesisof the research. It is important to highlight that there is a problem forcreativitydevelopmentintheFederationofBosnia andHerzegovinabecauseofthesocialandlegalframe which provides inadequate context locally, regionally, and globally. Discussion Enterprises within the sector of tourism have a great impact on other enterprises within the service sector, especially whenwe talkabout manufacturingcompa- nies such as the food industry, construction, and fi- nancialservices.Thetouristimageofacountry,along with its political and economic stability, quality of transport infrastructure, and technological develop- ment,iscloselyconnectedtothesuccessofenterprises within tourismandcatering. The research in this paper was conducted on the territoryoftheFederationofBosniaandHerzegovina, so it was not done on the territory of the Republic of SrpskaandtheBrčkoDistrict.Oneofthemainreasons whythe researchislimited to theterritoryofthe Fed- erationofBosniaandHerzegovinaistheinconsistency of legislation and of the researched issues. Therefore, it is a clear obstacle that organizations face, and that iscertainlythehighriskofinvestingintheresearched issues. Accordingtotheexistingfindings,theservicesec- torischaracterizedbyacloserelationshipbetweenser- vice providers and recipients. In such conditions, hu- manresourcesandskillsofemployeesaswellastheen- tiresystemoforganizationalhumanresourcemanage- mentaremoreimportantthantheresearchanddevel- opmentprocessesinherentin,forexample,themanu- facturing industry in which the emphasis is on meet- ingtheneedsoftechnologicalbreakthrough. The previous research also suggests that environ- ments that allow for unconventional ways of con- ducting activities, challenging authority, competition among employees, and risk-taking are conducive to unleashing creativity. The emergence of new ideas often requires violations of existing norms and non- compliance with the rules, as well as intellectual and creative autonomy. Consequently, creativity manage- mentcomesdowntofindingasolutiontotherequire- ment to create such an environment in which there isasufficientlevelofmotivationtodevelopemployee creativitywhilemaintainingharmonywithintheorga- nizationandensuringcompliancewithorganizational rulesandregulations. Creativityofabusinessentityisalsoaffectedbyits competitive profile. In sectors characterized by stan- dardized products and where the fundamental mode of competition is price competition, companies are motivated to develop innovations and their need for creativity is of lower intensity. In sectors whose com- petitiveness is based on quality, there is a continuing need to differentiate from the competition, which in turngeneratesdemandforcreativeideasandresearch into new products and services. The behaviour of enterprises in the sector of tour- ismandhospitalityinBosniaandHerzegovinaisarel- atively unexplored phenomenon. The results of this research are significant since there are no relevant re- searchesonmanagingcreativityin thetourismsector. The key theoretical contributions of this research are: • The results have shown that bigger enterprises havea greaterpossibility for success which is ex- plained by having easier access to human, mate- rial, and financial resources. If the employment rateis increasedby one unit only it enhancesthe likelihood ofmanagingcreativityby 0.04. • Itis crucial fororganizationalcreativity to assign 224 | Academica Turistica, Year 14,No. 2,December 2021 DanijelaMadžar etal. Differences intheImplicationsof Organizational Creativity compatible tasks to creative workers, organize training to increase creativity and use organiza- tionalfactorsthathaveaneffectoncreativework. For companies striving to achieve a competitive advantage, it is important to develop a strategy with a focus on the development of intangible assets, sharing knowledge within all organiza- tional units of the company, continuity of work and service quality certificates, and creative or- ganizationalculturethathasapositiveimpacton service quality andproduct/serviceinnovation. • Nomatterthesize,allenterprisesintourismhave to continuously develop and expand their offers, whichshouldincludenotonlypremiumaccom- modation services, but also top-notch quality at all levels of catering, tourism, and professional staff. • It is important to keep track of trends and stan- dards of service quality. Facilities and services shouldbeconstantlyupgraded.Traditionandex- perience are important, but destination promo- tion and constant facility and service improve- mentarea keytosuccess aswell. • Managers should understand that by suppress- ing unique and different approaches they actu- ally destroy the ability for the system to adjust in the process of managingcreativity. The ability to accept changesis developed by encouraging em- ployees to try different approaches. Due to orga- nizations and society being so complex, and in- tertwined with conflicting interests, characteris- tics,andproblems,diversityshouldbethekeyto innovation. Today’scompanies,andintheconductedresearch, companiesin tourism, have a completely new dimen- sion of business and social responsibility. The time to come will certainly expand the creative range of knowledgenecessaryfortheuseofavailableresources in modern market conditions, and certainly create a better perception of the development of companies in tourism. 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