Managerial Creativity: The Roles of Dynamic Capabilities and Risk Preferences

Creativity is considered one of the key skills for managers in making strategic decisions. Although previous studies have thoroughly explored individual creativity, most of them have considered creativity as a static concept. In this paper, we suggest that managers' creative behaviors are dynamic and are influenced by individual and contextual factors. We also suggest that managers' creative behaviors can be explained via the concepts of both risk preferences and dynamic capabilities. Based on these two concepts, we suggest that managers' creative behaviors could be considered as: (1) dynamic abilities that enable them to generate different levels of creativity; and (2) a dynamic process that evolves over time. These propositions enhance and extend the literature on managerial risk taking and dynamic capabilities with respect to managers' creativity. Finally, we propose directions for future research to obtain a more in‐depth understanding of managers' creative behaviors.