**2. Literature review**

#### **2.1 Relationship between creativity, innovation and entrepreneurship**

Creativity, innovation and entrepreneurship are interrelated concept that could be abridged in a well-defined and clear association. Discussions on creativity and innovation are pertinent in research work because they are viewed as key components in the development of competitive advantage [4]. Creativity can be defined in many ways. Some researchers define it as a thought, and some researchers consider it as a process. Thus, creativity is defined as creating new and effective ideas. Being new refers to the purity and originality of an idea ([5], p. 74).

According to Oxford Dictionaries (2012), creativity is the use of imagination or original ideas to create something. Being creative requires constant effort on the part of the individual to refine solutions and ideas [6]. Secondly, creativity requires two basic elements which are originality and effectiveness ([7], p. 92). Originality is crucial for creativity; however, it is not sufficient. Ideas and merchandise that are basically original would possibly be useless very well. So again, originality is no longer by itself to be acceptable for creativity. Original things must be too advantageous to be creative. Like originality, effectiveness takes more than a few forms. Effectiveness may additionally take the structure of value. This label is pretty clear in the economic research on creativity; it is describes how initial and beneficial merchandise and thoughts rely on the current market, and extra clearly on the price and assets [7].

Other than that, creativity is something that happens when an individual creates or produces something that is unique as well as applicable, relevant, imaginative, innovative, or persuasive [8]. According to George and Zhou [9], creativity can be

*Creativity, Innovation and Shariah Compliance by the Malay Middle Class Women… DOI: http://dx.doi.org/10.5772/intechopen.109655*

defined as the formation or creation of ideas, clarifications or solutions that are relevant and practical [10].

Creativity is the outcome of an effort when an individual creates or produces something that is unique as well as applicable, relevant, imaginative, innovative, or persuasive [8]. Creativity is also the ability to make or bring into existence something new, whether a new solution to a problem, a new method or device, or a new artistic object or form ([11], p. 721).

According to a humanistic viewpoint, the creative person has the awareness and skills necessary to respond to catastrophe in transforming ways [12, 13]. As a result, the creative person can be seen as someone who is working towards self-actualization and acquiring traits that are connected to mental health, such as subjective wellbeing, resilience, optimism, quality of life, and other elements stressed by positive psychology [12]. Thus, creativity also can be summarised as the tendency to produce or recognise the ideas, other options, or possible possibilities to solve the problem, communicate and entertain us and other people. For that reason, in order for something to be creative it must meet the initial criteria of novelty and then prove to be appropriate, generative or influential to reach a higher status of creativity ([8], p. 3).

The relationship between creativity, innovation and entrepreneurship has been explained by Muhamad Izzuwan Shah et al. [14], Nakano and Wechsler [12] and Goh [15]. Innovation and creativity are often regarded to as the soul and the heart of a business [4]. The capacity to generate fresh concepts and find novel approaches to issues and opportunities is referred to as creativity ([14] Porter, in [16], p. 12). Innovation, on the other hand, is the capacity to use original approaches to challenges and opportunities in order to improve people's lives or to benefit society. Innovation is the key challenges to economic growth and prosperity [17], especially in the context of dealing with the post Covid-19 pandemic [6].

Creative thinking is the cornerstone of innovation. Creativity is necessary for innovation, but it is not always enough. Innovation is the implementation of creative inspiration [4]. Innovation requires the adoption of new technology or management techniques within an organisation to accomplish a specific operational improvement [6, 18].

Many categories of innovation could be traced, such as administrative innovations, incremental products, drastic products, incremental processes, and radical processes [19, 20]. The object, sector, volume, and strength all affect the different types of innovation. They are unconstrained, autonomous, and possess distinguishable characteristics. These are: market innovation, technological innovation, organisational innovation, and product innovation [19, 21].

Although in an entrepreneurial sense there should also be a subsequent link to innovation and profitability in monetary and social terms ([22], p. 50), creativity has also been considered as the production of ideas or things that are fresh and potentially beneficial [23].

Therefore, entrepreneurship is the result of a process that applies both creativity and innovation to capitalise on marketplace opportunities in highly competitive market and global economy [15, 19]. Creating value for business and social communities by combining special public and private resources to take advantage of economic, social, or cross-cultural opportunities in a changing environment is another definition of entrepreneurship [22].

Numerous studies have shown a link between corporate creativity, innovations and survival. The success of any business depends on creativity and innovation [24]. Innovation can be regarded as the primary driver behind the survival and continuation of businesses; it fosters their development and progress and increases their chances of success in the future [25]. In summary, both creativity and innovation skills are essential in particular, to promote human potential by eliciting positive aspects of the individual [12].
