BGA’s Business Impact magazine: Issue 1, 2026 | Volume 29

this perspective, formal learning appears to be the enemy of originality. This narrative places education and creativity on opposite sides, forcing institutions to choose between academic rigour and innovative thinking. For business schools, this is a false dilemma. The real challenge is not that students lose creativity as they progress. The challenge is that they become increasingly efficient at using knowledge in predefined ways. They learn models, frameworks, best practices and correct answers. They become fluent in what works and why it works. This is not a flaw; it is the very purpose of education. At the same time, this efficiency comes with a cognitive trade-off. The more we learn how something works, the harder it becomes to imagine it working differently. Over time, this strengthens functional fixedness or, in other words, the tendency to see concepts, tools, roles and systems only through their established uses. In business education, this shows up in familiar ways. Students excel at applying known frameworks, but struggle when a problem does not fit the model. They can analyse cases flawlessly, yet hesitate when faced with ambiguity. I remember one student once telling me that “you ask us questions we do not know the answers to”. They search for the right answer even when none exists. Students want to excel and do so efficiently. But

HOW BUSINESS SCHOOLS CAN STRENGTHEN INNOVATION LITERACY

Business schools are uniquely positioned to address functional fixedness and strengthen innovation literacy without sacrificing academic rigour. The six steps below offer a practical pathway for institutions looking to enhance their students’ capabilities in this area. The goal is not to remove structure, but to ensure that structure supports flexible thinking rather than limiting it. • Acknowledge that creativity and innovation are not generic skills. They are domain- specific capabilities that build on deep expertise. This allows institutions to stop

• Reframing needs to be practiced deliberately. Students should experience problems that can be defined in multiple ways, each leading to different solutions. This helps them see that problem definition is not neutral, but strategic. • Experimentation should be normalised – not in the sense of uncontrolled trial and error, but as structured learning under uncertainty. Small experiments, simulations and iterative projects teach students that not knowing is not a failure but a starting point. • Diversity of perspective must be treated as a cognitive asset and not just as a social value. Exposure to different disciplines, cultures and ways of thinking helps weaken fixed patterns and expands the range of possible solutions. • Playfulness and curiosity should be legitimised at graduate level. These are often associated with early education, yet they are critical for senior leadership and strategic innovation. Creating safe spaces where students can explore ideas without immediate evaluation strengthens psychological safety and cognitive flexibility.

real life and real leadership rarely follow a straight line. If left unaddressed, this rigidity follows graduates into organisations, where it quietly limits innovation, adaptability and long-term value creation. The problem with fixed thinking

apologising for rigour and instead focus on how knowledge is actively used. • Make

questioning a formal part of learning. Rather than focusing exclusively on applying frameworks, students should be encouraged to examine their limits and ask themselves “when does this model stop working?”, “what assumptions does it rely on?” and “what happens if one variable changes?”

The more deeply we understand a subject, the more efficiently we learn to apply it in customary ways. Expertise allows us to recognise patterns, make decisions quickly and avoid obvious mistakes. This is why experienced professionals might often struggle more with innovation than novices. Their knowledge can narrow their field of vision. They know what works, what is realistic and what usually fails.

26 Business Impact • ISSUE 1 • 2026

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