ANALYSIS OF INNOVATION CAPABILITIES AND COMPANY PERFORMANCE: AN EMPIRICAL EVIDENCE OF MALAYSIAN LARGE COMPANIES USING PLS-SEM.
DOI:
https://doi.org/10.11113/jt.v78.8308Keywords:
Innovation capabilities, large companies, performance, PLS-SEMAbstract
Although numerous studies have been conducted to gauge the innovativeness of the Malaysian companies, the understanding on the Malaysian companies’ innovation capabilities are still low and unclear. This study employed a structured framework to gauge the innovation capabilities of the Malaysian large companies. This framework is significant in such a way that it clearly distinguished the innovation factors, innovation process, innovation output and innovation outcome of the company. Next, the PLS-SEM was used to validate the innovation capabilities framework and later used to examine the hypothesized relationships that linked all the innovation capabilities constructs with the company performance constructs. A total of 124 responses from the managers were received but only 98 valid responses were used to validate the structural model of this study. The findings confirmed that the framework has the ability to predict the innovation capabilities of the Malaysian large companies. It was also found that design capability; develop capability and prototype capability is significantly related to innovation performance. In addition, the innovation performance was also found to be significantly related to the business performance. Results of this study shall guide the companies in focusing on the innovation processes that needed to be improved in order to expedite their innovation capabilities
References
Hong, S., Oxley, L., & McCann, P. 2012. A survey of the innovation surveys. Journal of Economic Surveys. 26(3): 420-444.
World Bank, 2009. Malaysia - Productivity and Investment Climate Assessment Update, Washington DC.
Department of Statistics Malaysia, 2007. Malaysian Knowledge Content Survey 2007.
DELTA, “A study on Technological Innovation Capabilities (TIC) of Malaysian-owned Companies,†Selangor, 2012.
SMECorp, “1-InnoCERT,†Small and Medium Enterprise Corporation, 2014. [Online]. Available: http://www.1-innocert.my/AnonyPages/default.aspx.
Khin, S., Hazlina Ahmad, N., & Ramayah, T. 2010. Product Innovation Among ICT Technopreneurs In Malaysia. Business Strategy Series. 11(6): 397-406.
Ismail, K., Omar, W. Z. W., Soehod, K., Senin, A. A., & Akhtar, C. S. 2013. Role of innovation in SMEs performance: A case of Malaysian SMEs. Mathematical Methods in Engineering and Economics. 145-149.
Rosli M. M. S., 2007. Innovation and Firm Performance : Evidence from Malaysian Small and Medium Enterprises,†Entrep. Vis. 2020 Innov. Dev. Sustain. nad Econ. Growth. 1980: 794–809.
Juan, S. H. A. N., & Jolly, D. R. 2010. Accumulation Of Technological Innovation Capability And Competitive Performance In Chinese Firms: A Quantitative Study. IAMOT 2010. 8–11
Pawanchik, A., Sulaiman, S., & Zahari, A. 2011. National Innovation Strategy Study, Stimulating Innovation Among Large Firms In Malaysia: Strategy And Policy Recommendations. Commissioned by: Special Innovation Unit, Prime Minister’s Office.
Abidin, N. Z., & Suradi, N. R. M. (2014. Innovation value chain capability in Malaysian-owned company: A theoretical framework. In THE 2014 UKM FST POSTGRADUATE COLLOQUIUM: Proceedings of the Universiti Kebangsaan Malaysia, Faculty of Science and Technology 2014 Postgraduate Colloquium. 1614(1): 936-940.
Hair J. F., Sarstedt M., Ringle C. M., and Mena J. A., . 2011. An Assessment Of The Use Of Partial Least Squares Structural Equation Modeling In Marketing Research. J. Acad. Mark. Sci.. 40(3): 414–433.
Hulland, J., & Richard Ivey School of Business. 1999. Use Of Partial Least Squares (PLS) In Strategic Management Research: A Review Of Four Recent Studies. Strategic Management Journal. 20(2): 195-204.
Henseler, J., Ringle, C. M., & Sinkovics, R. R. 2009. The Use Of Partial Least Squares Path Modeling In International Marketing. Advances In International Marketing. 20(1): 277-319.
Ringle, C. M., Sarstedt, M., & Zimmermann, L. 2011. Customer Satisfaction With Commercial Airlines: The Role Of Perceived Safety And Purpose Of Travel. Journal of Marketing Theory and Practice. 19(4): 459-472.
Chin, W. W. 2010. How To Write Up And Report PLS Analyses. In Handbook Of Partial Least Squares. Springer Berlin Heidelberg. 655-690.
Downloads
Published
Issue
Section
License
Copyright of articles that appear in Jurnal Teknologi belongs exclusively to Penerbit Universiti Teknologi Malaysia (Penerbit UTM Press). This copyright covers the rights to reproduce the article, including reprints, electronic reproductions, or any other reproductions of similar nature.
