Designing Innovative Organizations in Malaysia: Do Structure and Culture Matter?

Muhamad Jantan, Aizzat Mohd Nasurdin and Nur Fitriah Ahmed Fadzil
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Muhamad Jantan: School of Management, Universiti Sains Malaysia
Aizzat Mohd Nasurdin: Organization Section, School of Management, Universiti Sains Malaysia
Nur Fitriah Ahmed Fadzil: School of Management, Universiti Sains Malaysia

Global Business Review, 2003, vol. 4, issue 2, 213-226

Abstract: The purpose of this article is to determine the influence of organizational structure (formalization and centralization and culture (participative decision-making, support and collaboration, learning and development) on innovation (technological and process, administrative, product and overall) among firms operating in Malaysia. Regression analyses of 123 responses revealed that only cultural variables have positive effects on two forms of innovation (technological and process, and administrative). Specifically, both participation in decision-making, and support and collaboration had significant positive effects on technological and process innovation. On the other hand, both support and collaboration, and learning and development were found to have significant positive effects on administrative innovation. Structural variables (both formalization and centralization) had no effect on all forms of innovation investigated. Implications for managerial practice and suggestions for future research are discussed.

Date: 2003
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Persistent link: https://EconPapers.repec.org/RePEc:sae:globus:v:4:y:2003:i:2:p:213-226

DOI: 10.1177/097215090300400201

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