Does Innovation Contribute to Employee Performance?

Abstract

This study investigated the relationship between innovation and employee performance at Tenaga Nasional Berhad (TNB), a utility company in Malaysia since TNB is unsure to place innovation as a ‘nice to have’ or ‘must have’ in their company. Responses from staff through a survey from selected management team were gathered. Two hundred and ninety-four respondents’ feedback was used to analyze the impact of four types of innovation (product, process, technological and organizational) on employee performance. Through Factor Analysis the four types of innovation was reduced to three while another factor named attitude emerged. The three types of innovations (product, process, and technological and organizational) were found to influence employee performance with the exception of attitude.