Abstract

The present study examines the effects of organisational learning and work environment on the formation of employees’ innovative work behaviour. A stratified sampling technique was used for the sample of employees at micro and small-scale manufacturing enterprises located in selected cities of the East Coast Economic Region, Peninsular Malaysia. The authors’ analysis revealed innovative work behaviour of micro and small manufacturing enterprises at a moderate level. Moreover, the innovative work behaviour at micro-enterprises is significantly lower than small enterprises. The innovation outputs are made up of employees with high innovative work behaviour. Overall, statistical evidence indicated that organisational learning and work environment have a significant influence on the formation of innovative work behaviour. Thus, the micro-small-sized enterprises should raise their employees’ innovative work behaviour in order to improve the performance of organisational innovation and competitiveness. Empirical evidence has shown that employees’ engagement in innovation is an effective resource for micro-small-sized enterprises to be more innovative.

Highlights

  • Innovation and adaptation of technologies generated from investment in science and technology are proven to generate productivity and lead to economic growth (Jones, 1995; United Nations, 2002; Waheed, 2012)

  • Malaysian small and medium enterprises (SMEs) were grouped into three categories: micro, small or medium enterprises

  • The study was undertaken at three cities, namely: Kuantan (Pahang), Kuala Terengganu (Terengganu) and Kota Bharu (Kelantan) in the East Coast Economic Region (ECER), Malaysia

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Summary

Introduction

Innovation and adaptation of technologies generated from investment in science and technology are proven to generate productivity and lead to economic growth (Jones, 1995; United Nations, 2002; Waheed, 2012). Workplace learning organised by companies has proved to stimulate innovation activities (Calantone, Cavusgil, & Zhao, 2002; Jimenez-Jimenez & Sanz-Valle, 2011; Kesting & Ulhøi, 2010; Molina & Callahan, 2009; Sampaio & Perin, 2006; Timmermans, Van Linge, Van Petegem, Van Rompaey, & Denekens 2012; Wang & Ellinger, 2008; Zhang et al, 2004; Znidarsic & Jereb, 2011). Future research should analyse the effect of industry in the relations between organisational learning and innovation, as recommended by Calantone, Cavusgil, and Zhao (2002) and Jimenez-Jimenez and Sanz-Valle (2011). Further research is needed to explore the relationship between team learning and implementation of innovations, as proposed by Timmermans, Van Linge, Van Petegem, Van Rompaey, and Denekens (2012). Further research is needed to explore the relationship between team learning and implementation of innovations, as proposed by Timmermans, Van Linge, Van Petegem, Van Rompaey, and Denekens (2012). Dharmadasa (2009) advise that research should be done on innovation activities of micro, small and medium enterprises (SMEs) in other countries

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