The Factors Influencing the Innovative Performances Among the Manufacturing Firms in Malaysia

Abstract

Purpose - The purpose of this paper is to investigate the relationships of applying total quality management (TQM) practices, knowledge management processes as well as government and public policies and firm’s characteristics on innovative performance in the Malaysian manufacturing sector. Design/methodology/approach - Applying the strategic-choice theory and the resource-based view of manufacturing firms to the innovative performances, in this study a research model are developed to demonstrate the premise that implementing the factors will enhance the innovative performances. The study utilizes survey data from 100 senior executives and managers in the strategic planning and innovation functions from manufacturing firms in Malaysia. The results are based on regression analysis and equation modeling by using SPSS software. Findings - The results of this paper support a positive and significant impact of TQM practices, knowledge management processes, government and public policies and firm’s characteristics on innovative performances. Practical Implications - For manufacturing firms, the results indicate that firms benefit greatly if they consider the factors of their innovative practices and that such a matching yield to improve the innovative performance. Originality/value - The paper theoretically develops logic for and empirically shows that all of the innovative strategies are appropriate practices for mediating the impact on firm’s innovative performance. Considered at a higher level of abstraction, these relationships indicate a contribution to theory that explains how the factors can result in innovative performance, through the concurrent deployment of appropriately matched innovative practices. Paper type - Research Paper