Mohd. Nasurdin, Aizzat and Muhamad Jantan , Muhamad Jantan and Ahmed Fadzil, Nur Fitriah
(2004)
Country Of Origin Effect On Organizational
Innovation In Malaysia: The Mediating
Role Of Structure.
Asian Academy of Management Journal (AAMJ), 9 (2).
pp. 1-23.
ISSN 1394-2603
Abstract
The two main objectives of this study are: first, to determine whether the level of
innovation (technological and process, product and administrative) varies by country of
origin, and second, to investigate the influence of country of origin on organizational
innovation (technological and process, product and administrative) via the mediating
role played by organizational structure (formalization and centralization), among firms
operating in Malaysia. Statistical analyses of the 80 multinational corporations and 43
locally-owned firms and joint-ventures using ANOVA revealed that significant differences
do exist in terms of their innovation levels. Firms from the West (American multinationals
and European multinationals) had higher levels of technological and process innovation
compared to firms from the East (Eastern multinationals plus local companies and jointventures). Regarding product innovation, American multinationals were found to be more
innovative compared to European multinationals and firms from the East (Eastern
multinationals plus local firms and joint-ventures). In terms of administrative innovation,
American multinationals were found to be most innovative followed by European
multinationals, and lastly, firms from the East (Eastern multinationals plus local
companies and joint-ventures). Additionally, country of origin had no indirect effect on
the three forms of innovation via structure. Implications and suggestions for future
research are discussed.
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