Muhamad Jantan

Organisational innovation: does structure, culture, and country of origin matter?

This study examines the influence of organisational structure (formalisation and centralisation) and culture (participative decision making, support and collaboration, and learning and development) on innovation (technological and process, administrative, and product) among firms operating in Malaysia. In addition, the differences in the levels of innovation (technological and process, administrative, and product) according to a firms country of origin were investigated. Regression analyses of 123 responses (80 multinational corporations and 43 locally owned firms and joint ventures) revealed that only cultural variables (learning and development, and support and collaboration) had positive effects on two forms of innovation (technological and process, and administrative). Structural variables, on the other hand, had no influence on the three forms of innovation investigated. Statistical analyses using ANOVA revealed that significant differences in innovation levels do exist by country of origin. Implications for managerial practice and suggestions for future research are discussed.