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Global Business Review
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Designing Innovative Organizations in Malaysia: Do Structure and Culture Matter?

Muhamad Jantan

School of Management, Universiti Sains Malaysia

Aizzat Mohd Nasurdin

Organization Section, School of Management, Universiti Sains Malaysia

Nur Fitriah Ahmed Fadzil

School of Management, Universiti Sains Malaysia

The purpose of this article is to determine the influence of organizational structure (formalization and centralization and culture (participative decision-making, support and collaboration, learning and development) on innovation (technological and process, administrative, product and overall) among firms operating in Malaysia. Regression analyses of 123 responses revealed that only cultural variables have positive effects on two forms of innovation (technological and process, and administrative). Specifically, both participation in decision-making, and support and collaboration had significant positive effects on technological and process innovation. On the other hand, both support and collaboration, and learning and development were found to have significant positive effects on administrative innovation. Structural variables (both formalization and centralization) had no effect on all forms of innovation investigated. Implications for managerial practice and suggestions for future research are discussed.

Global Business Review, Vol. 4, No. 2, 213-226 (2003)
DOI: 10.1177/097215090300400201
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