The Influence of Organizational Culture on Innovation Management of Malaysian Small and Medium Enterprises (SMEs) towards Industry 4.0

  • Asokan Vasudevan
  • Saranyah Uthama kumaran
  • Kumarashvari Subramaniam
  • Sam Toong Hai

Abstract

Organizational culture is a significant problem that has a considerable influence on innovation and innovation management. This research was conducted to determine the influence of organizational culture on innovation management of Malaysian Small and Medium Enterprises (SMEs) towards industry 4.0. Hofstede's cultural dimension theory was used to support the model in this research.  Data were collected from primary sources using a questionnaire as the method for data collection, and it was tested using IBM Statistical Package for the Social Sciences (SPSS) statistics 26. The questionnaire items were adapted from Cameron and Quinn's Organizational Culture Assessment Instrument, and the questionnaire was distributed to the executives of 50 SME manufacturing companies in Negeri Sembilan. One hundred questionnaires were received out of 175 questionnaires distributed and used to perform data analysis for this study. A few different analysis types were conducted in this research, consisting of descriptive analysis, reliability test, factor analysis, Pearson correlation analysis, and simple linear regression analysis. The result shows that adhocracy culture has the highest correlation and strongest determinant of innovation management. All the four dimensions of culture, also known as the independent variables, are essential. It achieved a P-value of 0.000, which wrote down that it significantly influences Malaysian SMEs' innovation management towards industry 4.0. Therefore, all the tested research hypotheses were accepted, and all four aims were achieved in this study. Organizational culture is the main determinant of firm innovation where it can promote organizational culture and at the same time act as a barrier to innovation. Therefore, it is crucial for the top management, owners, or executives to adapt specific managerial approaches to help innovative management and innovative approaches required to incorporate and operate effectively in industry 4.0.

Published
2021-07-01
How to Cite
VASUDEVAN, Asokan et al. The Influence of Organizational Culture on Innovation Management of Malaysian Small and Medium Enterprises (SMEs) towards Industry 4.0. Asian Journal of Entrepreneurship, [S.l.], v. 2, n. 2, p. 1-8, july 2021. ISSN 2716-6635. Available at: <https://myjms.mohe.gov.my/index.php/aje/article/view/14063>. Date accessed: 24 oct. 2021.
Section
Articles