The Effect of Knowledge Capability on Innovation in Malaysian Electrical and Electronics Firms

Abstract

This paper examines the effect of knowledge capability on innovation in Malaysian electrical and electronics firms. This paper utilized a quantitative approach where questionnaires with five-point Likert scale were employed as the research tool. The respondents of this study consisted of 287 managers from electrical and electronics firms across Malaysia which included Kuala Lumpur, Selangor, Penang, Johor, Kedah, Melaka, Sabah and Sarawak. The list from the Federation of Malaysian Manufacturers (FMM) indicated that a majority of the firms were located in these states.  The study used Statistical Package for Social Science (SPSS 22.0) to generate the descriptive statistics along with the Partial Least Squares Structural Equation Modeling (PLS SEM 3.0) to examine the measurement and structural models. The results have showed that only learning culture is significant to innovation in Malaysian electrical and electronics firms. This aspect is one out of four knowledge capability that consists of T-shaped skills, IT support, learning culture and centralized structure. The study has verified the importance of knowledge capability to organizations, as appropriate capabilities would lead to better achievement of organizational objectives.