Doctoral thesis of philosophy an empirical investigation into the significance of intellectual capital and strategic orientations on innovation capability and firm performance in malaysian information and communications technology (ict) s

An Empirical Investigation into the Significance of Intellectual Capital and Strategic Orientations on Innovation Capability and Firm Performance in Malaysian Information and Communications Technology (ICT) Small-to-Medium Enterprises (SMEs) A thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy Juliana Osman @ Zainal Abidin BBA, MBA School of Management Business Portfolio RMIT University March 2014 STATEMENT OF AUTHORSHIP I certify that except where due acknowledgement has been made, the work is that of the author alone; the work has not been submitted previously, in whole or in part, to qualify for any other academic award; the content of the thesis is the result of work which has been carried out since the official commencement date of the approved research program; and, any editorial work, paid or unpaid, carried out by a third party is acknowledged Juliana Osman @ Zainal Abidin March 2014 ii ACKNOWLEDGEMENTS Alhamdulillah, thank you to Allah for all His blessings in making this endeavour a successful one The completion of this thesis is a dream come true with the encouragement and support from many parties and individuals First of all I would like to take this opportunity to convey the deepest appreciation to my principal supervisor, Associate Professor David Gilbert I regard him as a very understanding and caring supervisor His thoughts, advice, comments and critique have strongly motivated me to overcome the hurdles in this PhD journey His confidence and belief in my capabilities has helped me improve tremendously as a scholar and researcher My sincere thanks go to my co-supervisor, Dr Caroline Tan, who has shared her thoughts and facilitated my work diligently throughout the years I would like to acknowledge Associate Professor Siva Muthaly from the Graduate School of Business and Law, RMIT, for providing his insights on the data analysis methods for this thesis My appreciation goes to the Ministry of Higher Education, Malaysia and my employer, Universiti Pendidikan Sultan Idris, Malaysia for awarding the scholarships Without the financial support from both reputable parties, this PhD endeavour would not have been possible I extend my gratitude to all my family members, especially my father Hj Osman Zainal Abidin and in-laws for their continuous prayers and support Last but not least, to my close friends who have always been kind enough to spare their time listening to my grumbling in tough times, sharing the laughter during good times and lending a helping hand when it is most needed, thank you from the bottom of my heart! You know who you are! iii DEDICATION This thesis is dedicated to the love of my life, Mohd Hazanol Mohd Hashim, for your wholehearted love, endless prayers, sincere support and strong patience throughout the entire journey and To my beloved children: my lovely daughter Iffa Nadhira and my two heroes, Isyraf Syafiq and Isyraf Haziq, All of you are my sources of motivation and inspiration for this accomplishment May you find this journey as a precious gift! iv TABLE OF CONTENTS Page STATEMENT OF AUTHORSHIP ……………………………………………… ii ACKNOWLEDGEMENTS …………………………………………………………iii DEDICATION iv TABLE OF CONTENTS v LIST OF TABLES ix LIST OF FIGURES x LIST OF APPENDICES xi ABSTRACT xii PUBLICATIONS AND CONFERENCE PRESENTATIONS xiv CHAPTER INTRODUCTION 1.1 Background of the Research 1.2 Problem Identification 1.3 Rationale for the Current Research 1.4 Objectives and Research Questions 1.5 Thesis Structure CHAPTER OVERVIEW OF ICT INDUSTRY AND SMEs IN MALAYSIA AND THEORETICAL FRAMEWORK 2.1 Introduction 2.2 Malaysia and the Economic Transformation 2.3 Structure of ICT Industry 11 2.4 Contributions of ICT Industry in the Malaysian Economy 11 2.5 SMEs and its Definition 12 2.6 The Importance of SMEs and ICT SMEs 13 2.7 Challenges Facing SMEs in Malaysia 15 2.8 Theoretical Framework 17 2.8.1 Resource-Based View (RBV) 17 2.8.2 Dynamic Capabilities View 21 2.9 Summary 23 CHAPTER LITERATURE REVIEW, CONCEPTUAL FRAMEWORK AND HYPOTHESES DEVELOPMENT 24 3.1 Introduction 24 3.2 Innovation Capability 24 3.2.1 Conceptualisation of Innovation Capability 25 3.2.2 Innovation Capability and its Dimensions 28 3.2.3 Factors Influencing Innovation Capability With Regard to the RBV and Dynamic Capabilities View 30 v 3.3 Intellectual Capital 33 3.3.1 Human Capital 37 3.3.2 Organisational Capital 39 3.3.3 Social Capital 39 3.3.4 Differences among the Intellectual Capital Dimensions 40 3.4 Strategic Orientations 42 3.4.1 Market Orientation 45 3.4.2 Technology Orientation 48 3.4.3 Learning Orientation 49 3.5 Firm Performance 51 3.6 Development of Conceptual Framework and Hypothesis 53 3.6.1 Conceptual Framework 54 3.6.2 Intellectual Capital, Innovation Capability and Firm Performance Link 55 3.6.3 Strategic Orientations, Innovation Capability and Firm Performance Link 59 3.6.3.1 Market Orientation and its Link to Innovation Capability and Firm Performance 59 3.6.3.2 Learning Orientation and its Link to Innovation Capability and Firm Performance 62 3.6.3.3 Technology Orientation and its Link to Innovation Capability and Firm Performance 64 3.6.4 Innovation Capability and Firm Performance Link 66 3.7 Summary 67 CHAPTER RESEARCH METHODOLOGY 69 4.1 Introduction 69 4.2 Research Design 69 4.2.1 Research Philosophies 69 4.2.2 Strategies of Inquiry 71 4.2.3 Research Methods 71 4.3 The Survey Questionnaire 71 4.3.1 The Survey Questionnaire Development 72 4.3.1.1 Measures of Intellectual Capital 74 4.3.1.2 Measures of Strategic Orientations 75 4.3.1.3 Measures of Innovation Capability 79 4.3.1.4 Measures of Firm Performance 80 4.4 Data Collection Procedures 81 4.5 Data Analysis Procedures 82 4.5.1 Structural Equation Modelling (SEM) 83 4.5.2 Reasons For Using PLS 85 vi 4.5.3 Reflective and Formative Construct Specification 85 4.5.3.1 Construct Specification 91 4.5.4 Model Evaluation 92 4.6 Ethical Considerations 94 4.7 Summary 94 CHAPTER DATA ANALYSIS AND RESULTS 95 5.1 Introduction 95 5.2 Sampling Size Requirement 95 5.3 Participants Characteristics 96 5.4 Preliminary Evaluation 98 5.4.1 Data Screening 98 5.5 Operationalisation of Constructs 100 5.6 Assessment of the Measurement Model (Outer Model) 101 5.6.1 Indicator Reliability 103 5.6.2 Internal Consistency 106 5.6.3 Convergent Validity 107 5.6.4 Discriminant Validity .107 5.6.5 Quality of the Measurement Model 110 5.6.6 Assessment of the Formative Hierarchical Component Model 110 5.6.6.1 Indicator Validity 110 5.6.6.2 Multicollinearity 111 5.7 Assessment of the Structural Model (Inner Model) 113 5.7.1 Step 1: Assessment of Collinearity 115 5.7.2 Step 2: Assessment of Significance and Relevance of the Path Coefficients .117 5.7.3 Step 3: Assessment of Coefficient of Determination (R2) 121 5.7.4 Step 4: Assessment of f squared (f2) 122 5.7.5 Step 5: Assessment of Predictive Relevance Q2 123 5.8 Evaluation of Mediating Effects .124 5.8.1 Criteria for Evaluating Mediating Effects 125 5.8.2 Size of Mediating Effects 128 5.8.3 Total Effects of Exogenous Constructs on Firm Performance 128 5.8.4 Results for Mediating Effects 130 5.8.5 Results of All Hypothesised Relationships……………………………….132 5.9 Summary .133 CHAPTER DISCUSSION .134 6.1 Introduction 134 6.2 Intellectual Capital, Innovation Capability and Performance Link 134 vii 6.2.1 The Impact of Intellectual Capital on Innovation Capability 134 6.2.2 The Impact of Intellectual Capital on Firm Performance 139 6.2.3 Complementary Mediation for the Relationship between Intellectual Capital and Firm Performance 141 6.3 Strategic Orientations, Innovation Capability and Performance Link 141 6.3.1 The Impact of Market Orientation on Innovation Capability .142 6.3.2 The Impact of Market Orientation on Firm Performance 145 6.3.3 Competitive Mediation for the Relationship between Market Orientation and Firm Performance 147 6.3.4 The Impact of Learning Orientation on Innovation Capability 148 6.3.5 The Impact of Learning Orientation on Firm Performance 149 6.3.6 Indirect Only Mediation for the Relationship between Learning Orientation and Firm Performance .150 6.3.7 The Impact of Technology Orientation on Innovation Capability .151 6.3.8 The Impact of Technology Orientation on Firm Performance 152 6.3.9 Indirect Only Mediation for the Relationship between Technology Orientation and Firm Performance .153 6.4 Innovation Capability and Performance Link 154 6.5 Summary 156 CHAPTER CONCLUSIONS 157 7.1 Introduction 157 7.2 Conclusions 157 7.3 Methodological Contributions 161 7.4 Theoretical Contributions 162 7.5 Managerial Implications 169 7.6 Limitations of the Research .172 7.7 Direction for Future Research 173 References .176 Appendices 199 viii LIST OF TABLES Page Table 2.1 Definitions of SMEs in Malaysia 13 Table 2.2 Profile of SMEs by Sectors 14 Table 2.3 Distribution of Total Employment for SMEs in Services Sector by Firm Size 15 Table 4.1 Intellectual Capital Scale Items 75 Table 4.2 Market Orientation Scale Items 76 Table 4.3 Learning Orientation Scale Items 77 Table 4.4 Technology Orientation Scale Items 78 Table 4.5 Innovation Capability Scale Items 79 Table 4.6 Firm Performance Scale Items 80 Table 5.1 Sample Size Recommendation in PLS for a Statistical Power of 80% 96 Table 5.2 Participants Profile 97 Table 5.3 Company Characteristics 98 Table 5.4 Skewness and Kurtosis 99 Table 5.5 Operationalisation of Main Constructs 100 Table 5.6 Psychometric Properties of the First-Order Constructs 105 Table 5.7 Convergent Validity and Discriminant Validity of FirstOrder Constructs 109 Table 5.8 Results for Formative Second-Order Constructs Indicator Validity 111 Table 5.9 Multicollinearity for First-Order Constructs 113 Table 5.10 First-Order Constructs Computed for Latent Variable Scores 114 Table 5.11 Collinearity Values Among Exogenous Constructs 117 Table 5.12 Results of Bootstrapping for Structural Model Evaluation 120 Table 5.13 Summary of Results-Path Coefficient and Effect Size 123 Table 5.14 Direct, Indirect Effects of Innovation Capability on Firm Performance 129 Table 5.15 Summary of Results for Hypothesised Mediating Effect 132 Table 5.16 Summary of Results for All Hypothesised Relationships 132 ix LIST OF FIGURES Page Figure 2.1 Targets Set in SME Masterplan 2012-2020 16 Figure 2.2 Barney’s (1991) Conceptual Framework of the RBV 19 Figure 3.1 Proposed Conceptual Framework 55 Figure 4.1 Reflective versus Formative Measurement Models 87 Figure 4.2 Hierarchical Component Models 90 Figure 4.3 Reflective-Formative Type II – Repeated-Indicator Approach Mode B 93 Figure 5.1 Reflective-Formative Type II and Repeated-Indicator Approach Mode B 102 Figure 5.2 Two-Stage Approach 116 Figure 5.3 PLS Algorithm of Structural Model 118 Figure 5.4 Bootstrapping of Structural Model 119 Figure 5.5 A Three-Variable Non-Recursive Causal Model 125 Figure 5.6 Establishing Mediation and Classifying Type 126 Figure 7.1 Relationships between Intellectual Capital, Strategic Orientations, Innovation Capability and Firm Performance 160 x We intend to develop new technologies in order to respond to the changing expectations of our customers We have better technological knowledge than our competitors 7 Our product development programs are more ambitious than our competitors’ Managers basically agree that our organisation’s ability to learn new knowledge and/or skills is the key to our competitive advantage The basic values of this organisation include learning as key to improvement The sense around here is that employee learning is an investment, not an expense Learning in my organisation is seen as a key commodity necessary to guarantee organisational survival 7 7 There is a commonality of purpose in my organisation There is total agreement on our organisational vision across all levels, functions, and divisions All employees are committed to the goals of this organisation 7 Employees view themselves as partners in charting the direction of the organisation We are not afraid to reflect critically on the shared assumptions we have made about our customers Personnel in this enterprise realise that the very way they perceive the marketplace must be continually questioned We rarely collectively question our own biases about the way we interpret customer information 7 Section C: Innovation Capability How you rate the capabilities of your enterprise with respect to the following items? Much worse Our firm: than competitors Much better than competitors Provides our clients with services/products that offer unique benefits superior to those of competitors Solves clients’ problems in very innovative ways 7 Provides innovative ideas and solutions to clients Presents innovative solutions to our clients Seeks out novel ways to tackle problems Develops “revolutionary for the industry” marketing programs for our services/products Adopts novel ways to market our firm 7 Innovates with our marketing programs to keep ahead of the market Implements innovative marketing programs 205 Innovates with new software Innovates with new technology Introduces new integrated systems and technology Adopts the latest technology in the industry Section D: Firm Performance Please evaluate the performance of your business over the previous THREE years relative to your major competitors Much lower than competitors Much higher than competitors Sales growth Revenue growth Growth in number of employees Net profit margin Product/service innovation Process innovation Adoption of new technology Product/service quality Product /service variety Customer satisfaction Section E: Background Information Please answer ALL questions by filling in the blank spaces provided or by checking (√) the number of the item that BEST describes your situation Position (i.e., person who completed the questionnaire): Age of owner/CEO/manager (i.e., person who completed the questionnaire) Under 25 years 25-30 years 31-40 years 41-50 years 51-60 years 61 years and over Gender of owner/CEO/manager (i.e., person who completed the questionnaire) Male Female 206 Highest education level of the owner/CEO/manager (i.e., person who completed the questionnaire) Primary Secondary Diploma Bachelor Master Doctorate Professional Others Specify: Which ONE ICT sector best describes your operation? Programming & broadcasting activities Telecommunications Computer programming, consultancy & related activities Information service activities Note: Based on Malaysian Standard Industrial Classification (MSIC) 2008 What is the legal structure of your company? Sole proprietor Partnership Private company Public company Family trust Other Specify: Is your company: A local company A foreign company operating in Malaysia Do you view your business as a family controlled business? Yes No In which year was the company established? 10 Number of employees 11 What is your business’s sales turnover for the previous financial year (2011)? Under RM200,001 RM 200,001- 750,000 RM 750,001- 1,000,000 RM 1,000,001- 2,000,000 RM 2,000,001 – 3,000,000 RM 3,000,001- 4,000,000 RM 4,000,001 – 5,000,000 RM 5,000,001 and over 12 What is the source of your initial capital? Personal savings Family Friends Banks Government Other Specify: 207 13 How much is the initial capital? Under RM50,001 RM50,001-100,000 RM100,001-150,000 RM150,001-200,000 RM200,001 and over 14 Did your company emerge from government incubator program? Yes No 15 Have you received any form of government assistance for your business? (You can select more than one answer) None Loan Grant Training Advisory Promotion/marketing Research&Development Business premise Technical assistance Contracts/licences Other 10 11 Specify: 16 The main objective for the current business is to: (choose ONE only) Slow the growth Stay same size Grow moderately Grow substantially 17 Based on your understanding, your company is: (choose ONE only) Already an innovative company In the process of becoming an innovative company Not an innovative company but aspires to become one Not an innovative company and does not wish to become one Section F: (OPTIONAL) Copy of Survey Report? If you would like a copy of the survey report when it is published, please complete this optional section Please send me a PDF (soft) copy of the survey findings Yes No Email: THANK YOU VERY MUCH FOR YOUR TIME AND CO-OPERATION 208 Appendix D: Survey Questionnaire (Bahasa Melayu Version) Soal selidik ini ditujukan kepada pemilik/Ketua Pegawai Eksekutif (KPE)/pengurus perniagaan Sila jawab SEMUA soalan Tandakan (√) dalam petak yang disediakan di bawah nombor bagi item yang TERBAIK menjelaskan situasi anda: Contoh: √ Bahagian A: Modal Intelektual Setakat manakah anda bersetuju dengan butiran berikut? Sangat Tidak Setuju Sangat Setuju Pekerja kami berkemahiran tinggi Pekerja kami secara umumnya dianggap yang terbaik dalam industri kami Pekerja kami kreatif dan pandai 7 Pekerja kami pakar dalam kerja dan fungsi masing-masing Pekerja kami membangun idea dan pengetahuan baru Organisasi kami menggunakan paten dan lesen sebagai satu cara untuk menyimpan ilmu pengetahuan Kebanyakan ilmu pengetahuan organisasi terdapat dalam manual, pangkalan data dan lain-lain Budaya (cerita, ritual) organisasi kami mengandungi idea yang bernilai, cara menjalankan perniagaan dan lain-lain Organisasi kami menyimpan kebanyakan pengetahuan dan maklumatnya dalam struktur, sistem dan proses 7 7 Pekerja kami mahir dalam bekerjasama sesama sendiri untuk mengenal pasti dan menyelesaikan masalah Pekerja kami berkongsi maklumat dan belajar daripada satu sama lain 7 Pekerja kami berinteraksi dan bertukar-tukar idea dengan mereka yang bekerja di bahagian lain dalam syarikat Pekerja kami bekerjasama dengan pelanggan, pengedar, rakan kongsi bersekutu, dan lain-lain untuk mendapatkan penyelesaian Pekerja kami menggunakan ilmu pengetahuan tentang masalah dan peluang dari satu bahagian syarikat terhadap masalah dan peluang yang timbul di satu bahagian lain 7 209 Bahagian B: Orientasi Strategik Setakat manakah anda bersetuju dengan butiran berikut? Sangat Tidak Setuju Sangat Setuju Organisasi kami sentiasa memantau tahap komitmen pekerja dalam memenuhi keperluan pelanggan Strategi kami dipacu oleh keperluan untuk mewujudkan nilai pelanggan Kami percaya bahawa memahami keperluan pelanggan memberikan kami kelebihan kompetitif Objektif firma kami dipacu oleh keperluan untuk mencapai kepuasan pelanggan yang tinggi 7 7 Pengurus kami sering bertukar maklumat dan pandangan tentang pesaing kami Syarikat kami memberi tindak balas dengan cepat terhadap tindakan pesaing Pengurus tertinggi syarikat kami sering membincangkan kekuatan dan kelemahan pesaing kami Syarikat kami percaya bahawa menganalisis dan memberi tindak balas terhadap tindakan pesaing amatlah penting untuk mengekalkan kelebihan kompetitif kami 7 7 Kami menyelaraskan matlamat dan objektif dalam syarikat kami Semua fungsi bersepadu dalam memenuhi keperluan pasaran sasaran kami Maklumat pasaran dikongsi dengan semua orang 7 Pengurusan memahami bagaimana setiap orang dalam firma ini boleh menyumbang dalam mewujudkan nilai pelanggan Kami cuba menjangka keperluan masa hadapan pelanggan Kami cuba secara berterusan untuk mengetahui keperluan baru pelanggan Kami membangunkan penyelesaian terhadap keperluan pelanggan yang tidak dinyatakan 7 Kami cuba memahami apa yang mungkin diperlukan oleh pelanggan pada masa hadapan Kami menggunakan pelbagai teknik untuk mengetahui keperluan pelanggan yang buat masa ini tidak dinyatakan 7 Kegiatan Penyelidikan dan Pembangunan (R&D) amat penting dalam firma kami Teknologi dan kaedah yang maju digunakan untuk membangunkan produk baru firma kami Proses pembangunan produk baru diarahkan oleh kakitangan teknikal 7 Teknologi baru disepadukan dengan firma kami secara pesat Firma kami memulakan pembangunan teknologi dan produk baru Produk kami termasuk item berteknologi tinggi 210 Kami amat aktif dalam membangunkan teknologi baru Kami bercadang untuk membangunkan teknologi baru sebagai tindak balas terhadap kehendak pelanggan kami yang sentiasa berubah Kami mempunyai pengetahuan teknologi yang lebih baik daripada pesaing kami Program pembangunan produk kami adalah lebih berwawasan tinggi daripada program pembangunan produk pesaing kami 7 Pengurus pada dasarnya bersetuju bahawa kebolehan organisasi kami untuk mempelajari ilmu pengetahuan dan/atau kemahiran baru adalah kunci terhadap kelebihan kompetitif syarikat kami Nilai asas organisasi ini memasukkan pembelajaran sebagai kunci terhadap penambahbaikan Di sini pembelajaran pekerja adalah pelaburan, bukan perbelanjaan 7 Pembelajaran dalam organisasi saya dilihat sebagai komoditi utama yang diperlukan untuk menjamin kelangsungan organisasi Terdapat kesamaan tujuan dalam organisasi saya Terdapat persetujuan menyeluruh tentang visi organisasi pada semua peringkat, fungsi dan bahagian Semua pekerja komited terhadap matlamat organisasi ini 7 Pekerja memandang diri mereka sebagai rakan kongsi dalam menentukan arah organisasi Kami tidak bimbang untuk memberikan gambaran secara kritis terhadap andaian bersama yang telah kami buat tentang pelanggan kami Kaki tangan dalam perusahaan ini menyedari bahawa cara mereka membuat tanggapan tentang pasaran hendaklah dipersoalkan secara berterusan Kami jarang sekali mempersoalkan secara kolektif prasangka kami sendiri tentang cara kami membuat tanggapan terhadap maklumat pelanggan 7 Bahagian C : Kebolehan Inovasi Bagaimana anda menilai kebolehan firma anda berdasarkan item berikut? Lebih teruk Firma kami: daripada pesaing Lebih baik daripada pesaing Memberikan pelanggan kami khidmat/produk yang menawarkan faedah unik yang lebih bermutu daripada yang ditawarkan oleh pesaing Menyelesaikan masalah pelanggan dengan cara yang amat inovatif Menyediakan idea dan penyelesaian yang inovatif untuk pelanggan Mengemukakan penyelesaian inovatif kepada pelanggan kami Mencari cara yang baru untuk mengatasi masalah 211 Membangun program pemasaran yang “revolusioner bagi industri” untuk khidmat/produk kami Menggunakan cara yang baru untuk memasarkan firma kami 7 Membuat pembaharuan dengan program pemasaran kami untuk terus menjadi pendahulu dalam pasaran Melaksanakan program pemasaran yang inovatif 7 Membuat pembaharuan dengan perisian baru Membuat pembaharuan dengan teknologi baru Memperkenalkan sistem dan teknologi bersepadu yang baru Menggunakan teknologi terkini dalam industri Bahagian D : Prestasi Perniagaan Sila nilaikan prestasi perniagaan anda sepanjang TIGA tahun ini berbanding dengan pesaing utama perniagaan anda Lebih rendah daripada pesaing Lebih tinggi daripada pesaing Pertumbuhan jualan Pertumbuhan pendapatan Pertumbuhan bilangan pekerja Margin untung bersih Inovasi produk/perkhidmatan Inovasi proses Penggunaan teknologi baru Kualiti produk/perkhidmatan Kepelbagaian produk /perkhidmatan Kepuasan pelanggan 212 Bahagian E: Maklumat Latar Belakang Sila jawab SEMUA soalan Isikan jawapan anda dalam ruang kosong yang disediakan atau tandakan (√) dalam petak bagi nombor item yang TERBAIK menjelaskan situasi anda Jawatan ( i.e individu yang mengisi soal selidik): Umur pemilik/KPE/pengurus (i.e., individu yang mengisi soal selidik) Bawah 25 tahun 25-30 tahun -41 tahun 41-50 tahun 51-60 tahun 61 tahun ke atas Jantina pemilik/KPE/pengurus (i.e., individu yang mengisi soal selidik) Lelaki Perempuan Tahap pendidikan tertinggi pemilik/KPE/pengurus (i.e., individu yang mengisi soal selidik) Rendah Menengah Diploma Ijazah Sarjana Doktor Falsafah Profesional Lain-lain Nyatakan: Yang mana SATU daripada sektor ICT di bawah paling baik menjelaskan operasi perniagaan ini? Pemprograman & penyiaran Telekomunikasi Pengaturcaraan komputer, perundingan & aktiviti yang berkaitan Aktiviti perkhidmatan maklumat Nota: Berdasarkan Malaysian Standard Industrial Classification 2008 (MSIC 2008) Apakah struktur sah perniagaan ini? Pemilikan Tunggal Perkongsian Syarikat Sendirian Syarikat Awam Badan amanah keluarga Lain-lain Nyatakan: Adakah firma ini: Firma tempatan Firma asing yang beroperasi di Malaysia Adakah perniagaan ini sebuah perniagaan keluarga? Ya Tidak 213 B Bilakah perniagaan ini ditubuhkan? 10 Bilangan pekerja 11 Berapakah pusing ganti jualan bagi perniagaan ini untuk tahun kewangan yang lepas (2011)? Bawah RM200,001 RM 200,001- 750,000 RM 750,001- 1,000,000 RM 1,000,001- 2,000,000 RM 2,000,001 – 3,000,000 RM 3,000,001- 4,000,000 RM 4,000,001 – 5,000,000 RM 5,000,001 ke atas 12 Apakah sumber bagi modal permulaan perniagaan ini? Simpanan peribadi Keluarga Rakan Bank Kerajaan Lain-lain Nyatakan: 13 Berapakah jumlah modal permulaan perniagaan ini? Bawah RM50,001 RM50,001-100,000 RM100,001-150,000 RM150,001-200,000 RM200,001 ke atas 14 Adakah perniagaan ini wujud daripada program inkubasi yang dilaksanakan oleh kerajaan? Ya Tidak 15 Adakah perniagaan ini ada menerima bantuan daripada kerajaan? (Anda boleh memilih lebih daripada satu jawapan) Tiada Pinjaman Geran Latihan Penasihatan Promosi/pemasaran Penyelidikan & Pembangunan Premis perniagaan Bantuan teknikal Kontrak/Lesen Lain-lain 10 11 Nyatakan: 16 Objektif utama bagi perniagaan ini sekarang adalah untuk: (pilih SATU jawapan sahaja) Memperlahankan pertumbuhan Mengekalkan saiz perniagaan Mendapatkan pertumbuhan yang sederhana Mendapatkan pertumbuhan yang besar 214 17 Berdasarkan pemahaman anda, perniagaan ini : (pilih SATU jawapan sahaja) Merupakan sebuah perniagaan yang inovatif Sedang dalam proses untuk menjadi perniagaan yang inovatif Bukan perniagaan yang inovatif tetapi mempunyai wawasan ke arah tersebut Bukan perniagaan yang inovatif dan tidak berhasrat ke arah tersebut Bahagian F : Salinan laporan penyelidikan? (Pilihan) Sila isi bahagian ini jika anda memerlukan sesalinan laporan penyelidikan ini setelah ia diterbitkan Sila hantarkan sesalinan hasil penyelidikan dalam bentuk PDF Ya Tidak Emel: TERIMA KASIH KERANA MELUANGKAN MASA DAN MEMBERIKAN KERJASAMA 215 Appendix E: Cover Letter of Invitation to ICT SMEs Dear Participant, You are invited to participate in a PhD research project being conducted through RMIT University, which will take approximately 20 minutes to complete We are inviting owners, CEOs or managers of Malaysian ICT SMEs to participate in this research My name is Juliana Osman and I am doing a PhD research in the School of Management, RMIT, Melbourne This project has been approved by the RMIT Business College’s Human Research Ethics Committee The purpose of the research is to investigate the impact of intellectual capital and strategic orientations on the innovation capability of Small-to-Medium Enterprises (SMEs) involved in the Information & Communications Technology (ICT) industry in Malaysia Participation in this research is entirely voluntary Whether or not you decide to participate, your decision will not disadvantage you in any way You may still withdraw from the project at any time without giving a reason You also have the option of withdrawing any data that may identify you Your input will provide vital information regarding the factors that may or may not have an impact on innovation capabilities in Malaysian ICT SMEs The questionnaire consists of questions relating to your firm’s innovation capabilities, intellectual capital, strategic orientation and personal characteristics You will also be asked for some demographic details The responses you provide to the survey will be stored on a password protected computer Once we have completed our data collection and analysis, we will import the data we collect to the RMIT server where it will be stored securely for a period of five (5) years Data will be reported as an aggregate data therefore individuals will not be identified Your privacy and confidentiality will be strictly maintained in such a manner that you will not be identified in the thesis report or any publication Any information that you provide can be disclosed only if (1) it is to protect you or others from harm, (2) a court order is produced, or (3) you provide the researchers with written permission Data will be only seen by the researcher and supervisors who will also protect you from any risks At the conclusion of the project, a summary of the results and associated reports will be made available should you request for it (only a summary of your company) The final results will also be reported in a thesis to be submitted for Ms.Juliana’s PhD degree, and as appropriate, in papers for presentation at conferences or for publication in scientific journals If you have any concerns or questions regarding this project, please contact the researcher at juliana.osman@rmit.edu.au or by telephoning +61425557299 Any complaints with regards to this research should be directed to Professor Roslyn Russell, Chair, Business College Human Ethics Advisory Network, College of Business, RMIT, GPO Box 2476V, Melbourne, 3001 Telephone: +613 9925 5596 Thank you for your assistance and for giving us your time to participate We value your contribution to this research Thank you for considering this invitation Yours Sincerely, Juliana Osman @ Zainal Abidin School of Management RMIT University Australia Phone : +61425557299 Email : juliana.osman@rmit.edu.au 216 Appendix F: Ethics Approval 217 Appendix F: Ethics Approval (continued) 218 Appendix G: 16 Items Removed During Confirmatory Factor Analysis (CFA) Items ICOC3 MOCTO1 MOCPO1 MOIFC3 MOIFC4 MOLAT3 LOMindR3 TO5 TO6 TO7 TO8 TO9 TO10 PERF3 PERF9 PERF10 Our organisation’s culture (stories, rituals) contains valuable ideas, ways of doing business etc Our organisation constantly monitors the level of employee commitment to serving customers’ needs Our managers often exchange information and view about our competitors Market information is shared amongst everyone Management understands how everyone in this firm can contribute to create customer value We develop solutions to unexpressed customer needs We rarely collectively question our own biases about the way we interpret customer information.(*) Our firm initiates development of new technologies and products Our products include high technology items We are very active in developing new technologies We intend to develop new technologies in order to respond to the changing expectations of our customers We have better technological knowledge than our competitors Our product development programs are more ambitious than our competitors’ Revenue growth Product/service variety Customer satisfaction Note: Item with (*) is a reverse coded item 219 ... innovation capability and firm performance in Malaysian ICT SMEs? 1.5 Thesis Structure This section outlines the structure of the present thesis This thesis is organised into seven chapters The following... as the structure and contributions of the ICT industry towards the Malaysian economy The definition of SMEs employed in the Malaysian context is presented The importance of SMEs and ICT SMEs and. .. Lawson and Samson (2001, p 384) define innovation capability as an “ability to continuously transform knowledge and ideas into new products, processes and systems for the benefit of the firm and