Product innovation encouragement amongst workforce in SMES manufacturing sector

Innovation is a fundamental catalyst to the growth and development of a country economy. The ever changing and uncertainty of world recent economy demand Malaysia to put innovation and creativity as a key factor to achieve a knowledge-based economy. However, some SMEs in Malaysia do not recogniz...

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Bibliographic Details
Main Authors: Md Noor, Haris, Azizan, Anim Zalina, Ramin, Ahmad Kaseri
Format: Conference or Workshop Item
Subjects:
Online Access:http://eprints.uthm.edu.my/3386/
http://eprints.uthm.edu.my/3386/1/ENT067.pdf
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Summary:Innovation is a fundamental catalyst to the growth and development of a country economy. The ever changing and uncertainty of world recent economy demand Malaysia to put innovation and creativity as a key factor to achieve a knowledge-based economy. However, some SMEs in Malaysia do not recognize change and reform as an innovation, and part of their manufacturing activities. Thus, innovation activities should be improved especially among SMEs workforce in order to overcome the innovative crisis in uncertain world economy environment. Therefore, this research investigated the factors that contribute to the encouragement of product innovation among SMEs workforce in the manufacturing sectors, in Batu Pahat, Johor. There were 40 respondents involved in this research through questionnaires as a major instrument of data collection. The results showed that there were five factors contributed to the product innovation among SMEs workforce; namely leadership, organizational culture, organization structure, human resource management, and environmental factors. The mean revealed that the most encouraging factors towards product innovation is human resource management (4.32). The overall finding showed that all the factors contribute to the encouragement of product innovation among SMEs workforce, therefore effort towards imparting innovation should be prioritized in SMEs operation.