CONTRIBUTION OF PROCESS INNOVATION CAPABILITY, IT INTEGRATION AND FLEXIBILITY TO INNOVATION PERFORMANCE OF ELECTRIC AND ELECTRONICS MANUFACTURING SECTOR IN MALAYSIA

Abstract

The purpose of this paper is to analyze the contribution of process innovation capability, IT
integration and flexibility to innovation performance in the Malaysian electrics and electronics (E&E) sector.
This study adopted a quantitative approach. Questionnaires were distributed to Malaysian E&E manufacturers
registered with the Federations of Malaysian Manufacturers (FMM) via email and postal mail. A total of 52
valid responses were obtained and analyzed using correlation analysis. A significant but weak relationship
was found between IT integration and innovation performance. A significant and strong relationship was
found between process innovation capability and innovation performance. The study is among the first to look
specifically at Malaysia’s E&E sector. The findings are of interest to academics as well as to public and private
sector practitioners in directing resources to integrating IT and increasing the process innovation capability to
achieve enhanced innovation performance.