Page 1 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 149
Work Environment Determinants of Innovative Work
Behaviour: Study of Malaysian Small and Medium Enterprises
in Three Selected Cities
Noorsafiza Mohd Sapie1
, Mohd Yusof Hussain2
, Abd Hair Awang3
, Suraiya Ishak4
1School of Social, Development and Environment, Faculty of Social Sciences and Humanities,
National University of Malaysia,
Correspondence: safiza86@ymail.com
ABSTRACT
Innovative work behaviour reflects the
individual’s ability to adapt effectively to the job
by modifying themselves or the work environment
through innovation. In a work environment where
innovation is encouraged and valued throughout
the whole organization, employees will have
plenty of possibilities to observe people that
successfully engage in innovative work behaviour.
In this regard, the work environment can support
or discourage the employees to apply their newly
acquired knowledge and skills. This paper aims to
measure the level of the work environment and
innovative work behaviour of SMEs employees.
The paper also analyzes the influence of work
environment on innovative work behaviour. The
result is based on data collected through self- administrated survey of 254 employees (92.5
percent responded) at micro and small scale
enterprises in the manufacturing sector at three
selected cities in Malaysia. The results showed
that the work environment is high. However, the
level of innovative work behaviour is moderate.
The regression analysis showed that the
leadership, facilities, risk taking and firm are
significantly on innovative work behaviour. In
contrast, an empowerment and reward not
significant on innovative work behaviour. Thus,
this study is important for a firm to improve the
quality of employee and innovation capacity.
Keywords: employees, work environment,
innovative work behaviour, quality, innovation
1. INTRODUCTION
An awareness of the various parties Malaysia
about the needs of entrepreneurs who are able to
produce international standard and high-skilled
employees. However, work environment in SMEs
that do not support and do not meet the needs of
the major limiting factors for their innovation.
Most SMEs face difficulties in attracting and
retaining employees as remuneration are
considered low and the rewards and benefits that
are not equivalent (SME Corp. Malaysia 2012). In
this regard, the work environment in SMEs should
be emphasized.
According to Delaney and Huselid (1996)
and Huselid (1995), the performance of the
organization is dependent on the skills and
abilities and motivation of employees. This
illustrates the importance of the work
environment for employees to innovate. This is
because the performance seen on three types of
individual behaviour of the control, adaptive and
proactive impact on individuals, groups and
organizations (Griffin et al., 2007). This situation
shows that the contributions of skilled and
motivated employees are influenced by the way in
which the work is structured (Nazlina et al.,
Page 2 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 150
2011). Hornsby and Kuratko study (1990; 2003)
found that employees who are motivated and
skilled will determine the ability of small firms to
achieve competitive balance in the current
business environment. Furthermore, Rauch et al.
(2005) and Pfeffer (1998) noted that human
resources management plays a role in improving
changes in the development of small-scale
enterprises
Therefore, to motivate employees,
employers can encourage their employees to work
efficiently, reward, merit-based promotion system
employees and other types of incentives that
support the interests of employees (Nazlina et al.,
2011). This article deals with the question of what
level of work environment and innovative work
behaviour in SMEs? Does the work environment
contribute to the formation of innovative work
behaviour? Evaluation of the influence of the
work environment is very important to look at
how the work environment to form innovative
features among SME employees.
2. WORK ENVIRONMENT
Noe et al. (2002) refers to the atmosphere of the
work environment for the transfer, management
support, support of colleagues, the opportunity to
use the capacity that they have learned and
technology support. There are two categories of
environmental factors associated with work- related organization (Tasse and Mohamed (2002).
Factors associated with work are work neediest,
opportunity, pressure groups and norms, equality
context, supervisor support and intervention work.
Factors associated with the organization are
positive reinforcement, culture and organizational
climate (Tasse and Mohamed, 2002).
Amabile et al. (2005) states that
encouraged the organization are an important
aspect of the work environment for innovation.
These include incentives to take risks and to
assess the highest levels of innovation, fair
valuation and supporting ideas, rewards and
recognition for innovation, collaboration ideas
flow throughout the organization and participation
of management and decision making. This is
supported by Janssen (2003) which states that a
work environment that supports and stimulates
increased idea generation and innovation
(Janssen, 2003). There are many other sources
that contribute to providing a work environment
that supports and stimulates, among others, are
practice management support and leadership,
evaluation and constructive feedback, support and
stimulate colleagues.
Consequently, work environment factors
highlighted in this paper include leadership,
empowerment, reward, facilities, risk takers and
firm size. These factors are an important
background to creativity and innovation. As a
result, the changing environment has caused a lot
of research has been done to make organizations
more flexible, adaptive, entrepreneurial and
innovative way to meet the demands of today
(Orchard 1998; Valle 1999; Parker and Bradley
2000).
3. INNOVATIVE WORK BEHAVIOUR
Innovative work behaviour in the world
organization is a process that produces a change
in the form of products, processes, or procedures
that are new to an organization (Ahmad, 2009).
Damanpour (1991) defines innovative work
behaviour as a generation, development, and
implementation of new ideas or behaviour s that
could be a new product or service, the new
product, a new structure or administrative system,
as well as a new work program for the members
of the organization. According to Carmeli et al.
(2006) innovative work behaviour is not only a
purpose to inspire new ideas, but also to introduce
and apply the ideas and connect with all things
designed to improve the performance of the
enterprise. There are various dimensions of
innovative behaviour are distinguished in previous
studies. Scott and Bruce (1994) and Janssen
Page 3 of 11
Journal for Studies in Management and Planning
Available at http://internationaljournalofresearch.org/index.php/JSMaP
e-ISSN: 2395-0463
Volume 01 Issue 05
June 2015
Available online: http://internationaljournalofresearch.org/ P a g e | 151
(2000) states the innovative behaviour is often
associated with the phases of the innovation
process. Kanter (1988) outlines the three- dimensional behaviour of the generation of ideas,
build coalitions and implementation. Kleysen and
Street (2001) were divided into five dimensions,
namely, exploration opportunities, idea
generation, formative investigation, championing
and implementation. While De Jong and Den
Hartog (2010) categorize the four dimensions of
innovative behaviour, namely the opportunity
exploration, idea generation, championing and
implementation. Therefore, innovative work
behaviour in this study is the exploration of the
idea of starting and ending with the
implementation of the idea as the basis for
organizational innovation and this behaviour led
to the sustainability and effectiveness of
individuals, groups or organizations.
4. METHODOLOGY
This study focused on production employee micro
and small scale enterprises in the manufacturing
sector in the three selected cities in Malaysia, i.e.;
Kuantan, Pahang, Kuala Terengganu, Terengganu
and Kota Bharu, Kelantan. Data were collected
through questionnaires given to the company
management to be completed by the employees of
the company. A total of 254 production
employees was sampled and only 92.5 percent
(235 employees) provides complete feedback.
Next, a descriptive analysis is used to give the
background of the respondents, the dimensions of
innovative work behaviour and work
environment. The regression tests are used to see
the influence work environment on the formation
of innovative work behaviour.
5. RESULTS AND DISCUSSION
5.1 Background of Respondents
Table 1 shows the background of the respondents.
The analysis found that 45.9 percent of male and
54.1 percent of female employees who
participated in this study. The majority of
respondents were male employees in Kuantan
(56.3%) and Kuala Terengganu (52.9%). While in
Kota Bharu (64.2%) where female employees
more involved in this study.
In terms of age, the study found that the
minimum age is 17 years while the maximum is
66 years old with a mean of 34 years. In detail it
was found that employees aged less than 25 year
high in Kota Bharu (40.4%) than Kuala
Terengganu (7.7%) and Kuantan (23.1%). For
ages 26 to 35 years were found to be as much as
40 percent in Kuantan and 44.2 percent in Kuala
Terengganu. Next, for employees aged 36 to 45
years around 20 percent in Kuantan and Kota
Bharu except Kuala Terengganu (13.5%). The
study found that employees aged 46 to 55-year
higher in Kuala Terengganu (21.1%) than Kota
Bharu (15.6%). However, it was found that
employees over the age of 56 years, the highest in
Kuala Terengganu (13.5%). Overall, the majority
of employees aged 26 to 35 years (32.3%). This
was followed by employees aged less than 25
years (27.9%). The study found that only 3.5
percent of employees over the age of 56 years and
is the lowest percentage.
In terms of work experience were found
most employees minimum work experience is six
months, while the maximum is 52 years old with
an average total of 9 years. Found that employees
with less than one year experience are as much as
20 percent in Kuantan relatively higher than
Kuala Terengganu (13.5%) and Kota Baharu
(13.3%). While employees with experience from
2 to 4 years old were found in Kota Bharu highest
(37.3%) and was followed Kuala Terengganu
(27%) and Kuantan (24%). The study also found
that 34 percent of employees in Kuantan have
more than 11 years while in Kuala Terengganu by
24.3 percent and 27.7 percent in Kota Bharu.
Overall, it was found that work experience of over
