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The Effect of Innovation Success Factors Towards Organizational Performance in Automotive Industry

Author

Listed:
  • Norshima Humaidi

    (Faculty of Business and Management, Universiti Teknologi MARA Selangor, Malaysia)

  • Melissa Shahrom

    (Faculty of Business and Management, Universiti Teknologi MARA Selangor, Malaysia)

  • Quhratul Aini Abdullah

    (Faculty of Business and Management, Universiti Teknologi MARA Selangor, Malaysia)

Abstract

Organizational performance is essential and necessary for every organization to properly create and sustain a healthy and effective results oriented culture. In an economy increasingly driven by technological change, businesses need to stay abreast of the latest innovations to keep their competitive edge and access new market opportunities. Therefore, in order to excel in business, organizations must pay attention especially to their technology implementation process. This study aims to analyze the effect of technology innovation that contributes to the organizational performance. The innovation success model was adapted, which focus on three factors (technology selection, technology capability and technology management capability) and this study also added a successful technology implementation into the new framework. 131 questionnaires were distributed to 8 automotive companies in Shah Alam, Selangor. Based on the data analysis, the result shown that all the innovation success factors and successful technology implementation positively influence organizational performance. The technology capability is shown to be the strongest effect on the organizational performance among others. This study will hope to provide a guideline to the management of the automative industry on how to improve their organizational performance through innovation.

Suggested Citation

  • Norshima Humaidi & Melissa Shahrom & Quhratul Aini Abdullah, 2018. "The Effect of Innovation Success Factors Towards Organizational Performance in Automotive Industry," International Journal of Business and Administrative Studies, Professor Dr. Bahaudin G. Mujtaba, vol. 4(3), pages 129-136.
    • Handle: RePEc:apa:ijbaas:2018:p:129-136
    DOI: 10.20469/ijbas.4.10005-3
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    References listed on IDEAS

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    1. Nor Azrin Md Latip & Mad Ithnin Salleh & Nurul Fadly Habidin & Nurul Fadzillah Sapengin, 2014. "Technological Capability and Relationship Performance: The Roles of Power," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(12), pages 502-509, December.
    2. Van Lancker, Jonas & Mondelaers, Koen & Wauters, Erwin & Van Huylenbroeck, Guido, 2016. "The Organizational Innovation System: A systemic framework for radical innovation at the organizational level," Technovation, Elsevier, vol. 52, pages 40-50.
    3. Newman, Carol & Rand, John & Talbot, Theodore & Tarp, Finn, 2015. "Technology transfers, foreign investment and productivity spillovers," European Economic Review, Elsevier, vol. 76(C), pages 168-187.
    4. Siska Willy, 2017. "Analysis of Financial Ratios to Measure the Company's Performance inthe Sectors of Consumer Goods at Pt. Nippon Indosari Corpindo, Tbkand Pt. Mayora Indah, Tbk," International Journal of Business and Economic Affairs (IJBEA), Sana N. Maswadeh, vol. 2(1), pages 45-51.
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