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Facilitating the Malaysian Manufacturing Sector in Readiness for Industry 4.0: A Mediating Role of Organization Innovation

Author

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  • Hafiz Mudassir Rehman

    (Universiti Tunku Abdul Rahman, Malaysia)

  • Hui Nee Au Yong

    (Universiti Tunku Abdul Rahman, Malaysia)

  • Yuen Onn Choong

    (Universiti Tunku Abdul Rahman, Malaysia)

Abstract

The manufacturing sector of Malaysia is an essential part of its economic system. Malaysia holds a remarkable position in the global market through the exports of manufacturing products. However, this sector faces challenges such as organizations’ capability to innovate due to rapid technological and business environment changes in line with Industry 4.0. These challenges may prevent manufacturing firms from embracing Industry 4.0 and thrive in their businesses. Therefore, this research aims to identify the role of organizational practices such as Knowledge Oriented Leadership, Electronic Human Resource Management, and Decentralized Organization Structure in support of Organization Innovation to prepare manufacturing firms for Industry 4.0. A quantitative method was applied to 218 samples collected from Malaysian manufacturing firms. The results of this research are interesting for keen researchers and helpful for decision-makers and practitioners to successfully pave the way for Industry 4.0 implementation in manufacturing firms by developing innovation capabilities.

Suggested Citation

  • Hafiz Mudassir Rehman & Hui Nee Au Yong & Yuen Onn Choong, 2022. "Facilitating the Malaysian Manufacturing Sector in Readiness for Industry 4.0: A Mediating Role of Organization Innovation," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 13(1), pages 1-23, January.
    • Handle: RePEc:igg:jabim0:v:13:y:2022:i:1:p:1-23
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    References listed on IDEAS

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    1. Richard M. Burton & Børge Obel, 2018. "The science of organizational design: fit between structure and coordination," Journal of Organization Design, Springer;Organizational Design Community, vol. 7(1), pages 1-13, December.
    2. Huub Ru‰l & Tanya Bondarouk & Jan Kees Looise, 2004. "E-HRM: Innovation or Irritation. An Explorative Empirical Study in Five Large Companies on Web-based HRM," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 15(3), pages 364-380.
    3. Huub Ru‰l & Tanya Bondarouk & Jan Kees Looise, 2004. "E-HRM: Innovation or Irritation. An Explorative Empirical Study in Five Large Companies on Web-based HRM," management revue. Socio-economic Studies, Rainer Hampp Verlag, vol. 15(3), pages 364-380.
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    1. Abida Ellahi & Mobashar Rehman & Yasir Javed & Fahd Sultan & Hafiz Mudassir Rehman, 2022. "Impact of Servant Leadership on Project Success Through Mediating Role of Team Motivation and Effectiveness: A Case of Software Industry," SAGE Open, , vol. 12(3), pages 21582440221, September.

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