Organisational Culture To Support Innovation Creation And Adoption In Malaysian Architectural Firms
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Date
2015-08
Authors
Lai, Kong Seng
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Abstract
The construction industry and innovation play significant roles in strengthening the growth of nations. However, innovation tends to fail at times. In fact, innovation in Malaysia’s construction industry has been determined to be inadequate. The related literature suggests that innovation comes in two orientations, namely, creation and adoption. However, these orientations have not been differentiated from each other by most innovation studies. Therefore, the recent trend indicates the extensive need to distinguish such orientations in organisational and innovation studies. Architectural firms consist of innovation-oriented and knowledge-intensified organisations, yet they receive less scholarly attention compared with large companies such as housing developers. Therefore, the first objective of the current research is to examine the state of innovation orientations (creation and adoption) in architectural firms. In relation to the ‘backward scenario’ in the construction industry, organisational culture is recognised as the key for improving innovation. However, organisational studies have only exerted minimal efforts in incorporating innovation orientations. Therefore, the current research aimed to explore the organisational culture of architectural firms in response to innovation orientations (creation and adoption) as its second objective. A sample frame was retrieved from the Board of Architects Malaysia, and a proportionate stratified sampling was performed. A questionnaire survey was administered to 1,004 architectural firms, and a 15% response rate was recorded. The data were analysed with descriptive analyses, exploratory factor analyses, paired sample t-test, and partial least squares structural equation modelling. Results revealed that the architectural firms in Malaysia are innovation–creation oriented, and that the overall state of innovation in the country is relatively low. Cultural dimensions such as ‘freedom’ and ‘collectivism/teamwork’ positively influence both adoption and creation. Nonetheless, other cultural dimensions, including ‘innovation-supportive behaviours’, positively influence innovation creation instead of innovation adoption. Cultural dimensions such as ‘individualism’ positively influence innovation adoption only and not innovation creation. These findings imply that architectural firms must be given the liberty to plan tasks, must be allowed to defend their opinions, must be empowered to make decisions, and must appreciate teamwork for them to innovate. Architectural firms that embark on innovation creation should emphasise the learning culture, allow risk tolerances, and support new ideas. For innovation adoption, a certain degree of self-entrusted responsibilities, off commitment sharing and independence should be allowed.
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Construction