The relationship between ethnic diversity and innovation at Manufacturing X ( Malaysia)
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Date
2010
Authors
Ooi, Peng Hong
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Abstract
The capacity to be innovative has been underlined as one of the most important factors for organizational survival and growth. At Manufacturing X (Malaysia), innovation gap is profound as measured by the reducing quantity and quality of innovative ideas submitted by employees over the past few years. The top management believes that a workforce consists of different ethnicities is the key to its success as an innovative leader in technology, and uses it as a strategy to enhance innovation. This study investigates the relationship between ethnic diversity and innovation at Manufacturing X (Malaysia). The literature review suggests that ethnic diversity and innovation may not be a direct relationship and intra-group conflict may be a mediator in the relationship. Hence, intra-group which consists of relationship, task, and process conflict, is included in the study to see if it mediates the ethnic diversity and innovation relationship. Consistent with prior studies, ethnic diversity is found to have a positive relationship with innovation. However, only a very small percentage of the variation in innovation is explained by the variation in ethnic diversity. Contrary to previous researches, intra-group does not mediate the ethnic diversity and innovation relationship at Manufacturing X (Malaysia). From the results of the study, it is recommended that Manufacturing X (Malaysia) top management re-considers using ethnic diversity as a strategy to improve innovation as it is not a major contributing factor to innovation. Instead, the organization should focus on other strategies to enhance its innovation level like leveraging on its leaders to drive for innovation enhancement through organizational cultural change, role model, and support for innovation. Hardcopy questionnaires were used as the research instrument and SPSS was used to analyze the data.
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Keywords
Business Administration , Ethnic Diversity , Innovation