Innovation-Enhancing High-Performance Work Practices in Malaysian R&D Organizations: Myth or Reality?

Mohd Shafiq  Mohd Hanafi; Arnifa Asmawi; Kok Wai  Chew; Chia Yen  Yang

doi:10.32890/ijms2024.31.1.2

Authors

Mohd Shafiq Mohd Hanafi Aonic Sdn. Bhd., Subang Jaya, Malaysia
Arnifa Asmawi Faculty of Management, Multimedia University, Malaysia
Kok Wai Chew Faculty of Accountancy, Finance and Business Tunku Abdul Rahman University of Management and Technology, Malaysia
Chia Yen Yang School of Economics and Management, Xiamen University Malaysia, Malaysia

DOI:

https://doi.org/10.32890/ijms2024.31.1.2

Keywords:

high performance work practices, HPWP, R&D project performance, innovation, Malaysia

Abstract

Numerous Malaysia policies underscore the need to build exceptional R&D capabilities as the key economic driver. This study acknowledges the influence of high-performance work practices (HPWP) on R&D innovativeness. Underpinned by social exchange theory, this study investigates the implementation of innovation-enhancing HPWP in Malaysian R&D organisations and their relationship with project performance. Survey data on R&D project performance and six dimensions of innovation-enhancing HPWP were collected from 210 project leaders and members. Results suggested that innovation-enhancing HPWP implementation is still low as HPWP might be a relatively unknown practice in the R&D sector. Nevertheless, four HPWP dimensions were significant predictors of R&D project performance: employee recruitment, performance appraisal, reward and compensation, and employee participation. These findings will guide managers in developing relevant HPWPs to foster innovativeness. This includes a comprehensive audit of existing R&D people, processes, and products, and how these three `Ps’ can be streamlined into an innovation-enhancing HPWP.

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