Page 1 of 12

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 03

April 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 549

Organization Learning Determinants of Innovative Work Behavior: Study of

Malaysian Small and Medium Enterprises at Three Cities Selected In Malaysia

Noorsafiza Mohd Sapie1

, Mohd Yusof Hussain1

, Abd Hair Awang1

, Suraiya Ishak1

1School of Social, Development & Environmental Studies, Faculty of Social Sciences and Humanities

National University of Malaysia,

Correspondence: safiza86@ymail.com

ABSTRACT

An innovative firm is due to the way the

organization stimulate learning among their

employees. This is because learning is seen as a

stimulus that can increase a firm's innovation

capability. This paper aims to measure the level

of the organizational learning and innovative

work behavior of Small and Medium Enterprises

(SMEs) employees. The paper also examines the

extent to which organization learning influence

the formation of innovative work behavior. The

study is based on data collected through self- administered survey on 254 employees (92.5

percent responded) at micro and small scale

enterprises in three selected cities in Malaysia.

The results showed that organization learning is

high. However, the level of innovative work

behavior is moderate. The regression analysis

shows that learning organizations have an

influence on the formation of innovative work

behavior. Therefore, this study is important for a

firm to create and maintain a culture of learning

that is regarded as supporting innovation.

Keywords: Capacity, Organizational Learning,

Innovative Work Behavior, Innovation

1. INTRODUCTION

Small and Medium Enterprises (SMEs) are an

important component of the Malaysian economy

and the potential to be the main engine of growth

and innovation (Ministry of Finance, 2010). This

is as defined by Bozic (2011) that innovation as a

means to achieve economic growth and improve

business performance continued in the long run.

Accordingly, innovative human capital is vital for

the survival of SMEs in the global challenge to

strengthen the competitiveness of the economy.

As a result, the development of human capital

among employees must be increased to increase

the number of skilled employees and reduce the

regulatory burden (Mohnen, 2008). This is

because the country desperately needs a quality

workforce that is not only qualified but innovative

service to SMEs (SME Corp. Malaysia, 2012b).

This not only enables employees be more

independent but also the best example in human

development and develop work culture.

Organizational learning is one element that can

meet the human capital development. This is

because learning in the workplace is a strategy to

develop the competencies of employees (Khairul

Anuar, 2007). The combination of knowledge and

experience in the employees enabling them to act

quickly and flexibly to the needs of the business

(Spangenberg et al., 1999; Caravan, 2000; Ileana,

2008). These elements need to be addressed by

the organization as this will help the organization

compete and face changes (Ab. Aziz, 2010).

Page 2 of 12

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 03

April 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 550

In a global economy, organizations that focus on

learning and innovation is more likely to produce

innovative solutions is a prerequisite for global

competitiveness (Lundvall and Nielson, 2007).

Furthermore, learning has great influence on

employee productivity and organization (Ab.

Aziz, 2010). Through the learning, skills,

knowledge and employee performance begins to

drop can be improved. This is because the roots of

action learning in organizational and workplace

culture. This article discusses the question of what

level of learning in SMEs that dominate

innovative work behavior? Are organizations

learning influence the formation of innovative

work behavior? Evaluation of the influence of

learning in the organization is important to look at

how learning in organizations forming innovative

features among SME employees.

2. ORGANIZATIONAL LEARNING

Learning meant a fixed change of behavior,

cognitive or effects resulting from an interaction

with the environment. Learning is also a

permanent change in behavior that results from

experience (Abd. Aziz, 2010). These changes may

not be apparent until a situation arises that

highlights the new behavior; learning outcomes

are usually not shown instantly through

achievement (Hilgard and Atkinson, 1975).

According to Argyris (1977) Organizational

Learning is a process in which members of an

organization detect errors or anomalies and

correct it by restructuring organizational theory of

action, embedding the results of their inquiry in

organizational maps and images (Nemeth, 1997).

Fiol and Lyles (1985) defines organizational

learning as the process of improving actions

through better knowledge and understanding. In

other words, organizational learning is a process

by which knowledge about action outcome

relationships between the organization and the

environment is developed (Daft and Weick,

1984).

Through learning, organizations adapt to

environmental constraints, to avoid the repetition

of past mistakes and maintain critical knowledge

to the contrary. Learning is critical element in

securing competitive advantage. The ability to

implement strategic change, responding to the

challenges of a competitive, cross-border transfer

of critical knowledge is closely linked to the

organization's ability to learn. That learning

happens on three levels: individual, group and

organization (Bontis et al., 2002; Castaneda and

Rios, 2007). All individuals have the ability to

learn, given sufficient time and support.

According to Dogson (1993) individuals are the

primary learning entity in firms and its individuals

which create organizational forms that enable

learning in ways which facilitate organizational

transformations. Individual learning is defined as

the ability to build knowledge through individual

reflection about the stimulus and external sources,

and through a redefinition of personal knowledge

and experience of the individual in interaction

with others and the environment (Sherry Shiuan,

2006). For example, find own information or

materials required through the internet.

Next, group learning is the process of organizing

the team wasted effort that can be avoided and

create results that can be accepted by consensus

(Aziz Yusof, 2010). It builds discipline and skills

of self-learning team for producing talented team

of talented individuals. It is also the key to the

success of the unit or department within the

organization (Aziz Yusof, 2010). They are more

open in a discussion in which the ability of the

team members are able to interpret these

assumptions and make decisions that can lead to

the exploration of more ideas and a willingness to

share. For example, interacting with co-workers

(communication between employees) and attend

meetings.

Page 3 of 12

Journal for Studies in Management and Planning

Available at http://internationaljournalofresearch.org/index.php/JSMaP

e-ISSN: 2395-0463

Volume 01 Issue 03

April 2015

Available online: http://internationaljournalofresearch.org/ P a g e | 551

Learning organizations also are situations where

organizations continuously using the human

capital capacity to create the results they desire ,

where new forms of thought has been formed, the

collective aspirations have existed and continue

studying employees collectively (Senge, 1990).

For example, the management sent workers attend

courses or conferences. Through the learning

organization workers have a broader view of the

process of implementing the activities of the

business environment and achieve a change in

tandem. In a learning organization is also the

opinion of the employees are valued and total

employee contribution is not specified and is

restricted within the organization. In addition,

through the learning organization workers have

critical thinking system that allows them to be

more motivated, rational and committed to the

organization. This was the catalyst for change in

employees and thus they are able to achieve

amazing performance of employees.

3. INNOVATIVE WORK BEHAVIOR

Thompson and Fine (1999) defines innovative

work behavior as receiving, generating and

implementing new ideas, processes, products or

services. According to West and Farr (1989)

innovative work behavior is the result of

individual behavior, introduce and apply the

things the 'new' is beneficial in various levels of

the organization. This innovative work behavior

with increasing innovation, as it involves all

parties to employee empowerment system is

needed in the process. De Jong and Den Hartog

(2007) provide a definition of innovative work

behavior as idea generation and idea applications

either as individual tasks, group or organization.

Innovation can be sown in the organization to

explore opportunities, identify performance gaps

or explain proposed solutions to a problem. The

opportunities to generate ideas within the

organization appeared to do the job so that

improvements can increase customer satisfaction

and improve organizational performance.

Accordingly, there is a multi-dimensional

measure of innovative work behavior from

previous studies. Scott and Bruce (1994) and

Janssen (2000) states the innovative work

behavior is often associated with the phases of the

innovation process. While Kanter (1988) outlines

a three-dimensional behavior of generating

innovative ideas, build coalitions of ideas and

implementation of ideas. De Jong and Den Hartog

(2010) innovative work behavior was categorized

into four dimensions, namely the exploration

opportunities, idea generation, championing and

implementation. While Kleysen and Street (2001)

divided into five dimension, namely exploration

opportunities, idea generation, formative

investigation, championing and implementation. It

is concluded that the innovative work behavior is

the process of exploring new ideas until to

implement the idea.

4. THE RELATIONSHIP BETWEEN

ORGANIZATIONAL LEARNING ON

INNOVATIVE

WORK BEHAVIOR

Organizational learning is a strategic variable for

firms that seek to introduce new products or

create new markets because of the need to

innovate continuously in order to survive intense

competition (Islam Mohamed and Sulaiman,

2011). Organizational learning play an important

role in ensuring that knowledge is always

replenished and updated enabling suitable work

behavior to changes in the competitive

environment (Lemon et al., 2004). Therefore,

organizational learning supports creativity,

inspires new knowledge and ideas (Islam

Mohamed and Sulaiman, 2011). According to

Nonaka and Takeuchi (1995) support the learning

culture in the organization becomes a critical

factor for linking several innovative components

within the organization. This is because

innovations occur when employees share their

knowledge with organizations and when

knowledge is shared, generate new vision