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
