Implication of national culture in firms‟ innovative capabilities from Malaysian perspective

Abstract

Innovation is the key characteristic of any developed nations. From an organizational perspective, innovation allows firms to remain relevant and stay competitive in the market. Hence, fostering innovation has become the main agenda for many organizations all over the world. With globalization and technological advancement, more organizations are becoming multinational and conducting their businesses across borders. The understanding of local culture is essential for these firms in their quests for innovation. This paper examines the implications of national culture on firms’ innovation capabilities in the context of Malaysia. The discussion adopts Hofstede dimension of national culture and focuses mainly on the leadership and effective strategic communication in innovation development. A framework is developed to explain the context, enablers and barriers to innovation.