Organizational Factors and Innovativeness of Housing Developers

Abstract

In examining the influence of a firm’s structure and culture on innovativeness among housing developers in Malaysia, we draw a theoretical perspective to develop hypotheses, that propose the structure and culture of the firm as organizational factors which influence innovativeness. We, therefore, examine the direct relationship between independent variables (firm structure and culture) and the dependent variable (firm innovativeness). While previous empirical studies discover that certain organizational factors such as structure, size and culture influence innovativeness, the findings are however proven to be inconsistent. We used the proportionate stratified random sampling to collect data from the micro, small, large and public-listed housing developers in Peninsular Malaysia. We received 183 valid questionnaires out of 504 questionnaires distributed, yielding 36.3% response rate. All the two dimensions of the culture examined in this study (adhocracy culture and market orientation) are found to have a positive relationship and strong influence on the firm’s innovativeness. Although the relationship between firm structure and innovativeness is positive, formalization and centralization have no strong influence on innovativeness among housing developers in Malaysia. The findings from this study suggest that to enhance the innovativeness in the Malaysian housing industry, managers and chief executives need to consider cultural dimensions such as adhocracy culture and market orientations seriously. It is hoped that our findings complement the existing body of knowledge and contribute to future studies which concern innovativeness.