Regulation, Incentives And GovernmentudPolicy: How Does It Stimulate Rd Engineers'udInnovative Behaviours In MalaysianudBiotechnology Smes?

摘要

This study seeks to examine the relationship between regulation, incentives and governmentudpolicy to R&D (research and development) engineers' innovative behaviour in Malaysiaudbiotechnology SMEs. This research is empirical study where survey data was drawn fromud218 R&D engineers in biotechnology SMEs in Malaysia. The data were analysed usingudSmartPLS which is Structural Equation Modelling (SEM) tool. The result unfolds thatudgovernment policy is positively and signifcantly associated with innovative behaviour.udNevertheless, regulation was found signifcant to innovative behaviour but demonstratesudnegative magnitude. On the other hand, incentives was insignifcant to innovativeudbehaviour. This in turn suggests that government policy is critical to foster innovativeudbehaviour whereby the regulation enforcement that indicates disequilibrium possessudby higher compliance cost be a disincentive for the R&D engineers to act innovatively.udContradict to previous studies, the insignifcant relationship between incentives andudindividual innovative behaviour, possibly influence by lack of coordination, monitoringudand vetting system with regards to the incentives distribution.