Innovation business model development for public sector towards innovation policy implementation in Malaysia

Abstract

Since 2009, a substantial focus has been given to innovation through transformation agenda, which has resulted in strategic moves in policy and nationwide initiatives. This approach for improvement involves a change in public sector organisations, policy, and service delivery, implicating a huge number of resources and high failure risk. Such impacts influence international report monitoring and ranking among nations, especially in innovation. As the Malaysian Public Sector innovation landscape remains an understudied field together with an absence of measurement instrument and organisation-level innovation model, the drawback poses a tremendous risk towards innovation policy implementation. The aim of this research is to propose an Innovation Business Model for innovation policy implementation and reduce the empirical research gap in the public sector innovation knowledge base. This research examines the innovation landscape in the Malaysian public sector and its impact towards public sector organisation innovation performance through innovation capabilities and innovation management from a Business Model Perspective for contemporary model development. The current innovation business models in organisations were measured through quantitative research using the Structural Equation Modelling technique model to evaluate the impact towards overall organisation innovation performance. This research involves a sample size of 328 public sector middle managers selected by stratified random sampling, and a survey questionnaire as the research instrument. As hypothesised, Malaysian Public Sector innovation landscape was found to be dependent on innovation capabilities, both as a factor and mediator in influencing innovation performance. It was discovered that there is a dire need for an organisation-level model to balance the dependency and improve the innovation performance in public sector agencies by focusing on both innovation capabilities and innovation management. The contribution of this research is in developing an organisation-level Innovation Business Model within the Malaysian setting. Ultimately, the public sector can capitalise on implementing innovation and enhance organisational performance in both practical and the academia through the expansion of public sector literature in the Malaysian context. This motion can be accomplished through its Innovation Business Model development and the accompanying rediscovered measurement instrument.