The relationship between innovation & dynamic capability : Malaysia perception/view

Abstract

Purpose – The purpose of this paper is to provide better insights into the relationship between dynamic capabilities and innovation. It links dynamic capability with innovation and indicates the ways they can be related. Design/methodology/approach – The relationships between dynamic and innovation capability were investigated through a systematic literature review as well as through non-parametric correlation testing. Findings – Non-parametric testing of correlation shows positive relationship between innovation and dynamic capability, furthermore it result shows among the three types of innovation (Product &service innovation, Process innovation, Marketing innovation) only process innovation is significantly related to dynamic capability. However, both finding shows several inconsistencies and even contradictions. Originality/value – In this paper, the authors attempts to provide a better clarification as the relationship between dynamic capabilities with innovation, both of which is relatively new approach in the field of strategic management. Since both areas address issues that are essential to today’s environment, future research should seek to clarify both concepts, by undertaking some new method of research and developing a more comprehensive and unambiguous framework