Enhancing Innovation through Learning Organisation among the Multinationals in Malaysia: Mediating Role of Self Efficacy

The aim of this research is to examine the impact of learning organization on innovation, mediated by the self-efficacy among Multinationals in Malaysia. This study builds on the conceptual framework and further analyses the important factors of learning organization in predicting individual innovation and self-efficacy through critical evaluation of associated theoretical models, literature study and empirical testing. Due to the respondents' proximity, availability and accessibility, this study has used non-probability convenience sampling technique. Data was collected using a Likert-Scale (1-5) questionnaire from 308 who were employed at Multinationals. The reliability and validity of the item construct was tested. A structural equation modelling was carried out to analyse the data via AMOSE 22. The findings indicated that learning organization has a positive significant influence on innovation and self-efficacy. However, the result showed that self-efficacy has no significant effect on innovation. The result showed that the mediating effect of self-efficacy on the relationship between learning organization and innovation was not significant. The overall conclusion is that innovation can be cultivated and enhanced through learning organisation. The theoretical contribution of this research is that learning organisation and self-efficacy are two key determinants of innovation. Practically, this research findings can be used to design training and development programs to enhance learning organisational culture among the employees which in turn engage themselves in innovative behaviour. Managers can also use this research findings to identify and deciding to allocate resource to enhance innovation through most critical aspects of learning organisation than all aspects.