Factor analysis between internal and external R&D with operational performance moderated by intellectual property rights

• Main Authors: Anuar, Herman Shah, Mohamed Udin, Zulkifli, Mohd Nawi, Mohd Nasrun
• Format: Article
• Language: English
• Published: TechMind Research, CANADA 2013
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/10238/1/1.pdf; http://repo.uum.edu.my/10238/; http://www.ijrbtonline.com/index.php/ijrbt/article/view/33157

This paper elaborates the findings from factor analysis in investigating intellectual property rights (IPR) (patent) having a moderating effect on the relationship between internal and external R&D towards operational performance of chemical and metallurgical manufacturing firms in Malaysia.The results of this paper were based on statistical output derived from the Statistical Package for Social Sciences version 19.The survey method was used for the study, focusing on chemical and metallurgical firms in Malaysia as the unit of analysis.It was revealed that IPR policy pertaining patents should become part of a firm’s business strategy. Implementing IPR will safeguard firm’s new invention, innovation, or process in the long run.Furthermore, firms may gain benefits in creating new business opportunities during various patenting stages. Strict enforcement of IPR could yield better incentives for innovation.In the long run, revenue obtained from IPR can be used to finance innovation and R&D activities.Implementation of IPR has tendencies to stimulate more research and innovation. Applying innovative and creative ideas by protecting it through IPR is able to help firm’s long term success.The paper reveals that the relationship between internal R&D towards operational performance was exist in the study (H1A); relationship between external R&D towards operational performance was exist in the study (H1B); and higher level of IPR has a significant positive impact on operational performance (H1C).