Effectiveness of R&D Capabilities Towards Operational Performance Moderated by Intellectual Property Rights

The primary focus of this pilot study is to understand the relationship between firm’s internal R&D and external R&D in stimulating operation performance of manufacturing firms moderated by intellectual property rights particularly patent in Malaysia. The study contains an extensive review o...

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Bibliographic Details
Main Authors: Anuar, Herman Shah, Zulhumadi, Faisal, Mohamed Udin, Zulkifli
Format: Conference or Workshop Item
Language:English
Published: 2012
Subjects:
Online Access:https://repo.uum.edu.my/id/eprint/31795/1/ICKCS2012_42_86-90.pdf
https://repo.uum.edu.my/id/eprint/31795/
http://af.global.cnki.net/stmt/TitleBrowse/KnowledgeNet/CDYA201206010017?db=STMI8320
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Summary:The primary focus of this pilot study is to understand the relationship between firm’s internal R&D and external R&D in stimulating operation performance of manufacturing firms moderated by intellectual property rights particularly patent in Malaysia. The study contains an extensive review of existing literature and data resources related to internal and external R&D in manufacturing industry in Malaysia. The study begins by presenting the context of internal and external R&D. The business case for its relationship towards operation performance of a firm is discussed next followed by description of intellectual property as a moderating variable. The survey method has been chosen to conduct this study. A pilot data based on 23 cases were then analyzed to see how the consistencies of the construct. The sector of chemical and metallurgy manufacturing firms is chosen due to its high ranking in gaining patent in the Malaysian patent statistics in year 2010. Detailed discussions on the Cronbach’s Alpha obtained for the dependent variable and all variable is then being discussed. Intellectual property rights policy especially regarding patents should be part of firm’s business strategy. Implementing IPR will safeguard firm’s new invention, innovation or processes in the long run. Furthermore, firm may gain benefits in creating new business opportunity during various patenting stages. Effective practice of internal R&D will give advantage to the firm in three different aspects namely ability to develop and grow critical human resources, dynamic involvement in the corporate R&D program and ability to connect information wise. Therefore, relationship between internal R&D and operation performance moderated by Intellectual property rights will encourage or betterment of firms in the near future. The environment and conditions for R&D activity have changed significantly in the last decade. It is reported that the average R&D intensity for manufacturing firms rose from 2.3% in the 1980’s to 7.0% in the 2000’s. In 2005, Malaysian R&D expenditures growth from 5.0% to 7.0% continues to grow with strong support from the government. This shows that relatively how importance R&D investment that should be made by firm for their sustainability. This paper highlights the relationship of internal R&D and external R&D towards operation performance of a firm moderated by intellectual property rights.