The Relationship between Organizational Structure and Innovativeness of Malaysian Housing Developers

Previous research has shown that several aspects of firm characteristics such as structure, culture, size, and operational location will influence innovativeness of an organization. Underpinned by readiness change theory and using a valid and reliable instrument, a pilot survey was conducted to examine the statistical relationships between organizational structure and firm innovativeness of housing developers in Penang, Malaysia. The regression analysis shows that formalization is statistically significant and negatively relates with information technology innovativeness. Formalization and centralization have no statistically significant relationship with product, process and business system innovativeness. The authors suggest that the result could have been influenced by the small number of respondents. It is therefore concluded that based on the results of the analysis, organizational structure will not influence firm overall innovativeness of housing developers in Penang