INTERNATIONAL JOURNAL OF SOCIAL SCIENCES 15th ... - TIJOSS

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES 15th December 2016. Vol.47. No.1 © 2012-2016 TIJOSS & ARF. All rights reserved ISSN 2305-4557

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THE RELATIONSHIPS BETWEEN CULTURAL VALUES, ETHNICITY, PERFORMANCE AND INNOVATIVENESS: A CASE STUDY OF MALAYSIA NORTHERN REGION PRIVATE SECTOR EMPLOYEES Bibi Noraini Mohd Yusuf 1, Fatimah Azzah2 and Syahida Kamil3 1

(School of Business Innovation and Technopreneurship/Universiti Malaysia Perlis, Malaysia) 2

(of Business Innovation and Technopreneurship/Universiti Malaysia Perlis, Malaysia)

3

(of Business Innovation and Technopreneurship/Universiti Malaysia Perlis, Malaysia)

Abstract : Culture is part of a very complex social concept entailing a deep understanding and comprehending the challenges of a unique, distinctive and peculiar social values and norms of a particular ethnic group. Within the Malaysian society there is a Malay culture, a Chinese culture, an Indian culture and a Eurasian culture. The research methodology adapts Hofstede's 1991 Model of Cultural Differences, which outlines a culture platform, essentially identifying that culture exists among ethnic groups in terms of 1) individualism-collectivism 2) masculinityfeminity 3) power distance, 4) uncertainty avoidance and 5) time orientation. The research outcome will enhance the understanding on several dimensions of Cultural Values and the importance it carries on employee innovativeness in Malaysia. Data sampling for this study comprised a group of employees from factories and private organizations in the industrialization sector, primarily in the northern states of Malaysia (Kedah and Penang). Questionnaires were distributed randomly to 200 employees in the subject areas. The results showed significant relationships between cultural values, ethnicity and employee performance with employee innovativeness. This study research will generate valuable information to a wide spectrum of organization, especially nascent types, which could be adapted by management and employers to raise employees’ innovativeness. Keywords - Cultural Values, Ethnicity, Performance and Innovativeness INTRODUCTION

employees may originate from the same country,

Background diversity at workplace makes each

since coming from different ethnic groups,

employee different from each other primarily in

diversity in cultural values in terms of work exists.

terms of perception towards work or even in

Cultural values in each ethnic background in

decision

Malaysia are inherited from their respective family

making

processes.

Even

though

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ancestors. As societies progress rapidly in terms of

in interactions (Barsoux, 2003). An individual’s

technological advancement coupled with access to

engagement in innovative work behaviors requires

borderless information, the conundrum is whether

the individual to be both able (having certain

culture would also morph in parallel with time.

cognitive capabilities, expertise, relevant task

Within the ethnic groups in Malaysia, cultural

knowledge,

values are still being well guarded, deemed sacred

personality

and closely practiced until now. Family approaches

motivated and satisfied) for him to be innovative

and social disciplines, such as children upbringing,

(Hofstede, 1980). This often results in different

even differ among each ethnic group. Any

expectations

empirical studies, involving the Malaysia cultural

dilemmas for employees in the organizations. Also,

values as a subject, always provide interesting

by speaking different languages, having different

outcomes. The sole purpose of this study is to

priorities and statuses coupled with numerous

explore the relationships and its effects between

other

ethnicity, cultural values, employee performances

collaborative functioning (Iles, 1995). In cross-

and employee innovativeness in Malaysia. It has

cultural studies of implicit theories of creativity in

been observed that the Malays and Chinese

the West (the USA, Europe) and East (China, Japan,

managers have differences in cultural values,

Korea), there as revealed a clear mismatch – in the

resulting in certain discrepancies in their styles of

West the essential attributes of creativity and

management and performance (Abdullah, 1992).

innovation are creativity, novelty, originality, focus

Culturally

varied

on self-expression, whereas in the East, any

backgrounds and experiences and naturally hold

innovation is regarded as an interpretation of

very different business perspectives and decision-

existing tradition (Lebedeva and Grigoryan, 2013).

diverse

personnel

have

making processes at work.

necessary

technical

characteristics)

that

differences,

could

that

and

cause

in

skills

and

willing

(e.g.

problematic

turn

prevent

In a uniform society, it may be logical to have in Flexibility and preference for a change and novelty

place a set of common rules and regulations

have also been associated with creativity factors in

enabling the standardization and harmonization of

several studies (Hofstede, 1991). These factors are

all cultural values within all ethnic groups in

commonly divided into four broad categories, i.e.

Malaysia. When multiple ethnic groups with varied

individual, job, team and organizational level, as

cultural values are infused into the system,

they influence innovative behavior at different

challenges are aplenty. Malaysia is a multiethnic,

levels, sometimes independently, but most often

multicultural, and multilingual society, where

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several ethnic groups maintain separate cultural

There are some indications that cultural value also

identities arising from the way they are raised by

creates

different traditions. Rules and regulations in a

organization. This is especially so in a system

society provide structural orderly in terms of

containing multiple ethnic groups with myriad of

stability and peace (Reisinger, 2009).

cultural values. Although the Malays, the Chinese

employee’s

ethnicity,

performance

cultural and

employee

in

the

ancestors, they exhibit different, but common and

connectivity’s or relationships, coupled with its between

for

and the Indians today are no different from their The purpose of this study is to explore the

effects,

problems

unique, cultural values arising from multiple

values,

causes. Religion and language, for instance, have

employee’s

played pivotal roles in shaping up these ethnic

innovativeness, in Malaysia. The methodology

groups. Religion it involves an organized collection

selected shall adapt Hofstede’s 1991 Model of

of beliefs, cultural systems and world views that

Culture Differences. Only four cultural dimension

relate humanity to an order of existence. In the

variables, these being Masculinity, Individualism,

case of Malaysia, where the predominant Malays

Uncertainty Avoidance and Power Distance, have

are being Muslims, the Chinese being Buddhist or

been adapted in the study. Fewer empirical

Christians and Indians being religious Hindus or

researches are known to have investigated the

Christians, people may derive morality, ethics and

relationships between ethnicity and culture,

laws,

especially in exploring the effects on employee

or

even

preferred

lifestyles.

Where

languages are concerned, the Malays typically use

innovativeness in Malaysia, involving the three

Bahasa Malaysia in daily communication, the

main ethic groups. This study emphasizes in

Chinese uses the same Chinese language but in

comparing the cultural values of the three main

different dialects, either speaking in Cantonese,

building blocks of ethic components in Malaysia,

Hokkien or Mandarin, and lastly Tamil being widely

the Malays, the Chinese and the Indians.

spoken by the Indians.

Henceforth, it shall provide the initial impetus for future researches to explore deeply on the effects

Historically, the embracement into Islam and

of these variables on employee’s performances

multitude views on political, economic and cultural

and innovativeness on a wider scale in Malaysia.

practices were mainly due to the influx of Indians, Chinese and Arab traders prior to 1,000 A.D. and later the Portuguese envoys in 1511 (Idris, 2008).

Problem Statement

The manner in which individuals behaved at the

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workplace and types of jobs created for them in

climate on firm innovativeness (Çekmecelioğlu,

the organizations, could be affected by the

Hülya and Günsel, 2013).

individual's dialect or accent since it may reveal information about their early socio-economic background practiced. Often this results in different

expectations

and

dilemmas

Objectives of the Research

for To address the above gaps in the literature, the

employees in the organizations where they work.

proposed study aims to achieve these objectives : Culture is also a subject taboo to individuals where

1) To identify the relationships between cultural

issues on religions and faiths are being questioned

values, ethnicity, individual performance and

or affected. According to Holden (2002), it was

employee

seen as a problem rather than an opportunity on

whether the cultural values, ethnicity, individual

traditionally culture. Yet, this perspective seems to

performance

be different today as experts are now recognizing

innovativeness and 3) To examine the differences

that, if properly managed, culture can become a

amongst

source of competitive advantage (Barsoux, 2003).

employees on cultural values, ethnicity, individual

The best example for this can be seen where

performance and employee innovativeness. This

Malaysian companies have distinct advantage

study will generate valuable information on the

when accessing the Chinese, Indian or Muslim

current as well as preferred culture of the

markets because of the cultural diversity values

organization.

within

the country. Another point

is

discrepancies

in

investigate

influence

Indians

employee

and

Chinese

adapting the Hofstede’s cultural values instead. The researcher will be applying Hostede’s, five

cultural values and that those differences have certain

Malays,

To

As pointed out in the preamble, this study is

Malays and Chinese managers have different

in

the

will

2)

the

observation among many local scholars, that the

resulted

innovativeness,

culture dimensions to analyze the effects of

their

cultural values on employee innovativeness in this

management styles and performances (Abdullah,

study.

1992). Gaps in existing literatures are unable to explain how exactly cultural values affect the

There are three basic questions that need answers

innovative behaviors of the Malays, Indians and

in this study:

Chinese employees. Apart from that, just a few studies conducted on impact of individual and

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1.

2.

Are

there

any

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relationships

understand about the background of certain

between cultural values, ethnicity, individual

groups because these are being practiced from

performance and employee innovativeness?

generations to generations and it also shapes the

Will cultural values, ethnicity and individual

norms, beliefs and values in a community.

performance

significant

influence

employee The term “ethnic group” refers to a group of

innovativeness? 3.

people whose members identify with each other

Are there any differences among the Malays,

through such factors as common heritage, culture,

Indians and Chinese groups on cultural

ancestry, language, dialect, history, identity and

values, ethnicity, individual performance and

geographic

employee innovativeness?

origin

(International

Labour

Organization, 2014). In Malaysia, music is also shaping the culture of the people. For example,

LITERATURE REVIEW

the Malay community is known for its traditional “zapin” dance, the host, tambourine and the likes.

Culture is a very complex social construct to

Culture is also thought as the intellectual, musical,

describe in a simple definition. It can be expressed

artistic and literary contributions of a society in a

through multiple tangible items such as religion,

colloquial sense (Williams, 2006). However, the

food, architecture, clothing, language, festive days,

values in the community play a crucial role in

social habits and art. According to an acclaimed definition,

culture

is

“always

a

shaping their daily lives. They facilitate in making

collective

choices, motivate ideas and guiding behaviors

phenomenon, because it is at least partly shared

(Soontiens, 2007). It also sets up rules and

with people who live or lived within the same

regulations to society in order to obtain stability

social environment, which is where it was

and peace (Reisinger, 2009). Furthermore, the

learned.” and also defined as “programming of

three indigenous groups who have been living in

the mind that differentiates one group from another group (Hofstede, 1980).

this majority society should compromise in

Conventional

upholding racial harmony. This includes the use of

wisdom regards culture as exogenously given and

common language in their everyday speech.

typically immutable, which suggests an inability to shape

people,

their

beliefs

and

Cultures are perceived to embrace group work,

behaviors

sharing and teamwork. Culture is created and

(Williams, 2006). These two definitions focus on

submitted to others in a society (Hofstede, 1980).

the differences between groups, but not between

In particular, cultural dimensions have been widely

races. Culture can also be used as guidelines to

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applied to demonstrate how societies around the

1980).

world differ in terms of innovativeness (Hofstede,

Table 1: Malaysia National Culture, The Hofstede Center, 2015 Focus is given on the Malays and Chinese communities as they constitute the two largest ethnic groups working in various private sector industries in Malaysia. Not many researchers have investigated the

Hofstede’s Dimensions of Culture

dimensions of national culture in defining an The characteristics of a national culture can be

individual employee performance and the impact

understood

on their innovativeness. In this study, researchers

according

to

the

five

cultural

dimensions discovered in an analysis of national

shall explore how the dimensions of national

culture (Hofstede, 1991). In his earlier studies,

culture impact an individual’s innovativeness.

Hofstede identified these dimensions as being : 1)

Creativity and innovation, which are important for

Individualism-Collectivism 2) Masculinity-Feminity

an organization, are often a result of a

3) Power Distance, 4) Uncertainty Avoidance and

combination of diverse ideas; attitudes and ways

5) Time Orientation. Hofstede’s findings were

of thinking that inspire productivity among

based on research questionnaires taken from a

employees at all levels (Bibi Noraini and Azizi,

large sample of professionals employed within

2014).

IBM companies spanning over fifty countries

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worldwide. The first dimension, Individualism, as

Uncertainty Avoidance deals with a society's

opposed to collectivism, is the degree in which

tolerance for uncertainty and ambiguity. This

individuals

In

uncertainty avoidance shows up as a fear of

Malaysian society, it is categorized as being in a

ambiguous situation, a suppression of deviant

state of Collectivism dimension, where from birth

ideas and behaviors and resistance to innovation

onwards, people are integrated into strong,

(Steenkamp, Hofstede and Wedel 1999). Lastly,

cohesive in-groups and often as extended families

the fifth dimension, Time Orientation deals with

(with

grandparents).

virtue regardless of truth. Values associated with

Masculinity, as opposed to Femininity, refers to

Time Orientation are thrift and perseverance;

the distribution of roles between both the

giving respect for traditions, fulfilling social

genders, which is another fundamental issue for

obligations and protecting one's honor. Though

any society to which a range of solutions are

there are studies (Purcel, 1948) which discuss the

found. Organizations in masculined-dimensional

differences between the Malays’ being associated

societies are often results oriented and rewards

with high collectivism, uncertainty avoidance,

are given based on equity, whereas everyone are

power distance, but with low masculinity; and that

rewarded based on their performance (Hofstede

of the Chinese with high collectivism, power

and

masculined-

distance and masculinity, but with low uncertainty

dimensional countries are regarded as being

avoidance, the inferences are deduced only

tough, in which people are very assertive

through liberal interpretations of other related

(Hofstede and Fink, 2005). Power Distance depicts

attitudes and practices.

are

uncles,

Fink,

integrated

aunts

2005).

In

into

and

addition,

groups.

the level of power in the value system, either being powerful or less powerful members of the society, meaning how much the normal members

Employee and Innovativeness

of the society can accept the difference of their Innovativeness of a worker is assessed in terms of

social status in a multi-tiered race and religion

the ability to resolve or to overcome business

societies. Power Distance can be derived as “the

problems, resolve bottlenecks or situational issues

extent to which the less powerful members of

faced in the organization. New ideas could be

institutions and organizations within a country

introduced by the worker in resolving a specific

expect and accept that power is distributed

business problem in the organization and if proven

unequally” (Hofstede, 1980).

viable, could be implemented immediately. A

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worker who has an innovative thinking is those

A combination of understanding in technologies

who can think outside the box in search of new

and with a sense of empathy, could lead to the

ideas in solving problems, thus creating and

knowledge of unmet needs or demands, helping

enhancing economic value for the organization.

workers to be more empowered and innovated in

Innovativeness requires a certain level of internal

their work. Sometimes, a simple idea at the

force that pushes the individual to persevere in

beginning, could translate into a more brilliant

the face of challenges in creative work (Shalley and

approach towards problem solving, and if applied

Gilson, 2004). They are partially focus and being

could shape-up and resolve several problems not

specific to a certain topic, since experienced

thought of in the first place.

employees can solve challenges connected to their

Proposed Conceptual Framework

knowledge faster, or easier. The main reason for this is the large potential of transferring known

Figure 1 tabulates the research framework of this

solutions to other disciplines (Scott and Bruce,

study. The sole dependent variable in this study is

1994). Environment and psychosocial safety

employee

factors at the workplace influence risk-taking; an

independent

employee’s predisposition towards risk is also an

ethnicity

innovativeness, variables and

are

employee

whereas cultural

averse to taking risks than others.

Figure 1: Research framework Cultural Values Employee Innovativeness

Employee Performance

The proposed hypotheses are as follows: Hypothesis No.

Description of Hypothesis

77

values,

performance.

important factor: some people are naturally more

Ethnicity

the


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H1

There is a significant relationship between Cultural Values and Employee Innovativeness.

H2

There is a significant relationship between Ethnicity and Employee Innovativeness.

H3

There is a significant relationship between Employee Performance and Employee Innovativeness.

RESEARCH METHODOLOGY

Population and Sample

This study applied a quantitative design approach.

In a typical research architecture terminology, a

A

impersonally

population size makes reference to the total

experimental, enabling manipulation of variables

number of people, groups or organizations involve

and

by

in any study. Sampling involves making decisions in

constructing hypotheses and testing them against

selecting which people, settings, events or

the hard facts of reality (Leedy, 1993). The

behaviors, individually or collectively, to observe.

quantitative approach was chosen as it enabled

A population is the total collection of elements

the

mathematically-derived

about which one wishes to make inferences,

conclusions as well as being perceived to be more

where an element is the individual item in which

objective (Adams and Schvaneveldt, 1985). The

the measurement is being taken (Cooper and

research

the

Emory, 1995) and is the unit of study. Following

formulation of a set of questionnaires, comprising

completion of the construct value exercises,

four

Business

questionnaires were distributed to 200 employees

Background, Cultural Values and Implementation

working in factories and various private sectors,

of Innovations, accompanied by several construct

located in Kedah and Penang. Upon collecting back

values. All items measuring the cultural construct

the completed questionnaires, data containing the

values were adapted from Hofstede’s works

construct values were subsequently computed and

(Hoftsede, 1980) and selected to suit the sample

analyzed using the standard Statistical Package for

characteristics. All items were measured on a 5-

Social Sciences (SPSS) application version 20

points Likert’s Scale (1 = “Strongly Disagree”, 2 =

software.

quantitative

research

controlling

benefits

natural

of

processes

pivotal

is

phenomena,

commenced

sections:

Personal,

with

”Disagree”, 3 = “Neutral”, 4 = “Agree” and 5 = “Strongly Agree”). RESEARCH FINDINGS

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Three hypotheses were established for this study.

research architectures, indicating how well the

Questionnaires approach was used for this study

items in a set are positively correlated to one

and the questionnaires were designed, which

other. It is computed in terms of the average inter-

comprised three sections.

correlations among the items measuring the concept. The reliability coefficients as indicated by the

Reliability Analysis

Cronbach’s Alpha values reflect the reliability of

All questionnaires collected during the period of

the instruments. This coefficient can hold a value

study were tested on its reliability scale, across

ranging from “0.000” to “1.000”. Values of less

time and items. The reliability of a measurement

than “0.6000” are considered to be “Poor”, those

indicates the extent to which the measurement is

within the “0.7000” range are deemed as

error free (without bias) and is therefore a

“Acceptable”, while those with over “0.8000”

consistent measurement across time and across

range are considered to be “Good” Sekaran, 2004).

the various items in the instruments. Consistency

Theoretically, the closer the Cronbach’s Alpha

indicates how well the items measuring the

value is to “1.000”, the higher is the internal

concept, blends together as an asset (Sekaran,

consistency reliability measurement. Reliability

2004) and is measured using Cronbach’s Alpha

analysis for every measurement and variables in

coefficient. This is a reliability coefficient applied in

this study are shown in Table 1.

Table 1: Reliability of Each Study Variable Instruments to measure variables of study

No of Items

Cronbach’s Alpha

Employee Innovativeness

5

0.903

Cultural Values

5

0.884

Ethnicity

5

0.852

Individual Performance

5

0.853

The

sole

dependent

variable,

Employee

of 0.903, surpassing the threshold value of

Innovativeness, showed Cronbanch’s Alpha value

“0.800”, thus could be considered as having high

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reliability (Good) and therefore could be accepted

respondents.

The

demography

listed

below

in this study. In respect of the three independent

included age, gender, job location, race and tenure

variables, the first variable, Cultural Values, which

in organization.

also consisted of 5 items of reliability coefficient, showed a Cronbanch’s Alpha value of 0.884 (Good)

The gender composition showed that 43.2% were

and can be accepted. The second variable,

Male respondents (totalling 76), with 56.3% being

Ethnicity (the reliability coefficient consisted of 5

Female respondents (totalling 99). The age group

items too) showed a Cronbanch’s Alpha value of

revealed that the highest age group was at the

0.852 (Good) and can be accepted. The last

“Less than 35 years” category with 63.6% and the

variable, Individual Performance (also consisted of

lowest, for the “60 years above” category, with

5 items) was computed of having a Cronbanch’s

only 0.6%. Majority of the respondents (65.3%)

Alpha value of 0.853 (Good) and thus was

were working in the “City”, followed by 22.2% and

accepted.

10.8% working in the “Small Town” and in the “Large town” categories respectively. The Malays

Demography of Respondents

were ranked as the largest number of respondents

Frequency distribution analysis was conducted to

(89) at 50.6%, followed by the Chinese (46) of

obtain a physical count on the number of

26.1% and lastly the Indians of 23.3% (41). Most of

respondents associated with the different values

the respondents (88) had working experience of

of variables and expressing these counts in

between “5-15 years” or 50.0% and only 17.6% (31

percentage terms. Table 2 below tabulates the

respondents) had been working for more than “25

analysis of respondents’ background based on the

years”.

total of 176 feedbacks received (88%) from the

Table 2: Demographic Statistic (N = 176) Classification Gender

Age

Frequency

Percentage (%)

Male

76

43.2

Female

99

56.3

Missing

1

0.6

112

63.6

Less than 35 years

80


Job Location

Race

Tenure in Organization

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36 – 45 years

43

24.4

46 – 60 years

20

11.4

60 years above

1

0.6

City

115

65.3

Large town

19

10.8

Small town

39

22.2

Missing

3

1.7

Malay

89

50.6

Chinese

46

26.1

Indian

41

23.3

1 – 5 years

20

11.4

5 – 15 years

88

50.0

15 – 25 years

37

21.0

More than 25 years

31

17.6

Descriptive Statistics Descriptive statistics are patterns and general

standard deviation value for Cultural Values

trends in a data set. Table 3 shows the descriptive

(0.48448), with the lowest standard deviation

statistics for all variables. The mean value for

value

Employee Innovativeness was 3.9125, being the

Innovativeness.

highest mean, whilst the least mean value was recorded for Individual Performance, at 3.8080. As for the standard deviation, it showed a high

Table 3: Descriptive Statistics

81

of

0.46088

computed

for

Employee


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Employee Innovativeness

N 176

Mean 3.9125

Std Deviation 0.46088

Cultural Values

176

3.8841

0.48448

Ethnicity

176

3.8807

0.46803

Individual Performance Valid N (listwise)

176 176

3.8080

0.46616

Performance

Innovativeness

Correlation Analysis Table 4: Correlation Analysis

Cultural Values

Pearson Correlation

Cultural Values

Ethnicity

1

0.723

**

Sig. (2-tailed) N Ethnicity

Pearson Correlation Sig. (2-tailed) N

Performance


Innovativeness


176 **

0.723

0.000

0.000

176

176

176 **

0.701

0.000 176 **

**

0.618

0.701

0.000

0.000

176

176 **

0.703

0.000

176

176 **

1

0.675

0.000 176 **

0.675

0.000

0.000

0.000

176

176

176

82

**

0.703

0.000

176 **

0.604

**

0.604

0.000

1

176

**

0.618

1

176


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Table 4: Correlation Analysis

Cultural Values

Cultural Values

Ethnicity

1

0.723

Pearson Correlation

**

Sig. (2-tailed) N Ethnicity


Performance


Innovativeness


176 **

0.723

0.000

176

176

176 **

0.701

176 **

**

0.701

0.000

0.000

176

176 **

0.703

**

0.703

0.000

0.000

176

176 **

1

0.675

0.000 176

**

0.604

**

0.604

0.000

0.000

0.618

**

0.618

Innovativeness

0.000

1

176

Performance

176 **

0.675

0.000

0.000

0.000

176

176

176

1

176

**. Correlation is significant at the 0.01 level (2-tailed).

H1: There is a significant relationship between

cultural values increase, employee innovativeness

Cultural Values and Employee Innovativeness

will also increase as well.

Table 4 above shows a positive correlation

H2: There is a significant relationship between

between ethnicity and employee innovativeness

Ethnicity and Employee Innovativeness

with values of r = 0.703 and p = 0.000; p