Examining the link betweenIslamic work ethic and innovation

capabilityNaresh Kumar and Raduan Che RoseDepartment of Management and Marketing,

Faculty of Economics and Management, Universiti Putra Malaysia,Serdang Selangor, Malaysia

Abstract

Purpose – The purpose of this paper is to present an in-depth analysis of the Islamic work ethic(IWE) and its influence on innovation capability in the public sector.

Design/methodology/approach – The foundations of IWE and innovation capability wereassessed using a validated questionnaire. A total of 472 employees from the Malaysian public sectorparticipated in the survey.

Findings – The empirical results indicate that the IWE is highly adapted in the public sector. Inaddition, the respondents collectively declared that the innovation strength in the Malaysian publicsector is mounting. The IWE measure was found to be significant with moderate correlation andpositive relationship with the innovation capability scale.

Research limitations/implications – While the study was confined to the Malaysian publicsector, it has considerable implications for the development of an optimistic workforce in other regionsand across sectors.

Practical implications – An understanding of the commitment of the workforce to the IWE and itsconsequences for innovativeness facilitates HR professionals in designing and implementing changeinitiatives.

Originality/value – In response to the substantial need to examine IWE and workplace outcomes ina non-Western environment, therefore, the paper embraces the extent to which IWE sways innovationcapability in the public sector. Both scholars and practitioners will find the study valuable.

Keywords Public sector organizations, Work ethic, Job satisfaction, Human resource management,Islam, Malaysia

Paper type Research paper

IntroductionUndoubtedly in our day, we are brazen with a more brisk and multifaceted revolutionof humanity owing to the materialization of new-fangled realities by no meansobserved by communities in times of yore. Since independence to date, Malaysia hasaggressively explored opportunities in the global marketplace. Perhaps, as aconsequence to globalization, Malaysia experiences augmented industrialization andeconomic mobility. To some extent, the Malaysian nation has been exposed to diversework values due to an influx of expatriates from all over the world. Over the years, it isfeasible that society has mined idiosyncratic work values from abroad. Given thenoticeable revolution in the Malaysian society, it is imperative to comprehend to whatextent values and attitudes may have reallocated within the Malaysian way of life as aresult of world revolution. There are literally loads of information documented on

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Received 8 December 2008Revised 29 April 2009Accepted 2 May 2009

Journal of Management DevelopmentVol. 29 No. 1, 2010

pp. 79-93q Emerald Group Publishing Limited

0262-1711DOI 10.1108/02621711011009081

human behaviors, values and attitudes at workplace. Nonetheless, the bulk of researchpertaining to work ethic and various organizational and individual outcomes has beencarried out in the Western locale centered on the Protestant work ethic (PWE).

Notwithstanding its substance, little study has been devoted to Islamic work ethic(IWE) and its influence on workplace outcomes such as organizational innovationcapabilities (Ali, 2005; Ali and Al-Owaihan, 2008; Rizk, 2008; Yousef, 2000, Ali andAl-Owaihan, 2008). In response to the substantial need to examine IWE and theworkplace outcome in a non-Western environment, therefore, in this paper, we treat theextent to which IWE sways innovation capability among the Malaysian public sectorfraternity. Malaysia is an Islamic country with a multicultural society; therefore it is anexcellent setting for performing and reporting such a study. Both scholars andpractitioners will find the present study more valuable. Scholars are able to intensifytheir knowledge on the IWE and its consequence for innovativeness in a non-Westernpublic sector context. We anticipate that this will induce more scholarly research. Onthe other hand, the practitioners, particularly human resource professionals and higherlevel officers in the public sector, will find the information in this paper helpful in theirendeavor towards crafting an innovative workforce. The following section presents areview of the relevant literature and is followed by a description of the research methodused to facilitate the empirical investigation of the research objectives. The results giverise to implications for research and managerial practices. Finally, the limitations andrecommendations for further research are highlighted.

The Malaysian Civil ServiceThe Malaysian Civil Service is the heritage of the British which had colonized the countryfor almost two centuries. Perhaps the British deliberately instilled Malaysia with a senseof inferiority, which has been perpetuated by the unmerited foreign supremacy, eitherthrough sociopolitical constitution, economics, and legislation or via the influx of foreigncorporations and workers. The same scenario has been faced by many other countriescolonized by British or Western regimes (Ali, 1992, 2005). This historical development hasresulted in widespread cultural and social antagonism and, more despondently, a growthof indifference in the workplace (Ali and Al-kazemi, 2002, 2007; Ali, 2005).

British colonialism to a wide extent has induced the Malaysian government toemphasize positive work ethics, efficiency, productivity and discipline in the publicsector. The 1980s witnessed the prologue of explicit efforts of the Malaysiangovernment in augmenting the attitudinal and value change programs.Trustworthiness, responsibility, sincerity, dedication, moderation, diligence, cleanconduct, cooperativeness, honor and gratitude are the kind of core values emphasizedamong Civil Servants to uphold the integrity, efficiency and performance in facing thechallenges encapsulated in the New Economic Policy (NEP), 1971-1990, the NationalDevelopment Policy (NDP), 1991-2000 and the National Vision Policy (NVP), 2001-2010while acting on the Vision 2020 aspirations. The inculcation of Islamic values in publicadministration is a decisive for this endeavor; unfortunately, the excellent policy wasinitiated with moderate forcefulness and least documentation, which perhaps leads inmurky directions. Nevertheless, to espouse the united Malaysian nation, identity andpride while triumphing over enormous developmental hindrances, the Prime Ministerof Malaysia, Dato’ Seri Abdullah Ahmad Badawi introduced the Islam Hadhari(Civilization Islam) approach in 2004 which emphasizes civilization, consistent with the

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tenets of Islam with a focus on enhancing the quality of life through the mastery ofknowledge and the development (physical and spiritual) of the individual and thenation as a whole. Islam Hadhari summarizes ten principles for the nation to take onglobal challenges, while ensuring that its approach and implementation are acceptableto the multiracial, multicultural and multireligious society of Malaysia all the time. TheIslamic Hadhari is undoubtedly the base for actions and the paybacks are intended forequitable sharing by all Malaysians, Muslims as well as non-Muslims alike. Indeed,Islamic values, being proliferative, are alleged to be universally valid and therefore it isgermane to the minority of non-Muslim Civil Servants (Badawi, 2005).

The Islamic work ethic (IWE)The IWE is analogous to the concept of Islam Hadhari that emphasizes cooperation inwork, and consultation is seen as a way of overcoming obstacles and avoiding mistakesto meet one’s needs and establish equilibrium in one’s individual and social life. The IWEstresses creative and innovative work as a source of happiness and accomplishment. TheIWE is also oriented more toward life fulfillment than life denial and holds businessmotives in the highest regard (Ali, 1992, 2005). The research on work ethic and itsassociations with individual and organizational factors has received substantialconcentration in the literature (Ali and Al-Owaihan, 2008; Ali, 2005; Congleton, 1991;Furnham and Rajamanickam, 1992; Yousef, 2000, 2001; Zubboff, 1983). Indeed, theimplications of the work ethic which reflect an individual’s attitudes towards his/herwork for organizational success have been extensively investigated and perhaps it haspermeated leadership and management thinking. Nonetheless, much of the research onwork values has been carried out in the West and has focused on the Protestant WorkEthic (PWE) as defined by the German economic sociologist, Max Weber in 1958.

Weber considered the PWE to be at the basis of the Western idea that a person has a“duty” to work, and asserted the existence of a relationship between Protestantism andthe development of modern capitalism (Rose, 1985). However, the concept of IWE has itsorigin in the Qur’an, the sayings and practice of Prophet Mohammed and the early Islamicleaders who preached that hard work caused sins to be absolved and that “no one eatsbetter food than that which he eats out of his work” (Ali, 1992, p. 507). A Muslim is alsoencouraged to undertake all tasks dexterously and conscientiously. This is a reflection ofone of the Prophet Mohammed’s sayings which is obviously obligatory for every Muslim.Indeed during the first six centuries of Islam, knowledge has thrived and all forms ofwork and creativity were honored, and labor organizations that supported both the needsand the professional quality of the workers were developed (Ali, 1992; Ali andAl-Owaihan, 2008). Ali (2005) described some of the work-related sayings of ProphetMohammed that work is the best form of worship, moral and legitimate foundations mustbe inherent in economic activities, discipline and commitment must be an essence of workand work sustains confidence and self-reliance. More precisely, Ali (2005) affirmed thatthe IWE is built on four principles: effort, competition, transparency, and morallyresponsible conduct. He further asserted that these four principles collectively inspiresocial contract and trigger a better focus on meeting major organizational tasks.

The initial research on the relationship between IWE and workplace attitudes by Ali(1988, 1992) is highly valued. Even though limited studies have been reported on therelationship between the IWE and individual and organizational variables, all thatliterature is very promising and began to attract more research in many parts of the world

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(Ali and Al-Owaihan, 2008). Ali (1992) demonstrated a high correlation between IWE andindividualism. In their studies of the work ethic in the USA and Canada, Ali et al. (1995a)found that PWE, work involvement and work individualism measures correlated withIWE. Yousef (2000) found positive high relationships between IWE and role ambiguityand locus of control scales. Employees that embraced IWE had less role ambiguity (morerole clarity) which would reduce job stress and would benefit both individuals andorganizations. The influence of IWE on internal locus of control also leads to lowerperceived stress and high job satisfaction because they believe they have some controlover their environment. Yousef (2001) concluded that IWE promotes job satisfaction andorganizational commitment. Similarly, Rahman et al. (2006) concluded that an individualwith a high level of perception of IWE would tend to develop an affective commitment tothe organization. Abu-Saad (2003) studied IWE among Arab school teachers in Israel andfound that, unlike Western work ethics, IWE uniquely captured the importance of one’scontribution to community and society and the obligations of the organization to itsemployees. Recently, Ali and Al-Kazemi (2007) reported that IWE is strongly related toloyalty measure. Additionally, IWE implies that conducting business in a spiritedenvironment will result in higher performance and widespread prosperity (Ali andAl-Owaihan, 2008). Probably in the earlier days, due to restricted access to the wealth ofliterature on Islamic studies which mostly was published in languages other than English,many management scholars might limit their research on the Islamic management.However, some of the prolific researches have shed light on the concept of IWE and itssignificant impact on the workplace. Those research findings are gaining attention andinduce research interest among the international scholars at the moment.

Innovation in the public sectorResearch pertaining to innovation is a multi-disciplinary exertion to identify andimplement sanguine ideas to fashion products, services or workplace practices (Tether,2003; Van de Ven, 1986). Indeed the innovation capabilities utterly vary betweenadvanced countries and developing economics (Kim, 1997). It is palpable thatincreasingly scholars are concerned about examining innovation capabilities whichrobustly claimed to channel the public sector competitiveness. However, there is a widearray of approaches to learn the underlying drivers of innovation capability and thishas paved the way for multiple definitions documented in the management literature.Trott (1998, p. 13) maintains that:

Clear definition of innovation is difficult as it can include just about any organizational ormanagerial change, whether that involves new products, processes, ventures, systems,production methods, commercial arrangements or services.

In order to study the key issues of public sector innovation, in this study, innovationcapability is defined as the degree of belief that the public sector is actually producingnovel or useful ideas to enhance the provision of public services or creation of newproducts (Lee and Choi, 2003). It has been a tradition to counterpart the public sector asembracing a rigid, repeat and routine work environment. Nevertheless, in response tothe world political, economical and social revolution and modernization, manygovernments including Malaysia are inching forward in strengthening theirinnovation dynamics. Although there is a need to uphold the bureaucratic nature ofthe public sector, to a great extent Malaysia has broken through the common

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characteristics of a bureaucratic government. Inflexibility and immobility in managingthe public sector are known to be a great disaster to innovation which leads to manyunnecessary flaws in delivering efficient services to the general public. In the context ofthe public sector, being flexible or mobile means to be able to grasp new sciences,experiences, thoughts and technologies that can enhance the growth and developmentof the public services attuned to the concept of a learning organization. Knowing themany hitches, innovation is becoming a reality in the government sector and is allegedto be a fiscal booster. The ability to adhere to fine work values provides the impetus forthe long-run survival of a unit within the public sector (Brown and Osborne, 2005;Tether, 2003).

In a review conducted by Ali and Al-Owaihan (2008), it was found that managersworking in the public sector scored higher on IWE than those working in the privatesector. Similarly, Yousef (2001) reported in his findings that employees working ingovernment organizations showed stronger support of the IWE. A superior work ethicsuch as the IWE provides a platform and strength for the entire workforce despite theunpredictably tremendous challenge that lies ahead. In addition, it provides theworkforce with values to hold on to as they strive to become the appealing publicservice providers. Undoubtedly, personal attributes toward work and career are one ofthe vital factors supporting innovation in public sector services. It is notable that theinnovative capability of the public sector is under-researched compared with theremarkable reports documented on innovation in the private sector (Borins, 2001;Brown and Osborne, 2005; Osborne and Gaebler, 1992).

Malaysia is gradually closing the development gap with highly developed countriesby means of the vibrant leadership of Civil Servants. Innovation is paramount forglobal competitiveness and is a means for Malaysia to achieve the developmentalpolicies while embracing the Vision 2020. There are quite a number of studies thataffirm the significance of innovation capability for contemporary organizations(Calantone et al., 2002; Darroch and McNaughton, 2002; Evangelou and Karacapilidis,2005; Woodman et al., 1993; Scarbrough, 2003; Syed-Ikhsan and Rowland, 2004; Koh,2000; Lin and Lee, 2004, Van den Hoff and Van Weenen, 2004; Vicari and Troilo, 2000;Yeh et al., 2006). Since innovation capability encompasses continual improvisation inservices or products and adaptability to customers’ needs, it is vital to understand towhat extent the public sector upholds the innovation capability. In view of the fact thatthe findings of innovation research in advanced countries are not inevitably germaneto an enlightenment of the innovative behaviour in transition economies, this studyattempts to further explore the nature of the relationships between IWE and innovationcapability in the Malaysian context.

Work ethic, innovation capability and individual dispositionA review of the literature revealed that there are multiple attempts by scholars inexamining the influence of personal disposition on the work ethic. Abu-Saad (2003)found that female teachers scored significantly higher than male teachers on the IWEfactor of personal effort and achievement. These findings were consistent with otherstudies found in the literature (Petty and Hill, 1994; Lyson, 1984). Conversely, Ali andAl-Kazemi (2007) found that men scored relatively higher than women on the IWEscale. Yousef (2001) found no significant IWE differences relative to gender amongMuslim employees in several organizations in the United Arab Emirates (UAE).

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Likewise, other studies found a noticeably insignificant difference between genders inwork ethic (Abu-Saad and Isralowitz, 1997; Adeyemi-Bello, 1994; Chusmir and Parker,1991; Mannheim, 1993; Rowe and Snizek, 1995; Yousef, 2000). Seeing the conflictingfindings pertaining to gender and work ethic, this study was put forward.

In the study carried out by Ali and Al-Kazemi (2007), participants who are older scoredsignificantly higher than their counterparts on the IWE. Saad (2003) reported that therewas no significant difference between teachers by age on IWE. Similarly Abboushi (1990),Ali et al. (1995b) and Yousef (2001) accounted that age significantly influences work ethic.The findings of various scholars are evidence that work ethic significantly influencesindividual disposition such as participants’ work experience (Abboushi, 1990; Ali andAl-Kazemi, 2007; Ali et al., 1995b; Yousef, 2001, 2000); education level (Abu-Saad, 2003;Abboushi, 1990; Ali and Al-Kazemi, 2007; Ali et al., 1995b; Yousef, 2001, 2000); and themanagerial level which is analogous to position or income (Ali and Al-Kazemi, 2007; Aliet al., 1995b). An understanding of the various individual dispositions on innovationcapability is also crucial, given the magnitude of innovation to the advancement ofworkforce and work processes within the public sector. Indeed, it has been reported thatthe internal capacity of an organization is one of the core factors which drives theinnovation capability (Hoffman, 1999; Chang and Lee, 2008; Lee and Choi, 2003; Sundbo,2001). Thus, it is deemed to be vital to examine whether there are any differences onperception of innovation capability by gender, age, tenure, educational level and position.

Given the diverse findings on work ethic, innovation capability and individualdisposition discussed earlier, the purpose of this study was:

. to describe the adaptability of IWE among sample of Malaysian Civil Servants;

. to identify the level of innovation capability among Malaysian Civil Servants;

. to identify the relationship between IWE and innovation capability in the publicsector; and

. to examine the influence of various demographic variables (gender, age, years ofservice, education level and managerial grade) on IWE and innovation capabilityscales.

MethodThe target population for this study is the Administrative and Diplomatic Service(Perkhidmatan Tadbir dan Diplomatik – PTD) Officers. They are the elite corps ofgeneralist administrators who occupy virtually the key positions in the Malaysian CivilService. The PTD officers are generally very versatile individuals who act as providersof services, facilitators of the nation’s economic growth, enforcers of law, protectors ofnational peace and integration, and guardians of the future generation’s wellbeing andprosperity. They also shoulder the responsibility of ensuring the implementation ofnational policies and the attainment of their objectives. They are selected to participatein this study for those reasons and are expected to provide the best responses to fulfillthe objectives of the study.

Data were collected using a self-administered questionnaire. Convenience samplingwas deemed to be a feasible arrangement acceptable to the responding departments.To overcome the problem of low response rate and accurate mailing list, a drop andpick method was employed. The liaison officers of various ministries and departmentshelped in the distribution and collection of the survey. Of the 1,000 questionnaires

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distributed, 472 usable questionnaires were returned. Taking into account the invalidresponses, the response rate for this study was 49 percent.

The IWE was measured using 17 items developed by Ali (1988). Previous researchhas shown a satisfactory level of internal consistency of the IWE measure, withCronbach’s alpha ranging from 0.76 to 0.89 (Ali, 1992; Yousef, 2000, 2001; Ali andAl-Kazemi, 2007). The Cronbach’s alpha coefficient for the current study is 0.89.Innovation capability was measured using five items adapted from Lee and Choi(2003). The innovation capability scale had Cronbach’s reliability coefficient of 0.87 andwas well validated by Lee and Choi (2003). The current Cronbach’s reliabilitycoefficient is 0.94. All the items to measure IWE and innovation capability were ratedon a five-point Likert-type scale, with 1 representing “strongly disagree” and 5“strongly agree”. Data were analyzed using SPSS version 15, a statistical analysissoftware package. Descriptive and correlation statistics were obtained to confirm theobjectives of the study.

Findings and discussionProfile of respondentsPersonal characteristics of the respondents are shown in Table I. Out of 472respondents, 44 percent were male and 56 percent were female. The majority of therespondents which encompassed 52 percent were in the age group of 20 to 29 years,

IWE Innovation capabilityVariable n % Mean F-statistic Mean F-statistic

Gender 3.458 3.65 17.421 *

Male 210 44.0 4.09 3.30Female 262 56.0 4.01Age 19.917 * 3.826 * *

20-29 247 52.0 3.93 3.3830-39 168 36.0 4.15 3.6040-49 29 6.00 4.33 3.6550 and above 28 6.00 4.09 3.11Years of service 4.402 * 1.5465-10 302 64.0 3.99 3.3911-15 83 18.0 4.07 3.6516-20 38 8.00 4.18 3.5121 . 10 2.00 4.54 3.56

39 8.00 4.13 3.50Educational level 6.846 * 2.870Bachelor 356 75.0 4.00 3.47Master’s 112 24.0 4.17 3.44PhD 4 1.00 4.49 2.40Managerial grade 4.022 * 1.947M41 268 57.0 3.97 3.40M44 55 12.0 4.18 3.56M48 100 21.0 4.12 3.49M52 34 7.00 4.12 3.41M54 15 3.00 4.25 4.00

Notes: *p , 0.01; * *p , 0.05

Table I.Results of one-way

ANOVA test of IWE andinnovation capability

with individual variables

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whereas 36 percent of the respondents were aged between 30 to 39 years. In terms ofservice tenure, 64 percent of the respondents have been serving in the public sector forfewer than five years. About 18 percent have been in service between five to ten yearsand the balance has worked for more than ten years. This shows that the Malaysianpublic sector is expanding and thus more PTD officers have been employed in the lastfive years to shoulder the increasing responsibilities on provision of public services. Interms of educational level, 76 percent of the respondents hold a Bachelor’s degree andonly 23 percent had a Master’s qualification. Indeed it is a mandate for PTD officers toattain at least a Bachelor degree prior to employment in the Malaysian public services.Table I also shows the hierarchical grades of service scheme of the respondents, andthey are arranged from the lowest grade, M41, to the highest grade, M54. About 57percent of the respondents were in the public service scheme, M41 and followed by 21percent in grade M48. There were only 7 percent and 3 percent of respondents from thehigher grades of M52 and M54 respectively. This is justified by the lesser number ofpositions available in the higher service scheme of PTDs.

Islamic work ethicTable II presents the items and item-total correlations of the IWE scale. Anexamination of item-total correlations for IWE shows that all items have high positivecorrelations with the overall score of the measure. Another important observation isthat the mean score for all items that measure IWE was rated far above the averagescore of 3.0 on a five-point Likert scale as used in this study. Since in all cases, the IWE

Item M SDItem-totalcorrelation

1. Laziness is a vice 4.22 0.94 0.5842. Dedication to work benefits both oneself and others 4.41 0.84 0.6903. Good work benefits both oneself and others 4.46 0.81 0.6924. Justice and generosity in the workplace are necessary conditions for

society’s welfare4.31 0.79 0.625

5. Producing more than enough to meet one’s personal needs contributes tothe prosperity of society as a whole

4.08 0.80 0.576

6. One should carry work out to the best of one’s ability 4.38 0.80 0.5887. Work is not an end in itself but a means to foster personal growth and

social relations4.29 0.74 0.639

8. Life has no meaning without work 3.69 1.01 0.4949. More leisure time is good for societya 3.31 0.89 0.375

10. Human relations in organizations should be emphasized and encouraged 4.39 0.70 0.66711. Work enables mankind to control nature 3.60 0.92 0.57912. Creative work is a source of happiness and accomplishment 4.06 0.81 0.65413. Any person who works is more likely to get ahead in life 4.03 0.79 0.61814. Work gives one the chance to be independent 4.04 0.75 0.56115. A successful person is the one who meets deadlines at work 3.75 0.98 0.58416. One should constantly work hard to meet responsibilities 4.09 0.87 0.68717. The value of work is derived from the accompanying intention rather than

its results3.63 0.93 0.592

IWE index (total items) 68.74 8.58 1.000

Notes: All correlation coefficients are significant at the 0.01 level (two-tailed); a scoring reversed

Table II.Item-total correlations,means, and standarddeviations of IWE

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measure revealed a high mean concentration, it may perhaps be alleged that the IWEhas been fixed in the mind of public sector employees in Malaysia and these superiorwork values have been well adopted specifically by PTD officers of all races, agegroup, gender, and different career hierarchy across the public sector.

With extensive training and educational programs undergone by every PTDofficers, it is promising that they are more aware of their responsibilities and theeconomic challenge that is being faced by the Malaysian Government. This vigilanceindeed may inspire them to work hard to improve the competitiveness of public sectormanagement. The more plausible explanation is that PTD officers are educated andnot only aware of what is sanctioned by their own religion, but also infatuated with thesuperlative Islamic work values advocated in all governmental services in Malaysia. Inshort, the results of this study revealed that PTDs view work as a virtue, that benefitsboth oneself and others; justice and generosity in the workplace are necessaryconditions for society’s welfare; human relations are imperative in the public sector; anindividual should carry out work to the best of his ability and value hard work; workallows one to be independent and creative work is a source of happiness andaccomplishment (Ali and Al-Owaihan, 2008; Ali, 2005). These results differentiate IWEfrom PWE and demonstrate an attachment to work beyond self-interest and thenarrow definition of work involvement. The findings of the present study areconsistent with previous research (Ali, 1988, 1992; Abu-Saad, 2003; Yousef, 2000, 2001).Previous studies reported that their subjects were highly committed to the IWE. Thus,the present study together with others demonstrates that IWE still remains superiorand acknowledged in the private and public sectors, in different parts of the world.Embracing IWE means that one performs work with honesty, fairness, responsibility,dedication and efficiency. The moral principles, hard work and commitment to thecommunity inherent in IWE, are also vital for independent thinking, genuine creativityand dynamic commerce.

Innovation capabilityItem-total correlation for the innovation capability measure reveals that all itemscorrelate positively with one another (see Table III). The overall mean score forinnovation capability is 17.28 with a standard deviation of 4.50. The sturdy

Item M SDItem-totalcorrelation

1. My organization has produced many novel and useful ideas (services/products)

3.65 0.96 0.824

2. My organization fosters an environment that is conducive to our ownability to produce novel and useful ideas (services/products)

3.43 0.97 0.895

3. My organization spends much time in producing novel and useful ideas 3.28 1.06 0.9034. My organization considers producing novel and useful ideas as being

important activities3.50 0.98 0.936

5. My organization actively produces novel and useful ideas (services/products)

3.43 1.02 0.951

Innovation capability index (total items) 17.28 4.50 1.000

Note: All correlation coefficients are significant at the 0.01 level (two-tailed)

Table III.Item-total correlations,

means, and standarddeviations of innovation

capability

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commitment to all items on the innovation capability measure provides considerableinsights into the workplace ideals of PTD officers. Indeed, the everlasting workdiligence and commitment to public sector innovation precisely depict the reality ofwell-formed PTD officers in Malaysia and their intense awareness of the state ofeconomic, social and politics needs. The ninth Malaysia Plan (2006-2010) encapsulatesthe need to shift from input-driven to knowledge- and technology-driven as part of theeconomic growth strategy. In this vein, Malaysia seriously embarked on strengtheningher capabilities to innovate; adapt and create indigenous technology; design, developand market new products as well as services, thereby providing a foundation forendogenously driven growth. By the year 2020, Malaysia expects to become acontributor to, rather than a consumer of, knowledge and technology. The public sectoris not exempt and is continuously looking for ways to increase innovation capabilitybesides getting better at offering best public services. The aim is to be an example forthe private sector and to be proactive in facing the challenging and competitiveenvironment in the future. Innovation capability is positively related to firmperformance and has been supported by many empirical studies (Cooper andKleinschmidt, 2007). According to Higgins (1995), the largest property oftwenty-first-century firms lies in their capability to innovate which will definitelybring individuals, teams, organizations, industries or societies better values and mayprovide a relatively low cost production process. This study shows that an innovationcapability exists among the PTD officers. However, there is a difference of opinionexpressed pertaining to the level of current innovation capacity. Perhaps there shouldbe a slight tuning of support and edification of Islamic work values in the public sector.The unique workplace culture as hinted in the IWE could contribute significantly tothe competitive advantage of the public sector. IWE is a way of thinking and behavingthat creates, develops and establishes values and attitudes across the organizationwhich results in encouraging innovation in the workplace (Ali, 2005).

The relationship between IWE and innovation capabilityTable IV shows the relationship between the IWE index and the innovation capabilityitems. In reference to the guidelines by Cohen (1988), the IWE index was found to besignificant with moderate correlation and positive relationship with innovationcapability measure (r ¼ 0.382, p , 0.01, n ¼ 472). All items of innovation capability

Item M SD r

1. My organization has produced many novel and useful ideas (services/products)

3.65 0.96 0.333

2. My organization fosters an environment that is conducive to our ownability to produce novel and useful ideas (services/products)

3.43 0.97 0.424

3. My organization spends much time in producing novel and useful ideas 3.28 1.06 0.2874. My organization considers producing novel and useful ideas as being

important activities3.50 0.98 0.348

5. My organization actively produces novel and useful ideas (services/products)

3.43 1.02 0.338

Innovation capability (total items) 17.28 4.50 0.382

Note: All correlation coefficients are significant at the 0.01 level (two-tailed)

Table IV.Person correlationsbetween IWE Index andInnovation CapabilityScale

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had significant correlations with the IWE index at the p , 0.0001 level. This provesthat the PTD officers value hard work that benefits society. They are against lazinessand waste of time by either remaining idle or engaging oneself in unproductiveactivity. The results also revealed that the public sector has produced useful ideas inthe past and still considers innovation as an important activity. Perhaps more attentionto foster an environment that is conducive to the development of innovation capabilityis vital. Similarly, a new mechanism of mind change such as transforming into alearning organization accelerates the processes and production of new ideas in linewith world order of public services. The positive correlation between the IWE andinnovation capability has a far-reaching implication for organizational studies. Effortsto link knowledge and the spirit of discovery are consistent with the direction of IWE(Ali and Al-Owaihan, 2008). This means that public sector employees should workbesides leading and strive to bring about new meaningful ventures. Enforcing thespirit of innovation should be the utmost concern of the government. This endeavorcould erect economic development and affirmative contribution in the workplace.

The results of an ANOVA test are presented in Table I. The results revealed that theabsorption of IWE differs across age, years of service, educational level and position.On the other hand, innovation capability differs across gender and age. Male PTDsshowed stronger support of innovation capability (M ¼ 3.65) than female PTDs(M ¼ 3.30). The fact that male PTDs scored relatively higher than their femalecounterparts on innovation capability probably indicates that male PTDs takeadvantage of the emerging opportunities in the workplace more vigorously andproactively promote new-fangled ideas for collective improvement. PTDs in the agegroup of (40-49 years) showed stronger undertaking of the IWE and innovationcapability. PTDs who have been serving the public sector between 16-20 years showeda higher commitment to IWE compared with other categories of years in service. It wasfound that the scores on IWE increase with the increase in educational level andmanagerial grade or position. Nevertheless, there are no significant differences acrossyears of service, educational level and managerial grade on innovation capability.Likewise, gender does not contribute to variation in support of the IWE. Akin toprevious research (Yousef, 2000, 2001; Abu-Saad and Isralowitz, 1997), the resultsshow no discrepancy between gender and commitment to IWE. This signifies that bothmale and female PTDs are clear about their work policies, stay focused and work hardto fulfill their shouldered responsibilities. Concerning the significant relationshipbetween PTDs’ age, education level, work experience and commitment to IWE, thecurrent findings are in a similar vein to some previous research (Abu-Saad, 2003;Abboushi, 1990; Ali and Al-kazemi, 2002; Ali et al., 1995b; Yousef, 2001, 2000). Inaddition, the significant relationship between managerial grade and IWE reported inthe current study is akin to the findings of Ali and Al-kazemi (2002).

ConclusionThis study shows that the PTD officers are highly committed to the IWE scale. One ofthe reasons for successful absorption of IWE in the Malaysian public sector context isthat both Muslim and non-Muslim employees are aware and conscious of their religiousdemands for the establishment of justice and fair dealings in the workplace. Thenon-Muslims who participate in this study seemed to be at ease in working with theirMuslim colleagues due to their comprehensible awareness of the existence of workable

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Islamic mechanisms in the public sector, and also due to their personal experiences andobservation of the Islamic way of work-life balance in Malaysia. Such positive attitudesmight result in several advantages including hard work, commitment and dedication towork, work creativity, cooperation and fair competitiveness in the work place. These, ofcourse, would benefit both the individual and the public sector operations. Thus, thehuman resource professionals in the Malaysian public services need to continuouslymeasure all the positive outcomes as a result of the high support and inculcation of IWEwhile ensuring that the implementation of IWE permeates at all levels of public service.An understanding of the commitment of the public servants to the IWE can providesome insights to help the human resource professionals in the public services indesigning and implementing change programs in tandem with the national developmentpolicies. IWE emphasizes hard work, meeting deadlines and persistence. This meansthat, in introducing change, the establishment of timelines and clarification of goals andresponsibilities are essential in carrying out interventions successfully. IWE also viewswork not as an end in itself, but as a means to foster personal growth and social relations.In this context, group interactions and team activities should be designed appropriatelyto enable optimal facilitation of the intended changes. Moreover, IWE views dedicationto work and work creativity as virtuous. Human resource professionals should focustheir process design on the new method of change and on producing results thatreinforce existing commitment and enthusiasm. Justice and generosity in the workplaceare necessary conditions for society’s welfare and they have long been preached in IWE.Human resource professionals must show that they are attentive to and are concernedabout human needs. Besides, human resource professionals who act as the change agentin the public sector must acquire social skills and master public relations which areessential to effect change successfully.

It is also proved that IWE influences innovation capability in the public sector butthe strength of the relationship was moderate. This is because there are many factorsthat contribute equally to innovation capability such as human capital, internal andexternal structures. The IWE may only be able to influence the human capital side ofthe public sector. But to further enhance the innovation capability in the public sector,the internal and external structures need to be considered as well. An organization’svision, strategies, goals, values, culture and philosophy are examples of internalstructures. Stakeholders, public policy and regulation are considered as externalstructures. Overall, it is believed that the results of this study and its implications areuseful in reflecting on current issues related to the work ethic and its correlates. Theresults are also important to the practitioners in understanding IWE and the centralityof the work ethic in one’s life. IWE places significant social and psychological force onemployees to increase their commitment in the provision of public services articulatedby the ruling government. From this viewpoint, human resource professionals shouldseek to understand individual norms in the workplace and revolutionize the currentvalues to one that fosters innovation. Strong values which resonance with emphasizedin IWE will contribute greatly to innovation capability. Limitations of the study andissues for future research are recapitulated as follows:

. It is strongly suggested that cross-national studies using relatively a large andrepresentative sample are conducted to compare the strength of the IWE scaleand assess its generalizability across varying public and private sectors. This isessential for constant advancement of the body of knowledge on IWE.

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. The current study only focused on the PTD officers; thus further studies areanticipated to include all level of employees in the public sector to strengthen thegeneralization of the findings.

. It would also be of interest to study the impact of the IWE on other individualand organizational variables as such knowledge-sharing capability, financialperformance, talent development, organizational citizenship behaviour,workplace learning and job insecurity.

. More studies should be undertaken to observe the impact of the IWE oninnovation capability among non-Muslim nationalities.

. Future studies should consider examining the impact of other work values(e.g. PWE, Japanese, Korean, etc.) on innovation capability. A comparison studybetween IWE and other work ethics can also be carried out to understand theirimpacts on various organizational outcomes.

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Corresponding authorNaresh Kumar can be contacted at: naresh@putra.upm.edu.my

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