Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Energizing Innovation Performance:
The Role of Information Technology Competencies
Haziah Sa’ari*, Jafalizan Md Jali**, Marlia Idrus***, Haslinda Mohamed****
and Hafiza Adenan*****
Playing a pivotal role in birth of entrepreneurial venture and advanced
economic development, information technology (IT) has become
pervasive as a major contribution in all sectors. In order to support the
business functions and sustain competitiveness, the management should
assure their employees are embodied with the IT competency to perform
innovatively at a high level in meeting business objectives.
IT
competency is defined as the capability of organization or an individual to
manipulate and exploit the IT technologies in order to manage information
effectively. Innovative performance can be described as the capability to
generate and exploit ideas to create and perform new things or present
old ideas in new dynamic ways when handling work or managing
business venture. Previous studies have shown there is a lacking of IT
competency among academic librarians and lacking of capability to adapt
quickly with the changing technologies to fulfill the ever growing
information demands of the users especially in the global economic crisis
has pressured librarians to explore innovative ways for sustainability.
Therefore, the objective of this study is to investigate the influence of IT
competency to invigorate entrepreneurial competencies and explore its
outcome which is perceived as innovation performance demonstrated by
academic librarians in Malaysian research universities. This study
capitalized the qualitative method and employs multiple case studies to
achieve the objective. This study has three main independent variables of
IT competency as proposed by Tippins & Sohi (2003) which are IT
knowledge, IT operations and IT infrastructure. The dependent variable
which is innovation performance has been adopted from previous
scholarly literatures. The study is significant to academic librarian and
library management for improving the IT competency and upgrading their
innovation performance. It will also assist the Ministry of Higher Education
and interested researchers to provide effective base line information in
constructing a model for similar studies. .
JEL Codes: F34, G21 and G24
1. Introduction
The success of knowledge-based economy depends on the optimum recognition on the
role of both knowledge and technology in economic expansion. Knowledge and skills
which embodied in human beings combined with technology played the focal point to
economic development. Knowledge-based economy which interpreted as the role of
knowledge has taken on greater importance compared to other natural resources, physical
* Haziah Sa’ari, Faculty of Information Management, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia.
Email : azie.crystal@gmail.com
**Jafalizan Md Jali, Faculty of Information Management, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia.
Email: jeffchaosz@gmail.com
***Marlia Idrus,Faculty of Information Management, Universiti Teknologi MARA (UiTM), Merbok, Kedah, Malaysia. Email:
ixorra82@gmail.com
****Haslinda Mohamed, Faculty of Information Management, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia.
Email: meetraaa@gmail.com
*****Hafiza Adenan,Faculty of Information Management, Universiti Teknologi MARA (UiTM), Shah Alam, Malaysia.
Email: hafizaadenan@ymail.com
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
capital and low skill labor (OCED, 1996). Hence, an exploration for exploiting various
aspects of the human knowledge for competitive advantage should effectively be
implemented to be in line with the objectives of economic knowledge-based economy
(Leadbeater, 1999). Thereon, the accelerating shift of global economic to knowledgebased has changed the recognition towards universities. Universities have experienced
the substantial changes in their mission and responsibilities especially research
universities (RU). The main objectives of RU are not bounded to education and research
aspects, but increasingly also cover technology transfer and commercialization activities
(Vincent-Lancrin, 2006) because they are vital contributors to economic prosperity and
key institutions of innovation systems (Edquist, 2005; Gunasekara, 2006). Malaysia, like
many other countries has shifted to knowledge-based economy where a much higher
proportion of wealth creation and economic activity are underpinned by higher level skills
and innovation. In order to enhance the Malaysian university’s reputation, the Ministry of
Higher Education (MOHE) is constantly encouraging universities to play a vital role in
national development, as well as regional and international development, based on
clustering of knowledge activities (Khaled, 2011). Up to 2012, five public funded higher
institutions have been granted RU status namely Universiti Malaya (UM), Universiti
Kebangsaan Malaysia (UKM), Universiti Sains Malaysia (USM) and Universiti Putra
Malaysia (UPM) and Universiti Teknologi Malaysia (UTM). In conjunction to this
recognition, MOHE has developed The Malaysian Research Assessment (MyRA) as an
instrument or tool to evaluate the universities’ achievements in the aspects of research,
development and commercialization. Basically, the RU achievements were measured and
evaluated based on human resource, publication, patent and intellectual property rights
(IPR) as well as revenue generating.
2. Literature Review
2.1 A Review of Research Universities, Entrepreneurship and IT Based Innovation
The paradigm shift of higher education landscape has pressured universities to become
entrepreneurial (Gibb & Hannon, 2006). They are expected to extensively play a direct
role in technology transfer and commercialization activities to synergize innovation for
economic prosperity and competitiveness (Etzkowitz, 2008). The knowledge manufactured
from RU where a high precedence on conducting and/ discovering of research, is
transacted and transformed into the production of the business’s goods and services that
create value for the customer and wealth creation. As Clark (1998) introduces the modern
entrepreneurial university concept and maintains that entrepreneurial characteristics not
bounded to individuals but also practicable to social system. Sharing this thought Fuller
(2006) puts his views that as one of the social institution; university is a basic platform for
entrepreneurial activity by manufacturing knowledge. Furthermore, the position of RU to
be entrepreneurial is elaborated into three sections (a) the role of university itself; (b) the
team members of the university (faculty, students, employees) who embrace the
entrepreneurial behavioural; and (c) the linkage of the university with the industry and
follows the entrepreneurial patterns (Ropke, 1998). In this light, the major missions of
entrepreneurial university which is education, research and serving society would be
successfully a accomplished by leveraging entrepreneurial competencies among
university members, active position to production and implementation of university
knowledge for prosperity of society and entrepreneurial environment inside and around
the university (Mets, 2010). The stresses on competencies are important worthy as
previous researchers have found that entrepreneurial competencies are particularly
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
related to the birth, survival and/or growth of a venture (Baum, 1994; Bird, 1995). The role
of entrepreneurial competencies is dynamic in stimulating entrepreneurial activity as
entrepreneurship has been recognized as a driving force and source of innovation and
competitive advantages (Rae, 2007). Entrepreneurial competencies can be defined as a
cluster of related entrepreneurial knowledge, skills and personality traits to produce and
accomplish an outstanding performance or maximize profit (Man et. al. 2002). It is
performed by individuals as entrepreneurs who are obligated to manipulate resources and
opportunities for organizations’ profitability (Bird, 1995).
To perform excellently,
entrepreneurs are also required to demonstrate their technical role which is the ability to
use the tools in managing their responsibilities (Chandler & Jansen, 1992) such as using
an IT as an online tools for sustainable development (Pearce et. al. 2008). The position of
IT to energize innovation in entrepreneurship is widely discussed in literature. The
business wealth creation has been fuelled by IT capability in terms of improving product,
process and service which leads to customer loyalty and sustain competitive advantage
(Kohli & Grover, 2008). IT also has the ability to support innovation to produce new
products and processes (Benbasat & Moore, 1991). In service sector, the investments in
IT would lead to better capacity to product innovation as required by customers (Licht, &
Moch, 2002). IT also contributes in process innovation in terms of empowering
productivity and become the prime source for organizations (Harkness et. al. 1996). In
sum, the innovative performance is initiated by the capable and competent employee in
exploiting IT to create the new product or improve service for revenue generation or value
added benefits.
2.2 A Review of IT Innovation and Academic Librarian’s Innovation Performance.
Among the RU achievements were based evaluated on human resource and provided
infrastructure including academic library to stimulate knowledge production as one of RU’s
mission (Mohrman et.al. 2008). Therefore, the role of an academic librarian in RU is
crucial and directly impacts the universities’ research achievement (Budd, 1995; Noh,
2012). In order to demonstrate effectively, academic librarians should embrace and
respond to the IT challenges which require them to rethink their services and
competencies to maintain professional relevancy and service contribution including focus
in innovation and digital activities (Brindley, 2006). An early comprehensive adoption of IT
innovation in academic libraries is to increase and boost up library services and resources
through integrated library automation system that cover library department activities such
as cataloguing, circulation, reference and acquisition. The current IT environment has
inspired academic librarians to proactively innovate the library services such as edatabase/e-resources, digital content, e-learning and e-reference as an added value in
meeting user’s expectation. IT has innovatively brought changes into academic libraries
(Liao et. al. 2007) and it has been accepted positively by librarians as it becomes one of
the major factors of improved performance (Al-Qallaf, 2006; Winstead, 1994; Jones, 1989;
Poole & Denny, 2001; Ennis, 2005). The success of IT innovation in academic libraries is
influenced by human resources aspects which depend on how to utilize IT to organize and
disseminate information effectively (Fine, 1986). In other words, the implementation of IT
innovation projects depends on the librarians’ competency, knowledge and experience to
reshape library achievement and performance as a whole. In addition, academic
librarians are highly recommended to leverage themselves with the required IT
competency to perform innovatively in order to cope with universities’ environment (Feret
& Marcinek, 1999) as well as creating responsive and convenient services (Li, 2006).
Moreover, they are required to demonstrate the entrepreneurial pattern while managing
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
their work which is the service should be delivered according to the demand by their
market (Scupola & Nicolajsen, 2010). Therefore, the objective of this study is to
investigate the influence of IT competency to invigorate entrepreneurial competencies and
explore its outcome which is perceived as innovation performance demonstrated by
academic librarians in Malaysian research universities.
2.3 Operational Terms
IT Competency
IT competency can be defined as a cluster of related IT knowledge, know-how and
attitudes that affects a major part of an individual’s ob responsibility. It correlates with
performance on the job, which can be measured against well-accepted standards and can
be improved via training and development (Perry, 1990). In this study, IT competency has
followed the proposed definition which is the firms’ capability to manipulate and exploit IT
technologies in order to manage information effectively. There are three required
components to be demonstrated in order to achieve IT competency which is IT
knowledge, IT operations, and IT infrastructure. These dimensions represent
conceptualized resources that indicate the organization’s capacity to understand and use
the tools necessary for managing information about market funnel and customers (Tippins
& Sohi, 2003). The definitions for these three components are as follow:
IT Knowledge
Knowledge has been regarded as one of the key sources to sustain competitively and
created from the information, experience, interpretation and reflection. Tacit knowledge is
difficult to be transformed into explicit knowledge; it applies for creativity and innovation
task whereas explicit knowledge is used as guidance for the task to be accomplished
(Brown & Dugid, 2000). Knowledge’s output depends on how people share their
competencies with those who manipulate it (Abell & Oxbrow, 2001). Knowledge can be
distinguished into general and technical knowledge where it involves a set of principles
and procedures to be used to achieve the particular objective (Taylor, 1971). In this study,
IT knowledge is defined as the extent to which an academic librarian possesses technical
knowledge elements such as being knowledgeable in library database.
IT operations
The application of IT to improve business method processes and techniques which lead to
added value on business operations (Maier et. al. 1997). In this study, IT operation is
defined as the extent to which an academic librarian uses IT to plan and create the new
library product or improve library service.
IT infrastructure
IT infrastructure functions are to support the current applications while remaining
responsive to change for sustainability (Brancheau et. al. 1996). It refers to the artefacts,
tools and resources that contribute to the acquisition, processing, storage, dissemination
and use of information (Reardon et. al.1996). In this context, the IT infrastructure focuses
on the elements such as hardware, software and support staff.
Innovation performance
Innovation performance is also addressed as innovative job performance or innovative
behaviour at individual level and accepted as a vital contributor for the effective
functioning of organizations (Woodman et. al.1993). It is defined as initiative of the
employee(s) to create new process, products, market in organization. The initiative to
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
perform innovatively could be inspired by technology, personality traits, and organization’s
management practice and market demands (Amo & Kolvereid, 2005; Glynn, 1996).
Innovation performance is measured based on the three stages which are idea
generation, idea promotion and idea realization (Kanter, 1988). Regarding innovation
performance in the university libraries, innovations start with the creativity and expansion
of ideas after scanning the environmental conditions to recognize the relevant opportunity.
Therefore, innovation performance in this study is posited as how the academic librarians
put in their efforts and invert their ideas; demonstrate to market them in order to be
accepted or considered and how they instigate ideas to practically implement them for the
purpose of introducing or improving library services.
2.4 The proposed conceptual framework
IT competency in the conceptual framework for this study is adopted from Tippins & Sohi
(2003) is regarded as a part of entrepreneurial competencies in terms of how
entrepreneurs play their role in technical aspect (Chandler & Jansen, 1992), whereas the
innovation performance is derived from the empirical literature. Previous studies revealed
that the competence in applying IT in managing business operation has affected the firm’s
performance and success (Sambamurthy et. al. 2003; Zhang & Tansuhaj, 2007) which are
rooted and influenced by the innovation performance at individual level of the employees
(Glynn, 1996). In other words, the firm’s innovation performance depends on the individual
level innovation which is transferred and then it eventually contributed to the firm or
organization. Moreover, IT competency is pre requisite in enabling entrepreneurial
competencies’ antecedent such as marketing (Brady et. al. 1999) and strategic orientation
(Chatzoglou et. al. 2011). The conceptual framework proposed the dependent variable as
innovation performance while the independent variables are measured by IT competency
(as a part of entrepreneurial competencies) dimensions as illustrated in Figure 1.
Figure 1. The proposed conceptual framework
Entrepreneurial Competencies
IT knowledge
IT operation
IT
Competency
Innovation
performance
IT infrastructure
Independent variable
Dependent variable
2.5 Problem Statement
The emergence of IT modalities has changed conventional functions of academic libraries’
responsibilities which formed great impact on this discipline by offering new working
environment, method of information storage and dissemination, vast capacity of
information resource and unlimited geographical restriction to penetrate users’ area. It
also offers continuous introduction of knowledge-based products, which make it necessary
for librarians to keep abreast of the phenomena by assessing and demonstrating relevant
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
competencies to integrate and exploit these technologies and products in their service
(Masrek et. al. 2012). However, there is lacking of IT competency among librarians and
they tend to fail to respond quickly to the changing IT environment and exploiting IT as
opportunities to serve effectively and efficiently (Panda & Mandal, 2006). In addition, it is a
challenging task for a librarian in an academic library to market information resources for
optimum utilization (USM Annual Report, 2010). Moreover, Malaysian academic librarians
are lacking of initiatives and capabilities in promoting their library activities (by using IT
capabilities) which is one of the components in entrepreneurial competencies. Studies
conducted by Kaur (2009) reveal that academic librarians did not fully utilize the library
websites as a marketing tool and an enabler to reach out to the community for promotion
of services and collections. There is also a scarcity of research conducted on information
technology’s effect on librarians working in academic and research libraries (Al-Qallaf,
2006). Therefore, the objective of this paper is to explore the IT competency to invigorate
entrepreneurial competencies and to investigate its outcome perceived by academic
librarians of research universities. To achieve the objectives, the questions guiding the
study are as follows (1) what is the IT competency to invigorate the entrepreneurial
competencies perceived by academic librarians? (2) How can IT competency influence the
innovation performance among academic librarians at their universities?
3. Research Methodology
In order to achieve the objective mentioned above, this study capitalized on qualitative
research method. This method focuses on understanding the academic librarians’ point of
view, experience and interpretation. By using multiple case studies, three main Research
universities located in the Klang Valley, Malaysia were selected. In-depth interview, focus
group discussion and document analysis were the data collection methods for this study.
The summary of data collection is shown in Figure 2.
Figure 2: Summary of data collection
Method of data
collection
In-depth Interview
(Chief Librarian)
Academic
librarian
involved in
data
collection
Frequency
of data
collections
session
3
40 minutes
per
session.
Total
number of
data
collection
sessions.
3
interviews
Focus
group
interview
15
40 minutes
9 focus
(Academic librarian
per
groups
as selected by top
session.
interviews
management)
Therefore, 15 academic librarians from each library of three RUs
involved in the group interviews which overall total was 45
librarians. For in-depth interview, three chief librarians from each
RU library had participated.
Based on the case study methodology of the research adapted from Yin (1994), the initial
step in the study involved the development of a conceptual framework on IT competency
and its relations to innovation performance among academic librarians. This step was then
followed by the selection of the pilot case study and three main case studies (the data
collection sites) and the design of the data collection protocol. Following the case
selection and data collection steps, the individual case reports were developed. A cross-
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
case analysis of the findings was then undertaken. This analysis provided the basis for the
discussions and implications presented in the final section of the article. Figure 3 shows
the case study methodology of this study.
Figure 3: The case study methodology
Conceptual
framework
Conduct
case
study 3
Case selection
Conduct
case
study 2
Conduct
case
study 1
Develop data
collection protocol
Conduct pilot
case study
Cross case analysis, comparisons and conclusions
Findings and discussions
Next, the sample design was developed. Both samples for pilot interview and main case
study interview consist of academic librarians from three RUs in Selangor (one of the RUs
for the main study was the same for the pilot study but the researcher had interviewed the
different sample/academic librarians). The sample of academic librarian for this study was
selected by using purposive sampling. In this study the samples for the main case studies
consisted of 45 academic librarians and three chief librarians. (The in-depth interviews
consisted of three chief librarians and the focus group consisted of 9 groups, which
involved 45 academic librarians and five academic librarians per group). Next, five pilot
interviews were conducted to improve the data collection processes before the main case
studies were conducted (Yin, 1994). This phase represents the final preparation for data
collection which is used more formatively to assist the researcher to develop relevant lines
of questioning as well as providing some conceptual clarification for the research design
as well. Permission to conduct the research was obtained from the top management of
academic libraries involved. After obtaining approval, the requested lists of academic
librarians were taken from the top library management. Then, the researcher sent a letter
to each of the academic librarians selected to inform about the research and the date that
it would take place. Each letter clearly explained the objectives of the research. In
addition, the academic librarians were informed about the importance of the interview, the
confidentiality of their responses and that the data would only be utilized for the purpose of
the research. Once the interviews had been conducted, recorded and transcribed, the
information was analyzed and interpreted in order to produce the findings. Figure 4 shows
the study’s research design process.
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Figure 4: The research design process
Literature
review
Design
questions
for in-depth
interview
and focus
groups
Sampling
design
Findings
Define the
research
problem
Formulate of
research
question
Develop the
conceptual
framework
Formulate
the research
objective
Pilot case
study (five
pilot
interviews)
Data
collection
Induction
Data
analysis and
interpretation
s
4. The Findings
The study’s analysis produced the following findings:
4.1 Academic librarian’s perceived the influence of IT knowledge on innovation
performance
The academic librarian agreed that they are capable to perform innovatively from the idea
generated from IT knowledge. By having IT knowledge, the recognition of the opportunity
to provide the service is according to the users' demand. For instance, the knowledge on
library databases enable them to understand, manage and manipulate the information in
the database such as patron database which contain users' demographic information,
level of program enrolment, their preferred reference and preferences based on their
faculties. From this data, the academic librarian is able to analyse data through data
mining process where the data is sorted to determine users’ pattern. The decision also
can be made on the library resource subscription based on the analysed “hit” search
history. The implementation in planning and conducting library programs such as
information literacy also can be implemented.
4.2 Academic librarian’s perceived the influence of IT operation on innovation
performance
The academic librarians agreed that by having IT operation competencies they are able to
contribute innovatively. The ability to use internet and websites enable them to promote
the library resources to enhance marketing strategy. For instance, the creation of new
service such as subject guide in the library portal will promote the library resource to be
utilized by user. It is also capable to attract new users by the dissemination of “unique”
Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
information that library has such as the agricultural resources. IT operation such as instant
messengers gives them the chances to share, gain and collect new ideas and creativity to
provide better services with other parties.
4.3 Academic librarian’s perceived the influence of IT infrastructure on innovation
performance
The academic librarians agreed that the realization of the idea could be more practically
implemented by having the competency in IT infrastructure. The knowledge in IT
infrastructure will enable them to know the properties of the library system such as the
reliability and maintenance aspect. At the same time, the competency in using
programming software such as HTML and JavaScript is an advantage for them to develop
their own database or program required by their clients.
5. Summary and Conclusions
The banks and DFIs in developing countries such as the Bangladesh Shilpa bank (BSB)
have been ravaged by persistence loan default and loan loss since mid-1980s.
The academic librarians’ IT competency influences their innovative performance. The
performance which is based on idea generation, idea promotion and idea realization is
enhanced by using IT capabilities. Academic librarians recognize that IT competency is
compulsory to cope with the increased resources and help them to manage and
manipulate the data which later can be transformed into new project, service or product.
The competency in IT also stimulates better decision making to provide the services as
demanded by users. It also helps academic librarians to fulfil the university's mission to be
entrepreneurial because IT will embrace them to recognize the resources, information and
knowledge within the environment and knowledge that the university already possesses,
to innovate in order to improve performance or increase customer value.
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