The Role of Internal R&D in Operational Performance as Moderated by Intellectual Property Rights: The Malaysian Manufacturing Perspective

Abstract

This paper reviews the role played by a company's internal R&D in stimulating operational performance of a manufacturing company, which is moderated by intellectual property rights (IPR), particularly patents, in Malaysia. The constructs of this paper are based on a comprehensive review of recent literature on internal R&D and operational performance moderated by patents. A detailed discussion revealed implications on policy making, especially for government or related authorities in promoting and enforcing IPR. IPR policy especially regarding patents should be part of a company's business strategy. Implementing IPR will safeguard new invention, innovation, or processes in the long run. Furthermore, the company may gain benefits in creating new business opportunity during various patenting stages. The environment and conditions for R&D activity have changed significantly in the last decade. Thus, effective practice of internal R&D gives advantage to the company from three different aspects; namely, the ability to develop and grow critical human resource, dynamic involvement in the corporate R&D programme, and the ability to connect information. Therefore, the relationship between internal R&D and operational performance moderated by IPR would encourage the betterment of the company in the future. In summary, this paper highlights the importance of internal R&D toward operational performance of a company moderated by IPR, as well as reviews the latest literature from the perspectives of sustainability and innovation.

Boosting Up Operational Performance of Manufacturing Organizations through Interpretive Structural Modelling of Enabling Practices

“…Among various R&D capabilities, intellectual property right (IPR) is the core element which is the protection of one's own effort in the creation of new inventions or products. For enhancing R&D toward OP, IPR acts as a stimulus [38].…”

What impact does intellectual property have on the business performance of technology firms?

“…The majority of those studies appear to have identified a positive relationship between a firm's investment in intellectual property and its business performance, and its financial performance in particular. Representative examples include: Anuar, et al (2012), wide variety of manufacturing industries in Malaysia; Bollen, et al (2005), pharmaceuticals industry in Germany; Bosworth and Rogers (2001), wide variety of large, publicly traded firms in Australia; Cohen and Kaimenakis (2007), service-sector firms in Greece; Graham and Sichelman (2008), literature survey and wide variety of technology start-up firms in the United States; Greenhalgh and Longland (2005), Greenhalgh andRogers (2006 &2007), wide variety of manufacturing firms in the United Kingdom; Hanel (2008), manufacturing firms from many industries in Canada; Hsu and Ziedonis (2013), semiconductor firms in the United States; Juma and McGee (2006), technology firms from eleven different industries in the United States; Lichtenthaler (2009), European-wide study, many industries; Namvar, et al (2010), electronics and computing firms in Iran; Pandit,, et al (2011), multi-national study, broad variety of technology-intensive industries and sectors; Roy (2013), information technology firms in India; and, Suh and Hwang (2010), computer software firms in South Korea.…”

Chemical Warehouse Operations: Experience from SWIFT Integrated Logistics Sdn. Bhd

“…Hence, integrating the chemical storage business with the current normal warehouse business is crucial. This is echoed by Anuar et al (2012), who supported the argument that internal R&D within the organization gives added value to the company in the long run.…”

“…The company may gain advantages and added value in three aspects, namely the ability to develop and grow critical human resources, dynamic involvement in the corporate R&D programme, and the ability to connect information. (Anuar, Zulhumadi, & Udin, 2012).…”