Innovation value chain as predictors for innovation strategy in Malaysian telecommunication industry

Innovation value chain is the end-to-end approach to generate, transform and disseminate knowledge and ideas. These new ideas may be incorporated in the system for novelty and creativity which simultaneously lead to innovation. The main purpose of this research is to empirically explore the influence of innovation value chain (idea generation, conversion, and diffusion) on innovation strategy in the service set-up. Further, it aims to examine the relationship between innovation strategy and innovation performance (service development and delivery process) in Malaysian telecommunication sector. A quantitative research approach is conducted with a purposive sample of 249 managers representing Malaysian telecommunication sector. The findings of the study reveal that the idea generation and diffusion are significantly influencing on innovation strategy. Innovation strategy has positive effect on service development and delivery process. The findings of this study suggest that in the formulation innovation strategy, service firms should seriously take into accounts idea generation and diffusion.