4.3.1.1 Reliability analysis of strategy
28 4.3.1.2 Reliability analysis of
company culture 29
4.3.1.3 Reliability analysis of RD climate
29 4.3.1.4 Reliability analysis of firm
performance 30
4.3.1.5 Reliability analysis of all variables
30 4.4 Significant Role of RD management
30 4.5 Correlation Analysis
32 4.6 Multiple Regression Analysis
34 4.6.1 Regression analysis
35 4.6.2 ANOVA analysis
36 4.6.3 Regression analysis and hypothesis
testing 37
4.7 Conclusion 39
CHAPTER 5 DISCUSSIONAND CONCLUSION
5.1 Introduction 40
5.2 Discussion 40
5.2.1 Demographic profile 41
5.2.2 To identify the significant role of RD management in firm
42
5.2.3 To measure the impact of RD management on the firm
43
5.3 Conclusion 45
5.4 Recommendation for Future Study 46
REFERENCES 48
APPENDICES 52
xi
LIST OF TABLES
TABLES TITLE PAGES
2.1 The variable from past studies
9 3.1
Cronbach’ alpha for pilot test 21
4.1 Respondent’s age
24 4.2
Respondent’s gender 25
4.3 Location of firms according to state
26 4.4
Firm’s types of industry 27
4.5 Reliability analysis for strategy
28 4.6
Reliability analysis for company culture 29
4.7 Reliability analysis of RD climate
29 4.8
Reliability analysis of firm performance 30
4.9 Reliability analysis all variables
30 4.10
Respondent perception on research framework variables
30
4.11 Rules of thumb for correlation
33 4.12
Correlation analysis 33
4.13 Independent Variables of RD
35 4.14
Regression Analysis 35
4.15 ANOVA analysis result
36 4.16
Regression coefficient 37
xii
LIST OF FIGURES
FIGURES TITLE PAGES
3.1 Theoretical framework
17 4.1
Age of Respondents 23
4.2 Respondent’s gender
24 4.3
Location of firms according to state 25
4.4 Firm’s types of industry
27
xiii
LIST OF ABBREVIATION
SPSS Statistical Package for the Social Sciences
ANOVA Analysis of Variance
MRA Multiple Regression Analysis
UTeM Universiti Teknikal Malaysia Melaka
RD Research and Development
IV Independent variable
DV Dependent variable
ROA Return on asset
ROE Return on equity
xiv
LIST OF SYMBOL
Percent p
Significant value r
Pearson correlation coefficient R
Multiple correlation coefficient R-squared
Coefficient of determination
xv
LIST OF APPENDICES
APPENDICES TITLE PAGES
A Gantt Chart FYP 1
52 B
Gantt Chart FYP 2 53
C Questionnaires
54
1
CHAPTER 1
INTRODUCTION 1.1
Background
Today, technology has advanced at a pace to accelerate the subsequent rate of developments in all industries. On every base of any firms, comes the importance of
the management systems from the very beginning. Officially there were several departments in a firm to hold different types of responsibility and task in order
running the system successfully.
One major part of the firm main heart of the system is the Research and Development RD department. RD management generally understands by wide
as the overall control over the activities, planning, programs, and everything that runs on the RD department sector. In mathematics or physics, most concepts can be
readily judged as useful or worthless and in management concepts, on the other hand, are more difficult to evaluate as stated by Jain, Triandis, and Weick 2010. In more
significant words of it, RD management can be also understood as the disciplines of managing the RD, much leading the RD department a way to be running. As
Tassey, Long and Ravenscraft 1993; Vivero 2002 exerts, RD is so important because it is a critical role in a firm’s performance, productivity, and growth as cited
in Ming, Hsiao, Sher and Yi 2010.
2
In basic, understandable general, RD management plays a vital part of a firm, firm or an organization’s performance or it seems to be so. This is because for
every firm, firm or an organization of business, RD is the future investment that holds up the firm’s future lifeline. In which in that case, RD management is the
backbone of the RD department, thus can be hugely connected as a firm’s most vital and most important priority subject of the business. Due to this matter, RD
management is the sector that takes full responsibility of the entire RD department, thus also runs the responsibility of the firm’s performance in which we all can say
that in general, efficient RD management secured a firm future investment which relates each other and connected on each other heavily.
Might this relation can be seen when a firm has excellent RD management
running on their RD department systems, which with efficient running systems, efficient programs, efficient research and etc. Jain et al. 2010 mentioned that the
effective RD management, coupled with a vigorous research and science policy, is necessary for a nation to sustain economic growth and it can have profound and far-
reaching consequences
A firm definitely hold up their own future security for their own products,
thus increase their performance because all of the RD activities brought a useful information, and also useful much vital discoveries of their products As stated by
Mansfield 1968 one might think that RD would be focused mainly on new and importantly developed product innovation as cited by Hall, Lotti and Mairesse
2012.
Even though an excellent RD management is linked to business
performance, however the actual is even research and development RD is not solely responsible for business performance. Furthermore, with such steps RD is an
expensive activity that never assure its potential benefits as stated by Ming et al. 2010 which was also quoted by McCutchen and Swamidass 1996
3
1.2 Problem Statement
