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Examining the link between Islamic work ethic and innovation capability
Naresh Kumar and Raduan Che Rose
Department 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 inuence on innovation capability in the public sector. Design/methodology/approach The foundations of IWE and innovation capability were assessed using a validated questionnaire. A total of 472 employees from the Malaysian public sector participated in the survey. Findings The empirical results indicate that the IWE is highly adapted in the public sector. In addition, the respondents collectively declared that the innovation strength in the Malaysian public sector is mounting. The IWE measure was found to be signicant with moderate correlation and positive relationship with the innovation capability scale. Research limitations/implications While the study was conned to the Malaysian public sector, it has considerable implications for the development of an optimistic workforce in other regions and across sectors. Practical implications An understanding of the commitment of the workforce to the IWE and its consequences for innovativeness facilitates HR professionals in designing and implementing change initiatives. Originality/value In response to the substantial need to examine IWE and workplace outcomes in a non-Western environment, therefore, the paper embraces the extent to which IWE sways innovation capability in the public sector. Both scholars and practitioners will nd the study valuable. Keywords Public sector organizations, Work ethic, Job satisfaction, Human resource management, Islam, Malaysia Paper type Research paper

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

Introduction Undoubtedly in our day, we are brazen with a more brisk and multifaceted revolution of humanity owing to the materialization of new-fangled realities by no means observed by communities in times of yore. Since independence to date, Malaysia has aggressively explored opportunities in the global marketplace. Perhaps, as a consequence to globalization, Malaysia experiences augmented industrialization and economic mobility. To some extent, the Malaysian nation has been exposed to diverse work values due to an inux of expatriates from all over the world. Over the years, it is feasible that society has mined idiosyncratic work values from abroad. Given the noticeable revolution in the Malaysian society, it is imperative to comprehend to what extent values and attitudes may have reallocated within the Malaysian way of life as a result of world revolution. There are literally loads of information documented on

Journal of Management Development Vol. 29 No. 1, 2010 pp. 79-93 q Emerald Group Publishing Limited 0262-1711 DOI 10.1108/02621711011009081

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human behaviors, values and attitudes at workplace. Nonetheless, the bulk of research pertaining to work ethic and various organizational and individual outcomes has been carried 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 inuence on workplace outcomes such as organizational innovation capabilities (Ali, 2005; Ali and Al-Owaihan, 2008; Rizk, 2008; Yousef, 2000, Ali and Al-Owaihan, 2008). In response to the substantial need to examine IWE and the workplace outcome in a non-Western environment, therefore, in this paper, we treat the extent to which IWE sways innovation capability among the Malaysian public sector fraternity. Malaysia is an Islamic country with a multicultural society; therefore it is an excellent setting for performing and reporting such a study. Both scholars and practitioners will nd the present study more valuable. Scholars are able to intensify their knowledge on the IWE and its consequence for innovativeness in a non-Western public sector context. We anticipate that this will induce more scholarly research. On the other hand, the practitioners, particularly human resource professionals and higher level ofcers in the public sector, will nd the information in this paper helpful in their endeavor towards crafting an innovative workforce. The following section presents a review of the relevant literature and is followed by a description of the research method used to facilitate the empirical investigation of the research objectives. The results give rise to implications for research and managerial practices. Finally, the limitations and recommendations for further research are highlighted. The Malaysian Civil Service The Malaysian Civil Service is the heritage of the British which had colonized the country for almost two centuries. Perhaps the British deliberately instilled Malaysia with a sense of inferiority, which has been perpetuated by the unmerited foreign supremacy, either through sociopolitical constitution, economics, and legislation or via the inux of foreign corporations and workers. The same scenario has been faced by many other countries colonized by British or Western regimes (Ali, 1992, 2005). This historical development has resulted in widespread cultural and social antagonism and, more despondently, a growth of indifference in the workplace (Ali and Al-kazemi, 2002, 2007; Ali, 2005). British colonialism to a wide extent has induced the Malaysian government to emphasize positive work ethics, efciency, productivity and discipline in the public sector. The 1980s witnessed the prologue of explicit efforts of the Malaysian government in augmenting the attitudinal and value change programs. Trustworthiness, responsibility, sincerity, dedication, moderation, diligence, clean conduct, cooperativeness, honor and gratitude are the kind of core values emphasized among Civil Servants to uphold the integrity, efciency and performance in facing the challenges encapsulated in the New Economic Policy (NEP), 1971-1990, the National Development Policy (NDP), 1991-2000 and the National Vision Policy (NVP), 2001-2010 while acting on the Vision 2020 aspirations. The inculcation of Islamic values in public administration is a decisive for this endeavor; unfortunately, the excellent policy was initiated with moderate forcefulness and least documentation, which perhaps leads in murky directions. Nevertheless, to espouse the united Malaysian nation, identity and pride while triumphing over enormous developmental hindrances, the Prime Minister of Malaysia, Dato Seri Abdullah Ahmad Badawi introduced the Islam Hadhari (Civilization Islam) approach in 2004 which emphasizes civilization, consistent with the

tenets of Islam with a focus on enhancing the quality of life through the mastery of knowledge and the development (physical and spiritual) of the individual and the nation as a whole. Islam Hadhari summarizes ten principles for the nation to take on global challenges, while ensuring that its approach and implementation are acceptable to the multiracial, multicultural and multireligious society of Malaysia all the time. The Islamic Hadhari is undoubtedly the base for actions and the paybacks are intended for equitable 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 is germane 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 in work, and consultation is seen as a way of overcoming obstacles and avoiding mistakes to meet ones needs and establish equilibrium in ones individual and social life. The IWE stresses creative and innovative work as a source of happiness and accomplishment. The IWE is also oriented more toward life fulllment than life denial and holds business motives in the highest regard (Ali, 1992, 2005). The research on work ethic and its associations with individual and organizational factors has received substantial concentration in the literature (Ali and Al-Owaihan, 2008; Ali, 2005; Congleton, 1991; Furnham and Rajamanickam, 1992; Yousef, 2000, 2001; Zubboff, 1983). Indeed, the implications of the work ethic which reect an individuals attitudes towards his/her work for organizational success have been extensively investigated and perhaps it has permeated leadership and management thinking. Nonetheless, much of the research on work values has been carried out in the West and has focused on the Protestant Work Ethic (PWE) as dened 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 and the development of modern capitalism (Rose, 1985). However, the concept of IWE has its origin in the Quran, the sayings and practice of Prophet Mohammed and the early Islamic leaders who preached that hard work caused sins to be absolved and that no one eats better food than that which he eats out of his work (Ali, 1992, p. 507). A Muslim is also encouraged to undertake all tasks dexterously and conscientiously. This is a reection of one of the Prophet Mohammeds sayings which is obviously obligatory for every Muslim. Indeed during the rst six centuries of Islam, knowledge has thrived and all forms of work and creativity were honored, and labor organizations that supported both the needs and the professional quality of the workers were developed (Ali, 1992; Ali and Al-Owaihan, 2008). Ali (2005) described some of the work-related sayings of Prophet Mohammed that work is the best form of worship, moral and legitimate foundations must be inherent in economic activities, discipline and commitment must be an essence of work and work sustains condence and self-reliance. More precisely, Ali (2005) afrmed that the IWE is built on four principles: effort, competition, transparency, and morally responsible conduct. He further asserted that these four principles collectively inspire social 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 the relationship between the IWE and individual and organizational variables, all that literature 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 and individualism. 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 with IWE. Yousef (2000) found positive high relationships between IWE and role ambiguity and locus of control scales. Employees that embraced IWE had less role ambiguity (more role clarity) which would reduce job stress and would benet both individuals and organizations. The inuence of IWE on internal locus of control also leads to lower perceived stress and high job satisfaction because they believe they have some control over their environment. Yousef (2001) concluded that IWE promotes job satisfaction and organizational commitment. Similarly, Rahman et al. (2006) concluded that an individual with a high level of perception of IWE would tend to develop an affective commitment to the organization. Abu-Saad (2003) studied IWE among Arab school teachers in Israel and found that, unlike Western work ethics, IWE uniquely captured the importance of ones contribution to community and society and the obligations of the organization to its employees. Recently, Ali and Al-Kazemi (2007) reported that IWE is strongly related to loyalty measure. Additionally, IWE implies that conducting business in a spirited environment will result in higher performance and widespread prosperity (Ali and Al-Owaihan, 2008). Probably in the earlier days, due to restricted access to the wealth of literature 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 prolic researches have shed light on the concept of IWE and its signicant impact on the workplace. Those research ndings are gaining attention and induce research interest among the international scholars at the moment. Innovation in the public sector Research pertaining to innovation is a multi-disciplinary exertion to identify and implement sanguine ideas to fashion products, services or workplace practices (Tether, 2003; Van de Ven, 1986). Indeed the innovation capabilities utterly vary between advanced countries and developing economics (Kim, 1997). It is palpable that increasingly scholars are concerned about examining innovation capabilities which robustly claimed to channel the public sector competitiveness. However, there is a wide array of approaches to learn the underlying drivers of innovation capability and this has paved the way for multiple denitions documented in the management literature. Trott (1998, p. 13) maintains that:
Clear denition of innovation is difcult as it can include just about any organizational or managerial 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, innovation capability is dened as the degree of belief that the public sector is actually producing novel or useful ideas to enhance the provision of public services or creation of new products (Lee and Choi, 2003). It has been a tradition to counterpart the public sector as embracing a rigid, repeat and routine work environment. Nevertheless, in response to the world political, economical and social revolution and modernization, many governments including Malaysia are inching forward in strengthening their innovation dynamics. Although there is a need to uphold the bureaucratic nature of the public sector, to a great extent Malaysia has broken through the common

characteristics of a bureaucratic government. Inexibility and immobility in managing the public sector are known to be a great disaster to innovation which leads to many unnecessary aws in delivering efcient services to the general public. In the context of the public sector, being exible or mobile means to be able to grasp new sciences, experiences, thoughts and technologies that can enhance the growth and development of the public services attuned to the concept of a learning organization. Knowing the many hitches, innovation is becoming a reality in the government sector and is alleged to be a scal booster. The ability to adhere to ne work values provides the impetus for the 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 managers working in the public sector scored higher on IWE than those working in the private sector. Similarly, Yousef (2001) reported in his ndings that employees working in government organizations showed stronger support of the IWE. A superior work ethic such as the IWE provides a platform and strength for the entire workforce despite the unpredictably tremendous challenge that lies ahead. In addition, it provides the workforce with values to hold on to as they strive to become the appealing public service providers. Undoubtedly, personal attributes toward work and career are one of the vital factors supporting innovation in public sector services. It is notable that the innovative capability of the public sector is under-researched compared with the remarkable 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 countries by means of the vibrant leadership of Civil Servants. Innovation is paramount for global competitiveness and is a means for Malaysia to achieve the developmental policies while embracing the Vision 2020. There are quite a number of studies that afrm the signicance 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 in services or products and adaptability to customers needs, it is vital to understand to what extent the public sector upholds the innovation capability. In view of the fact that the ndings of innovation research in advanced countries are not inevitably germane to an enlightenment of the innovative behaviour in transition economies, this study attempts to further explore the nature of the relationships between IWE and innovation capability in the Malaysian context. Work ethic, innovation capability and individual disposition A review of the literature revealed that there are multiple attempts by scholars in examining the inuence of personal disposition on the work ethic. Abu-Saad (2003) found that female teachers scored signicantly higher than male teachers on the IWE factor of personal effort and achievement. These ndings were consistent with other studies found in the literature (Petty and Hill, 1994; Lyson, 1984). Conversely, Ali and Al-Kazemi (2007) found that men scored relatively higher than women on the IWE scale. Yousef (2001) found no signicant IWE differences relative to gender among Muslim employees in several organizations in the United Arab Emirates (UAE).

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Likewise, other studies found a noticeably insignicant difference between genders in work ethic (Abu-Saad and Isralowitz, 1997; Adeyemi-Bello, 1994; Chusmir and Parker, 1991; Mannheim, 1993; Rowe and Snizek, 1995; Yousef, 2000). Seeing the conicting ndings 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 scored signicantly higher than their counterparts on the IWE. Saad (2003) reported that there was no signicant difference between teachers by age on IWE. Similarly Abboushi (1990), Ali et al. (1995b) and Yousef (2001) accounted that age signicantly inuences work ethic. The ndings of various scholars are evidence that work ethic signicantly inuences individual disposition such as participants work experience (Abboushi, 1990; Ali and Al-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 the managerial level which is analogous to position or income (Ali and Al-Kazemi, 2007; Ali et al., 1995b). An understanding of the various individual dispositions on innovation capability is also crucial, given the magnitude of innovation to the advancement of workforce and work processes within the public sector. Indeed, it has been reported that the internal capacity of an organization is one of the core factors which drives the innovation 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 on perception of innovation capability by gender, age, tenure, educational level and position. Given the diverse ndings on work ethic, innovation capability and individual disposition 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 public sector; and . to examine the inuence of various demographic variables (gender, age, years of service, education level and managerial grade) on IWE and innovation capability scales. Method The target population for this study is the Administrative and Diplomatic Service (Perkhidmatan Tadbir dan Diplomatik PTD) Ofcers. They are the elite corps of generalist administrators who occupy virtually the key positions in the Malaysian Civil Service. The PTD ofcers are generally very versatile individuals who act as providers of services, facilitators of the nations economic growth, enforcers of law, protectors of national peace and integration, and guardians of the future generations wellbeing and prosperity. They also shoulder the responsibility of ensuring the implementation of national policies and the attainment of their objectives. They are selected to participate in this study for those reasons and are expected to provide the best responses to fulll the objectives of the study. Data were collected using a self-administered questionnaire. Convenience sampling was 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 and pick method was employed. The liaison ofcers of various ministries and departments helped in the distribution and collection of the survey. Of the 1,000 questionnaires

distributed, 472 usable questionnaires were returned. Taking into account the invalid responses, the response rate for this study was 49 percent. The IWE was measured using 17 items developed by Ali (1988). Previous research has shown a satisfactory level of internal consistency of the IWE measure, with Cronbachs alpha ranging from 0.76 to 0.89 (Ali, 1992; Yousef, 2000, 2001; Ali and Al-Kazemi, 2007). The Cronbachs alpha coefcient for the current study is 0.89. Innovation capability was measured using ve items adapted from Lee and Choi (2003). The innovation capability scale had Cronbachs reliability coefcient of 0.87 and was well validated by Lee and Choi (2003). The current Cronbachs reliability coefcient is 0.94. All the items to measure IWE and innovation capability were rated on a ve-point Likert-type scale, with 1 representing strongly disagree and 5 strongly agree. Data were analyzed using SPSS version 15, a statistical analysis software package. Descriptive and correlation statistics were obtained to conrm the objectives of the study. Findings and discussion Prole of respondents Personal characteristics of the respondents are shown in Table I. Out of 472 respondents, 44 percent were male and 56 percent were female. The majority of the respondents which encompassed 52 percent were in the age group of 20 to 29 years,
IWE F-statistic 3.458 210 262 247 168 29 28 302 83 38 10 39 356 112 4 268 55 100 34 15 44.0 56.0 52.0 36.0 6.00 6.00 64.0 18.0 8.00 2.00 8.00 75.0 24.0 1.00 57.0 12.0 21.0 7.00 3.00 4.09 4.01 19.917 * 3.93 4.15 4.33 4.09 4.402 * 3.99 4.07 4.18 4.54 4.13 6.846 * 4.00 4.17 4.49 4.022 * 3.97 4.18 4.12 4.12 4.25 3.40 3.56 3.49 3.41 4.00 3.47 3.44 2.40 1.947 3.39 3.65 3.51 3.56 3.50 2.870 3.38 3.60 3.65 3.11 1.546 Innovation capability Mean F-statistic 3.65 3.30 17.421 * 3.826 * *

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Variable Gender Male Female Age 20-29 30-39 40-49 50 and above Years of service 5-10 11-15 16-20 21 . Educational level Bachelor Masters PhD Managerial grade M41 M44 M48 M52 M54

Mean

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

Table I. Results of one-way ANOVA test of IWE and innovation capability with individual variables

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whereas 36 percent of the respondents were aged between 30 to 39 years. In terms of service tenure, 64 percent of the respondents have been serving in the public sector for fewer than ve years. About 18 percent have been in service between ve to ten years and the balance has worked for more than ten years. This shows that the Malaysian public sector is expanding and thus more PTD ofcers have been employed in the last ve years to shoulder the increasing responsibilities on provision of public services. In terms of educational level, 76 percent of the respondents hold a Bachelors degree and only 23 percent had a Masters qualication. Indeed it is a mandate for PTD ofcers to attain 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, and they are arranged from the lowest grade, M41, to the highest grade, M54. About 57 percent of the respondents were in the public service scheme, M41 and followed by 21 percent in grade M48. There were only 7 percent and 3 percent of respondents from the higher grades of M52 and M54 respectively. This is justied by the lesser number of positions available in the higher service scheme of PTDs. Islamic work ethic Table II presents the items and item-total correlations of the IWE scale. An examination of item-total correlations for IWE shows that all items have high positive correlations with the overall score of the measure. Another important observation is that the mean score for all items that measure IWE was rated far above the average score of 3.0 on a ve-point Likert scale as used in this study. Since in all cases, the IWE
Item-total SD correlation 0.94 0.84 0.81 0.79 0.80 0.80 0.74 1.01 0.89 0.70 0.92 0.81 0.79 0.75 0.98 0.87 0.93 8.58 0.584 0.690 0.692 0.625 0.576 0.588 0.639 0.494 0.375 0.667 0.579 0.654 0.618 0.561 0.584 0.687 0.592 1.000

Item 1. 2. 3. 4.

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

Laziness is a vice 4.22 Dedication to work benets both oneself and others 4.41 Good work benets both oneself and others 4.46 Justice and generosity in the workplace are necessary conditions for 4.31 societys welfare 5. Producing more than enough to meet ones personal needs contributes to 4.08 the prosperity of society as a whole 6. One should carry work out to the best of ones ability 4.38 7. Work is not an end in itself but a means to foster personal growth and 4.29 social relations 8. Life has no meaning without work 3.69 9. More leisure time is good for societya 3.31 10. Human relations in organizations should be emphasized and encouraged 4.39 11. Work enables mankind to control nature 3.60 12. Creative work is a source of happiness and accomplishment 4.06 13. Any person who works is more likely to get ahead in life 4.03 14. Work gives one the chance to be independent 4.04 15. A successful person is the one who meets deadlines at work 3.75 16. One should constantly work hard to meet responsibilities 4.09 17. The value of work is derived from the accompanying intention rather than 3.63 its results IWE index (total items) 68.74
a

Notes: All correlation coefcients are signicant at the 0.01 level (two-tailed); scoring reversed

measure revealed a high mean concentration, it may perhaps be alleged that the IWE has been xed in the mind of public sector employees in Malaysia and these superior work values have been well adopted specically by PTD ofcers of all races, age group, gender, and different career hierarchy across the public sector. With extensive training and educational programs undergone by every PTD ofcers, it is promising that they are more aware of their responsibilities and the economic challenge that is being faced by the Malaysian Government. This vigilance indeed may inspire them to work hard to improve the competitiveness of public sector management. The more plausible explanation is that PTD ofcers are educated and not only aware of what is sanctioned by their own religion, but also infatuated with the superlative Islamic work values advocated in all governmental services in Malaysia. In short, the results of this study revealed that PTDs view work as a virtue, that benets both oneself and others; justice and generosity in the workplace are necessary conditions for societys welfare; human relations are imperative in the public sector; an individual should carry out work to the best of his ability and value hard work; work allows one to be independent and creative work is a source of happiness and accomplishment (Ali and Al-Owaihan, 2008; Ali, 2005). These results differentiate IWE from PWE and demonstrate an attachment to work beyond self-interest and the narrow denition of work involvement. The ndings of the present study are consistent 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 superior and 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 efciency. The moral principles, hard work and commitment to the community inherent in IWE, are also vital for independent thinking, genuine creativity and dynamic commerce. Innovation capability Item-total correlation for the innovation capability measure reveals that all items correlate positively with one another (see Table III). The overall mean score for innovation capability is 17.28 with a standard deviation of 4.50. The sturdy
Item-total SD correlation 0.824 0.895 0.903 0.936 0.951 1.000

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Item 1. My organization has produced many novel and useful ideas (services/ products) 2. My organization fosters an environment that is conducive to our own ability to produce novel and useful ideas (services/products) 3. My organization spends much time in producing novel and useful ideas 4. My organization considers producing novel and useful ideas as being important activities 5. My organization actively produces novel and useful ideas (services/ products) Innovation capability index (total items) Note: All correlation coefcients are signicant at the 0.01 level (two-tailed)

3.65 0.96 3.43 0.97 3.28 1.06 3.50 0.98 3.43 1.02 17.28 4.50

Table III. Item-total correlations, means, and standard deviations of innovation capability

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commitment to all items on the innovation capability measure provides considerable insights into the workplace ideals of PTD ofcers. Indeed, the everlasting work diligence and commitment to public sector innovation precisely depict the reality of well-formed PTD ofcers in Malaysia and their intense awareness of the state of economic, social and politics needs. The ninth Malaysia Plan (2006-2010) encapsulates the need to shift from input-driven to knowledge- and technology-driven as part of the economic growth strategy. In this vein, Malaysia seriously embarked on strengthening her capabilities to innovate; adapt and create indigenous technology; design, develop and market new products as well as services, thereby providing a foundation for endogenously driven growth. By the year 2020, Malaysia expects to become a contributor to, rather than a consumer of, knowledge and technology. The public sector is not exempt and is continuously looking for ways to increase innovation capability besides getting better at offering best public services. The aim is to be an example for the private sector and to be proactive in facing the challenging and competitive environment in the future. Innovation capability is positively related to rm performance and has been supported by many empirical studies (Cooper and Kleinschmidt, 2007). According to Higgins (1995), the largest property of twenty-rst-century rms lies in their capability to innovate which will denitely bring individuals, teams, organizations, industries or societies better values and may provide a relatively low cost production process. This study shows that an innovation capability exists among the PTD ofcers. However, there is a difference of opinion expressed pertaining to the level of current innovation capacity. Perhaps there should be a slight tuning of support and edication of Islamic work values in the public sector. The unique workplace culture as hinted in the IWE could contribute signicantly to the competitive advantage of the public sector. IWE is a way of thinking and behaving that creates, develops and establishes values and attitudes across the organization which results in encouraging innovation in the workplace (Ali, 2005). The relationship between IWE and innovation capability Table IV shows the relationship between the IWE index and the innovation capability items. In reference to the guidelines by Cohen (1988), the IWE index was found to be signicant with moderate correlation and positive relationship with innovation capability measure (r 0.382, p , 0.01, n 472). All items of innovation capability
Item 1. My organization has produced many novel and useful ideas (services/ products) 2. My organization fosters an environment that is conducive to our own ability to produce novel and useful ideas (services/products) 3. My organization spends much time in producing novel and useful ideas 4. My organization considers producing novel and useful ideas as being important activities 5. My organization actively produces novel and useful ideas (services/ products) Innovation capability (total items) Note: All correlation coefcients are signicant at the 0.01 level (two-tailed) M 3.65 3.43 3.28 3.50 3.43 17.28 SD 0.96 0.97 1.06 0.98 1.02 4.50 r 0.333 0.424 0.287 0.348 0.338 0.382

Table IV. Person correlations between IWE Index and Innovation Capability Scale

had signicant correlations with the IWE index at the p , 0.0001 level. This proves that the PTD ofcers value hard work that benets society. They are against laziness and waste of time by either remaining idle or engaging oneself in unproductive activity. The results also revealed that the public sector has produced useful ideas in the past and still considers innovation as an important activity. Perhaps more attention to foster an environment that is conducive to the development of innovation capability is vital. Similarly, a new mechanism of mind change such as transforming into a learning organization accelerates the processes and production of new ideas in line with world order of public services. The positive correlation between the IWE and innovation capability has a far-reaching implication for organizational studies. Efforts to 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 work besides leading and strive to bring about new meaningful ventures. Enforcing the spirit of innovation should be the utmost concern of the government. This endeavor could erect economic development and afrmative contribution in the workplace. The results of an ANOVA test are presented in Table I. The results revealed that the absorption of IWE differs across age, years of service, educational level and position. On the other hand, innovation capability differs across gender and age. Male PTDs showed stronger support of innovation capability (M 3.65) than female PTDs (M 3.30). The fact that male PTDs scored relatively higher than their female counterparts on innovation capability probably indicates that male PTDs take advantage of the emerging opportunities in the workplace more vigorously and proactively promote new-fangled ideas for collective improvement. PTDs in the age group of (40-49 years) showed stronger undertaking of the IWE and innovation capability. PTDs who have been serving the public sector between 16-20 years showed a higher commitment to IWE compared with other categories of years in service. It was found that the scores on IWE increase with the increase in educational level and managerial grade or position. Nevertheless, there are no signicant differences across years of service, educational level and managerial grade on innovation capability. Likewise, gender does not contribute to variation in support of the IWE. Akin to previous research (Yousef, 2000, 2001; Abu-Saad and Isralowitz, 1997), the results show no discrepancy between gender and commitment to IWE. This signies that both male and female PTDs are clear about their work policies, stay focused and work hard to fulll their shouldered responsibilities. Concerning the signicant relationship between PTDs age, education level, work experience and commitment to IWE, the current ndings 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). In addition, the signicant relationship between managerial grade and IWE reported in the current study is akin to the ndings of Ali and Al-kazemi (2002). Conclusion This study shows that the PTD ofcers are highly committed to the IWE scale. One of the reasons for successful absorption of IWE in the Malaysian public sector context is that both Muslim and non-Muslim employees are aware and conscious of their religious demands for the establishment of justice and fair dealings in the workplace. The non-Muslims who participate in this study seemed to be at ease in working with their Muslim 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 and observation of the Islamic way of work-life balance in Malaysia. Such positive attitudes might result in several advantages including hard work, commitment and dedication to work, work creativity, cooperation and fair competitiveness in the work place. These, of course, would benet both the individual and the public sector operations. Thus, the human resource professionals in the Malaysian public services need to continuously measure all the positive outcomes as a result of the high support and inculcation of IWE while 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 provide some insights to help the human resource professionals in the public services in designing and implementing change programs in tandem with the national development policies. IWE emphasizes hard work, meeting deadlines and persistence. This means that, in introducing change, the establishment of timelines and clarication of goals and responsibilities are essential in carrying out interventions successfully. IWE also views work 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 appropriately to enable optimal facilitation of the intended changes. Moreover, IWE views dedication to work and work creativity as virtuous. Human resource professionals should focus their process design on the new method of change and on producing results that reinforce existing commitment and enthusiasm. Justice and generosity in the workplace are necessary conditions for societys welfare and they have long been preached in IWE. Human resource professionals must show that they are attentive to and are concerned about human needs. Besides, human resource professionals who act as the change agent in the public sector must acquire social skills and master public relations which are essential to effect change successfully. It is also proved that IWE inuences innovation capability in the public sector but the strength of the relationship was moderate. This is because there are many factors that contribute equally to innovation capability such as human capital, internal and external structures. The IWE may only be able to inuence the human capital side of the 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 organizations vision, strategies, goals, values, culture and philosophy are examples of internal structures. Stakeholders, public policy and regulation are considered as external structures. Overall, it is believed that the results of this study and its implications are useful in reecting on current issues related to the work ethic and its correlates. The results are also important to the practitioners in understanding IWE and the centrality of the work ethic in ones life. IWE places signicant social and psychological force on employees to increase their commitment in the provision of public services articulated by the ruling government. From this viewpoint, human resource professionals should seek to understand individual norms in the workplace and revolutionize the current values to one that fosters innovation. Strong values which resonance with emphasized in IWE will contribute greatly to innovation capability. Limitations of the study and issues for future research are recapitulated as follows: . It is strongly suggested that cross-national studies using relatively a large and representative sample are conducted to compare the strength of the IWE scale and assess its generalizability across varying public and private sectors. This is essential for constant advancement of the body of knowledge on IWE.

The current study only focused on the PTD ofcers; thus further studies are anticipated to include all level of employees in the public sector to strengthen the generalization of the ndings. It would also be of interest to study the impact of the IWE on other individual and organizational variables as such knowledge-sharing capability, nancial performance, talent development, organizational citizenship behaviour, workplace learning and job insecurity. More studies should be undertaken to observe the impact of the IWE on innovation 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 study between IWE and other work ethics can also be carried out to understand their impacts on various organizational outcomes.

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