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The Effect of Innovation Success Factors Towards Organizational Performance in Automotive Industry

Organizational performance is essential and necessary for every organization to properly create and sustain a healthy and effective results-oriented culture. In an economy increasingly driven by technological change, businesses need to stay abreast of the latest innovations to keep their competitive edge and access new market opportunities. Therefore, in order to excel in business, organizations must pay attention, especially to their technology implementation process. This study aims to analyze the effect of technology innovation that contributes to organizational performance. The innovation success model was adapted, which focus on three factors (technology selection, technology capability and technology management capability) and this study also added a successful technology implementation into the new framework. 131 questionnaires were distributed to 8 automotive companies in Shah Alam, Selangor. Based on the data analysis, the result showed that all the innovation success factors and successful technology implementation positively influence organizational performance. The technology capability is shown to be the strongest effect on the organizational performance among others. This study will hope to provide a guideline to the management of the automotive industry on how to improve their organizational performance through innovation.