A RELATIONSHIP BETWEEN THE MOTIVATIONAL LEVEL AND THE INNOVATION PERFORMANCE OF LOCAL WORKERS IN THE WORKPLACE ENGAGING EXPATRIATES

Abstract

Multinational companies often rely on expatriates in enhancing the innovation capabilities of their overseas subsidiaries. They tend to provide better compensation to expatriates compared to local workers regardless of the qualifications and capabilities of local workers. This inequitable treatment affects the work motivation of local workers thus affecting their innovation performance. Therefore, this study was conducted to investigate the relationship between the level of motivation and innovation performance of local workers in the workplace engaging expatriates, focused in foreign multinational companies in Malaysia.

Although the findings of this study statistically prove that there is a strong positive relationship between the level of workers motivation and their innovation performance but the linear regression modelled from the findings of this study clearly shows that performance innovation of workers is not entirely influenced by their motivation level. There are other factors influencing employee innovation performance that require further study such as knowledge transfer and readiness of infrastructure such as ICT, work processes and procedures.

The study confirms the strategies adopted by foreign multinational companies to rely on expatriates in enhancing the innovation capabilities of their overseas subsidiaries are appropriate and acceptable to local workers. By assigning these expatriates to local subsidiaries, foreign multinational companies are leveraging their expatriate knowledge networks to develop local innovation capabilities to enhance their products, processes and procedures. These expatriates will close the knowledge gap as well as provide control and standardization with their parent company.