Corporate Governance, Innovation and Risks among Malaysian Companies in the Knowledge-Driven Economy
The Emergence of Knowledge-Driven Economy triggers a new era of business environment. Therefore, the paradigm shift in the current policies and business concepts are inevitable. In the K-Economy knowledge is looked upon as a powerful strategic weapon that can tilt the outcome of the battle in favour of those companies which have it the most. How is this possible? The answer lies in none other than the company’s ability to mould its internal creativity and embrace innovation. All the players in the industry are trying their hardest to become a market leader; therefore creating something new and different or improvising the existing products and services is a must. The term innovation does not confine to just attractive new products. Innovative management entails reinventing the entire business model, overhauling traditional processes and reconstructing the entire services, if necessary. Most companies feel apprehensive when faced with the daunting task of being innovative, because it forces them to be risk averse. However, a successful Innovation Program can be accomplished through a proper corporate governance structure based on the awareness of knowledge. Corporate Governance is the control centre to all the corporate activities. Attention towards knowledge management a priority, in which case, it could either be in terms of technological, or organisational approach; or the combination of both. The knowledge management should be parallel with the main organisational goals. Other critical organisational factors such as, an innovative culture within the organization culture, and a flexible reward should also be taken into consideration. Companies which have seriously committed themselves in their Innovation Program should be aware of the risks that are associated with it. Innovation is risky business; therefore well calculated risks should be considered.
Keywords: Corporate Governance, Innovation, K-Economy, Risk and Knowledge Management
Maizatul Akmal Musa
Lecturer, Faculty of Administrative Science and Policy Studies, University Teknologi MARA
Research interests are Corporate Governance, Knowledge Management and innovation management
Shahril Eashak Ismail
Lecturer, Faculty of Administrative Science & Policy Studies, Universiti Teknologi Malaysia