The dynamics of innovation in Malaysia's wooden furniture industry: Innovation actors and linkages

As a low-tech, labour intensive and supplier-dominated industry, the wooden furniture industry's pattern of innovation is widely acknowledged as business driven. This paper's main objective is to ascertain the roles played by the various innovation actors and their linkages to the process of technological innovations in the wooden furniture industry. Empirical evidence is derived from a narrative case study of the Muar furniture cluster in Malaysia. The main findings from this study indicate that the dynamics of innovation in Malaysia's wooden furniture industry are mainly business-led and are characterised as collective innovation. In this regard, the roles played by the immediate business environment such as suppliers, customers, competitors, and retailers are of paramount importance. These innovation actors have been linked closely to firms in their surge for technological advancement. Universities and government organisations do not feature in the operations of these firms.

► All innovation actors contribute to the success of Malaysia’s furniture industry.
► Market and commercial partnership are the main sources for knowledge.
► There is a strong social capital amongst competitors to see each other as partners.
► The take up rate of government assistance programs by the industry is poor.