The influence of knowledge management and individual absorptive capacity on Malaysian agricultural-based researchers’ innovation capability / Anaqi Ahmad Saleh

The importance of agriculture to the basic human lives is irrefutable. It is a vital part of global society, and it significantly impacts the economy and food supply worldwide specifically for Malaysia’s society's development since before the colonial era. Besides being responsible for providing food for humans and animals, agriculture also provides employment opportunities and income for people worldwide. However, current economic shifts from an agricultural-based into an industrial-oriented economy have posed greater risks to the national policies involving increment in food supply imports and small farmers' income sources, particularly during post Covid-19 pandemic alongside with the scarcity of soil, weather, and financial supports indicate that this sector needs support to cope with current changes. Thus, advancing research and development (R&D) aspects is one of the main approaches to deal with this critical issue. The R&D process heavily depends on the internal and external knowledge of the researchers in this field to create innovative ways of dealing with the challenges. Accordingly, this study essentially sought to comprehend the individual level measurement on the interrelationship between knowledge management, absorptive capacity, and innovation capability. A literature review and identification of knowledge gaps formed the basis of the conceptual model and 9 hypotheses. To achieve the objectives, this study used a descriptive research design and a purposive sampling design. The unit of analysis was 118 agriculture researchers in Malaysia consisting of respondents from Malaysia research institutions namely MARDI, DVS, MPOB, UiTM and UPM. Empirical data for this study was collected using a self-administered questionnaire based on a five-point Likert-type scale. Descriptive data were used to summarize the data on its distribution, central tendency, and variability, whereas inferential statistics applied Structural Equation Modelling (SEM) analysis to test the hypothesized relationships. Results show that knowledge management and absorptive capacity positively and significantly affect the researcher’s innovation capability, and 8 out of 9 hypotheses are supported. The study findings further revealed that absorptive capacity mediates the relationship between knowledge management and innovation capability. Agriculture R&D should encourage and emphasize the researchers to acquire, assimilate, transform, and exploit external knowledge so that the innovation capability will benefit the agriculture sectors. This study, therefore, concludes that the collective effect of knowledge management, mediated with absorptive capacity, affects employees’ innovation capability and, by extension, their R&D performance. This study significantly contributed on the theoretical, managerial, and methodological aspects of knowledge management in agricultural sector.