The reason for selecting these
industry classifications is that most companies are OEMs, and their major customers
(typically foreign factories) require them to start considering incremental innovation
(process and product) as an order-winner. In addition, in order to reflect organizational
phenomena in innovation development, the size of population focused on in this study was
limited to those 850 companies which have been supported by one of the major investment
incentive schemes known as Skills, Technology, and Innovation (STI) Policy. The unit of
analysis used in this study is firm level. Of the total of 250 returned questionnaires, 32 were
discarded due to excessive missing responses, thus resulting in 218 usable cases, a response
rate of 25.65%. All respondents hold managerial position ranging from top management to
shop floor operations control level. Table 1 presents the demographic data of respondents