Enhancing Innovation in Organizations through Psychological Ownership: Exploring the Impact of Employee Mindset on Idea Realization

Abstract

This study examines the critical role of employee mindset in fostering idea realization within two prominent Malaysian Government-Linked Companies (GLCs)—Automobile and Airlines—underscoring its importance for maintaining competitiveness and spurring economic growth in Malaysia. Utilizing a correlational design and quota sampling method, this research aims to delineate the relationships between various facets of employee mindset and their impact on the effective implementation of innovative ideas. Analysis of data from both companies reveals that all six studied variables exhibit significant positive correlations with idea realization. Notably, the entrepreneurial mindset emerged as the most decisive factor influencing idea realization across both sectors. These findings suggest that understanding employees’ expectations, along with their aspirations and apprehensions regarding innovation, can greatly enhance organizational strategies to cultivate a conducive environment for innovation. By integrating these insights, firms can better harness the creative potentials of their workforce, ultimately driving greater organizational and economic advancement.