The Role of HR Practices in Driving Innovation within Malaysian Startup Ecosystems

Abstract

This study examines the role of HR practices in fostering innovation within Malaysian startups, which contribute RM13 billion annually to the GDP. Using a case study approach, data were collected from 10 startups through manager interviews, employee surveys, and HR policy reviews. The findings highlight key HR strategies, including flexible work policies, continuous learning programs, performance-based incentives, and collaborative workspaces, all of which enhance innovation and employee engagement. Flexible work policies improved job satisfaction, while learning initiatives boosted creative problem-solving by 28%. Performance incentives accelerated product development, and diverse teams saw a 32% rise in successful product launches. The study concludes that HR strategies focusing on flexibility, learning, and diversity provide startups with a competitive advantage, promoting long-term growth and innovation.