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Innovation, Adapt to Change and Productivity Interrelationship in Telecommunications Industry

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Submitted By bluesme80
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| Innovation, Adapt to change and Productivity interrelationship in Telecommunications Industry. | Article Summary | for Economic Analysis(ECO740) | | |

Prepared for: ASSOC. PROF. DR. AZIZ SULAIMAN

Introduction
The Telecommunications industry is currently undergoing changes due to globalization and new technological developments. Links between technologies within the technological system will change over time and affect the structure of the industrial network and firm behavior. Thus, organizations that successfully align service roles with advanced information technology can achieve comparative advantages in the marketplace (Youngdahl and Loomba, 2000).
The deregulation and privatization of Malaysia’s telecommunications sector leads to technological innovation in the sector. Two forces drive the sector, namely technological innovation which drives the developed or matured markets; and technological diffusion which drives the developing or emerging ones (Telekom Malaysia Berhad, 2006). There is a need to adapt to developments in the global economy and local environment to strengthen the financial position and enhance service competitiveness (Telekom Malaysia Berhad, 2004).
Thus, achieving the right service quality is important as it is the driving force for productivity and profitability. Good service could be achieved through empowerment (Tschohl, 1998) and the staff ability to produce more, adapt to changing technologies and to be more innovative. Innovation, productivity and adapt to change is very important for a firm in order to be competitive in telecommunications industry. These three elements are somehow interrelated to each other and it is proven in this article.

Innovations make industry more productive

The rapid increase in the usage of mobile telephony and the Internet has also contributed to the increasing

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