Exploratory Factor Analysis of Latent Constructs Used for Measuring Public Sector Innovation Performance in Malaysia

Abstract

The contribution of public sector innovation aimed to resolve dynamic challenges in economic, social and public demand is undisputable. However, limited empirical evidence is available to help understand public sector innovation performance, as compared to private sector innovation. There currently exists an increasing interest in measuring public sector innovation performance, attributable to initiatives by the European Union, United Kingdom, Australia and South Korea. In the light of measuring public sector innovation performance in the context of Malaysia, a measuring instrument was developed and assessed for reliability using an exploratory factor analysis approach. A pilot test on 102 respondents from various ministries in the country indicates that all four constructs applied in the instrument, namely, (1) innovation performance, (2) innovation capabilities, (3) innovation activities and (4) external public sector conditions for innovation, exhibited relatively high reliability. The results indicate that the instruments can potentially serve as an alternative for measuring public sector innovation performance in the country.