Leadership in open innovation: Strategies for effective crisis management in Malaysia

The study of crisis management is vital for developing effective strategies that address the unique challenges posed by socio-political and environmental contexts. Despite its importance, there is a notable lack of research on crisis management across various sectors in Malaysia. This highlights the need for comprehensive studies considering the country's challenges and strategies. Through the lens of dynamic capabilities theory, this research aims to fill the gap in existing literature by focusing on Malaysia's distinct socio-economic and cultural dynamics, which may influence the effectiveness of crisis management strategies. Data were collected from 310 employees of Malaysian manufacturing companies and analyzed using structural equation modeling (SEM). The results reveal that leadership assessment (LA), transformational leadership style (TLS), strategic flexibility (SF), e-readiness (ER), and open innovation (OI) positively predict crisis management success (CMS). Surprisingly, strategic planning showed no significant relationship with CMS. Additionally, the study examined the mediating effects of open innovation on these constructs. The findings indicate that all variables, except strategic planning, enhance the positive relationship between open innovation activities and crisis management success. The study offers innovative approaches to crisis management by thoughtfully integrating effective and culturally acceptable methods within organizations during crises. These findings contribute valuable insights for enhancing the effectiveness of crisis management strategies in Malaysia and beyond.