This study aims at investigating the moderating effect of workplace conditions,
namely occupational safety and health, employee development, employee
retention, employee diversity and employee relation; on the relationship
between innovation investment and company performance. The study was
conducted using the annual report for year 2007 and 2008 as the main source of
data collection. The finding shows that the workplace conditions are not
significantly contributed to the ROE in the interaction effect. However, the
employee development was noted to have negative significant contribution to the
ROE in the direct effect model which may be due to the short period of
observation. It is concluded that workforce conditions is not necessarily
producing positive input to ensure that innovation investment undertaken by the
firm would improve company performance in a short run.
