Workplace condition as a moderator between innovation investment and company performances

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.