ARE HOUSING DEVELOPERS READY FOR INNOVATION? THE CASE FOR A NEW HOUSING DELIVERY SYSTEM IN MALAYSIA

This paper investigates the readiness level of housing developers in Malaysia to adopt a new housing system known as the Build-Then-Sell (BTS) system. We examine whether a firm's characteristics influence its readiness to adopt. We constructed a BTS readiness index, which comprises innovativeness, optimism, discomfort, and insecurity dimensions. We carried out a face-to-face survey with 246 developers in Malaysia's major cities and received a 48.8% response. The data were analyzed using descriptive analysis, factor analysis and correlation analysis. We found that housing developers are partially ready to implement the BTS system, with a slightly high level of optimism and a high level of insecurity. However, there was a very weak relationship between BTS readiness (e.g. optimism and insecurity) and a firm's characteristics (e.g. type of ownership, firm size, age, and land bank). The paper ends by providing some explanations for the results.