摘要：Automotive industry in Malaysia started in 1985 with the launch of the first national car. However
after thirty years, overall performance of the industry is still far behind the neighboring countries
like Thailand and Indonesia which ranked first and second top producers in the automotive industry.
In order for the automotive players in Malaysia to be globally competitive, innovation is an important
element to drive competitiveness. Thus, the aim of this study is to determine the relationship
between NAP strategies and innovation performance in the Malaysian automotive component
industry. NAP was launched in 2006 with six main directions and strategies. Study is focused on
local automotive vendor and a completed survey was completed with 300 respondents. Data was
analyzed through structural equation modelling (SEM) using SmartPLS 3.0. Empirical evidence
shows that NAP supports all types of innovation among automotive vendors in Malaysia. The study
also found innovation mediates between National Automotive Policy (NAP) and vendor’s performance
except in the process innovation. This supported previous research in this area where government
policy partially mediates on firm competitiveness. The finding of the study suggests NAP
is still relevant for the automotive vendors in Malaysia in improving innovation and performance.
