ASSESSING THE ORGANIZATIONAL CLIMATE TOWARDS DEVELOPING INNOVATIVE WORK BEHAVIOR: A LITERATURE REVIEW Bari’ah Dzulkifli & Haris Md Noor Faculty of Technology Management, Business & Entrepreneurship Universiti Tun Hussein Onn Malaysia bariahdzulkifli@yahoo.com harisn@uthm.edu.my ABSTRACT Agricultural sector has drawn a huge attention from many scholars regarding to the issues it holds towards human necessity. While innovation is essential to ensure the agricultural sector grows steadily to meet human needs on food, there is still a lack of study on organizational climate significance in the agricultural sector. Therefore, this study aims to examine the variables of organizational climate in assisting innovative work behavior as its pertaining to innovation. This study will specifically performs a comparative analysis on organizational climate models and their variables in the literature review and explores the most frequent variables that created organizational climate towards developing innovative work behavior. The discussion and analysis of the literature will able to develop components of variables required in organizational climate to develop innovative work behavior. Indeed, this paper puts some theoretical meanings as well as the direction of future research in this area. Field of Research: Innovative work behavior, organizational climate. ---------------------------------------------------------------------------------------------------------------------------------- 1. Introduction The vitalities of agriculture to serve for human needs especially on providing food to the world’s population are undeniable. Besides serving for human needs, agricultural sector’s position is also essential in contributing to the Gross Domestic Product (GDP) and socio-economic development of Malaysia (Abd Rahim, 2006). However, according to Malaysia Productivity Council report 2010/2011 and Quah (2011) the agricultural sector productivity grows at 1.82%, is still lower as compared to the nation’s aggregate productivity growth such as manufacturing productivity which grows at 9.42% in 2010. In regard to the report by MPC, the productivity growth of agricultural sector after industrialization era is still considered sluggish. Due to the economic development by sectors is vital, most of the developed and advanced countries today have achieved their economic growth and technological success by relentless efforts in R&D (Rukunudin, 2009). However, although the government of Malaysia had invested vast amount of money on research and development in agriculture integrated with socio-economic program through agricultural public agencies, there are still enormous problems encountered by agricultural sector. For instance, the total imported food is still considered high at RM26 billion in 2009 which would increase the chance of inflation that will affect economy. Several issues and challenges faced by Malaysian agricultural sector were discussed in every policy making. According to the Third National Agricultural Policy (1998-2010), several major issues and challenges faced by Malaysian agricultural sector are ; (1) 1487 3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH \( 3rd ICBER 2012 \) PROCEEDING 12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA ISBN: 978-967-5705-05-2. WEBSITE: www.internationalconference.com.my