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Organisational Innovation is deeply entrenched in the leadership, cultural and ethical values of public and private sector organisations. Currently, governance in public administration has been exposed to public criticism due to the governance failure, fraud, corruption and poor internal control.Â The purpose of the study is to examine the relationship between factors of good governance and the practice of integrity in academic institution that create a conducive environment for organization innovation.Â The simple random sampling was used to select the sample for the study. The questionnaire survey was distributed to 98 academics from two academic institutions in Malaysia. Such sample was chosen since this study was focused on the academicâ€™s perspective on integrity practice in academic institutions and no research has been done in term of good governance and integrity in academic institutions Malaysia. This study found that all three factors of good governance which are ethical leadership, financial resources and asset management have significant relationship on integrity practice in academic institution. The findings of this study can assist academic institutions in Malaysia to improve their governance system and also code of ethics in their organization.Â In order to improve future studies, it is recommended that the data collection made to be more extensive.