Main Article Content

Abstract

Bureaucratic transformation in the digital era requires public organizations to adopt innovation and digital agility to improve performance effectiveness and organizational sustainability. This study examines the impact of innovation and digital agility on employee performance and their implications for organizational sustainability, using the Cilegon City DPRD Secretariat as a case study. This study employed a quantitative approach with a survey method. Data were obtained from 93 employees of the Cilegon City DPRD Secretariat through a census questionnaire. Analysis was conducted using Partial Least Squares-Structural Equation Modeling (PLS-SEM). Construct validity was tested using factor loadings, while hypotheses were tested using t-statistics and p-values. The results show that innovation (t=5.293; p<0.05) and digital agility (t=3.649; p<0.05) significantly influence employee performance. Employee performance also mediates the relationship between the independent variables and organizational sustainability. The highest indicator of innovation is "the organization provides space for new ideas" (0.925), while digital agility is indicated by "quick adaptation to new technologies" (0.922). The findings demonstrate that innovation and digital agility are key pillars of an adaptive, productive, and sustainable bureaucracy. Innovation-based managerial strategies, digitalization of work processes, and strengthening organizational culture have been shown to improve individual and institutional performance. This research provides a strategic basis for the Cilegon City DPRD Secretariat to accelerate technology adoption, strengthen internal innovation, and build a sustainability-oriented performance evaluation system.

Keywords

Innovation, Digital Agility, Employee Performance, Sustainable Organization, DPRD Secretariat

Article Details

References

  1. Aggarwal, S. (2024). Impact of dimensions of organisational culture on employee satisfaction and performance level in select organisations. IIMB Management Review, 36(3), 230–238. https://doi.org/10.1016/j.iimb.2024.07.001
  2. Al Jabri, M. A., Shaloh, S., Shakhoor, N., Haddoud, M. Y., & Obeidat, B. Y. (2024). The impact of dynamic capabilities on enterprise agility: The intervening roles of digital transformation and IT alignment. Journal of Open Innovation: Technology, Market, and Complexity, 10(2), 100266. https://doi.org/10.1016/j.joitmc.2024.100266
  3. Alexander, Edgar, Vera, & Lida. (2024). Digitalization, innovation, sustainability and performance: A causal analysis applied to tourism MSMEs Alexander. Journal Pre-Proof, 1–14. https://doi.org/10.1016/j.ijis.2024.12.001
  4. Ali, Y., Uddin, A., & Petrillo, A. (2024). The impact of government support and organizational culture on sustainable performance: Unveiling the mediating role of circular economy and eco-innovation. Sustainable Futures, 8(August), 100346. https://doi.org/10.1016/j.sftr.2024.100346
  5. Almazrouei, F., Elias Sarker, A., Zervopoulos, P., & Yousaf, S. (2024). Organizational structure, agility, and public value-driven innovation performance in the UAE public services. Heliyon, 10(13), e33261. https://doi.org/10.1016/j.heliyon.2024.e33261
  6. Amimakmur, S. A., Saifi, M., Damayanti, C. R., & Hutahayan, B. (2024). Assessing the moderating effect of IT innovation on the interplay among company size, financial performance, and company value. Journal of Open Innovation: Technology, Market, and Complexity, 10(3), 100318. https://doi.org/10.1016/j.joitmc.2024.100318
  7. Andriyani, Y., Suripto, Yohanitas, W. A., Kartika, R. S., & Marsono. (2024). Adaptive innovation model design: Integrating agile and open innovation in regional areas innovation. Journal of Open Innovation: Technology, Market, and Complexity, 10(1), 100197. https://doi.org/10.1016/j.joitmc.2023.100197
  8. Atienza-Barba, M., Río-Rama, M. de la C. del, Meseguer-Martínez, Á., & Barba-Sánchez, V. (2024). Artificial intelligence and organizational agility: An analysis of scientific production and future trends. European Research on Management and Business Economics, 30(2). https://doi.org/10.1016/j.iedeen.2024.100253
  9. Balder, J., Porst, M., & Stark, R. (2027). Digital and Agile Collaboration in New Work SME Product Development. Procedia CIRP, 128, 126–131. https://doi.org/10.1016/j.procir.2024.06.012
  10. Bhatti, S. M., Zia ul Haq, M., Kanwal, S., & Makhbul, Z. K. M. (2024). Impact of green intellectual capital, green organizational culture, and frugal innovation on sustainable business model innovation: Dataset of manufacturing firms in Pakistan. Data in Brief, 54, 110419. https://doi.org/10.1016/j.dib.2024.110419
  11. Buonocore, F., Annosi, M. C., de Gennaro, D., & Riemma, F. (2024). Digital transformation and social change: Leadership strategies for responsible innovation. Journal of Engineering and Technology Management - JET-M, 74(December 2023), 101843. https://doi.org/10.1016/j.jengtecman.2024.101843
  12. Cantele, S., Russo, I., Kirchoff, J. F., & Valcozzena, S. (2023). Supply chain agility and sustainability performance: A configurational approach to sustainable supply chain management practices. Journal of Cleaner Production, 414(May), 137493. https://doi.org/10.1016/j.jclepro.2023.137493
  13. Chaudhuri, R., Chatterjee, S., Mariani, M. M., & Wamba, S. F. (2024). Assessing the influence of emerging technologies on organizational data driven culture and innovation capabilities: A sustainability performance perspective. Technological Forecasting and Social Change, 200(December 2023), 123165. https://doi.org/10.1016/j.techfore.2023.123165
  14. Chen, A., Li, L., & Shahid, W. (2024). Digital transformation as the driving force for sustainable business performance: A moderated mediation model of market-driven business model innovation and digital leadership capabilities. Heliyon, 10(8), e29509. https://doi.org/10.1016/j.heliyon.2024.e29509
  15. Cholez, C., Pauly, O., Mahdad, M., Mehrabi, S., Giagnocavo, C., & Bijman, J. (2023). Heterogeneity of inter-organizational collaborations in agrifood chain sustainability-oriented innovations. Agricultural Systems, 212(September 2023), 103774. https://doi.org/10.1016/j.agsy.2023.103774
  16. Coffay, M., & Bocken, N. (2023). Sustainable by design: An organizational design tool for sustainable business model innovation. Journal of Cleaner Production, 427(January), 139294. https://doi.org/10.1016/j.jclepro.2023.139294
  17. Demerouti, E. (2023). Effective employee strategies for remote working: An online self-training intervention. Journal of Vocational Behavior, 142(March 2022), 103857. https://doi.org/10.1016/j.jvb.2023.103857
  18. Deole, S. S., Deter, M., & Huang, Y. (2023). Home sweet home: Working from home and employee performance during the COVID-19 pandemic in the UK. Labour Economics, 80(September 2021), 102295. https://doi.org/10.1016/j.labeco.2022.102295
  19. Din, A. U., Yang, Y., Yan, R., Wei, A., & Ali, M. (2024). Growing success with sustainability: The influence of green HRM, innovation, and competitive advantage on environmental performance in the manufacturing industry. Heliyon, 10(10), e30855. https://doi.org/10.1016/j.heliyon.2024.e30855
  20. García-Cruz, J., Rincon-Roldan, F., & Pasamar, S. (2024). When the stars align: The effect of institutional pressures on sustainable human resource management through organizational engagement. European Management Journal, March. https://doi.org/10.1016/j.emj.2024.03.009
  21. Ghani, B., Hyder, S. I., Yoo, S., & Han, H. (2023). Does employee engagement promote innovation? The Facilitators of innovative workplace behavior via mediation and moderation. Heliyon, 9(11), e21817. https://doi.org/10.1016/j.heliyon.2023.e21817
  22. Hagen, B., Ghauri, P. N., & Macovei, V. (2024). The balancing act: Organizational agility in fast-growing international ventures. Industrial Marketing Management, 123(October), 119–132. https://doi.org/10.1016/j.indmarman.2024.09.007
  23. Hariyani, D., Hariyani, P., Mishra, S., & Kumar Sharma, M. (2024). Stakeholders’ perspectives and performance outcomes of sustainable market-focused manufacturing system in Indian manufacturing organizations. Cleaner Logistics and Supply Chain, 13(May), 100178. https://doi.org/10.1016/j.clscn.2024.100178
  24. Hartmann, M. R., & Hartmann, R. K. (2023). Hiding practices in employee-user innovation. Research Policy, 52(4), 104728. https://doi.org/10.1016/j.respol.2023.104728
  25. He, K., Bouncken, R. B., Kiani, A., & Kraus, S. (2024). The role of strategic orientations for digital innovation: When entrepreneurship meets sustainability. Technological Forecasting and Social Change, 205(June), 123503. https://doi.org/10.1016/j.techfore.2024.123503
  26. Helmi, A., Bastidas, V., Oti-Sarpong, K., & Schooling, J. (2024). Sustainable urban digital innovation: A socio-technical competency-based approach to evaluation. Sustainable Cities and Society, 117(June), 105946. https://doi.org/10.1016/j.scs.2024.105946
  27. Imjai, N., Promma, W., Usman, B., & Aujirapongpan, S. (2024). The intertwined effects of digital literacy, agile mindset on design thinking skill and management control competency: Insights from Thai young accountants. International Journal of Information Management Data Insights, 4(2), 100244. https://doi.org/10.1016/j.jjimei.2024.100244
  28. Inthavong, P., Rehman, K. U., Masood, K., Shaukat, Z., Hnydiuk-Stefan, A., & Ray, S. (2023). Impact of organizational learning on sustainable firm performance: Intervening effect of organizational networking and innovation. Heliyon, 9(5), e16177. https://doi.org/10.1016/j.heliyon.2023.e16177
  29. Janani, M., & Vijayalakshmi, V. (2024). Arts as a driver of agility: A mixed-method inquiry. Acta Psychologica, 251(November), 104640. https://doi.org/10.1016/j.actpsy.2024.104640
  30. Joseph, J., Firmin, S., Oseni, T., & Stranieri, A. (2023). Decoding Employee ambidexterity: Understanding drivers, constraints, and performance implications for thriving in the evolving work landscapes - A scoping review. Heliyon, 9(12), e22493. https://doi.org/10.1016/j.heliyon.2023.e22493
  31. Khan, A. N., Mehmood, K., & Kwan, H. K. (2024). Green knowledge management: A key driver of green technology innovation and sustainable performance in the construction organizations. Journal of Innovation and Knowledge, 9(1), 100455. https://doi.org/10.1016/j.jik.2023.100455
  32. Kim, D., & Gang, Y. (2024). Effect of KOREA SMEs’ technological innovation on transaction dependence: Focused on moderating effect of resource competency. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100421. https://doi.org/10.1016/j.joitmc.2024.100421
  33. Kirchner-Krath, J., Morschheuser, B., Sicevic, N., Xi, N., von Korflesch, H. F. O., & Hamari, J. (2024). Challenges in the adoption of sustainability information systems: A study on green IS in organizations. International Journal of Information Management, 77(November 2023), 102754. https://doi.org/10.1016/j.ijinfomgt.2024.102754
  34. Liu, W., He, Q., Cao, J., & Kamar, A. (2024). Exploring the catalysts of eco-innovation: Employee ownership and sustainable practices. Technological Forecasting and Social Change, 207(June), 123629. https://doi.org/10.1016/j.techfore.2024.123629
  35. Mollah, M. A., Ibrahim, Masud, A. Al, & Chowdhury, M. S. (2024). How does digital leadership boost competitive performance? The role of digital culture, affective commitment, and strategic agility. Heliyon, 10(23), 1–14. https://doi.org/10.1016/j.heliyon.2024.e40839
  36. Ngoc Huynh, H. T., Thanh Nguyen, N. T., & Y Vo, N. N. (2024). The influence of knowledge management, green transformational leadership, green organizational culture on green innovation and sustainable performance: The case of Vietnam. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100436. https://doi.org/10.1016/j.joitmc.2024.100436
  37. Nguyen, M., Malik, A., Sharma, P., Kingshott, R., & Gugnani, R. (2024). High involvement work system and organizational and employee resilience: Impact of digitalisation in crisis situations. Technological Forecasting and Social Change, 205(April 2023), 123510. https://doi.org/10.1016/j.techfore.2024.123510
  38. Nilsen, M., & Kongsvik, T. (2023). Health, Safety, and Well-Being in Platform-Mediated Work – A Job Demands and Resources Perspective. Safety Science, 163(September 2021), 106130. https://doi.org/10.1016/j.ssci.2023.106130
  39. Ofoeda, J., Boateng, R., & Effah, J. (2024). API integration and organisational agility outcomes in digital music platforms: A qualitative case study. Heliyon, 10(11), e31756. https://doi.org/10.1016/j.heliyon.2024.e31756
  40. Osei, M. B., Papadopoulos, T., Acquaye, A., & Stamati, T. (2023). Improving sustainable supply chain performance through organisational culture: A competing values framework approach. Journal of Purchasing and Supply Management, 29(2), 100821. https://doi.org/10.1016/j.pursup.2023.100821
  41. Panichakarn, B., Pochan, J., Shafiq, M., Saleem, I., Wang, Y. Q., & Nazeer, S. (2024). The interplay of digital transformation, agility, environmental volatility, and innovation to spur enterprise performance: Evidence from Chinese electric vehicle firms. Journal of Open Innovation: Technology, Market, and Complexity, 10(4), 100408. https://doi.org/10.1016/j.joitmc.2024.100408
  42. Pea-Assounga, J. B. B., Yao, H., Mulindwa Bahizire, G., Bambi, P. D. R., & Nima Ngapey, J. D. (2024). Effect of financial innovation and stakeholders’ satisfaction on investment decisions: Does internet security matter? Heliyon, 10(6), e27242. https://doi.org/10.1016/j.heliyon.2024.e27242
  43. Rauter, R., Globocnik, D., & Baumgartner, R. J. (2023). The role of organizational controls to advance sustainability innovation performance. Technovation, 128(March 2022), 102855. https://doi.org/10.1016/j.technovation.2023.102855
  44. Ren, L., & Shen, H. (2024). The relationship between servant leadership and team innovation performance: Mediating effect of self-efficacy. Heliyon, 10(6), e27723. https://doi.org/10.1016/j.heliyon.2024.e27723
  45. Rialti, R., & Filieri, R. (2024). Leaders, let’s get agile! Observing agile leadership in successful digital transformation projects. Business Horizons, 67(4), 439–452. https://doi.org/10.1016/j.bushor.2024.04.003
  46. Schmid, D., Bueechl, J., Härting, R. C., Beldarrain, Y., Schwörer, R., & Naeve, J. (2024). Opportunities and Barriers of Agility and Digital Processes in HR in SMEs. Procedia Computer Science, 246(C), 3605–3613. https://doi.org/10.1016/j.procs.2024.09.197
  47. Silva, B. S. R., & Oliveira, S. R. M. (2022). Agility as a force to emerge from the darkness to better days. Procedia Computer Science, 217, 1710–1718. https://doi.org/10.1016/j.procs.2022.12.371
  48. Somwethee, P., Aujirapongpan, S., & Ru-Zhue, J. (2023). The influence of entrepreneurial capability and innovation capability on sustainable organization performance: Evidence of community enterprise in Thailand. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100082. https://doi.org/10.1016/j.joitmc.2023.100082
  49. Spoladore, D., Pessot, E., & Trombetta, A. (2023). A novel agile ontology engineering methodology for supporting organizations in collaborative ontology development. Computers in Industry, 151(January), 103979. https://doi.org/10.1016/j.compind.2023.103979
  50. Susitha, E., Jayarathna, A., & Herath, H. M. R. P. (2024). Supply chain competitiveness through agility and digital technology: A bibliometric analysis. Supply Chain Analytics, 7(June), 100073. https://doi.org/10.1016/j.sca.2024.100073
  51. Ul Akram, M., Islam, N., Chauhan, C., & Zafar Yaqub, M. (2024). Resilience and agility in sustainable supply chains: A relational and dynamic capabilities view. Journal of Business Research, 183(July), 114855. https://doi.org/10.1016/j.jbusres.2024.114855
  52. Vassallo, J. P., Banerjee, S., Zaman, H., & Prabhu, J. C. (2023). Design thinking and public sector innovation: The divergent effects of risk-taking, cognitive empathy and emotional empathy on individual performance. Research Policy, 52(6), 104768. https://doi.org/10.1016/j.respol.2023.104768
  53. Wu, L., Huang, J., Wang, M., & Kumar, A. (2024). Unleashing supply chain agility: Leveraging data network effects for digital transformation. International Journal of Production Economics, 277(January), 109402. https://doi.org/10.1016/j.ijpe.2024.109402
  54. Xu, M., Zhang, Y., Sun, H., Tang, Y., & Li, J. (2024). How digital transformation enhances corporate innovation performance: The mediating roles of big data capabilities and organizational agility. Heliyon, 10(14), e34905. https://doi.org/10.1016/j.heliyon.2024.e34905
  55. Yusuf, F. A., & Maliki, B. I. (2020). Manajemen Sumber Daya Manusia Suatu Pendekatan Fungsional Teoritis dan Aplikatif. Rajawali Pers.
  56. Yusuf, F. A., & Maliki, B. I. (2022). Perilaku Organisasi. Rajawali Pers.
  57. Zhang, H., Cui, X., Xu, L., & Wang, K. (2024). Non-executive employee stock ownership plans and corporate innovation efficiency: Evidence from China. North American Journal of Economics and Finance, 72(January 2023), 102125. https://doi.org/10.1016/j.najef.2024.102125
  58. Zhang, M., Chen, X., Xie, H., Esposito, L., Parziale, A., Taneja, S., & Siraj, A. (2024). Top of tide: Nexus between organization agility, digital capability and top management support in SME digital transformation. Heliyon, 10(10), e31579. https://doi.org/10.1016/j.heliyon.2024.e31579