Dynamic Capability Framework for Digital Workplaces and Innovation Driven Performance
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IT Capability, Dynamic Innovation Capability, Digital Workplace Policy, Employee Performance, Organizational Performance
Abstract
This study aimed to analyze the influence of IT Capability at the Digital Workplace, Dynamic Innovation Capability, and Dynamic Digital Workplace Policy on Employee and Organizational Performance within the context of digital transformation. Employing the Structural Equation Modeling (SEM) method, the research investigated direct and indirect relationships between these variables, including the mediating effect of Employee Performance. Key findings revealed a significant and direct positive influence of IT Capability at the Digital Workplace on Employee Performance (coefficient of 2.618), which subsequently impacted Organizational Performance. Furthermore, Dynamic Innovation Capability demonstrated a positive contribution to both employee and organizational performance, both directly and through the mediating effect of Employee Performance. Notably, Dynamic Digital Workplace Policy exerted a strong and direct impact on Organizational Performance, indicating a direct pathway to enhanced organizational outcomes. These findings underscore the critical importance for organizations, such as PT. Wisma Berkah Sejahtera, to prioritize technological advancement and foster a culture of innovation as core strategies to enhance employee and organizational performance in the evolving digital landscape. Beyond performance implications, the study highlights how strengthening digital infrastructure, fostering innovation capability, and implementing adaptive digital workplace policies enable organizations to contribute to the realization of Sustainable Development Goal (SDG) 9: Industry, Innovation, and Infrastructure, by promoting resilient digital systems, sustainable industrial development, and innovation-driven growth.
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Copyright (c) 2026 Kustiyono, Abdul Aziz, William Eric Manongga
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