Implementation of Organizational Agility Strategies to Meet The Challenges of Digital Transformation in Government Organizations

Agung Fachridian; Abdul Haeba Ramli; Lizio Marcel de Araujo

doi:10.56444/mem.v39i2.4575

Implementation of Organizational Agility Strategies to Meet The Challenges of Digital Transformation in Government Organizations

Agung Fachridian, Abdul Haeba Ramli, Lizio Marcel de Araujo

Abstract

Digital transformation has become essential for all organizations as innovation and digital technology continue to evolve. This research focuses on the impact of organizational agility on digital transformation in the government sector, as well as the role of Collaborative Knowledge Creation (CKC), innovation, and Digital Transformational Leadership (DTL) as antecedents and factors that influence organizational agility. Quantitative research using the Structural Equation Model (SEM) method began in 2023. The unit of analysis involved 103 work units in government organizations that focus on the development of science and technology (S&T). The results of this study show that the role of organizational agility can improve digital transformation in the government sector, and the role of innovation and DTL as antecedents and factors, can affect organizational agility. This shows that in driving change towards digital transformation in organizations, the role of organizational agility is very important. This research has managerial implications for government organizations, especially organizational leaders and work unit leaders in building digital transformation. Organizational leaders must realize that implementing sound management strategies fostering organizational agility, including designing adaptive policies, cultivating a responsive organizational culture, and establishing structures that promote collaboration and innovation can facilitate government organizations digital transformation.

Keywords

Collaborative Knowledge Creation; Innovation, Digital Transformational Leadership; Organizational Agility; Digital Transformation

Full Text:

PDF

References

Akkaya, B., & Tabak, A. (2020). The Link Between Organizational Agility and Leadership: A Research in Science Parks. Academy of Strategic Management Journal, 19(1), 1–17. https://www.researchgate.net/publication/339784182

AlNuaimi, B. K., Singh, K. S., Ren, S., Budhwar, P., & Vorobyev, D. (2022). Mastering Digital Transformation: The Nexus Between Leadership, Agility, and Digital Strategy. Journal of Business Research, 145, 636–648. https://doi.org/10.1016/j.jbusres.2022.03.038

Al-Omoush, K. S., Simón-Moya, V., & Sendra-García, J. (2020). The Impact of Social Capital and Collaborative Knowledge Creation on E-Business Proactiveness and Organizational Agility in Responding to the Covid-19 Crisis. Journal of Innovation and Knowledge, 5(4), 279–288. https://doi.org/10.1016/j.jik.2020.10.002

Altschuller, S., Gelb, D. S., & Henry, T. F. (2010). Part of the Management Information Systems Commons Recommended Citation Recommended Citation Altschuller. Journal of International Technology and Information Management, 19(1), 38–60. https://scholarworks.lib.csusb.edu/jitimAvailableat:https://scholarworks.lib.csusb.edu/jitim/vol19/iss1/1

Amaliah, R. D., & Sawitri, H. S. R. (2023). Digital Transformation in the Public Sector: The Role of Leadership and Culture (A Study of Civil Servants in the Statistics Indonesia). International Journal of Economics, Business and Management Research, 7(6), 263–276. https://doi.org/10.51505/ijebmr.2023.7617

Araujo, L. M. de, Priadana, S., Paramarta, V., & Sunarsi, D. (2021). Digital Leadership in Business Organizations: An Overview. International Journal of Educational Administration, Management, and Leadership, 2(1), 45–56.

Arsawan, I. W. E., Hariyanti, N. K. D., Atmaja, I. M. A. D. S., Suhartanto, D., & Koval, V. (2022). Developing Organizational Agility in SMEs: An Investigation of Innovation’s Roles and Strategic Flexibility. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 1–17. https://doi.org/10.3390/joitmc8030149

Baiyere, A., Tapanainen, T., & Salmela, H. (2018). Agility of Business Processes: Lessons from a Digital Transformation Context. Mediterranean Conference on Information Systems (MCIS), 1–13. https://aisel.aisnet.org/mcis2018/1

Borgatti, S. P., & Cross, R. (2003). A Relational View of Information Seeking and Learning in Social Networks. Management Science, 49(4), 432–445. https://doi.org/10.1287/mnsc.49.4.432.14428

Bresciani, S., Ferraris, A., Romano, M., & Santoro, G. (2021). Digital Leadership. In Digital Transformation Management for Agile Organizations: A Compass to Sail the Digital World (pp. 97–115). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-171-320211006

Cepeda, J., & Arias-Pérez, J. (2019a). Information technology capabilities and organizational agility. Multinational Business Review, 27(2), 198–216. https://doi.org/10.1108/MBR-11-2017-0088

Cepeda, J., & Arias-Pérez, J. (2019b). Information Technology Capabilities and Organizational Agility: The Mediating Effects of Open Innovation Capabilities. Multinational Business Review, 27(2), 198–216. https://doi.org/10.1108/MBR-11-2017-0088

Chierici, R., Tortora, D., Giudice, M. Del, & Quacquarelli, B. (2021). Strengthening Digital Collaboration to Enhance Social Innovation Capital: An Analysis of Italian Small Innovative Enterprises. Journal of Intellectual Capital, 22(3), 610–632. https://doi.org/10.1108/JIC-02-2020-0058

Croasdell, D. T. (2001). It’s Role in Organizational Memory and Learning. Information Systems Management, 18(1), 8–11. https://doi.org/10.1201/1078/43194.18.1.20010101/31260.2

Dewi, M. P., Havidz, I. L. H., Atmaja, D. R., & Firmansyah, B. Y. (2022). Digital Marketing for SMEs Cidokom Village Plant Cultivation Group. Majalah Ilmiah Bijak, 19(1), 47–55. http://ojs.stiami.ac.id

Ferraris, A., Degbey, W. Y., Singh, S. K., Bresciani, S., Castellano, S., Fiano, F., & Couturier, J. (2022). Microfoundations of Strategic Agility in Emerging Markets: Empirical Evidence of Italian MNEs in India. Journal of World Business, 57(2), 1–17. https://doi.org/10.1016/j.jwb.2021.101272

Frankowska, M., & Rzeczycki, A. (2020). Reshaping Supply Chain Collaboration - The Role of Digital Leadership in a Networked Organization. In L. M. Camarinha-Matos, H. Afsarmanesh, & A. Ortiz (Eds.), Boosting Collaborative Networks 4.0 (pp. 353–364). Springer International Publishing.

Ghasemaghaei, M., Hassanein, K., & Turel, O. (2017). Increasing Firm Agility Through the Use of Data Analytics: The Role of Fit. Decision Support Systems, 101, 95–105. https://doi.org/https://doi.org/10.1016/j.dss.2017.06.004

Hai, T. N., Van, Q. N., & Tuyet, M. N. T. (2021). Digital Transformation: Opportunities and Challenges for Leaders in Emerging Countries in Response to Covid-19 Pandemic. Emerging Science Journal, 5, 21–36. https://doi.org/10.28991/esj-2021-SPER-03

Hair, J. F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial Least Squares Structural Equation Modeling (PLS-SEM): An Emerging Tool in Business Research. In European Business Review (Vol. 26, Issue 2, pp. 106–121). Emerald Group Publishing Ltd. https://doi.org/10.1108/EBR-10-2013-0128

Hasoumi, F., Yarmohammadian, M. H., & Fadavi, M. (2014). Relationship Innovation With Organizational Agility Among Employees: Case Study: Islamic Azad University of Khorasgan (Isfahan). Singaporean Journal of Business, Economics and Management Studies, 2(12), 178–188. https://doi.org/10.12816/0006810

Ibrahimi, G., & Benchekroun, B. (2023). The Contribution of Agility to an Organization’s Digital Transformation. TEM Journal, 12(4), 2361–2369. https://doi.org/10.18421/TEM124-48

Kho, A., Djati, S. P., Bernarto, I., Niko, S., Yulianeu, A., Nanda, H. A., & Nanda, K. A. (2020). The Relationship Between Digital Transformational Leadership Styles and Knowledge-Based Empowering Interaction for Increasing Organisational Innovativeness. International Journal of Innovation, Creativity and Change, 11(3), 259–277. www.ijicc.net

Khoshlahn, M., & Ardabili, F. S. (2016). The Role of Organizational Agility and Transformational Leadership in Service Recovery Prediction. Procedia - Social and Behavioral Sciences, 230, 142–149. https://doi.org/10.1016/j.sbspro.2016.09.018

Lei, H., Leaungkhamma, L., & Le, P. B. (2020). How Transformational Leadership Facilitates Innovation Capability: The Mediating Role of Employees’ Psychological Capital. Leadership & Organization Development Journal, 41(4), 481–499. https://doi.org/10.1108/LODJ-06-2019-0245

Li, H., Hu, Q., Zhao, G., & Li, B. (2022). The Co-Evolution of Knowledge Management and Business Model Transformation in the Post Covid-19 Era: Insights Based on Chinese E-Commerce Companies. Journal of Knowledge Management, 26(5), 1113–1123. https://doi.org/10.1108/JKM-03-2021-0177

Li, H., Wu, Y., Cao, D., & Wang, Y. (2021). Organizational Mindfulness Towards Digital Transformation as a Prerequisite of Information Processing Capability to Achieve Market Agility. Journal of Business Research, 122, 700–712. https://doi.org/10.1016/j.jbusres.2019.10.036

Lin, W.-B. (2011). Factors Affecting the Effects of Service Recovery From an Integrated Point of View. Total Quality Management and Business Excellence, 22(4), 443–459. https://doi.org/10.1080/14783363.2010.545553

Ly, B. (2023). The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-023-01377-8

Madhok, A., & Marques, R. (2014). Towards an Action-Based Perspective on Firm Competitiveness. Business Research Quarterly, 17(2), 77–81. https://doi.org/10.1016/j.brq.2014.03.002

Mangalaraj, G., Nerur, S., & Dwivedi, R. (2022). Digital Transformation for Agility and Resilience: An Exploratory Study. Journal of Computer Information Systems, 63(1), 11–23. https://doi.org/10.1080/08874417.2021.2015726

Menon, S., & Suresh, M. (2020). Factors Influencing Organizational Agility in Higher Education. Benchmarking: An International Journal, 28(1), 307–332. https://doi.org/10.1108/BIJ-04-2020-0151

Mulyono, H., & Syamsuri, Abd. R. (2023). Organizational Agility, Open Innovation, and Business Competitive Advantage: Evidence from Culinary SMEs in Indonesia. International Journal of Social Science and Business, 7(2), 268–275. https://doi.org/10.23887/ijssb.v7i2.54083

Musaigwa, M., & Kalitanyi, V. (2024). Effective leadership in the digital era: an exploration of change management. Technology Audit and Production Reserves, 1(4(75)), 6–14. https://doi.org/10.15587/2706-5448.2024.297374

Nasiri, M., Ukko, J., Saunila, M., & Rantala, T. (2020). Managing the Digital Supply Chain: The Role of Smart Technologies. Technovation, 96–97, 1–6. https://doi.org/10.1016/j.technovation.2020.102121

Nguyen, D. K., Broekhuizen, T., Dong, J. Q., & Verhoef, P. C. (2020). When It Takes Three to Tango in the Digital Transformation Age: Synergies Between Digital Orientation, Change Commitment and Organizational Agility. AIS Electronic Library (AISeL), 1–9. https://aisel.aisnet.org/icis2020/digital_innovation/digital_innovation/3

Nissen, V., & Rennenkampff, A. Von. (2017). Measuring the Agility of the IT Application Systems Landscape. International Conference on Wirtschaftsinformatik. https://www.researchgate.net/publication/313885355

Ojha, D., Acharya, C., & Cooper, D. (2018). Transformational Leadership and Supply Chain Ambidexterity: Mediating Role of Supply Chain Organizational Learning and Moderating Role of Uncertainty. International Journal of Production Economics, 197, 215–231. https://doi.org/10.1016/j.ijpe.2018.01.001

Perdana, E., & Syah, T. Y. R. (2023). The Effect of Social Capital and Collaborative Knowledge Creation on E-Business Proactiveness and Organizational Agility in Creating Business Sustainability. International Journal Of Applied Business Research, 5(2), 167–186. https://doi.org/10.35313/ijabr.v5i02.326

Ravichandran, T. (2018a). Exploring the Relationships Between IT Competence, Innovation Capacity, and Organizational Agility. Journal of Strategic Information Systems, 27(1), 22–42. https://doi.org/10.1016/j.jsis.2017.07.002

Ravichandran, T. (2018b). Exploring the relationships between IT competence, innovation capacity and organizational agility. Journal of Strategic Information Systems, 27(1), 22–42. https://doi.org/10.1016/j.jsis.2017.07.002

Sasmoko, S., Mihardjo, L. W. W., Alamsjaha, F., & Elidjena, E. (2019). Dynamic Capability: The Effect of Digital Leadership on Fostering Innovation Capability Based on Market Orientation. Management Science Letters, 9(10), 1633–1644. https://doi.org/10.5267/j.msl.2019.5.024

Seepma, A. P., De Blok, C., & Van Donk, D. P. (2020). Designing digital public service supply chains: four country-based cases in criminal justice. Supply Chain Management, 26(3), 418–446. https://doi.org/10.1108/SCM-03-2019-0111

Shahzad, F., Xiu, G. Y., & Shahbaz, M. (2017). Organizational Culture and Innovation Performance in Pakistan’s Software Industry. Technology in Society, 51, 66–73. https://doi.org/10.1016/j.techsoc.2017.08.002

Sow, M., & Aborbie, S. (2018). Impact of Leadership on Digital Transformation. Business and Economic Research, 8(3), 139–148. https://doi.org/10.5296/ber.v8i3.13368

Suharto. (2024). Challenges and Opportunities of Digital Transformation in Strategy Management. International Journal of Science and Society, 6(1), 620–630. https://doi.org/https://doi.org/10.54783/ijsoc.v6i1.1050

Teece, D., Peteraf, M., & Leih, S. (2016). Dynamic Capabilities and Organizational Agility: Risk, Uncertainty, and Strategy in the Innovation Economy. California Management Review, 58(4), 13–35.

Tulungen, E. E. W., Saerang, D. P. E., & Maramis, J. B. (2022). Digital Transformation: Role of Digital Leadership. Jurnal EMBA : Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 10(2), 1116–1123. https://doi.org/10.35794/emba.v10i2.41399

Veiseh, S., Shiri, A., & Eghbali, N. (2014). A Study on Ranking the Effects of Transformational Leadership Style on Organizational Agility and Mediating Role of Organizational Creativity. Management Science Letters, 4(9), 2121–2128. https://doi.org/10.5267/j.msl.2014.8.006

Wanasida, A. S., Bernarto, I., Sudibjo, N., & Pramono, R. (2021). Millennial Transformational Leadership on Organizational Performance in Indonesia Fishery Startup. Journal of Asian Finance, Economics and Business, 8(2), 555–562. https://doi.org/10.13106/jafeb.2021.vol8.no2.0555

Wang, C., & Hu, Q. (2020). Knowledge Sharing in Supply Chain Networks: Effects of Collaborative Innovation Activities and Capability on Innovation Performance. Technovation, 94–95, 1–13. https://doi.org/10.1016/j.technovation.2017.12.002

Wang, Y., & Wang, C. (2023). The dark side of knowledge transfer: A visual analysis using VOSviewer. E a M: Ekonomie a Management, 26(2), 122–139. https://doi.org/10.15240/tul/001/2023-2-008

Zhang, H., Ding, H., & Xiao, J. (2023). How Organizational Agility Promotes Digital Transformation: An Empirical Study. Sustainability, 15(14), 1–13. https://doi.org/10.3390/su151411304

Zhao, L., Zhang, H., & Wu, W. (2019). Cooperative Knowledge Creation in an Uncertain Network Environment Based on a Dynamic Knowledge Supernetwork. Scientometrics, 119(2), 657–685. https://doi.org/10.1007/s11192-019-03049-4

DOI: http://dx.doi.org/10.56444/mem.v39i2.4575