Information technology capabilities and enterprise resilience of state-owned enterprises for sustainable competitiveness: The mediating role of leadership capabilities
DOI:
https://doi.org/10.24200/jonus.vol8iss3pp382-407Abstract
Background and Purpose: Business resilience depends on the ability to gather and process resources to handle environmental uncertainty. Enterprises should use information, knowledge, experiences, and other resources to build resilience. This study applies the concept of dynamic capability to assess the impact of Information Technology Capabilities (ITCs) on Indonesian SOEs and their subsidiaries. Additionally, this study investigates Leadership Capabilities (LCs) as a mediator between Information Technology Capabilities (ITCs) and Enterprise Resilience (ER).
Methodology: The study examined 322 valid data from online surveys using questionnaires to Indonesia SOEs and their subsidiaries’ board of directors and senior management. The data was analysed using SmartPLS 3.
Findings: The research demonstrates that information technology capabilities (ITCs) enhance Enterprise Resilience (ER). Leadership Capabilities (LCs) improved the enterprise's resiliency. The relationship between Information Technology Capabilities (ITCs) and Enterprise Resilience (ER) is mediated through Leadership capabilities (LCs).
Contributions: The findings may expand the scope of dynamic capability theory to include resilience. The findings extend the methodology by adopting a quantitative and online survey of SOEs in emerging countries and demonstrate to SOE management and regulators that ER can be fostered by strengthening dynamic capabilities and risk management practices. The findings recommend that policymakers develop a road map, scenario, and strategies to ensure the long-term viability of SOEs.
Keywords: Dynamic capabilities, enterprise resilience, Indonesia, information technology capabilities, leadership capabilities, state-owned enterprises.
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Goh, S., & Richards, G. (1997). Benchmarking the learning capability of organizations. European Management Journal, 15(5), 575–583.
Hair, J. F., Sarstedt, M., Ringle, C. M., & Gudergan, S. P. (2018). Advanced issues in partial least squares structural equation modeling (2nd ed.). SAGE Publications, Inc.
Hair, J. F. (2014). SmartPLS 3. SAGE.
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Hamel, G., & Välikangas, L. (2003). The quest for resilience. Harvard Business Review, 81(9), 52–63.
Helfat, C. E., Finkelstein, S., Mitchell, W., Peteraf, M. A., Singh, H., Teece, D. J., & Winter, S. G. (2007). Dynamic capabilities: Understanding strategic change in organizations. In S. E. Finkelstein, S. Mitchell, W. Peteraf, M. Singh, H. Teece, & D. Winter
(Eds.), Dynamic capabilities: Understanding strategic change in organizations (pp. 91-102). Blackwell.
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enterprise
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Jiang, F., Ma, Y., & Wang, X. (2020). Multiple blockholders and earnings management. Journal of Corporate Finance, 64(1), 101689.
Khatri, Y., & Ikhsan, M. (2020). Enhancing the development contribution of Indonesia’s state-owned enterprises. In E. Ginting & K. Naqvi (Eds.), Reforms, opportunities, and challenges for state-owned enterprises (pp. 84–132). Asian Development
Bank.
Kim, G., Shin, B., Kim, K. K., & Lee, H. G. (2011). IT capabilities, process-oriented dynamic capabilities, and firm financial performance. Journal of the Association for Information Systems, 12(7), 487–517.
Kim, K., & Sumner, A. (2021). Bringing state-owned entities back into the industrial policy debate: The case of Indonesia. Structural Change and Economic Dynamics, 59(1), 496–509.
Kivipold, K., & Vadi, M. (2008). A measurement tool for the evaluation of organizational leadership capability. British Journal of Management, 5(1), 118–136.
Kivipõld, K., Vadi, M., Kivipold, K., Vadi, M., Kivipõld, K., & Vadi, M. (2010). A measurement tool for the evaluation of organizational leadership capability. Baltic Journal of Management, 5(1), 118–136.
Kline, R. B. (2011). Principles and practice of structural equation modeling. In T. D. Little (Ed.), Clinical orthopaedics and related research (3rd ed., Vol. 245). The Guilford Press.
Koch, S. (2016). The secret to successful state-owned enterprises is how they are run. The Conversation. https://theconversation.com/the-secret-to-successful-state-owned-enterprises-is-how-theyre-run-53118
Lee, A. V., Vargo, J., & Seville, E. (2013). Developing a tool to measure and compare organizations’ resilience. Natural Hazards Review, 14(1), 29–41.
Lim, J., Stratopoulos, T. C., & Wirjanto, T. S. (2012). International journal of accounting information systems role of IT executives in the firm’ s ability to achieve competitive advantage through IT capability. International Journal of Accounting
Information Systems, 13(1), 21–40.
Liu, H., Huang, Q., Wei, S., & Huang, L. (2015). The impacts of IT capability on internet-enabled supply and demand process integration, and firm performance in manufacturing and services. The International Journal of Logistics Management, 26(1),
172–194.
Lu, Y., & Ramamurthy, K. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS Quarterly, 35(4), 931–954.
Mafabi, S., Munene, J. C., & Ahiauzu, A. (2015). Creative climate and organisational resilience: the mediating role of innovation. International Journal of Organizational Analysis, 23(4), 564–587.
Majhi, S. G., & Mukherjee, A. (2019). Information technology capability and firm performance: The role of strategic orientation. ACIS 2019 Proceedings, 68(1), 642-648.
Mancesti, M. (2017). Why being alert is not enough to beat VUCA and disruption. IMD Research & Knowledge. https://www.imd.org/research-knowledge/articles/why-being-alert-is-not-enough-to-beat-vuca-and-disruption/
Marchiori, D. M., Rodrigues, R. G., Popadiuk, S., & Mainardes, E. W. (2022). The relationship between human capital, information technology capability, innovativeness and organizational performance: An integrated approach. Technological
Forecasting and Social Change, 177(August), 121526.
McColl-Kennedy, J. R., & Anderson, R. D. (2002). Impact of leadership style and emotions on subordinate performance. Leadership Quarterly, 13(5), 545–559.
McManus, S. (2008). Organisational resilience in New Zealand. (Unpublished doctoral dissertation). University of Canterbury.
Nachbagauer, A. G. M., & Schirl-Boeck, I. (2019). Managing the unexpected in megaprojects: Riding the waves of resilience. International Journal of Managing Projects in Business, 12(3), 694-715.
Panda, S., & Rath, S. K. (2016). Investigating the structural linkage between IT capability and organizational agility: A study on Indian financial enterprises. Journal of Enterprise Information Management, 29(5), 751-773.
Pang, M. S., Lee, G., & Delone, W. H. (2014). In public sector organisations: A public-value management perspective. Journal of Information Technology, 29(3), 187–205.
Parast, M. M., & Shekarian, M. (2019). The impact of supply chain performance on organizational performance. In G. A. Zsidisin & M. Henke (Eds.), Revisiting supply chain risk (pp. 367–389). Springer International Publishing.
Ponomarov, S. Y., & Holcomb, M. C. (2009). Understanding the concept of supply chain resilience. The International Journal of Logistics Management, 20(1), 124–143.
Powell, T. C., & Det-Micallef, A. (1997). Information technology as competitive advantage: The role of human, business, and technology resources. Strategic Management Journal, 18(5), 375–405.
Rangachari, P., & Woods, J. L. (2020). Preserving organizational resilience, patient safety, and staff retention during covid-19 requires a holistic consideration of the psychological safety of healthcare workers. International Journal of Environmental
Research and Public Health, 17(12), 1–12.
Ravichandran, T., & Lertwongsatien, C. (2005). Effect of information systems resources and capabilities on firm performance: A resource-based perspective. Journal of Management Information Systems, 21(4), 237–276.
Ray, G., Muhanna, W. A., & Barney, J. B. (2005). Information technology and the performance of the customer service process: A resource-based analysis. MIS Quarterly: Management Information Systems, 29(4), 625–652.
Ringle, C. M., Wende, S., & Becker, J. M. (2015) SmartPLS 3. SmartPLS GmbH.
Sabahi, S., & Parast, M. M. (2019). Firm innovation and supply chain resilience: A dynamic capability perspective. International Journal of Logistics Research and Applications, 23(3), 254–269.
Said, J., Hui, W. S., Othman, R., & Taylor, D. W. (2010). The mediating effects of organizational learning orientation on the relationship between strategic management accounting information use and organizational performance. Asia-Pacific
Management Accounting Journal, 5(2), 11–29.
Schoemaker, P. J. H., Heaton, S., & Teece, D. (2018). Innovation, dynamic capabilities, and leadership. California Management Review, 61(1), 15–42.
Schweitzer, J. (2014). Leadership and innovation capability development in strategic alliances. Leadership and Organization Development Journal, 35(5), 442–469.
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2023-09-30
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Information technology capabilities and enterprise resilience of state-owned enterprises for sustainable competitiveness: The mediating role of leadership capabilities. (2023). Journal of Nusantara Studies (JONUS), 8(3), 382-407. https://doi.org/10.24200/jonus.vol8iss3pp382-407
