The role of service innovation in mediating entrepreneurial orientation, organizational learning capability, and organizational performance relationship

Abstract

In 1997, Indonesia had a severe economic crisis, which prompted the Indonesian government to face significant pressure to promptly initiate governmental reform. There is a prevailing desire among the general public for enhancements in governance, with one aspect of this being the implicit need for improvements in government performance. This study investigates the role of service innovation as a mediator in the relationship between entrepreneurial orientation, organizational learning capability, and organizational performance. The study was conducted at the Directorate General of State Assets Management (DGSAM) in Indonesia. The questionnaires were collected from a total of 226 head offices, specifically from the heads of sections under the vertical agency of DGSAM, which is the State Assets and Auction Service Office (Kantor Pelayanan Kekayaan Negara dan Lelang/KPKNL). A quantitative approach was employed in order to elucidate, substantiate, and exemplify the hypothesis posited in the investigation pertaining to the observed events. The statistical technique employed for data processing was Partial Least Squares Structural Equation Modeling (PLS-SEM). This study demonstrates a significant and positive correlation between entrepreneurial approach and organizational learning capability, and both service innovation and organizational success. However, it is determined that service innovation does not act as a mediator in the relationship between entrepreneurial attitude and organizational learning capability in terms of organizational performance. The anticipated outcomes of this study are expected to make significant contributions to the field of science and its associated stakeholders.