The Influence of Digital
Leadership and Innovative Culture on Innovation Performance Mediated by Digital
Innovation in PT Employees. Bank Central Asia Tbk in Central Jakarta
Nazila
Inayah1*, Netania Emilisa2, Zulfa Nanda Fathia Mayrisya3
Faculty of Economics and Business, Universitas
Trisakti, Indonesia1*2
UIN Syarif Hidayatullah Jakarta, Indonesia3
Email: [email protected]1*,
[email protected]2, [email protected]3
Abstract
This research aims
to analyze the influence of Digital Leadership, Innovative Culture, Digital
Innovation, and Innovation Performance on PT employees. Bank Central Asia Tbk
in Central Jakarta and the relationship between these variables. This research
method uses correlation research with cross-sectional data, involving 8 branch
offices of PT. Bank Central Asia Tbk in Central Jakarta. The variables studied
include Digital Leadership, Innovative Culture, Digital Innovation, and
Innovation Performance. The results of the analysis show that Digital
Leadership and Innovative Culture have a positive effect on Digital Innovation,
which in turn has a positive effect on Innovation Performance. However, Digital
Leadership does not have a significant direct influence on Innovation
Performance. These results show the importance of applying Digital Leadership
principles and an innovative culture in supporting the effective adoption of
digital technology, which ultimately improves the company's innovative performance.
Keywords: Digital
Leadership, Innovative Culture, Digital Innovation, Innovation Performance
Revolution is defined as a
change in social and cultural aspects, as well as general habits of society
related to the basis of society's life caused by the development and progress
of science and technology. The Society Era 5.0 revolution is a major shift in
the social and economic life of society which involves industrial economic
activities in all sectors. This shift can be known as a trend code for
digitalization and the exchange of the latest technological data and
information (Lestari
& Fitriani, 2024)
In this era of society 5.0, the
need for every organization or company to compete with its competitors is
increasing, especially in utilizing existing technological advances. The real
thing that can be seen is the company PT GoTo Gojek Tokopedia Tbk which offers
the first online motorcycle taxi service in Indonesia through an application
provided on PlayStore (Ikhsan, 2023).
The process that occurs at Gojek includes digital transformation within the
company, whether part or all of the company. Then this is assessed as Innovation Performance. It is not only
the company PT Go To Gojek Tokopedia Tbk that needs Innovation Performance but financial institutions such as banks are
being disrupted by FinTech companies (Citigroup,
2016) . If banks do not take steps to
use technology to automate their services in every aspect of their operations,
they have the potential to lose out to FinTech companies that promise customers
convenience, savings and speed (Al Issa
& Omar, 2024).
Innovation
Performance is
the combined result of several factors such as a linear and holistic approach
and the diffusion of innovation which together influence the achievements and
results obtained from innovation (Robertson
et al., 2023) . Innovation Performance in the era of society 5.0 is really needed by companies because it increases
company value and decision-making processes (Ponta
et al., 2021).
In improving Innovation Performance, changes are
needed towards a better direction in terms of human resources and culture
within the company. In human resources, leadership is one aspect that greatly
influences the development of a company because a leader will be the decision
maker for the continuity of a company (Kollmann
et al., 2023) Leadership style will
influence the performance, motivation and effectiveness of employees in the
company because a leader will be a role model who motivates people in the
company (Hensellek
& Simon, 2020). Leadership today does not
depend on a leader who is at work but follows technological developments and
changes in management within the company, thereby introducing Digital Leadership. (Hlupic,
2014). Digital Leadership is a complex construct that aims for a digital
customer-centric business model by changing the role, skills and style of
digital leaders, realizing a digital organization including governance, vision,
values, structure, culture and decision processes, and adapting people
management, virtual teams, knowledge, and communication at the individual level
(Eberl
& Drews, 2021). The characteristics of Digital Leadership are based on the
NOPA+ model which shows that network,
openness, participation, agility and
trust together indicate the success
of Digital Leadership (Petry,
2018) . The difficulty in Digital Leadership lies in the large
burden of responsibility of digital leaders towards the company, employees and
other stakeholders (Hensellek
& Simon, 2020) . Digital Leadership also has a partial influence on the
psychological well-being of employees (Dewi
& Sjabadhyni, 2021). The aim of Digital Leadership is to realize
transformation efforts within the company to lead to sustainable innovation by
providing the support, resources and direction needed to achieve business goals
on an organizational and individual scale (Araujo
et al., 2021).
Continuing the aspects that
influence the company, corporate culture is a shared commitment that is formed
and aligns the goals of all employees in the company (G�rsoy,
2016) . A good company culture will
help the company and employees to work in a structured manner towards a common
goal. However, changes in company culture are always a challenge in building an Innovative Culture (Zemanova
et al., 2022). Innovative Culture is a culture that is difficult to build and
instill in every company employee because it is often misunderstood (McCausland,
2022). Innovative culture is defined as a culture that has creativity,
orientation and dynamism (G�rsoy,
2016) . To build an Innovative Culture, there are several aspects that need to be
considered, including creativity, freedom, teamwork and risk taking (Bendak
et al., 2020). The success of building an Innovative Culture is also supported
by resources such as time, money and encouragement (Soken
& Barnes, 2014). Innovative Culture is influenced by informal forces and horizontal
structures that exist within the company (Maulding
et al., 2012). On the other hand, Innovative Culture mediates
collaboration and success within the company (Raajpoot
& Sharma, 2021).
Based on the previous
explanation, Digital Leadership and Innovative Culture are indicators that
influence a company's level of success. Therefore, the company's success will
be seen from the company's Innovation Performance.
This is proven by the research results of Novitasari
et al (2021) which show that leadership has
a positive influence on Innovation
Performance and the research results of Hilmarsson
et al (2013) which show that there is a
strong relationship between Innovation
Culture and Innovation Performance.
However, this is also
accompanied by measurement of Digital
Innovation as one of the variables which is thought to have a mediating
influence in measuring Innovation Performance.
This is due to the need for companies to make decisions using data so that Digital Innovation plays an important
role in creating more effective and efficient solutions and bringing about
digital transformation change (Tulungen
et al., 2022) . Digital Innovation is the result and basis for the development of
digital innovation which implies high scalability and leads to widespread
participation and democratic innovation (Ciriello
et al., 2018).
The difference in previous
research conducted by Al Issa
& Omar (2024) is in the research subject. In
Hongyun
et al (2023) research, the focus of the research
was carried out on a number of MSMEs in Pakistan. Meanwhile, the novelty in
this research lies in the sample that will be studied where the researcher will
use a sample of employees at PT. Bank Central Asia Tbk in Central Jakarta, and
added a mediating variable, namely Digital Innovation and the change from the
industrial era 4.0 to the era of society 5.0 in 2024.
The aim of this research is to
analyze various aspects related to Digital Leadership, Innovative Culture,
Innovation Performance and Digital Innovation among PT employees. Bank Central
Asia Tbk in Central Jakarta and the influence between these variables. The
benefits of this research are especially for employees at PT. Bank Central Asia
Tbk in Central Jakarta which can improve understanding and performance in
adopting digital innovation, as well as for researchers who can expand insight
and knowledge in this field. Apart from that, this research can also be a
reference for future researchers who are interested in exploring the influence
of Digital Leadership and Innovative Culture on Innovation Performance mediated
by Digital Innovation.
Based on the explanation above, the following hypothesis
is proposed:
H1:
Digital Leadership has a positive
influence on Digital Innovation.
H2:
Innovative Culture has a positive
influence on Digital Innovation.
H3:
Digital Innovation has a positive
influence on Innovation Performance.
H4:
Digital Leadership has a positive
influence on Innovation Performance.
H5:
Innovative Culture has a positive influence
on Innovation Performance.
H6:
Digital Leadership has a positive
influence on Innovation Performance which
is mediated by Digital Innovation.
H7:
Innovative Culture has a positive
influence on Innovation Performance which
is mediated by Digital Innovation.
This research is a modification of previous research
conducted by Al Issa
& Omar (2024) and (Hongyun
et al., 2023). The purpose of this research
is to see how Digital Leadership and Innovative Culture impact Innovation
Performance mediated by Digital Innovation at PT. Bank Central Asia Tbk located
in Central Jakarta. PT. Bank Central Asia Tbk has 20 branch offices in the
Central Jakarta area, but in this study only examined 8 PT branch offices. Bank
Central Asia Tbk only. This research uses correlation research, which explains
variables that are relevant to the existing problem. The data used is
cross-sectional because it will only be conducted once in a certain period
where the unit of analysis is individuals, namely employees at PT. Bank Central
Asia Tbk located in Central Jakarta. The research setting used is a
non-contrived setting because the research was conducted where work is
generally located (Purwanza
et al., 2022).
Variables in this research include Digital Leadership,
Innovative Culture, Digital Innovation, and Innovation Performance. Digital
Leadership, which is measured using 6 statement items, refers to digital
leaders who understand technology and help employees understand the risks
associated with the use of information technology (Erhan
et al., 2022). Innovative Culture, measured
by 3 statement items, highlights employees' enthusiasm for being creative and
creating new things, as well as the courage to take risky steps (MY-C.
Chen et al., 2012).
Digital Innovation, which is a mediating variable, is
measured with 9 statement items which are divided into three dimensions:
Efficiency, Novelty, and Convergence (Xu et
al., 2022). Innovation Performance, the
dependent variable, is measured by 9 statement items which include improving
quality in products and services, increasing efficiency, and success in
introducing new products to the market (Carrasco-Carvajal et al., 2023;
Espasand�n-Bustelo et al., 2023; Gupta & George, 2016).
The Structural Equation Model (SEM) of this research is
described as follows:
Figure 1. Structural Equation Models
Source: Data processed using AMOS
����� Descriptive statistics is a method related
to collecting or presenting data in order to provide useful information for
researchers. Statistical results from the variables Digital Leadership, Innovative
Culture, Digital Innovation, and Innovation Performance can be seen in
the table below:
Table
1. Descriptive Statistics of Digital
Leadership
|
No |
Digital
Leadership |
Mean |
|
1. |
Technology-savvy
digital leaders help employees in companies better understand the risks
associated with the use of information technology. |
3.97 |
|
2. |
Digital
leaders learn new technologies that can be leveraged to improve the way the
company works. |
3.97 |
|
3. |
Together
with all parties involved, digital leaders establish moral rules that must be
followed in the use of information technology. |
3.93 |
|
4. |
Digital
leaders play an important role in providing information that helps reduce
difficulties in accepting new things related to information technology. |
3.97 |
|
5. |
Digital
leaders talk about how technology can help colleagues better understand the
organizational makeup of the workplace. |
3.81 |
|
6. |
Digital
leaders teach employees how to use technology so they can participate more in
realizing company goals. |
3.95 |
|
Mean |
3.93 |
|
Source: Data Processing Results
�����
Based on table 1 above, it can be seen that the total
average is 3.93, which means that respondents feel quite satisfied with the
role of Digital Leadership at PT.
Bank Central Asia Tbk in Central Jakarta. This shows that with the highest
average value of 3.97, which means that respondent�s feel quite satisfied that
digital leaders understand technology and can help respondents understand the
risks associated with technology, respondents feel satisfied that digital
leaders learn technologies. new things to improve the way companies work, and
respondents felt that digital leaders have an important role in providing
information that helps reduce difficulties in accepting new things related to
information technology.
Table
2. Descriptive Statistics of Innovative
Culture
|
No |
Innovative
Culture |
Mean |
|
1. |
I
am enthusiastic about being creative and creating new things in this company. |
3.79 |
|
2. |
I
need to try new things and take advantage of opportunities that arise at this
company quickly. |
3.94 |
|
3. |
I
will be rewarded for my courage in taking risky steps in this company. |
3.60 |
|
Mean |
3.77 |
|
Source: Data
Processing Results
�����
Based on table 2 above, it can be seen that the total
average is 3.77, which means that respondents feel quite comfortable with the
existence of Innovative Culture at
PT. Bank Central Asia Tbk in Central Jakarta. This shows that the highest
average value is 3.94, which means that respondents feel they are sufficient to
try new things and take advantage of opportunities that arise in the company
quickly.
Table
3. Descriptive Statistics of Digital
Innovation
|
No |
Digital
Innovation |
Mean |
|
efficiency |
||
|
1. |
I
use digital technology to make work more efficient including in terms of
products, research and development and communication. |
3.94 |
|
2. |
I
use digital technology to save costs in all parts of the company such as in
research and development, production and sales. |
3.95 |
|
3. |
I
use digital technology to reduce confusion due to mismatched information by
creating a digital platform that will make it easier to deal with various
data. |
3.97 |
|
Novelty |
||
|
1. |
I
leverage digital technology to create new offerings as part of our goals. |
3.90 |
|
2. |
I
use digital technology to introduce new users to create value by building
customized platforms and leveraging customer knowledge. |
3.94 |
|
3. |
I
leverage digital technology to adopt new ways of working. |
3.83 |
|
Convergence |
||
|
1. |
I
utilize digital technology to make the organization more organized. |
3.85 |
|
2. |
I
utilize digital technology to develop more profitable ways of doing business. |
3.98 |
|
3. |
I
utilize digital technology to forge new relationships with related parties
and work together to create value. |
3.97 |
|
Mean |
3.92 |
|
Source: Data
Processing Results
����� Based on table 4 above, it can be seen
that the total average is 3.92, which means that respondents feel that the
existence of Digital Innovation at PT
is sufficient. Bank Central Asia Tbk in Central Jakarta. This shows that the
highest average value is 3.98, which means that respondents utilize digital
technology to develop more profitable business methods.
Table
5. Descriptive Statistics of Innovation
Performance
|
No |
Innovation
Performance |
Mean |
|
1. |
My
company improves quality in products and services. |
3.93 |
|
2. |
My
company is increasing its ability to make goods. |
3.72 |
|
3. |
My
company saves materials and electricity used in each production unit. |
3.61 |
|
4. |
My
company improves the way it works to be more efficient in saving costs and
time. |
3.97 |
|
5. |
My
company strives to make activities simpler so that practices within the
organization become better. |
3.88 |
|
6. |
My
company inspires employees to be more creative in their work. |
3.89 |
|
7. |
My
company successfully introduces new products or services to the market
earlier than our competitors. |
3.84 |
|
8. |
The
new product or service my company offers is more successful than those
offered by our competitors. |
3.72 |
|
9. |
Sales
at my company are higher than our competitors. |
3.62 |
|
Mean |
3.79 |
|
Source: Data
Processing Results
����� Based on table 6 above, it can be seen
that the total average is 3.79, which means that respondents quite agree with
the existence of Innovation Performance at
PT. Bank Central Asia Tbk in Central Jakarta. This shows that the highest
average value is 3.97, which means that respondents feel that their company is
improving its way of working to be more efficient in saving costs and time.
����� The results of this hypothesis test aim to
test whether there is a positive influence between Digital Leadership on Digital
Innovation, a positive influence between Innovative Culture on Digital
Innovation, a positive influence between Digital Innovation on Innovation
Performance, a positive influence between Digital Leadership on Innovation
Performance, a positive influence between Innovative Culture on Innovation
Performance, the positive influence of Digital
Leadership on Innovation Performance which
is mediated by Digital Innovation,
the influence of Innovative Culture on
Innovation Performance which is
mediated by Digital Innovation.
Hypothetical decision making is carried out with the following conditions:
1. If the p-value <0.05 then, H0 fails to be accepted, Ha is accepted,
meaning the hypothesis is supported.
2. If the p-value > 0.05 then, H0 is accepted, Ha fails to be
accepted, meaning the hypothesis is not supported.
����� Analysis of the research hypotheses shows
interesting results. First, Digital Leadership has a significantly positive
effect on Digital Innovation, indicating that the role of leaders in guiding
digital change is very important. Then, Innovative Culture also has a
significant positive impact on Digital Innovation, highlighting the importance
of a work environment that encourages creativity. Furthermore, Digital
Innovation has a significant positive influence on Innovative Performance,
emphasizing the importance of technology adoption in improving a company's
innovative performance. However, the role of Digital Leadership on Innovative
Performance was not significant, perhaps because other factors had a greater
influence on innovative performance. Meanwhile, Innovative Culture has a
significant indirect influence on Innovative Performance through the mediation
of Digital Innovation, showing that an innovative work environment can improve
innovative performance through technology adoption. In conclusion, to improve
innovative performance, companies need to pay attention not only to digital leadership
and innovative culture but also to the application of innovative technology in
their business processes.
���������� The
discussion of each research result is as follows:
H1: Digital
Leadership has a positive influence on Digital
Innovation
����� Testing the first hypothesis concluded
that there was a significant positive influence between Digital Leadership and Digital
Innovation. This research supports previous research conducted by (Benitez
et al., 2022; Bresciani et al., 2021; Fu et al., 2018) in their research it was stated
that there was a positive and significant influence between Digital Leadership on Digital Innovation. Leaders must have
technical and professional expertise as well as creative skills to process
complex information to influence innovation. This describes employees at PT.
Bank Central Asia Tbk Central Jakarta feels that a good Digital Leadership role will influence a high level of Digital Innovation. The reason is that
if a Digital Leadership has four
characteristics such as: encouraging innovation by being anticipatory,
understanding digital and daring to take risks then the level of Digital Innovation possessed by PT
employees. Bank Central Asia Tbk is also increasing or becoming more creative
in developing Digital Innovation owned
by its employees.
H2: Innovative
Culture has a positive influence on Digital
Innovation
����� Testing the second hypothesis concluded
that there was a significant positive influence between Innovative Culture and Digital
Innovation. This research supports previous research conducted by Naveed
et al (2022) and Slater et al (2014) in their research which states
that there is a positive relationship between culture and innovation in
different environments. This shows that implementing Innovative Culture at PT. Bank Central Asia Tbk allows it to
encourage openness to new ideas and foster the ability to embrace complex technologies
that underlie the development of new products or services (Ali
& Park, 2016) . Apart from that, PT. Bank
Central Asia Tbk in Central Jakarta must also develop a governance style that
allows them to apply digital supporting factors such as culture and the ability
to achieve Digital Innovation which
must be applied to employees.
H3: Digital
Innovation has a positive influence on Innovation
Performance
����� Testing the third hypothesis concluded
that there was a significant positive influence between Digital Innovation and Innovation
Performance. This research supports previous research conducted by Hongyun
et al. (2023), Khin & Ho (2019) and Nassani et al (2023) in their research stated that
there is a positive influence between Digital
Innovation and Innovation Performance.
This shows that Digital Innovation has
been proven to be the main driver of sustainable economic progress and
contributes to the development of economic, social and environmental
conditions, especially in high-income countries, so that technological
innovation, including Digital Innovation,
can provide real benefits in various aspects. Including banking companies,
improving the performance and sustainability of innovation among their
employees.
H4: Digital
Leadership has no influence on Innovation
Performance
����� Testing the fourth hypothesis concluded
that there was no influence between Digital
Leadership and Innovation Performance.
This research supports previous research conducted by Gunawan
et al (2023) where in their research it was
stated that there was no influence between Digital
Leadership and Innovation Performance.
Wang et
al (2022) indicate that there are several
factors such as the organizational environment, company culture, or even a
mismatch between Digital Leadership
practices and the organization's specific innovation needs. Second, these
results suggest the need for further exploration of other variables that may
influence this relationship. These variables can be mediating or moderating
variables such as technological capabilities, innovation climate, or
organizational readiness for digital change. Another reason why Digital Leadership has no influence on Innovation Performance at PT. Bank
Central Asia Tbk in Central Jakarta is First, even though PT. Bank Central Asia
Tbk in Central Jakarta has implemented Digital
Leadership principles, there may be obstacles in internalizing these values
to all levels of employees. The implementation of digital technology and
strategies often takes time to spread and be accepted evenly throughout the
organization, especially in large companies such as PT. Bank Central Asia Tbk.
Second, strict hierarchical structures and strong standard operating procedures
may inhibit the flexibility and innovative initiative of lower-level employees.
Innovation often requires room for controlled experimentation and failure,
something that can be difficult to achieve in highly structured environments.
Third, corporate cultural factors that may be more oriented towards stability
and compliance than experimentation and rapid change may limit the adoption of
digital innovations. As a result, even though there is strong Digital Leadership at the top level,
employees in the field may not feel its direct impact on their day-to-day
innovation performance.
H5: Innovative
Culture has a positive influence on Innovation
Performance
����� Testing the fifth hypothesis concluded
that there was a significant positive influence between Innovative Culture and Innovation
Performance. This research supports previous research conducted by Khattak
et al. (2022) and Jun et
al (2022) in their research stated that
there is a positive and significant influence between Innovative Culture on Innovation
Performance. This shows that culture is one of the most important elements
in innovation management that can increase performance levels. So that in PT.
Bank Central Asia Tbk in Central Jakarta that Innovative Culture can increase employee involvement, give them
more opportunities to innovate, and support innovative initiatives through
appropriate training and development. Abdul
Halim et al (2015) stated in their research that
it is very important for organizations to improve Innovative Culture so that all employees can be alert, creative and
innovative to move the organization. This confirms that a strong Innovative Culture makes employees more
alert, creative and innovative, all of which contribute to increasing
Innovation Performance in banking companies in Central Jakarta.
H6: Digital
Leadership has a positive influence on Innovation
Performance which is mediated by Digital
Innovation
������ Testing the sixth hypothesis,
it can be concluded that Digital
Leadership has a positive and significant influence on Innovation Performance which is mediated by Digital Innovation. This hypothesis is supported by previous
research by Benitez
et al (2022) and Shah et
al (2024). This highlights the influence of Digital
Leadership capabilities on Innovation
Performance, mediated by platform digitalization capabilities. Strong Digital Leadership is proven to encourage an
innovative digital culture, improve marketing strategies, and strengthen
technology implementation in organizations. In research
by Al-Husban et al (2021) , it shows that Digital Leadership has
a positive impact on organizational performance and innovation capabilities.
These findings also confirm that Digital
Innovation capabilities act as a mediator in the relationship between Digital Leadership and Innovation Performance.
H7: Innovative
Culture has a positive influence on Innovation Performance which is
mediated by Digital Innovation
������ Testing the seventh hypothesis,
it can be concluded that Innovative
Culture has a positive and significant influence on Innovation Performance which is mediated by Digital Innovation. This hypothesis is supported by previous
researchers Khattak
et al (2022). In their research it can be
stated that there is a positive and significant influence between Innovative Culture on Innovation Performance which is mediated
by Digital Innovation. This shows
that Innovative Culture encourages PT
employees. Bank Central Asia Tbk to engage in creative activities and
experiment with new ideas which in turn improve PT's Innovation Performance. Bank Central Asia Tbk in Central Jakarta. Ge et al
(2023) in their research stated that
there is a positive and significant influence between Innovative Culture on Innovation
Performance which is mediated by Digital
Innovation. This states that Digital
Innovation is the use of
digital technology to create new products, services or processes. Digital
innovation it could be the adoption of new technology, the development of
digital platforms, or the implementation of digital tools to increase
efficiency and effectiveness. Digital
Innovation can be a significant driver in increasing Innovation Performance,
because digital technology allows faster and broader access to information,
better collaboration, and process automation that increases productivity. On
the other hand, Gao et al (2023) stated Digital Innovation not only
accelerates the innovative process, but also opens up new opportunities for
innovation that were previously impossible. Digital technologies such as data
analytics, artificial intelligence and the Internet of Things (IoT) provide new
insights and enable the development of more sophisticated products and
services. Thus, digital innovation functions as a catalyst that
strengthens the impact of Innovative Culture on Innovation
Performance.
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