The Role of Value Creation Innovation in Mediating the Relationship Between Digital Transformation, Strategic Agility, and Organizational Performance

Marsanto Adi Nurcahyo, Asep Hermawan, Sarfilianty Anggiani

Abstract


The objectives of this study are to examine the mediating role of value creation innovation in the relationship between organizational performance and the independent variables digital transformation and strategic agility. This study employs a quantitative research method with a nonprobability sampling approach and purposive sampling technique, targeting first-level and middle-level managers as the unit of analysis. The final sample consists of 156 respondents with data collected cross-sectionally. The collected data were analyzed using SmartPLS version 4. The results indicate that value creation innovation plays a full mediating role in the relationship between digital transformation and strategic agility on organizational performance, as the estimated mediation effect is greater than the direct effect. Theoretical implications of this research highlight that incorporating value creation innovation as a mediating variable strengthens the impact of digital transformation and strategic agility on organizational performance. The limitations of this study are that the respondents are only companies in bonded zones whose numbers are limited, with variables and research methods that are still limited. Future research should consider expanding the sample to include companies beyond bonded zones, integrating additional exogenous variables into the research model, and employing qualitative or mixed methods approaches to gain deeper insights.

Keywords


digital transformation; strategic agility; value creation innovation; organizational performance; bonded zone

Full Text:

PDF

References


Agostino, D., & Costantini, C. (2022). A measurement framework for assessing the digital transformation of cultural institutions: the Italian case. Meditari Accountancy Research, 30(4), 1141–1168. https://doi.org/10.1108/MEDAR-02-2021-1207

Al Taweel, I. R., & Al-Hawary, S. I. (2021). The mediating role of innovation capability on the relationship between strategic agility and organizational performance. Sustainability (Switzerland), 13(14). https://doi.org/10.3390/su13147564

Alkandi, I., & Helmi, M. A. (2024). The impact of strategic agility on organizational performance: the mediating role of market orientation and innovation capabilities in emerging industrial sector. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2396528

Ammar, I. B., & Tamzini, K. (2024). Investigating the Role of Business Model Innovation in the Relationship Between Digitalization and Firm Performance. In Digital Technology and Changing Roles in Managerial and Financial Accounting: Theoretical Knowledge and Practical Application (Vol. 36, pp. 53–64). Emerald Publishing Limited. https://doi.org/10.1108/S1479-351220240000036005

Banker, R. D., Frost, T., Abdelhamid, A., & Tripathi, M. K. (2021). Organizational Ability and Firm Performance in Transition Economies: The Case of Egypt. Data Envelopment Analysis Journal, 5(1), 243–280. https://doi.org/10.1561/103.00000031

Bawono, M., Gautama, I., Bandur, A., & Alamsjah, F. (2022). The Influence of Ambidextrous Leadership Mediated by Organizational Agility and Digital Business Model Innovation on the Performance of Telecommunication Companies in Indonesia during the Covid-19 Pandemic. WSEAS Transactions on Information Science and Applications, 19, 78–88. https://doi.org/10.37394/23209.2022.19.8

Bowman, C., & Ambrosini, V. (2000). Value creation versus value capture: towards a coherent definition of value in strategy. British Journal of Management, 11(1), 1–15.

Chan, J. I. L., & Muthuveloo, R. (2019). Antecedents and influence of strategic agility on organizational performance of private higher education institutions in Malaysia. Studies in Higher Education, 46, 1726–1739. https://doi.org/10.1080/03075079.2019.1703131

Clauss, T. (2017). Measuring business model innovation: conceptualization, scale development, and proof of performance. R&d Management, 47(3), 385–403.

Clauss, T., Abebe, M., Tangpong, C., & Hock, M. (2019). Strategic agility, business model innovation, and firm performance: an empirical investigation. IEEE Transactions on Engineering Management, 68(3), 767–784.

Culot, G., Podrecca, M., & Nassimbeni, G. (2024). Blockchain adoption and operational performance: A secondary data analysis on effects and contingencies. International Journal of Operations & Production Management, 44(13), 69–99.

Dayioglu, M., Küskü, F., & Cetindamar, D. (2024). The Impact of Business Environmental Factors on Performance Through Strategic Agility and Business Model Innovation: An Analysis Based on Dynamic Capabilities Theory. IEEE Transactions on Engineering Management, 71, 3656–3670. https://doi.org/10.1109/TEM.2024.3353734

Dehmolaee, S., & Rashnavadi, Y. (2019). Strategic agility in telecom industry: the effective factors on competitive advantages. Middle East J. of Management. https://doi.org/10.1504/MEJM.2019.10016558

Doz, Y., & Kosonen, M. (2008). The dynamics of strategic agility: Nokia’s rollercoaster experience. California Management Review, 50(3), 95–118.

Ekakitie, D. R. (2023). Innovative management practices and firm performance: a case of telecom. Firms in south-east, nigeria. CEMJP, 31(2), 572–582.

Georgia, I., Kanova, O., Kozyreva, O., Kinas, I., & Zhytar, M. (2024). Substantiating The Influence of The Results Of A Competent Organization’s Functioning On The Efficiency Of The National Economy. Financial and Credit Activity Problems of Theory and Practice, 1(54), 403–420.

Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2013). Multivariate data analysis. Pearson Higher Ed.

Henseler, J., Ringle, C. M., & Sarstedt, M. (2016). Testing measurement invariance of composites using partial least squares. International Marketing Review, 33(3), 405–431. https://doi.org/10.1108/IMR-09-2014-0304

Hermanto, I. R., Widyarini, L. A., & Darma, D. C. (2024). Digitalization Impact on Sustainable Firm Performance of Small, Medium, and Large Businesses. Virtual Economics, 7(1), 7–24.

Malik, A., & Rahman, A. (2020). Rate of Participation of Female in Labor Force: An Analysis on Recent Trends. https://consensus.app/papers/rate-of-participation-of-female-in-labor-force-an-analysis-malik-rahman/3089a7a807a754159719e55a609e7adb/

Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642–656. https://doi.org/10.1016/j.jbusres.2020.10.033

Medne, A., & Lapiņa, I. (2019). Sustainability and Continuous Improvement of Organization: Review of Process-Oriented Performance Indicators. Journal of Open Innovation Technology Market and Complexity, 5(3), 49. https://doi.org/10.3390/joitmc5030049

Memon, M. A., Ting, H., Cheah, J., Thurasamy, R., Chuah, F., & Cham, T. H. (2020). Sample Size for Survey Research: Review and Recommendations. https://api.semanticscholar.org/CorpusID:225704512

Merín-Rodrigáñez, J., Dasí, À., & Alegre, J. (2024). Digital transformation and firm performance in innovative SMEs: The mediating role of business model innovation. Technovation, 134. https://doi.org/10.1016/j.technovation.2024.103027

Michelini, L. (2024). Behind the curtain of sustainable business models: the role of firm’s strategic agility in value creation. Management Decision, ahead-of-print.

Mulyana, R., Rusu, L., & Perjons, E. (2024). The key ambidextrous IT governance mechanisms for a successful digital transformation: Case study of Bank Rakyat Indonesia (BRI). Digital Business, 100083.

Ortíz, J. I. B., Henao, S. J. C., Henao Colorado, L. C., & Valencia-Arias, A. (2023). Creating Value in Non-Profit Sports Organizations: An Analysis of the DART Model and Its Performance Implications. European Journal of Investigation in Health, Psychology and Education, 13(9), 1676–1693.

Purwanto, H., Rahayu, A., Gaffar, V., Wibowo, L. A., Asmara, M. A., Munawar, A., Saepudin, D., Andriansyah, E., & Nugraha, R. W. (2024). Driving Digital Transformation: The Dynamic Interplay Between University Governance Capability, Emerging Technologies, and the Moderating Power of Government Regulation and University Rankings. Proceedings of the 1st Widyatama International Conference on Management, Social Science and Humanities (ICMSSH 2024), 88–97. https://doi.org/10.2991/978-94-6463-608-6_11

Purwanto, H., Wiralaga, H. K., & Saptono, A. (2023). Does strategic agility and innovation capability have an impact on firm performance? A study on the Indonesian motorcycle industry. Asian Economic and Financial Review, 13(12), 981–995.

Queiroz, M., Tallon, P. P., Sharma, R., & Coltman, T. (2018). The role of IT application orchestration capability in improving agility and performance. Journal of Strategic Information Systems, 27(1), 4–21. https://doi.org/10.1016/j.jsis.2017.10.002

Riekhoff, A., & Kuitto, K. (2024). Educational Expansion as a Driver of Longer Working Lives? Comparative Population Studies. https://doi.org/10.12765/cpos-2024-06

Sekaran, U., & Bougie, R. (2016). Research methods for business : a skill-building approach. 7.

Shaban, E. A. (2024). The role of strategic agility in achieving organizational excellence in Jordanian universities. Cogent Business & Management, 11(1), 2384614.

Teece, D. J. (2018). Dynamic Capabilities as (Workable) Management Systems Theory. Journal of Management & Organization, 24(3), 359–368. https://doi.org/10.1017/jmo.2017.75

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

Venkatraman, N., & Ramanujam, V. (1986). Measurement of business performance in strategy research: A comparison of approaches. Academy of Management Review, 11(4), 801–814.

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems Review.

Wang, H., Zheng, C., Liu, J., & Jiang, X. (2022). Digital Technology Search and New Venture Performance in Dynamic Environments: The Mediating Role of Competitive Advantage. Journal of Organizational and End User Computing (JOEUC), 34(7), 1–22.

Wu, Y., Ivashkovskaya, I., Besstremyannaya, G., & Liu, C. (2025). Unlocking Green Innovation Potential Amidst Digital Transformation Challenges—The Evidence from ESG Transformation in China. Sustainability, 17(1). https://doi.org/10.3390/su17010309

Xu, N., Lv, W., & Wang, J. (2024). The impact of digital transformation on firm performance: a perspective from enterprise risk management. Eurasian Business Review, 1–32.

Yanti, B. F., Hartani, D., Nuraeni, D., Lumbanbatu, G. A., & Kristina, K. (2023). Analisis Dampak Penurunan Ekspor Tekstil Terhadap Tenaga Kerja di Sektor Industri Tekstil dan Produk Tekstil Selama Pandemi COVID-19. Juremi: Jurnal Riset Ekonomi, 2(5), 617–624.

Yildiz, T., & Aykanat, Z. (2021). The mediating role of organizational innovation on the impact of strategic agility on firm performance. World Journal of Entrepreneurship, Management and Sustainable Development. https://doi.org/10.1108/wjemsd-06-2020-0070

Zeng, X., & Rojniruttikul, N. (2025). The Impact of the Forward-Looking Strategy on the Sustainable Development of Enterprises Under the Background of Digital Economy—Based on Dynamic Regulation. Sustainability, 17(1). https://doi.org/10.3390/su17010272

Zhao, X., Li, X., Li, Y., & Wang, Z. (2024). The impact of digital transformation on firm performance. Industrial Management & Data Systems, 124(8), 2567–2587.

Zheng, Y., & Dai, L. (2025). Corporate Entrepreneurship Driven by Big Data Analytics Capability: A Perspective Based on the Generation and Utilization of Slack Resources. Sage Open, 15(1), 21582440241305330. https://doi.org/10.1177/21582440241305326




DOI: https://doi.org/10.46336/ijbesd.v6i2.885

Refbacks

  • There are currently no refbacks.


Copyright (c) 2025 International Journal of Business, Economics, and Social Development

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Published By: 

IJBESD: Jalan Riung Ampuh No. 3, Riung Bandung, Kota Bandung 40295, Jawa Barat, Indonesia


IJBESD Indexed By:

width=width=width=width= width= width= width= 

 

Creative Commons License This work is licensed under a Creative Commons Attribution 4.0 International License.