EXPLORING THE ROLE OF LEADERSHIP AND ORGANIZATIONAL CULTURE IN ENHACING PUBLIC SECTOR INNOVATION IN MEDAN: AN SEM-PLS STUDY
Kepler Sinaga , HKBP Nommensen University, IndonesiaAbstract
The purpose of this study is to find out and analyze the extent to which leadership variables and organizational culture affect the quality of public sector services through increasing public sector innovation as an intervening variable. The subject of this study is the population of Medan City, where the variables in this study are independent variables, namely leadership and organizational culture, dependent variables, namely public sector service quality variables, and intervening variables are variables that increase public sector innovation. The results of data analysis were carried out by SEM analysis using SMART PLS 4.0 software. The data collection technique is by observation and documentation studies. The research method uses a quantitative descriptive method of data analysis using the structural equation model (SEM) method, where the results of data processing using the SEM method are carried out with the PLS 4.0 application. From the results of the study, the existing conclusion is that partially, leadership variables and organizational culture affect the quality of public sector services and affect the improvement of public sector innovation. Simultaneously, leadership and organizational culture affect the quality of public sector services through the variable of increasing public sector innovation as an intervening variable. The more leadership serves, the more innovation will grow in public sector services which will eventually change the organizational culture that tends to be flexible and serve which makes the quality of public sector services improve its performance.
Keywords
Leadership, organizational culture, creativity
References
Agarwal, Renu, et al. (2021). Evolution of the Indian LPG industry: Exploring conditions for public sector business model innovation. Journal Research Policy, 50, 104196. https://doi.org/10.1016/j.respol.2020.104196
Alalawamleh, Mohammad, et al. (2023). Interpretive structural modelling of organizational innovation factors: An emerging market perspective. Journal of Open Innovation: Technology, Market, and Complexity, 10, 100067. https://doi.org/10.1016/j.joitmc.2023.100186
Alnuaimi, Bader K., Singh, Sanjay Kumar and Harney, B. (2021). Unpacking the role of innovation capability: Exploring the impact of leadership style on green procurement via a natural resource-based perspective. Journal of Business Research, 134, 78–88. https://doi.org/10.1016/j.jbusres.2021.05.026
Alshahrani, Albandari, Dennehy, Denis and Mäntymäki, M. (2021). An attention-based view of AI assimilation in public sector organizations: The case of Saudi Arabia. Journal Government Information Quarterly, 39, 101617. https://doi.org/10.1016/j.giq.2021.101617
Bastidas, Viviana, et al. (2023). Leadership for responsible digital innovation in the built environment: A socio-technical review for re-establishing competencies. Journal of Urban Management, 12, 57–73. https://doi.org/10.1016/j.jum.2023.01.004
Bhutto, Sana Arz, Jamal, Y., & and Ullah, S. (2023). FinTech adoption, HR competency potential, service innovation and firm growth in banking sector. Journal Heliyon, 9(3), e13967. https://doi.org/10.1016/j.heliyon.2023.e13967
Colovic, A. (2022). Leadership and business model innovation in late internationalizing SMEs. Journal Long Range Planning, 55, 102083. https://doi.org/10.1016/j.lrp.2021.102083
Cortés-Denia, Daniel, et al. (2023). Does authentic leadership promote higher job satisfaction in public versus private organizations? Exploring the role of vigor and engagement. Journal Heliyon, 9, e12906. https://doi.org/10.1016/j.heliyon.2023.e12906
by Adro, Francisco José Nave and Leitão, J. C. C. (2020). Leadership and organizational innovation in the third sector: A systematic literature review. International Journal of Innovation Studies, 4, 51–67. https://doi.org/10.1016/j.ijis.2020.04.001
Dosi, Giovanni, et al. (2023). Do patents really foster innovation in the pharmaceutical sector? Results from an evolutionary, agent-based model. Journal of Economic Behavior and Organization, 212, 564–589. https://doi.org/10.1016/j.jebo.2023.05.039
Jabber, Mohammad Abdul, Sakib, Md Nazmus and Rahman, M. M. (2023). Exploring the roles and challenges of the servant leadership: A critical examination of the Bangladesh police. Journal Heliyon, 9(1), e12782. https://doi.org/10.1016/j.heliyon.2022.e12782
Jaboob, Mohammed, Salim Ba Awain, Ali Mohsin and Al-Ansi, A. M. (2023). Sustaining employees' creativity through the organizational justice: The mediating role of leadership styles. Kournal Social Sciences and Humanities Open, 8, 100693. https://doi.org/10.1016/j.ssaho.2023.100693
Kassa, Erstu Tarko and Ning, J. (2023). A systematic review on the roles of knowledge management in public sectors: Synthesis and way forwards. Journal Heliyon, 9, e22293. https://doi.org/10.1016/j.heliyon.2023.e22293
14)
Keränen, Anne, et al. (2023). Developing identity of conscientious business-to-business organizations through integrative leadership. Journal Industrial Marketing Management, 109, 188–203. https://doi.org/10.1016/j.indmarman.2023.01.007
Khan, Naseer Abbas and Khan, A. N. (2019). What followers are saying about transformational leaders fostering employee innovation via organisational learning, knowledge sharing and social media use in public organisations? Government Information Quarterly, 36, 1–11. https://doi.org/10.1016/j.giq.2019.07.003
Klein, G. (2023). Transformational and transactional leadership, organizational support and environmental competition intensity as antecedents of intrapreneurial behaviors. European Research on Management and Business Economics, 29, 100215. https://doi.org/10.1016/j.iedeen.2023.100215
Lam, Long, et al. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(66), 1–16. https://doi.org/10.3390/joitmc7010066
Larios-francia, Rosa Patricia and Ferasso, M. (2023). The relationship between innovation and performance in MSMEs: The case of the wearing apparel sector in emerging countries. Journal of Open Innovation: Technology, Market, and Complexity, 9, 100018. https://doi.org/10.1016/j.joitmc.2023.100018
Lemphers, Nathan, et al. (2022). Rooted in place: Regional innovation, assets, and the politics of electric vehicle leadership in California, Norway, and Québec. Journal Energy Research and Social Science, 87, 102462. https://doi.org/10.1016/j.erss.2021.102462
Malibari, Mashael Abdulaziz and Bajaba, S. (2016). Entrepreneurial leadership and employees' innovative behavior: A sequential mediation analysis of innovation climate and employees' intellectual agility. Journal of Innovation & Knowledge& Knowledge, 7, 100255. http://dx.doi.org/10.1016/j.jik.2016.01.016
Maqdliyan, Rohana and Setiawan, D. (2024). Antecedents and consequences of public sector organizational innovation. Journal of Open Innovation: Technology, Market, and Complexity, 9, 100042. https://doi.org/10.1016/j.joitmc.2023.100186
Naqshbandi, M. Muzamil and Tabche, I. (2018). The interplay of leadership, absorptive capacity, and organizational learning culture in open innovation: Testing a moderated mediation model. Journal Technological Forecasting and Social Change, 133, 1–12. https://doi.org/10.1016/j.techfore.2018.03.017
Pedraza-Rodríguez, José A., et al. (2023). Management skills and organizational culture as sources of innovation for firms in peripheral regions. Journal Technological Forecasting and Social Change, 191, 122518. https://doi.org/10.1016/j.techfore.2023.122518
Pólvora, Alexandre and Nascimento, S. (2021). Foresight and design fictions meet at a policy lab: An experimentation approach in public sector innovation. Journal Futures, 128, 102709. https://doi.org/10.1016/j.futures.2021.102709
Ravisankar, J., et al. (2023). Exploring the drivers and facets of culture in the formative stage of a public-funded R&D organisation. Journal IIMB Management Review, 35, 370–381. https://doi.org/10.1016/j.iimb.2023.11.002
Sarwar, Uzma, et al. (2023). Comparative Analysis of Female Leadership Styles in Public and Private Sector Universities: A Study in Pakistan. Journal Heliyon, 9(11), e22058. https://doi.org/10.1016/j.heliyon.2023.e22058
Sergio, Ivan, Iandolo, S., & and Ferragina, A. M. (2023). Inter-sectoral and inter-regional knowledge spillovers: The role of ICT and technological branching on innovation in high-tech sectors. Technological Forecasting and Social Change, 194, 122728. https://doi.org/10.1016/j.techfore.2023.122728
Silly, Muhammad Adnan, et al. (2023). Does mobile technology shape employee socialization and enable tacit knowledge sharing in public sector organizations. Journal of Open Innovation: Technology, Market, and Complexity, 9, 100089. https://doi.org/10.1016/j.joitmc.2024.100213
Stremersch, Stefan, et al. (2022). Grassroots innovation success: The role of self-determination and leadership style. International Journal of Research in Marketing, 39, 396–414. https://doi.org/10.1016/j.ijresmar.2021.10.003
Triguero-Sánchez, Rafael, Peña-Vinces, Jesús and Ferreira, J. J. M. (2022). The effect of collectivism-based organisational culture on employee commitment in public organisations. Journal Socio-Economic Planning Sciences, 83, 101335. https://doi.org/10.1016/j.seps.2022.101335
Vassallo, Jarrod P., et al. (2023). Design thinking and public sector innovation: The divergent effects of risk-taking, cognitive empathy and emotional empathy on individual performance. Research Policy, 52, 104768. https://doi.org/10.1016/j.respol.2023.104768
Yang, Mingjun, Luu, Tuan Trong and Qian, D. (2021). Dual-focused transformational leadership and service innovation in hospitality organisations: A multilevel investigation. International Journal of Hospitality Management, 98, 103035. https://doi.org/10.1016/j.ijhm.2021.103035
Zada, Muhammad, et al. (2023). Linking public leadership with project management effectiveness: Mediating role of goal clarity and moderating role of top management support. Journal Heliyon, 9, e15543. https://doi.org/10.1016/j.heliyon.2023.e15543
Zhang, Qiang and Ma, Y. (2021). The impact of environmental management on firm economic performance: The mediating effect of green innovation and the moderating effect of environmental leadership. Journal of Cleaner Production, 292, 126057. https://doi.org/10.1016/j.jclepro.2021.126057
Article Statistics
Downloads
Copyright License
Copyright (c) 2024 Kepler Sinaga
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors retain the copyright of their manuscripts, and all Open Access articles are disseminated under the terms of the Creative Commons Attribution License 4.0 (CC-BY), which licenses unrestricted use, distribution, and reproduction in any medium, provided that the original work is appropriately cited. The use of general descriptive names, trade names, trademarks, and so forth in this publication, even if not specifically identified, does not imply that these names are not protected by the relevant laws and regulations.