The Mediating Influence of IT Capabilities and the Moderating Effect of Strategic Leadership: The Use of Resource-Based Management Strategies to Improve Organizational Innovation

Abstract

Within the larger information and communication technology (ICT) business, the telecommunications network technology sector is a niche that plays a crucial role in assisting with infrastructure development, particularly the rollout of 4G networks throughout Indonesia. Due to rapid technological progress and heightened competition pressures over the last fifteen years, many prominent companies have encountered substantial difficulties in maintaining their market relevance and strategic positioning. Organizational innovation (OI) is crucial for companies seeking to maintain and enhance their market position. According to the resource-based view (RBV), human resources are regarded as important internal assets that can promote innovation.

This study aims to design a human resource management approach that improves organizational innovation. Although previous studies have established a notable positive correlation between resource-based management initiatives (RBMI) and organizational innovation (OI) outcomes, empirical discrepancies persist. This study incorporates dynamic capacity theory (DCV) with contingency leadership theory, presenting IT capabilities as a mediator and strategic leadership (SL) as a moderator.

The study employs a quantitative methodology, utilizing descriptive and explanatory surveys. Data were gathered from 311 managers across four cellular telecommunications infrastructure providers in Indonesia utilizing probability and simple random sampling methods. The presented hypotheses were empirically assessed using structural equation modelling using the partial least squares (PLS-SEM) method.