Strengthening Institutional Resilience in Public Organizations: The Role of Dynamic Capabilities and Innovative Leadership in the Digital Era

Authors

  • Jholant Bringg Luck Amelia Universitas Prima Indonesia
  • Wilson Bangun Universitas Kristen Maranatha
  • Sofiyan Sofiyan Universitas Prima Indonesia

DOI:

https://doi.org/10.61132/icmeb.v3i1.378

Keywords:

Dynamic Capabilities, Innovation, Resilience, Vocational Training Institutions, SEM-PLS

Abstract

Digital revolution and the disruption of the global labor market have made public organizations, especially vocational training institutions, even more complicated. This study seeks to examine the impact of dynamic skills on institutional resilience, with innovative leadership serving as a mediating variable. The study employed a quantitative methodology, utilizing data collected from 180 employees at the Medan Vocational and Productivity Training Center (BBPVP). We used Structural Equation Modeling based on Partial Least Squares (SEM-PLS) to look at the data. The findings indicate that dynamic capabilities exert a positive and significant influence on institutional resilience, underscoring the necessity for an organization to identify, capitalize on opportunities, and adapt to change. Dynamic qualities also have a big effect on inventive leadership, which is very important for making organizational change happen. Innovative leadership demonstrably influences institutional resilience and serves as a partial mediator between dynamic capabilities and institutional resilience. This research offers a theoretical advancement by synthesizing institutional theory, dynamic capacities, and innovative leadership to elucidate public organizational resilience. In practical terms, the findings of this study have significant significance for enhancing the adaptive capacity of vocational training institutions in the context of digital disruption.

Downloads

Download data is not yet available.

References

Abdelkareem, K. M. M. B. M. A. R. S. (2023). Linking internal environmental capabilities to sustainable competitive advantage in manufacturing SMEs: The mediating role of eco-innovation. Journal of Cleaner Production, 417(September), 1–7. https://doi.org/10.1016/j.jclepro.2023.137928

Abid, S. K. (2023). Leadership Styles Impacting Innovative Work Behavior with Moderating Role of Job Satisfaction. Journal of Management Sciences, 10(1), 41–56. https://doi.org/10.20547/jms.2014.2310103

Abourokbah, S., Bajaba, S., & Yaqub, M. Z. (2024). Leading the green wave: How and when green transformational leadership cultivates employee green creativity. Acta Psychologica, 250(October), 1–16. https://doi.org/10.1016/j.actpsy.2024.104503

Abun, D., Julian, F. P., Gertrude, L., Macaspact, R., & Valdez, E. B. (2023). The effect of innovative work environment on the innovative work behavior of employees. International Journal of Research in Business and Social Science (2147- 4478), 12(3), 140–158. https://doi.org/10.20525/ijrbs.v12i3.2467

Al Daboub, R. S., Al-Madadha, A., & Al-Adwan, A. S. (2024). Fostering firm innovativeness: Understanding the sequential relationships between human resource practices, psychological empowerment, innovative work behavior, and firm innovative capability. International Journal of Innovation Studies, 8(1), 76–91. https://doi.org/10.1016/j.ijis.2023.12.001

Alt, D., Kapshuk, Y., & Dekel, H. (2023). Promoting perceived creativity and innovative behavior: Benefits of future problem-solving programs for higher education students. Thinking Skills and Creativity, 47(March), 1–7. https://doi.org/10.1016/j.tsc.2022.101201

Amin, N. U., & Khan, M. A. (2024). Driving Competitive Advantage in the Digital Era : The Role of Dynamic Capabilities , Innovation , and Leadership. Dinasti International Journal of Economic, Finance & Accounting, 5(5), 1–15. https://doi.org/https://doi.org/10.38035/dijefa

Barakat, B., Milhem, M., Naji, G. M. A., Muda, H. B., Ateeq, A., & Abro, Z. (2023). Assessing the Impact of Green Training on Sustainable Business Advantage: Exploring the Mediating Role of Green Supply Chain Practices. Sustainability (Switzerland), 15(19), 1–21. https://doi.org/10.3390/su151914144

Bhastary, M. D., Hou, A., & Goh, T. S. (2024). The Role of Employee Green Behaviors in Green Teacher Performance in the Madrasah Environment in Medan City with an Organizational Ambidexterity and Green Self-Efficacy Approach. Society, 12(2), 696–713. https://doi.org/10.33019/society.v12i2.729

Bornay-barrachina, M., López-cabrales, Á., & Salas-vallina, A. (2025). Sensing , seizing , and reconfiguring dynamic capabilities in innovative firms : Why does strategic leadership make a difference ? Business Research Quarterly, 28(2), 399–420. https://doi.org/10.1177/23409444231185790

Burton, A. M., & Dickinger, A. (2025). Innovation in Crisis. The role of leadership and dynamic capabilities for a more innovative hospitality industry. International Journal of Hospitality Management, 124(October 2024), 1–16. https://doi.org/10.1016/j.ijhm.2024.103946

Chan, M. A. R. T. Z. F. (2022). Investigating the impact of pandemic job stress and transformational leadership on innovative work behavior: The mediating and moderating role of knowledge sharing. Journal of Innovation and Knowledge, 7(3), 1–11. https://doi.org/10.1016/j.jik.2022.100214

Fadli, A. (2024). The Influence of Safety Leadership and Work Engagement on Job Satisfaction ( Case Study at University of Mahkota Tricom Unggul ). Journal of Business Integration and Competitive (JoBIC), 1(1), 21–30.

Faris, S., Rezeki, F., & Lubis, A. (2024). Enhancing Public Sector Performance : Work Engagement as a Mediator between Organizational Justice , Support , and Employee Outcomes in Bireuen Regency , Indonesia. Journal of Logistics, Informatics and Service Science, 11(12), 1–17. https://doi.org/10.33168/JLISS.2024.1201

Fikri, K., Astarina, I., Rifa’i, A., Setianingsih, R., Abunawas, & Alviani, D. (2024). Empowerment Leadership: Cultivating Cultural Intelligence And Its Effects On Job Flourishing. Jurnal Aplikasi Manajemen, 22(3), 601–614.

Garrido-moreno, A., Martín-rojas, R., & García-morales, V. J. (2024). The key role of innovation and organizational resilience in improving business performance: A mixed-methods approach. International Journal of Information Management, 77(7), 1–19. https://doi.org/10.1016/j.ijinfomgt.2024.102777

Ghanbari, J. A. S. (2022). Investigate the role of servant leadership and team leadership In team performance mediated by team cohesion and team learning In the teams of secondary school teachers in Kurdistan province. Journal of School Administrarion, 9(4), 18–39.

Han, N. A. H. (2021). The inter-relation of corporate social responsibility at employee level, servant leadership, and innovative work behavior in the time of crisis from the healthcare sector of pakistan. International Journal of Environmental Research and Public Health, 18(9), 1–16. https://doi.org/10.3390/ijerph18094608

Harinto, A. (2024). The Influence of Workload on Lecturer Performance through Job Satisfaction at the IT & B Medan Campus. Journal of Business Integration and Competitive (JoBIC), 1(1), 1–9.

Hasrul Azwar Hasibuan, Syaifuddin, Rusiadi, & Nasib. (2022). Changes in the Performance of Millennial Employees during the Covid 19 Period at Four Star Hotels in Medan City. International Journal of Research and Review, 19(April), 320–324.

Herfianti, M., Alfansi, L., Widodo, S., & Pareke, F. J. S. (2025). Exploring the Moderating Role of Organizational Justice in the Relationship Between Work Stress and Burnout Among Nurses : A JD-R Framework Approach Job Demands Resources ( JD-R ). Journal of Business Integration and Competitive, 2(1), 63–73. https://doi.org/10.64276/jobic.v2i1.3

Hokmabadi, H., Rezvani, S. M. H. S., & de Matos, C. A. (2024). Business Resilience for Small and Medium Enterprises and Startups by Digital Transformation and the Role of Marketing Capabilities—A Systematic Review. Systems, 12(6), 1–17. https://doi.org/10.3390/systems12060220

Honkley, T., Banuari, N., & Tandeas, W. (2025). Peer Trust as a Mediator Between Learning Organization Culture and Innovative Behavior Among Faculty. Journal of Business Integration and Competitive, 1(2), 141–154. https://doi.org/Journal of Business Integration and Competitive

Janmethakulwat, A., & Thanasopon, B. (2025). Institutionalization and adoption of digital technology in Thai. Maritime Business Review, 9(4), 1–18. https://doi.org/10.1108/MABR-07-2024-0056

Joussen, T. P., & Kraus, S. (2025). Enabling Strategic Change Toward Resilience : A Systematic Review From a Dynamic Capabilities Perspective. Strategic Change, 1(1), 373–405. https://doi.org/10.1002/jsc.2626

Juárez, L. E. V. (2021). Technological capabilities, open innovation, and eco-innovation: Dynamic capabilities to increase corporate performance of smes. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 1–19. https://doi.org/10.3390/joitmc7010008

Junaid, M., & Sarwar, A. (2024). Sustainable leadership impact on environmental performance: exploring employee well‑being, innovation, and organizational resilience. Discover Sustainability, 1(1), 1–18. https://doi.org/10.1007/s43621-024-00422-z

Kamal, R., Mohammad, U., Islam, F., & Tushar, F. H. (2025). Building Resilient Organizations : The Role of Technological Capability , Innovation Leadership , and Sustainability. Global Journal of Flexible Systems Management, 26(4), 963–995. https://doi.org/10.1007/s40171-025-00471-x

Lubis, Y., Ananda, F. R., Syaifuddin, Sofiyan, & Nasib. (2024). The Impact of Volunteerism and Emotional Regulation Traits on Job Satisfaction and Performance an Indonesian Agribusiness Corporation. Journal of System and Management Sciences, 14(11), 431–448. https://doi.org/10.33168/jsms.2024.1123

Lubis, Y., Hernosa, S. P., Sofiyan, S., Rezeki, F., Lubis, A., & Syaifuddin, S. (2024). The role of voluntary green behavior and green performance in promoting sustainability in the hospitality industry. International Journal of Advanced and Applied Sciences, 11(10), 218–231. https://doi.org/https://doi.org/10.21833/ijaas.2024.10.024

Ma, L., Ali, A., Shahzad, M., & Khan, A. (2025). Factors of green innovation: the role of dynamic capabilities and knowledge sharing through green creativity. Kybernetes, 1(1), 1–21. https://doi.org/10.1108/K-06-2022-0911

Mikalef, P. (2021). IT architecture flexibility and IT governance decentralisation as drivers of IT-enabled dynamic capabilities and competitive performance: The moderating effect of the external environment. European Journal of Information Systems, 30(5), 512–540. https://doi.org/10.1080/0960085X.2020.1808541

Muna, N., Yasa, N. N. K., Ekawati, N. W., & Wibawa, I. M. A. (2022). A dynamic capability theory perspective: borderless media breakthrough to enhance SMEs performance. International Journal of Data and Network Science, 6(2), 363–374. https://doi.org/10.5267/j.ijdns.2022.1.001

Mustafa, M. J., Zainal Badri, S. K., & Melanie Ramos, H. (2022). Linking middle-managers’ ownership feelings to their innovative work behaviour: the mediating role of affective organisational commitment. Journal of Management and Organization, 30(2), 2418–2435. https://doi.org/10.1017/jmo.2021.67

Nasib. (2020). Leadership Role Iin The Commitment And Performance of Employees InThe Regional Company Of Medan. International Journal For Innovativate In Multidisciplinary Field, 6(8), 58–63.

Paracha, L. D. B. M. F. A. A. (2022). Cultivating Innovative Work Behavior of Nurses Through Diversity Climate : The Mediating Role of Job Crafting. Original Research Article, 8, 1–13. https://doi.org/10.1177/23779608221095432

Pawera, L., Manickam, R., Wangungu, C., Bonnarith, U., Schreinemachers, P., & Ramasamy, S. (2024). Guidance on farmer participation in the design, testing and scaling of agricultural innovations. Agricultural Systems, 218(April), 1–22. https://doi.org/10.1016/j.agsy.2024.104006

Prayag, G., Jiang, Y., & Chowdhury, M. (2024). Building Dynamic Capabilities and Organizational Resilience in Tourism Firms During COVID-19 : A Staged Approach. Journal of Travel Research, 63(3), 713–740. https://doi.org/10.1177/00472875231164976

Prompong, T., Nattapong, T., Khahan, N., & Vrabcov, P. (2024). Moderating effects of resilience on the relationship between self-leadership and innovative work behavior. Sustainable Futures, 7(1), 1–16. https://doi.org/10.1016/j.sftr.2023.100148

Rafiquea, M. A., Houa, Y., Chudhery, M. A. Z., Waheedd, M., Ziae, T., & Chan, F. (2022). Investigating the impact of pandemic job stress and transformational leadership on innovative work behavior: The mediating and moderating role of knowledge sharing. Journal of Innovation and Knowledge, 7(3), 1–11. https://doi.org/10.1016/j.jik.2022.100214

Sijdeb, B. K. I. W. P. van der. (2021). How to promote managers’ innovative behavior at work: Individual factors and perceptions. Technovation, 99(November 2018), 1–15. https://doi.org/10.1016/j.technovation.2020.102127

Studies, P. E. (2024). Linking The Influence of Dynamic Capabilities and Innovation Capabilities on Competitive Advantage: PLS-SEM Analysis. Professional Education Studies and Operations Research An International Journal, 1(2), 6–10.

Susanto. (2025). Unveiling the Path : Organizational Trust , Social Relationships , and Their Impact on Organizational Citizenship Behavior at CV Hanselia. Journal of Business Integration and Competitive, 2(1), 20–30. https://doi.org/10.64276/jobic.v2i1.27

Syaifuddin, Lie, D., Lubis, F. R. A., Novirsari, E., & Nasib. (2024). The role of job satisfaction in mediating the relationship between family conflict, volunteer management, and employee performance at PT. Perkebunan Nusantara 3. International Journal of Advanced and Applied Sciences, 11(12), 180–191. https://doi.org/https://doi.org/10.21833/ijaas.2024.12.020

Thamrin, R. M. H., Rahmawati, R., Juniar, A., & Nuryadin, M. R. (2025). The Influence of Dynamic Capability Competence and Innovation Performance on the Sustainable Competitive Advantage of MThamrin, R. M. H., Rahmawati, R., Juniar, A., & Nuryadin, M. R. (2025). The Influence of Dynamic Capability Competence and Innovation Pe. Jurnal Ilmiah Manajemen Kesatuan, 13(2), 1039–1050. https://doi.org/10.37641/jimkes.v11i2.3164

Thneibat, M. (2021). The effect of perceived rewards on radical innovation: the mediating role of knowledge management in Indian manufacturing firms. Heliyon, 7(5), e07155. https://doi.org/10.1016/j.heliyon.2021.e07155

Tjahjono, M. C., & Purbiyati, Y. S. (2023). The Effect of Dynamic Capabilities on Organization Resilience with Mediation of Digital Transformation: A Comparison. Business and Accounting Research (IJEBAR) Peer Reviewed-International Journal, 7(4), 1596–1604. https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Ul, M., Islam, N., Chauhan, C., & Zafar, M. (2024). Resilience and agility in sustainable supply chains : A relational and dynamic capabilities view. Journal of Business Research, 183(1), 1–19. https://doi.org/10.1016/j.jbusres.2024.114855

Walsh, S., Johnston, A., & Gabriel, L. (2024). Building resilient leadership : A study exploring leadership development during uncertainty. Human Resources Management and Services, 6(2), 1–19. https://doi.org/https://doi.org/10.18282/hrms.v6i2.34 74

Wang, G., Mansor, Z. D., & Leong, Y. C. (2024). Linking digital leadership and employee digital performance in SMEs in China: The chain-mediating role of high-involvement human resource management practice and employee dynamic capability. Heliyon, 10(16), 1–19. https://doi.org/10.1016/j.heliyon.2024.e36026

Wang, G., Niu, Y., Mansor, Z. D., Leong, Y. C., & Yan, Z. (2024a). Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate. Heliyon, 10(4), 1–21. https://doi.org/10.1016/j.heliyon.2024.e25583

Wang, G., Niu, Y., Mansor, Z. D., Leong, Y. C., & Yan, Z. (2024b). Unlocking digital potential: Exploring the drivers of employee dynamic capability on employee digital performance in Chinese SMEs-moderation effect of competitive climate. Heliyon, 10(4), 1–21. https://doi.org/10.1016/j.heliyon.2024.e25583

Wang, S., & Huang, L. (2022). A Study of the Relationship between Corporate Culture and Corporate Sustainable Performance: Evidence from Chinese SMEs. Sustainability (Switzerland), 14(13), 1–22. https://doi.org/10.3390/su14137527

Yu, J., & Xiang, K. (2025). Transformational Leadership, Organizational Resilience, and Team Innovation Performance: A Model for Testing Moderation and Mediation Effects. Behavior Scieces, 1(1), 1–18. https://doi.org/https://doi.org/10.3390/bs15010010

Yu, T., Abbas, J., Abbas, R., & Hina, R. (2026). Role of environment ‑ driven CSR , green servant leadership , and green dynamic capabilities in firm green innovation : Evidence from manufacturing industry. Environment, Development and Sustainability, 28(3), 5795–5821. https://doi.org/10.1007/s10668-024-05201-4

Yüksel Sakınç, A., & Ergün, E. (2024). Leadership Behaviors and Leader Effectiveness: The Mediating Role of Cultural Intelligence. Sustainability (Switzerland), 16(24), 1–20. https://doi.org/10.3390/su162411054

Zaid, W. M. A., & Yaqub, M. Z. (2024). The prolificacy of green transformational leadership in shaping employee green behavior during times of crises in small and medium enterprises: a moderated mediation model. Frontiers in Psychology, 15(February), 1–19. https://doi.org/10.3389/fpsyg.2024.1258990

Zheng, X. J. Y. L. B. S. W. (2022). Evaluation, fabrication and dynamic performance regulation of green EMI-shielding materials with low reflectivity: A review. Composites Part B: Engineering, 233(March), 1–6. https://doi.org/10.1016/j.compositesb.2022.109652

Downloads

Published

2026-04-14

How to Cite

Jholant Bringg Luck Amelia, Wilson Bangun, & Sofiyan Sofiyan. (2026). Strengthening Institutional Resilience in Public Organizations: The Role of Dynamic Capabilities and Innovative Leadership in the Digital Era. Proceeding of the International Conference on Management, Entrepreneurship, and Business, 3(1), 12–24. https://doi.org/10.61132/icmeb.v3i1.378

Similar Articles

1 2 3 4 5 6 7 8 9 10 > >> 

You may also start an advanced similarity search for this article.