Digital Transformation and Innovation on Service-Oriented Performance through Technology Capability
Keywords:
digital transformation, innovation, service-oriented performance, technology capabilityAbstract
Public sector organizations are increasingly required to enhance service performance in response to rapid technological changes and growing demands for efficient and responsive service delivery. This study aims to examine the influence of digital transformation and innovation on service-oriented performance, with technology capability acting as a mediating variable. A quantitative approach with an explanatory research design was employed, involving employees of the Jember Transportation Agency as the unit of analysis, with a total population of 406 employees. The sample size was determined using the 10-times rule in Partial Least Squares, resulting in a minimum requirement of 210 respondents. A total of 210 valid responses were collected through a structured questionnaire using a five-point Likert scale. Data were analyzed using Structural Equation Modeling with the Partial Least Squares approach. The results indicate that digital transformation and innovation have positive and significant effects on service-oriented performance. In addition, both variables significantly influence technology capability, which in turn plays a crucial role in improving performance. Technology capability is also found to partially mediate the relationship between digital transformation, innovation, and service-oriented performance. These findings highlight the importance of aligning technological capability with transformation and innovation initiatives to achieve sustainable performance in public sector organizations.
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Copyright (c) 2026 Nyla Zukrufa Hadirahayu, Dwi Cahyono (Author)
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