ROLE OF DIGITAL INNOVATION IN MEDIATING THE INFLUENCE OF ORGANIZATIONAL DIGITAL CULTURE, DIGITAL LEADERSHIP, AND DIGITAL TRANSFORMATION ON ORGANIZATIONAL PERFORMANCE IN THE INDONESIAN ARMY HOSPITAL

The purpose of this study was to examine the role of digital innovation in mediating the influence of organizational digital culture, digital leadership, and digital transformation on organizational performance in the Indonesian Army Hospital (Rumah Sakit TNI Angkatan Darat). The research employed Structural Equation Modeling (SEM) analysis, specifically Partial Least Squares Path Modeling (PLS-SEM), using SmartPLS 3.0 software for data analysis. The sample used in this study consisted of 123 respondents, all of whom were leaders of TNI AD Class/C Hospitals. The findings of this study indicated that digital leadership, digital transformation, and digital innovation all had a partial positive effect on organizational performance. Furthermore, digital transformation had a partial positive and significant effect on digital innovation. Meanwhile, organizational digital culture did not have a significant effect on either organizational performance or digital innovation. Additionally, digital leadership did not have a significant effect on digital innovation. Based on the mediation test conducted using the Sobel test, it was found that digital innovation only mediated the effect of digital transformation on organizational performance. However, digital innovation did not mediate the effect of organizational digital culture or digital leadership on organizational performance. The theoretical implications of this study contribute to the development of Resource-Based View (RBV) theory by emphasizing the importance of digital leadership, digital transformation, and digital innovation in achieving superior organizational performance. These findings provide valuable insights for researchers and practitioners who wish to leverage resources, digital leadership, digital transformation, and digital innovation to enhance organizational performance, especially amidst the growing business competition that increasingly relies on digital technology. However, the limitations of this study lie in the scope of the sample used, as the research sample was limited to leaders of Class/C TNI AD hospitals. Future research could consider expanding the population by using samples from different types of TNI AD hospitals.