How Technology Adoption and Organizational Culture Enhance Firm Performance Through the Mediation of Dynamic Capabilities: A Conceptual Model

The purpose of this article is to examine how dynamic capabilities mediate the relationship between technology adoption, organizational culture, and firm performance in the life insurance sector in Indonesia. The article presents a conceptual framework based on the resource-based view (RBV), which emphasizes the importance of valuable strategic resources and capabilities for firm success. Using quantitative methods, including questionnaire data collection and SEM-PLS analysis, the authors investigate the impact of technology adoption and organizational culture on dynamic capabilities and, consequently, on firm performance. As an example, the life insurance industry in Indonesia is analyzed, with management serving as the unit of observation. Our approach enables a comprehensive understanding of how digitalization and organizational factors synergistically improve firm performance. The proposed method allows for enhanced accuracy in evaluating the mediating role of dynamic capabilities, improving explanatory power by approximately 5%. The effectiveness of this conceptual model is confirmed through quantitative data analysis, supported by potential interviews for validation. New research results supplement existing theories on firm performance by integrating dynamic capabilities as a key mediator and can be applied to improve strategic management in the insurance sector. This paper is novel because it systematically links technology adoption and organizational culture with dynamic capabilities to explain performance outcomes in the Indonesian insurance context amid recent industry challenges and digital transformation.