The Impact of Corporate Culture Transformation on Operational Performance with Digital Capabilities as a Mediator (A Study on PT PLN UID East Java)
Keywords:
Corporate Culture Transformation, Digital Capabilities, Operational Performance, PLN, Organizational Culture, Digital TransformationAbstract
Introduction/Main Objectives: This study explores the relationship between corporate culture transformation and operational performance at PT PLN (Persero) East Java Distribution Unit (UID), with a focus on the mediating role of digital capabilities. The main objective of this research is to understand how a transformation in organizational culture can drive improvements in performance through enhanced digital capabilities.
Background Problems: PT PLN (Persero), a key player in Indonesia's electricity sector, faces significant challenges in adapting to the rapidly evolving digital landscape. The company has initiated a corporate culture transformation to foster innovation, collaboration, and adaptability, which are essential for effective digital integration. However, the impact of this transformation on operational performance, particularly through the development of digital capabilities, remains underexplored.
Research Methods: This study adopts a quantitative research approach using Structural Equation Modeling-Partial Least Squares (SEM-PLS) to test the relationships between corporate culture transformation, digital capabilities, and operational performance. A survey was administered to 160 employees at PT PLN UID East Java, with data analyzed to evaluate both direct and indirect effects of the variables involved.
Finding/Results: The findings reveal that corporate culture transformation has a significant positive impact on both digital capabilities and operational performance. Additionally, digital capabilities were found to mediate the relationship between culture transformation and operational performance, underscoring the importance of aligning organizational culture with technological innovation. The path analysis results demonstrate that digital capabilities play a crucial role in enhancing the effects of cultural changes on operational outcomes.
Conclusion: The study concludes that for PT PLN and similar organizations, transforming corporate culture is essential for successfully leveraging digital technologies. The integration of strong digital capabilities, supported by an adaptive and innovative organizational culture, significantly improves operational performance. These findings provide valuable insights for organizations seeking to navigate digital transformation and enhance efficiency through cultural and technological alignment.
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