The Influence of Digital Capability and Human Capital on the Performance of Village Administrations through Innovative Work Behaviour in Sungai Penuh City

Hendra; Efrianto; Indra Budaya

doi:10.63922/ijbqr.v4i03.6225

Hendra Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci
Efrianto Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci
Indra Budaya Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci

DOI: https://doi.org/10.63922/ijbqr.v4i03.6225

Keywords: Digital Capability, Human Capital, Innovative Work Behaviour, Village Administration Performance, Digital Transformation

Abstract

This study examines the influence of Digital Capability and Human Capital on the Performance of Village Administrations through Innovative Work Behaviour (IWB) in Sungai Penuh City, Indonesia. The study employed a quantitative explanatory design with a cross-sectional approach and involved 100 village administration officials as respondents. Data were analysed using Structural Equation Modeling (SEM) with AMOS to evaluate both direct and indirect relationships among the constructs. The results demonstrate that the proposed structural model achieves a satisfactory goodness of fit, with CMIN/DF = 1.62, GFI = 0.93, AGFI = 0.90, CFI = 0.97, TLI = 0.96, and RMSEA = 0.054. Digital Capability and Human Capital have significant positive effects on Innovative Work Behaviour and directly contribute to Performance. Innovative Work Behaviour also has a significant positive effect on Performance. Furthermore, Innovative Work Behaviour mediates the effects of Digital Capability and Human Capital on Performance, with indirect effects of 0.202 and 0.168, respectively. These findings highlight that digital capability and human capital are complementary strategic resources whose performance effects are strengthened through innovative behaviour. The study implies that improving village administration performance requires integrated efforts to enhance digital competencies, develop employee knowledge and skills, and establish an organisational environment that encourages innovation. Such integration can support more adaptive, efficient, responsive, and high-quality village public services in the digital era.

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