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All Journal International Journal of Business and Quality Research
Hendra
Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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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
International Journal of Business and Quality Research Vol. 4 No. 03 (2026): July - September, International Journal of Business and Quality Research (IJBQ
Publisher : Citakonsultindo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.63922/ijbqr.v4i03.6225

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.
Co-Authors Efrianto Indra Budaya, Indra