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All Journal AGRIEKONOMIKA Jurnal Ilmiah Mahasiswa Ekonomi Pembangunan Jurnal Perspektif Ekonomi Darussalam Sebatik Jurnal Review Pendidikan dan Pengajaran (JRPP) BALANCE: Economic, Business, Management and Accounting Journal Ekombis: Jurnal Fakultas Ekonomi Abdimas Galuh: Jurnal Pengabdian Kepada Masyarakat Jurnal Penelitian Ekonomi Akuntansi (JENSI) Ekonomi Dan Pembangunan International Journal of Educational Review, Law And Social Sciences (IJERLAS) Jurnal Pengabdian Masyarakat Tapis Berseri International Review of Practical Innovation, Technology and Green Energy (IRPITAGE) Jurnal Dinamika Akuntansi dan Bisnis (JDAB) Journal of Accounting Research, Organization and Economics (JAROE) Innovative: Journal Of Social Science Research Grimsa Journal of Business and Economics Studies Journal of Finance and Islamic Banking Jurnal Sistem Informasi, Akuntansi dan Manajemen
Talbani Farlian
Fakultas Ekonomi Dan Bisnis Universitas Syiah Kuala
Religion Agriculture, Biological Sciences & Forestry Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Energy Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Nursing Public Health Social Sciences Other

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Governance Quality and Innovation Capability: Insights from Indonesia Hardi, Irsan; Majid, M. Shabri Abd.; Farlian, Talbani; Saleh, M.; Suriansyah, Andri; Syazalisma, Cut; Mose, Naftaly
Grimsa Journal of Business and Economics Studies Vol. 3 No. 1 (2026): January 2026 (In Press)
Publisher : Graha Primera Saintifika

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61975/gjbes.v3i1.103

Abstract

Innovation is a key driver of national competitiveness, and its advancement increasingly relies on the strength of governance quality. However, empirical evidence linking governance performance to national innovation outcomes in the Indonesian literature remains limited. This study addresses this gap by assessing how the Worldwide Governance Indicators (WGI), used as a proxy for governance quality, affect Indonesia’s innovation capability as measured by the Global Innovation Index (GII). The analysis also incorporates additional factors that commonly influence innovation capabilities, including economic growth, foreign direct investment, and the labor force. By adopting a decomposition model to evaluate the individual contributions of each WGI dimension, and employing Gaussian Identity-link GLMs and robust least squares methods, the results show that governance quality overall has a positive and significant effect on Indonesia’s GII. When each component of the WGI is assessed individually, most dimensions display positive effects, with voice and accountability, political stability, and rule of law showing notably significant impacts. These findings imply that strengthening governance structures, particularly in transparency, stability, and legal certainty, is essential for advancing Indonesia’s innovation capability.
Co-Authors Abtahi, Muhammad Achmad Noerkhaerin Putra Agus Saputra Akram Dermawan Amri Amri Anita Faiziah Anthony Anthony Ardian Ardian Ardian Ardian Arfiani, Mutia Bunsit, Thanawit Chenny Seftarita Cut Risya Varlitya Cut Tari Fadila Cut Yunina Eriva Cut Zakia Rizki Darmawan, Fery Diana, Asri Eddy Gunawan, Eddy Emilda Kadriani Emilda Kadriyani Fathur Rahman Fitriyani Fitriyani Fitriyani H, Hilmi Handayani, Meutia Hilmi Hilmi Icha Ayuningsih Indah Islami Indri Yani Irsan Hardi Juliansyah, Rollis Kadriyani, Emilda Kejora Hafiza Khairunnisa A M. Rezky Auliady M. Saleh M. Shabri Abd. Majid Madiyoh, Abdulhakim Maulana, M Arsaydy Maulivia Riska Mose, Naftaly Muhammad Abthahi Muhammad Haris Riyaldi, Muhammad Haris Mulya Sari, Devi Nanda Rahmi Nur Aidar Nur Aidar Nurlina, Eka R, Rismadi Ramly, Arroyyan Ridwan Nurdin Rihan Varizie Rinunate, Cacak Riski Fandika Rizki Ramadhan Rizkia Devi, Rizkia Rollis Juliansyah Rudianto, Totok Sakinah Sartiyah Sartiyah, Sartiyah Silvia, Vivi Silvira Afrizal Siti Lutfiah Novitri Sri Rani Fauziah Sri Rani Fauziah, Sri Rani Srinita, Srinita Suriani Suriani Suriansyah, Andri Syazalisma, Cut Taufiq Carnegie Dawood Ulfa Nadilla Umuri, Khairil Weri Wirdah Irawati Zahrani Masthura