Public sector organizations are increasingly required to adapt to environmental changes and technological developments in order to create sustainable public value. However, the possession of strategic resources alone is insufficient to generate superior organizational performance without the capability to transform and reconfigure those resources effectively. This study aims to analyze the role of dynamic capability as a transformational mechanism linking human capital development, strategic leadership, digital capability, and service culture to public value creation at PT Transportasi Jakarta. The study employed a quantitative explanatory approach involving 157 employees selected through purposive sampling. Data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings reveal that human capital development, strategic leadership, digital capability, and service culture positively and significantly influence dynamic capability. Among these variables, digital capability demonstrates the strongest effect. Furthermore, dynamic capability significantly enhances public value and partially mediates the relationship between strategic resources and public value. These findings confirm that dynamic capability serves as a critical mechanism through which strategic resources are transformed into sustainable public value. Strengthening digital capability, strategic leadership, and human resource development is therefore essential for improving public service performance and delivering greater value to society.
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