INFORMATION TECHNOLOGY CAPABILITIES AND ENTERPRISE RESILIENCE OF STATE-OWNED ENTERPRISES FOR SUSTAINABLE COMPETITIVENESS: THE MEDIATING ROLE OF LEADERSHIP CAPABILITIES

Abstract

Background and Purpose: In today's unpredictable, uncertain, complex, ambiguous, and interconnected environment, businesses face various challenges and uncertainties that are anticipated will intensify and become more frequent in the future. In this harsh environment, maintaining sustainable competitiveness is difficult. Information Technology Capabilities (ITCs) are an important element that determines a company's success or failure as well as its Resilience (ER). Given the complexity and uncertainty of today's business world, businesses with good information collection, analysis, and use can anticipate changes and decrease delays. Enterprises should collect high-quality information to meet modern business settings. Business resilience depends on the ability to gather and process resources to handle environmental uncertainty. Enterprises should use information, knowledge, experiences, and other resources to build resilience. The leadership of top management is essential for ensuring the organisation's sustainability and attaining its objectives. This study applies the concept of dynamic capability to assess the impact of ITCs on Indonesian SOEs and their subsidiaries. Additionally, this study investigates leadership capabilities (LCs) as a mediator between ITCs and ER. Due to their vital role in the Indonesian economy and the paucity of research on State-Owned Enterprises (SOEs) resilience and dynamic capabilities, particularly in the emerging market, this research focuses on Indonesian SOEs and their subsidiaries.
 
 Methodology: The study examined 322 valid data from online surveys using questionnaires to Indonesia SOEs and their subsidiaries’ board of directors and senior management. The data is analysed using SmartPLS 3.
 
 Findings: The research demonstrates that ITCs enhance ER. LCs improved the enterprise's resiliency. The relationship between ITCs and ER is mediated through LCs. 
 
 Contributions: The findings may expand the scope of dynamic capability theory to include resilience. The findings extend the methodology by adopting a quantitative and online survey of SOEs in emerging countries and demonstrate to SOE management and regulators that ER can be fostered by strengthening dynamic capabilities and risk management practices. The findings recommend that policymakers develop a road map, scenario, and strategies to ensure the long-term viability of SOEs.
 
 Keywords: Dynamic capabilities, enterprise resilience, Indonesia, information technology capabilities, leadership capabilities, state-owned enterprises.
 
 Cite as: Lisdiono, P., Said, J., Yusoff, H., Hermawan, A. A., & Abdul Manan, D. I. (2023). Information technology capabilities and enterprise resilience of state-owned enterprises for sustainable competitiveness: The mediating role of leadership capabilities. Journal of Nusantara Studies, 8(TI), 382-407. http://dx.doi.org/10.24200/jonus.vol8issTIpp382-407