The impact of managerial capabilities, adhocracy culture and knowledge sharing on innovation capabilities and performance

Abstract

Technology advances rapidly and is used to increase the company’s performance in the Industry 4.0 era. This phenomenon has signified disruption among companies owing to the use of this technology. Studies have demonstrated the importance of innovation in overcoming this situation. It was recognized and applied regularly and persistently by Astra Group, a major Indonesian conglomerate. Previous studies have introduced at least three factors that improve a company’s innovation capabilities for better performance: managerial capabilities, adhocracy culture and knowledge sharing. However, the simultaneous effects of such factors on an organization's ability to innovate for improved performance are not widely recognized. Therefore, it is essential to examine closely how managerial skills, adhocracy culture and knowledge sharing affect group performance and innovation capabilities to better comprehend the company's understanding of and contribution to the field of innovation capability knowledge. The research methodology used in this study was quantitative in which 233 professionals in a group with managerial level and above positions were contacted and interviewed using 30-item questionnaires. Data from the responses were analyzed using thematic analysis with SmartPLS 4. The results show that managerial capability, adhocracy culture and knowledge sharing significantly impact innovation capabilities and increase performance across the Astra Group. Thus, it is confirmed that a company’s innovation performance can be increased by improving its innovation capability where it can only be done if the company enhances managerial capability, adhocracy culture and knowledge sharing simultaneously.