The impact of collaboration capability, ambidextrous leadership and digital capability on bank performance sustainability
-
DOIhttp://dx.doi.org/10.21511/bbs.20(1).2025.19
-
Article InfoVolume 20 2025, Issue #1, pp. 231-247
- 86 Views
-
23 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
To survive the competition in the banking industry after the fintech uprisings, banks implement various collaborations, but they often turn out to be unsuccessful. This study examines the impact of collaboration capability on bank performance sustainability, as well as how ambidextrous leadership and digital capability influence it. The methodological framework includes the development of instruments based on previous literature and quantitative procedures. The data were obtained by distributing questionnaires to 101 private commercial banks in Indonesia. The proposed model is analyzed using structural equation modelling techniques with partial least squares (SEM-PLS), using SmartPLS 4.0. This study’s findings show that collaboration capability has a direct positive effect on bank performance sustainability, digital capability has a direct positive effect on both collaboration capability and bank performance sustainability; while ambidextrous leadership has a direct positive effect on collaboration capability but not on bank performance sustainability. This study contributes to the development and validation of a new model on the influence of collaboration capability on performance sustainability along with the influence of ambidextrous leadership and digital capability in the Indonesian banking sector.
- Keywords
-
JEL Classification (Paper profile tab)G21, L25
-
References52
-
Tables11
-
Figures4
-
- Figure 1. Conceptual framework
- Figure 2. Convergent validity test (1st stage)
- Figure 3. Convergent validity test (2nd stage)
- Figure 4. P-values
-
- Table 1. Respondents’ demographics
- Table 2. Convergent validity (1st stage)
- Table 3. Discriminant validity (Fornell-Larcker criterion) (1st stage)
- Table 4. Reliability test (1st stage)
- Table 5. Convergent validity result (2nd stage)
- Table 6. Discriminant validity (Fornell-Larcker criterion) (2nd stage)
- Table 7. Reliability test (2nd stage)
- Table 8. Hypothesis testing results
- Table 9. R-square test results
- Table 10. f-square test results
- Table 11. Model fit results
-
- Ahmad, B., Liu, D., Asif, M. H., Ashfaq, M., & Irfan, M. (2022). Ambidextrous Leadership and Service Recovery Performance Under B2B Selling Context: An Examination Through Service Innovation Capability. SAGE Open, 12(2).
- Ajaegbu, A. C. (2019). The role and impact of digital capabilities on value co-creation of servitising organisations (Doctoral Thesis). Aston University.
- Akuma, M. (2023). Banks that embrace a structured framework to guide strategy development and execution can improve their odds of partnership success. EY Parthenon.
- Alade, A. O. (2022). The effects of leadership styles on organizational behavior and performance in some selected organizations in Nigeria. Journal of Public Affairs, 22(3), e2544.
- Alamsjah, F. (2022). Ambidextrous Leadership of Publicly Listed Companies during Turbulent Ti mes: The Importance of Agility and Alliance Capability. Global Business and Finance Review, 27(3), 41-55.
- Allred, C. R., Fawcett, S. E., Wallin, C., & Magnan, G. M. (2011). A Dynamic Collaboration Capability as a Source of Competitive Advantage. Decision Sciences, 42(1), 129-161.
- Annarelli, A., Battistella, C., Nonino, F., Parida, V., & Pessot, E. (2021). Literature review on digitalization capabilities: Co-citation analysis of antecedents, conceptualization and consequences. Technological Forecasting and Social Change, 166.
- Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99-120.
- Bertello, A., Ferraris, A., De Bernardi, P., & Bertoldi, B. (2022). Challenges to open innovation in traditional SMEs: an analysis of pre-competitive projects in university-industry-government collaboration. International Entrepreneurship and Management Journal, 18(1), 89-104.
- Blomqvist, K., & Levy, J. (2006). Collaboration capability a focal concept in knowledge creation and collaborative innovation in networks. International Journal of Management Concepts and Philosophy, 2(1), 31.
- Chatterjee, S., & Chaudhuri, R. (2022). Supply chain sustainability during turbulent environment: Examining the role of firm capabilities and government regulation. Operations Management Research, 15(3-4), 1081-1095.
- Chen, C., Pan, J., Liu, S., & Feng, T. (2023). Impact of digital capability on firm resilience: the moderating role of coopetition behavior. Business Process Management Journal, 29(7), 2167-2190.
- Chen, C.-h. (2024). Influence of big data analytical capability on new product performance – the effects of collaboration capability and team collaboration in high-tech firm. Chinese Management Studies, 18(1), 1-23.
- Chi, M., Zhao, J., & Li, Y. (2016). Digital Business Strategy and Firm Performance: the Mediation Effects of E-collaboration Capability. WHICEB 2016 Proceedings, 58.
- Cohen, J. (1988). Statistical Power Analysis for the Behavioral Sciences (2nd ed.). Lawrence Erlbaum Associates.
- Corvello, V., Cimino, A., & Felicetti, A. M. (2023). Building start-up acceleration capability: A dynamic capability framework for collaboration with start-ups. Journal of Open Innovation: Technology, Market, and Complexity, 9(3).
- De la Calle, A., Freije, I., Ugarte, J. V., & Larrinaga, M. Á. (2020). Measuring the impact of digital capabilities on product-service innovation in Spanish industries. International Journal of Business Environment, 11(3), 254-274.
- Dubey, R., Bryde, D. J., Dwivedi, Y. K., Graham, G., Foropon, C., & Papadopoulos, T. (2023). Dynamic digital capabilities and supply chain resilience: The role of government effectiveness. International Journal of Production Economics, 258.
- Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: What are they? Strategic Management Journal, 21(10-11), 1105-1121.
- Ferreira, J. J. M., Fernandes, C. I., & Veiga, P. M. (2024). The effects of knowledge spillovers, digital capabilities, and innovation on firm performance: A moderated mediation model. Technological Forecasting and Social Change, 200.
- Gentle, C., & Metselaar, J. (2020). Achieving Ambidextrous Leadership: Driving “Perform & Transform” Innovation for Step-Changed Business Results Leaders need to balance stable growth with radical innovation. Five Steps to Ambidextrous Innovation. California Management Review.
- Ghozali, I. (2016). Aplikasi Analisis Multivariete Dengan Program IBM SPSS 23 [Multivariate Analysis Application with IBM SPSS 23 Program] (Edisi 8). Semarang: Badan Penerbit Universitas Diponegoro. (In Indonesian).
- Grover, V. (2022). Digital agility: responding to digital opportunities. European Journal of Information Systems, 31(6), 709-715.
- Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24.
- Haryono. (2016). Metode SEM Untuk Penelitian Manajemen AMOS LISREL & PLS [SEM Methods for AMOS LISREL and PLS Management Research]. (In Indonesian).
- Hornuf, L., Klus, M. F., Lohwasser, T. S., & Schwienbacher, A. (2021). How do banks interact with fintech startups? Small Business Economics, 57(3), 1505-1526.
- Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling, 6(1), 1-55.
- Jin, Y. “H.,” Fawcett, S. E., Fawcett, A. D., & Swanson, D. (2019). Collaborative capability and organizational performance: Assessing strategic choice and purity. International Journal of Production Economics, 214, 139-150.
- Kareem, M. A., & Kummitha, H. V. R. (2020). The Impact of Supply Chain Dynamic Capabilities on Operational Performance. Organizacija, 53(4), 319-331.
- Lawrence, E. T., Tworoger, L., Ruppel, C. P., & Yurova, Y. (2022). TMT leadership ambidexterity: balancing exploration and exploitation behaviors for innovation. European Journal of Innovation Management, 25(3), 703-719.
- Lenka, S., Parida, V., & Wincent, J. (2017). Digitalization Capabilities as Enablers of Value Co-Creation in Servitizing Firms. Psychology and Marketing, 34(1), 92-100.
- Limniou, M., Varga-Atkins, T., Hands, C., & Elshamaa, M. (2021). Learning, student digital capabilities and academic performance over the COVID-19 pandemic. Education Sciences, 11(7).
- Martínez-Climent, C., Rodríguez-García, M., & Zeng, J. (2019). Ambidextrous leadership, social entrepreneurial orientation, and operational performance. Sustainability (Switzerland), 11(3).
- Nasiri, M., Ukko, J., Saunila, M., & Rantala, T. (2020). Managing the digital supply chain: The role of smart technologies. Technovation, 96-97.
- Nguyen, X. H., & Le, T. A. (2020). The impact of global green supply chain management practices on performance: the case of Vietnam. Uncertain Supply Chain Management, 8(3), 523-536.
- O’Reilly, C. A., & Tushman, M. L. (2011). Organizational Ambidexterity in Action: How Managers Explore and Exploit. California Management Review, 53(4).
- Oberer, B., & Erkollar, A. (2018). Leadership 4.0: Digital Leaders in the Age of Industry 4.0. International Journal of Organizational Leadership, 7(4), 404-412.
- Piezunka, H., & Grohsjean, T. (2023). Collaborations that hurt firm performance but help employees’ careers. Strategic Management Journal, 44(3), 778-811.
- Prabhu, M. H., & Srivastava, A. K. (2023). Modeling transformational leadership, supply chain collaboration and firm performance – a case of India. International Journal of Emerging Markets, 19(10), 2642-2660.
- Puckett, C. (2022). Digital Adaptability: A New Measure for Digital Inequality Research. Social Science Computer Review, 40(3), 641-662.
- Rosing, K., Frese, M., & Bausch, A. (2011). Explaining the heterogeneity of the leadership-innovation relationship: Ambidextrous leadership. Leadership Quarterly, 22(5), 956-974.
- Sigalas, C., & Papadakis, V. M. (2018). Empirical investigation of relationship patterns between competitive advantage and superior performance. Journal of Strategy and Management, 11(1), 81-111.
- Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
- Um, K. H., & Kim, S. M. (2019). The effects of supply chain collaboration on performance and transaction cost advantage: The moderation and nonlinear effects of governance mechanisms. International Journal of Production Economics, 217, 97-111.
- Van der Voet, J., & Steijn, B. (2021). Team innovation through collaboration: How visionary leadership spurs innovation via team cohesion. Public Management Review, 23(9), 1275-1294.
- Wang, X., Gu, Y., Ahmad, M., & Xue, C. (2022). The Impact of Digital Capability on Manufacturing Company Performance. Sustainability (Switzerland), 14(10).
- Wernerfelt, B. (1984). A Resource-Based View of the Firm. Strategic Management Journal, 5(2), 171-180.
- Zacher, H., & Rosing, K. (2015). Ambidextrous leadership and team innovation. Leadership and Organization Development Journal, 36(1), 54-68.
- Zhang, F., & Zhu, L. (2020). Firm collaborative capability and new product development performance: the mediating role of heterogeneous knowledge acquisition. International Journal of Emerging Markets, 16(8), 1502-1524.
- Zheng, G. W., Siddik, A. B., Masukujjaman, M., & Fatema, N. (2021). Factors affecting the sustainability performance of financial institutions in Bangladesh: The role of green finance. Sustainability (Switzerland), 13(18).
- Zheng, J., Wu, G., Xie, H., & Xu, H. (2017). Ambidextrous leadership and sustainability-based project performance: The role of project culture. Sustainability (Switzerland), 9(12).
- Zhou, K. Z., & Wu, F. (2010). Technological capability, strategic flexibility, and product innovation. Strategic Management Journal, 31(5), 547-561.