The Role of Business Analysis Capability in Enhancing Organizational Agility and Performance: The Mediating Effect of Information Quality and Innovation Capability in the Manufacturing Industry in Batam City

Antony  Sentoso; William Vanders Phang; Alden Nelson

doi:10.38035/dijemss.v6i4.4142

Authors

Antony Sentoso Universitas Internasional Batam, Batam City, Indonesia
William Vanders Phang Universitas Internasional Batam, Batam City, Indonesia
Alden Nelson Universitas Internasional Batam, Batam City, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v6i4.4142

Keywords:

Business Analysis Capability, Organizational Agility, Organizational Performance, Information Quality, Innovation Capability

Abstract

This study aims to analyze the role of business analysis capability in improving organizational agility and performance in manufacturing industry in Batam City, by considering information quality and innovation capability as mediating variables. Using descriptive quantitative approach, data were obtained from 274 respondents through questionnaires and analyzed using Smart PLS. The results showed that business analysis capability has a significant influence on information quality and innovation capability, which in turn improve organizational agility. Organizational agility is shown to contribute positively to organizational performance, especially in responding to market changes quickly and efficiently. This research confirms the importance of developing business analysis capabilities integrated with information technology and strategic innovation to support the competitiveness of the manufacturing industry in the midst of global market dynamics.

References

Abdallah, Y. O., Shehab, E., & Al-Ashaab, A. (2021). Digital Transformation Challenges in the Manufacturing Industry. Advances in Manufacturing Technology, 15, 9–14. https://doi.org/10.3233/ATDE210004

Alanudin, D., Soetjipto, B. W., & Subroto, A. (2024). The Transformative Impact of Business Analytics Adoption on Competitive Advantage in the E-Commerce Industry: A Strategic Perspective. Migration Letters, 21(3), 1330–1353. https://migrationletters.com/index.php/ml/article/view/8478

Alaskar, T. H. (2023). Innovation Capabilities as a Mediator between Business Analytics and Firm Performance. Sustainability (Switzerland) , 15(6). https://doi.org/10.3390/su15065522

Anderson, C. K., Serra, A. A., & Abrahamsen, L. C. (2022). Impact of big data analytics & machine learning on innovation of manufacturing companies. Business & IT, 12(1), 116–124. https://doi.org/10.14311/bit.2022.01.14

Arsawan, I. W. E., Hariyanti, N. K. D., Atmaja, I. M. A. D. S., Suhartanto, D., & Koval, V. (2022). Developing Organizational Agility in SMEs: An Investigation of Innovation’s Roles and Strategic Flexibility. Journal of Open Innovation: Technology, Market, and Complexity, 8(3). https://doi.org/10.3390/joitmc8030149

Atkinson, P., Hezaji, M., Nazarian, A., & Abasi, A. (2020). Attaining organizational agility through competitive intelligence: the roles of strategic flexibility and organizational innovation. UNIVERSITY OF FORWARD THINKING WESTMINSTER.

Awulor, R. I., Mallam-Obi, R. L., & Chukwu, N. M. (2022). Enhancing organisational decision-making through management information system. Journal of Global Social Sciences, 3(11), 115–133. https://doi.org/10.31039/jgss.v3i11.71

Bangura, S., & Lourens, M. E. (2024). Organisational agility a leverage to firm’s performance: an integrative review. International Journal of Research in Business and Social Science (2147- 4478), 13(3), 77–84. https://doi.org/10.20525/ijrbs.v13i3.3092

Benjamin, L. B., Amajuoyi, P., & Adeusi, K. B. (2024). Leveraging data analytics for informed product development from conception to launch. GSC Advanced Research and Reviews, 19(2), 230–248. https://doi.org/10.30574/gscarr.2024.19.2.0180

Bidin, R., Razak, M. N. F., Mohamad, B., Osman, M. N., Bakar, M. S. A., Tham, J. S., Atan, R., Handayati, P., & Utaberta, N. (2021). Halal Industry ’ s Organizational Performance Factors?: A Systematic Literature Review. SOCIAL SCIENCES & HUMANITIES, 29(4), 2545–2568.

Chen, X., & Siau, K. (2020). Business Analytics/Business Intelligence and IT Infrastructure:

Impact on Organizational Agility. Journal of Organizational and End User Computing, 32(4), 138–161. https://doi.org/10.4018/joeuc.2020100107

Desalegn, E. G., Guedes, M. J. C., Gomes, J. F. D. S., & Tebeka, S. M. (2024). Disentangling organizational agility from flexibility , adaptability , and versatility?: a systematic review. Future Business Journal, 10(117). https://doi.org/10.1186/s43093-024-00405- 6

Deshati, E. (2023). Staying Ahead of the Curve: An Analysis of Strategic Agility and its Role in Ensuring Firm Survival in a Dynamic Business Environment. European Scientific Journal, ESJ, 19(13), 28. https://doi.org/10.19044/esj.2023.v19n13p28

Devie, D., Kwistianus, H., Wellyani, C. V. P., & Goenadi, G. R. N. O. (2023). The Importance of Organizational Agility to Improve Performance: Evidence from the Hotel Industry in the Post-Covid-19 Era. Binus Business Review, 14(3), 271–284. https://doi.org/10.21512/bbr.v14i3.9363

Elazhary, M., Popovi?, A., Henrique de Souza Bermejo, P., & Oliveira, T. (2023). How Information Technology Governance Influences Organizational Agility: The Role of Market Turbulence. Information Systems Management, 40(2), 148–168. https://doi.org/10.1080/10580530.2022.2055813

Elazhary, M., Popovi?, A., Paulo, H. de S. B., & Oliveira, T. (2023). How Information Technology Governance Influences Organizational Agility: The Role of Market Turbulence. Information Systems Management, 40(2), 148–168. https://doi.org/10.1080/10580530.2022.2055813

Findsrud, R. (2020). An Agile Approach to Service Innovation: Creating Valuable Service Innovation with Agile Resource Integration. Journal of Creating Value, 6(2), 190–207. https://doi.org/10.1177/2394964320961886

Ghozali, I. (2021). Partial Least Squares?: Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 3.2.9 untuk Penelitian Empiris. Partial Least Squares?: Konsep, Teknik dan Aplikasi Menggunakan Program SmartPLS 3.2.9 untuk Penelitian Empiris. Semarang?: Fakultas Ekonomika.

Goncalves, D., Bergquist, M., Bunk, R., & Alänge, S. (2020). Cultural aspects of organizational agility affecting digital innovation. In Journal of Entrepreneurship, Management and Innovation (Vol. 16, Issue 4). https://doi.org/10.7341/20201641

Hair, J. F., Risher, 14 Jeffrey Joe, Sarstedt, M., & Ringle, C. M. (2019). The Results of PLS- SEM Article information. Emerald Insight, 31(1), 2–24. https://doi.org/https://doi.org/10.1108/EBR-11-2018-0203

Hamdan, H., & Rahman, A. A. A. (2021). Effect of Business Intelligence System on Organizational Agility: Evidence From Syria. Journal of Southwest Jiaotong University, 56(4), 288–299. https://doi.org/10.35741/issn.0258-2724.56.4.24

Henao-García, E., Arias-Pérez, J., & Lozada, N. (2021). Fostering big data analytics capability through process innovation: Is management innovation the missing link? Business Information Review, 38(1), 28–39. https://doi.org/10.1177/0266382120984716

Hu, L., & Bentler, P. M. (1999). Cutoff Criteria for Fit Indexes in Covariance Structure Analysis: Conventional Criteria versus New Alternatives. Structural Equation Modeling. A Multidisciplinary Journal, 6(1), 1–55. https://doi.org/https://doi.org/10.1080/10705519909540118

Ibeh, C. V., Asuzu, O. F., Olorunsogo, T., Elufioye, O. A., Nduubuisi, N. L., & Daraojimba, A. I. (2024). Business analytics and decision science: A review of techniques in strategic business decision making. World Journal of Advanced Research and Reviews, 21(2), 1761–1769. https://doi.org/10.30574/wjarr.2024.21.2.0247

JAHAN, S. A., & SAZU, M. H. (2022). Innovation Management: Is Big Data Necessarily Better Data? Management of Sustainable Development, 14(2), 27–33. https://doi.org/10.54989/msd-2022-0013

Jillali, S. A., & Belkasseh, M. (2022). Financial Performance: An Early Abandoned or Independently Sufficient Approach. (A Systematic Literature Review). Archives of Business Research, 10(03), 191–216. https://doi.org/10.14738/abr.1003.12038

Khan, A. H. (2024). Effective Decision Making Using Data Analytics. Interantional Journal of Scientific Research in Engineering and Management, 08(04), 1–5. https://doi.org/10.55041/ijsrem32598

Khong, I., Yusuf, N. A., Nuriman, A., & Yadila, A. B. (2023). Exploring the Impact of Data Quality on Decision-Making Processes in Information Intensive Organizations. APTISI Transactions on Management (ATM), 7(3), 253–260. https://doi.org/10.33050/atm.v7i3.2138

Koçyi?it, Y., & Akkaya, B. (2020). The Role of Organizational Flexibility in Organizational Agility: A Research on SMEs. Business Management and Strategy, 11(1), 110. https://doi.org/10.5296/bms.v11i1.16867

Komolafe, A. M., Aderotoye, I. A., Abiona, O. O., Adewusi, A. O., Obijuru, A., Modupe, O. T., & Oyeniran, O. C. (2024). Harnessing Business Analytics for Gaining Competitive Advantage in Emerging Markets: a Systematic Review of Approaches and Outcomes. International Journal of Management & Entrepreneurship Research, 6(3), 838–862. https://doi.org/10.51594/ijmer.v6i3.939

Kumar, D. H., Noal, Alemumerga, Robson, Alemayehu, D., Atmosa, Chalchisa, S., & Derartu. (2024). Survey and Analysis of Current Manufacturing Trends in the Global Market: A Practical Investigation. International Journal for Research in Applied Science and Engineering Technology, 12(4), 1892–1896. https://doi.org/10.22214/ijraset.2024.60221

Laulita, N. B. (2021). How Organizational Culture Moderate the Effect of Total Productive Maintenance Practice on Operational Performance? Evidences from Indonesian Mining Industry. Jurnal Optimasi Sistem Industri, 20(2), 93–103.

Madhal, P., Li, H., & Helander, N. (2020). Organizational capabilities in data-driven value creation: A literature review. SCITEPRESS - Science and Technology Publications, 3(November), 108–116. https://doi.org/10.5220/0010175601080116

Madhala, P., Li, H., & Helander, N. (2024). Developing data analytics capabilities: integrating the information systems success model and the resource-based view. Industrial Management and Data Systems, 124(7), 2364–2387. https://doi.org/10.1108/IMDS-09- 2023-0653

Makori, A., Maina, F., Obiero, B., Daniel, S., Njeri, R., Obonyo, S., Okwayo, B., & Okaka, W. (2022). Effect of Employee Agility on Organizational Performance (a Case Study of the State Department for Labour, Kenya). Journal of Human Resource and Leadership, 7(1), 38–58. https://doi.org/10.47604/jhrl.1537

Mandagie, W. C., Kristaung, R., & Rana, J. A. S. (2024). Optimizing manufacturing firm performance in Indonesia through strategic orientation and servitization. Problems and Perspectives in Management, 22(1), 687–701. https://doi.org/10.21511/ppm.22(1).2024.54

Mignenan, V., Ahmat, M. M., & Bayock, E. D. (2024). Efficiency of Information Systems?: Influence on Collective Intelligence and Organizational Agility. International Journal of Business and Management, 19(6), 321–337. https://doi.org/10.5539/ijbm.v19n6p321

Nelson, A. (2021). The Effect of Implementation of Management Support Work Environment, Team Work, and Employee Development to Employee Engagement with Employee Motivation as Mediating Variable. Management and Economic Journal (MEC-J), 5(2), 131–142. https://doi.org/10.18860/mec-j.v5i2.11860

Nguyen, T., Le, C. V., Nguyen, M., Nguyen, G., Lien, T. T. H., & Nguyen, O. (2024). The organisational impact of agility: a systematic literature review. In Management Review Quarterly. Springer International Publishing. https://doi.org/10.1007/s11301-024- 00446-9

Nugroho, H. (2023). A Review: Data Quality Problem in Predictive Analytics. IJAIT (International Journal of Applied Information Technology), 7(02), 79. https://doi.org/10.25124/ijait.v7i02.5980

Ochuba, N. A., Usman, F. O., Amoo, O. O., Okafor, E. S., & Akinrinola, O. (2024). Innovations in Business Models Through Strategic Analytics and Management: Conceptual Exploration for Sustainable Growth. International Journal of Management & Entrepreneurship Research, 6(3), 554–566. https://doi.org/10.51594/ijmer.v6i3.844

Patil, M. H., & Kulkarni, D. A. (2022). The Role of Business Analytics for Enhancing Organizational Performance. International Journal of Advanced Research in Science, Communication and Technology, 2(1), 282–287. https://doi.org/10.48175/ijarsct-7371

Putri, F. E., Iskandar, J., Asbari, M., Widodo, A., & Riyanto. (2023). The Role of Management Information Systems (MIS) in Decision Making. Journal Of Communication Education, 17(1), 2365–2371. https://doi.org/10.58217/joce-ip.v17i1.280

Roblek, V., Dimovski, V., Mesko, M., & Peterlin, J. (2022). Evolution of organisational agility: a bibliometric study. Kybernetes, 51(13), 119–137. https://doi.org/10.1108/K-11-2021- 1137

Saputra, A. D., Aryani, Salsabilla, S., Zalva, R. P., Maharani, A., & Yanuardi, R. (2023). THE ROLE OF THE MANUFACTURING ON THE INDONESIAN ECONOMY. Indonesian Journal of Multidisciplinary Sciences (IJoMS), 2(1), 157–166.

Sazu, M. H., & Jahan, S. A. (2022). Can big data analytics improve the quality of decision- making in businesses? Iberoamerican Business Journal, 6(1), 04–27. https://doi.org/10.22451/5817.ibj2022.vol6.1.11063

Silva, A. M. (2020). Innovation capability: a systematic literature review. European Journal of Innovation Management, 24(3), 707–734. https://doi.org/10.1108/EJIM-09-2019-0263

Silva, J. J. Da, & Cirani, C. B. S. (2020). The capability of organizational innovation: Systematic review of literature and research proposals. Gestao e Producao, 27(4), 1– 16. https://doi.org/10.1590/0104-530X4819-20

Sentoso, A., & Putra, F. S. (2021). Analysis of the Ethical Effect of Leadership on Employee Performance and Moderated With Employee Engagement and Organizational Citizenship Behavior. Business and Accounting Research (IJEBAR) Peer Reviewed- International Journal, 5(4), 447–456. https://jurnal.stie-aas.ac.id/index.php/IJEBAR

Sentoso, A., & Muchsinati, E. S. (2024). Determining Employee Engagement and Its Influence On Employee Performance At Holding State-Owned Enterprises Insurance and Guarantees Riau Islands Region. Jurnal Manajemen Dan Pemasaran Jasa, 17(1), 39– 58. http://dx.doi.or

Setyawan, A., & Nelson, A. (2021). The Role of Organizational Culture in the Influence of HR Practices, Knowledge Management, and Talent Management on Organizational Performance. Jurnal Dinamika Manajemen, 12(2), 275–284. https://doi.org/10.18848/1447- 9524/cgp/v10i01/59155

Struijk, M., Angelopoulos, S., Ou, C. X. J., & Davison, R. M. (2023). Navigating digital transformation through an information quality strategy: Evidence from a military organisation. Information Systems Journal, 33(4), 912–952. https://doi.org/10.1111/isj.12430

Trisusanti, N., Arifuddin, H., & Umar, F. (2023). Implementation of Strategic Management in Improving Organizational Performance in Manufacturing Companies. Indonesian Journal of Economics and Management, 3(3), 572–581. https://doi.org/10.35313/ijem.v3i3.5109

WANASIDA, A. S., BERNARTO, I., SUDIBJO, N., & PURWANTO, A. (2021). The Role of Business Capabilities in Supporting Organization Agility and Performance During the COVID-19 Pandemic: An Empirical Study in Indonesia. Journal of Asian Finance, Economics and Business, 8(5), 897–0911. https://doi.org/10.13106/jafeb.2021.vol8.no5.0897

Wolok, E., Yapanto, L. M., Lapian, A. L. C. P., Wolok, T., & Aneta, A. (2023). Manufacturing Industry Strategy in Increasing the Acceleration of Economic Growth in Indonesia. International Journal of Professional Business Review, 8(4), 1–10. https://doi.org/10.26668/businessreview/2023.v8i4.1927