The Influence of Innovation Capability, Organizational Culture, and Government Policy on Project Performance through Innovation Performance (A Study at PT. Brantas Abipraya)

Ahmad Syamil1*, Bukhori Andri Ardiyanto2, Afrizal Adi Panuluh3, & Arif Joko Nugroho4
1Master of Management Program, Binus University, Indonesia
2Master of Management Program, Binus University, Indonesia
3Master of Management Program, Binus University, Indonesia
4Master of Management Program, Binus University, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2025.81213

Abstract

This study examines the influence of innovation capability, organizational culture, and government policies on project performance through innovation performance at PT. Brantas Abipraya (Persero). Motivated by the increasing complexity of the construction industry in the digital economy era and the need for adaptive strategies to ensure project success beyond traditional time, cost, and quality metrics, this research applies the Resource-Based View (RBV) theory as the grand framework. Using a quantitative approach with a purposive sampling technique, data were collected from project leaders through structured questionnaires. The analysis was conducted using Structural Equation Modeling (SEM) with the Partial Least Squares (PLS) method. The results demonstrate that innovation capability, organizational culture, and government policies significantly influence project performance, both directly and indirectly, through innovation performance as a mediating variable. The study also highlights the strategic role of dynamic capabilities, an adaptive organizational culture, and supportive government regulations in enhancing innovation processes and achieving superior project outcomes. These findings offer theoretical contributions to the RBV extension and practical recommendations for strengthening innovation ecosystems within state-owned construction enterprises to achieve sustainable growth and competitiveness.

Keywords: Innovation Capability, Organizational Culture, Government Policy, Innovation Performance, Project Performance, Resource-Based View (RBV)

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