Enhancing Sustainability Performance through Digital Capability: A Dynamic Capability Perspective in Indonesian National Oil and Gas Companies
DOI:
10.59888/ajosh.v4i10.750Published:
2026-07-15Downloads
Abstract
This research aims to analyze the role of e-Leadership Capability, Dynamic Digital Workplace Policy, and Digital Culture in shaping the Sustainability Performance of Organization, with Quality Management as the mediating variable and Social Dynamism as the moderation variable, in the context of national oil and gas companies in Indonesia. This research uses a quantitative approach with the Structural Equation Modeling (SEM) method. Data was collected from 210 respondents representing various levels of the organization, ranging from Junior Analyst to Vice President (VP) levels, spread across various operational areas of national oil and gas companies in Indonesia. The results show that e-Leadership Capability has a positive and significant influence directly on Sustainability Performance, which confirms the crucial role of digital leadership in driving sustainable business achievements. In contrast, Dynamic Digital Workplace Policy and Digital Culture did not show a significant direct influence on sustainability performance. However, Dynamic Digital Workplace Policy and Digital Culture have proven to have a positive and significant effect on Quality Management, which further contributes strongly to the Sustainability Performance of Organization. The results of the mediation analysis showed that Quality Management mediated the influence of Dynamic Digital Workplace Policy and Digital Culture on the Sustainability Performance of Organization, while the mediating role between e-Leadership Capability and sustainability performance was not proven to be significant. In addition, Social Dynamism significantly moderates the relationship between Quality Management and Sustainability Performance of Organization, suggesting that social dynamics and stakeholder pressures strengthen the relationship between quality practices and sustainability achievements.
Keywords:
e-Leadership Capability Dynamic Digital Workplace Policy Digital Culture Quality Management Social Dynamism Sustainability Performance Dynamic Capability View Oil and Gas IndustryReferences
Abbas, J. (2020). Impact of total quality management on corporate sustainability through the mediating effect of knowledge management. Journal of Cleaner Production, 244, 118806. https://doi.org/10.1016/j.jclepro.2019.118806
Abdallah, Y. O., Shehab, E., & Al-Ashaab, A. (2022). Sustainable Digital Transformation: The Role of Organisational Digital Culture. Advances in Manufacturing Technology XXXV, 25(September), 60–66. https://doi.org/10.3233/ATDE220566
Abor;, J. Y., & Karimu, A. (2023). Sustainability Management in the Oil and Gas Industry Emerging and Developing Country Perspectives (1st Editio). Routledge. https://doi.org/https://doi.org/10.4324/9781003309864
Agus Cahyono Adi. (2024). Menteri Arifin Tegaskan Sektor Migas Masih Berperan Penting di Era Transisi Energi. Kementerian Energi Dan Sumber Daya Mineral Republik Indonesia. (2024), 5(1), 70–80. https://www.esdm.go.id/en/media-center/news-archives/menteri-arifin-tegaskan-sektor-migas-masih-berperan-penting-di-era-transisi-energi?utm_source=chatgpt.com
Ahmad, M. A. and M. A. M. N. and S. R. and I. R. and A. R. M. K. I. (2016). Quality Management Practices and Organizational Performance: Impact of Sustainable Product Development. 32189.
Ahyadi, M. Y., Syarifudin, A. P., Khairunnisa, A. Z., Ximenes, J. D., & Hamdi, M. H. (2021). Analisis Dampak Oil Spill Di Teluk Balikpapan Terhadap Kehidupan Masyarakat Dalam Perspektif Hukum Dan Lingkungan. Bumi Lestari Journal of Environment, 21(1), 18. https://doi.org/10.24843/blje.2021.v21.i01.p03
Aichouni, A. B. E., Silva, C., & Ferreira, L. M. D. F. (2024). A Systematic Literature Review of the Integration of Total Quality Management and Industry 4.0: Enhancing Sustainability Performance Through Dynamic Capabilities. Sustainability (Switzerland), 16(20). https://doi.org/10.3390/su16209108
Akanmu, M. D., Hassan, M. G., Ibrahim Alshuaibi, M. S., Ibrahim Alshuaibi, A. S., Mohamad, B., & Othman, A. (2023). The mediating role of organizational excellence between quality management practices and sustainable performance. Total Quality Management and Business Excellence, 34(9–10), 1217–1242. https://doi.org/10.1080/14783363.2022.2158803
Akhtar, F., Senadjki, A., & Kumaran, V. V. (2025). Sustainability meets digital culture : the influence of ESG on financial performance in Malaysian manufacturing SMEs. 2(1), 90–108. https://doi.org/10.1108/JIDT-10-2024-0031
Alalwan, A. A., Baabdullah, A. M., Mahfod, J. O., Jones, P., Sharma, A., & Dwivedi, Y. K. (2023). SMEs entrepreneurial finance-based digital transformation: towards innovative entrepreneurial finance and entrepreneurial performance. European Journal of Innovation Management, 401–429. https://doi.org/http://dx.doi.org/10.1108/EJIM-03-2022-0167
Ali AlShehail, O., Khan, M., & Ajmal, M. (2022). Total quality management and sustainability in the public service sector: the mediating effect of service innovation. Benchmarking, 29(2), 382–410. https://doi.org/10.1108/BIJ-08-2020-0449
Ali, H. S., Zeqiraj, V., Lin, W. L., Law, S. H., Yusop, Z., Abdulahi, U., Bare, A., & Chin, L. (2019). Does quality institutions promote environmental quality ? 10446–10456. https://doi.org/https://doi.org/10.1007/s11356-019-04670-9
Almaamari, Q. A., Ali, B. M., & Almeer, S. (2022). Factors Influencing Organizational Performance at Petroleum Products Distribution Company in Yemen. Specialusis Ugdymas / Special Education, 2022(43), 1. http://sumc.lt/index.php/se/article/view/231%0Ahttp://sumc.lt/index.php/se/article/download/231/231
Alvarenga, A., Matos, F., Godina, R., & Matias, J. C. O. (2020). Transformación digital y gestión del conocimiento en el sector público. Sustainability (Suiza), 12(14), 5824. https://doi.org/10.3390/su12145824%0Ahttps://www.mdpi.com/2071-1050/12/14/5824
Alvernia, P., Soesilo, T. E. B., & Herdiansyah, H. (2021). Social impacts of oil spills towards the people living in coastal areas. IOP Conference Series: Earth and Environmental Science, 802(1). https://doi.org/10.1088/1755-1315/802/1/012001
Amelda, B., Alamsjah, F., & Elidjen. (2021). Does the Digital Marketing Capability of Indonesian Banks Align with Digital Leadership and Technology Capabilities on Company Performance ? 15(1), 9–17. https://doi.org/http://dx.doi.org/10.21512/commit.v15i1.6663
Annual Review 2023: Transitioning Towards Scale, © 2023 International Bank for Reconstruction and Development/International Development Association or The World Bank ___ (2023). www.worldbank.org
Arifuddin;, M. I. N. Q., & Surwanti, A. (2022). Digital Literacy, Digital Culture and Business Performance: A Comprehensive Conceptual Framework. Journal of Marketing and Emerging Economics, 49(1), 167–169. https://doi.org/https://doi.org/10.3390/su16072651
Asif, M., Yang, L., & Hashim, M. (2024a). The Role of Digital Transformation, Corporate Culture, and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China. Sustainability (Switzerland) , 16(7). https://doi.org/10.3390/su16072651
Asif, M., Yang, L., & Hashim, M. (2024b). The Role of Digital Transformation , Corporate Culture , and Leadership in Enhancing Corporate Sustainable Performance in the Manufacturing Sector of China.
Avolio, B. J., Sosik, J. J., Kahai, S. S., & Baker, B. (2014). E-leadership : Re-examining transformations in leadership source and transmission. The Leadership Quarterly, 25(1), 105–131. https://doi.org/10.1016/j.leaqua.2013.11.003
Awa, H. O., Etim, W., & Ogbonda, E. (2024). Stakeholders, stakeholder theory and Corporate Social Responsibility (CSR). International Journal of Corporate Social Responsibility, 9(1). https://doi.org/10.1186/s40991-024-00094-y
Barney, J. B., Ketchen, D. J., & Wright, M. (2021). Resource-Based Theory and the Value Creation Framework. Journal of Management, 47(7), 1936–1955. https://doi.org/10.1177/01492063211021655
Bersin, J. (2020). HR Technology 2020 : Disruption Ahead. https://joshbersin.com/2019/08/hr-technology-2020-disruption-ahead/
Block, J. H., Sharma, P., & Benz, L. (2024). Stakeholder Pressures and Decarbonization Strategies in Mittelstand Firms. Journal of Business Ethics, 193(3), 511–533. https://doi.org/10.1007/s10551-023-05576-w
Bocken, N. M. P. (2021). Circular business models: Mapping experimentation in multinational firms. Circular Economy: Challenges and Opportunities for Ethical and Sustainable Business, May, 63–84.
Bocken, N. M. P., Short, S. W., Rana, P., & Evans, S. (2014). A literature and practice review to develop sustainable business model archetypes. Journal of Cleaner Production, 65, 42–56. https://doi.org/10.1016/j.jclepro.2013.11.039
Bougie, R., & Sekaran, U. (2019). Research Methods For Business: A Skill Building Approach, 8th Edition (8th ed.). Wiley. https://books.google.co.id/books?id=ikI6EAAAQBAJ&printsec=frontcover&hl=id&source=gbs_ge_summary_r&cad=0#v=onepage&q&f=false
Bouncken, R. B., & Reuschl, A. J. (2018). Coworking-spaces: how a phenomenon of the sharing economy builds a novel trend for the workplace and for entrepreneurship. Review of Managerial Science, 12(1), 317–334. https://doi.org/10.1007/s11846-016-0215-y
Cardoso, A., Pereira, M. S., Sá, J. C., Powell, D. J., Faria, S., & Magalhães, M. (2023). Digital Culture, Knowledge, and Commitment to Digital Transformation and Its Impact on the Competitiveness of Portuguese Organizations. Administrative Sciences, 14(1). https://doi.org/10.3390/admsci14010008
Carmen, E., Fazey, I., Caniglia, G., Anthony, J., & Penny, L. (2022). The social dynamics in establishing complex community climate change initiatives: the case of a community fridge in Scotland. Sustainability Science, 17(1), 259–273. https://doi.org/10.1007/s11625-021-01075-x
Castro, C., & Lopes, C. (2022). Digital Government and Sustainable Development. Journal of the Knowledge Economy, 13(2), 880–903. https://doi.org/10.1007/s13132-021-00749-2
Chatterjee, S., Chaudhuri, R., Vrontis, D., & Giovando, G. (2023). Digital workplace and organization performance: Moderating role of digital leadership capability. Journal of Innovation & Knowledge, 8(1), 100334. https://doi.org/10.1016/j.jik.2023.100334
Chatterjee, S., & Sreenivasulu, N. S. (2019). Personal data sharing and legal issues of human rights in the era of artificial intelligence: Moderating effect of government regulation. International Journal of Electronic Government Research, 15(3), 21–36. https://doi.org/10.4018/IJEGR.2019070102
Chen, H., Zhu, H., Sun, T., Chen, X., Wang, T., & Li, W. (2023). Does Environmental Regulation Promote Corporate Green Innovation? Empirical Evidence from Chinese Carbon Capture Companies. Sustainability (Switzerland), 15(2), 1–26. https://doi.org/10.3390/su15021640
Correia, M. S. (2020). Sustainability : An Overview of the Triple Bottom Line and Sustainability Implementation. July. https://doi.org/10.4018/IJoSE.2019010103
Da Silva, V. L., Kovaleski, J. L., Pagani, R. N., Silva, J. D. M., & Corsi, A. (2020). Implementation of Industry 4.0 concept in companies: empirical evidences. International Journal of Computer Integrated Manufacturing, 33(4), 325–342. https://doi.org/10.1080/0951192X.2019.1699258
Damien, Wenting, & Liz. (2023). Accelerating sustainable and inclusive growth for all. https://www.mckinsey.com/about-us/social-responsibility/esg-report-overview
De Filippi, P., & Santolini, M. (2023). Extitutional theory: Modelling structured social dynamics beyond institutions. 23(2), 49. https://ssrn.com/abstract=4001721
de Menezes, L. M., Escrig-Tena, A. B., & Bou-Llusar, J. C. (2021). Sustainability and Quality Management: has EFQM fostered a Sustainability Orientation that delivers to stakeholders? International Journal of Operations and Production Management, 42(13), 155–184. https://doi.org/10.1108/IJOPM-10-2021-0634
Deloitte. (2025). DI_2026-Global-Human-Capital-Trends.pdf (p. 79).
Demirkan;, H., Spohrer;, J. C., & Welser, J. J. (2016). Digital Innovation and Strategic Transformation. DRS2020: Synergy, 5(December 2016). https://doi.org/10.21606/drs.2020.130
Denison, D. R., Hooijberg, R., & Quinn, R. E. (2019). Paradox and Performance: Toward a Theory of Behavioral Complexity in Managerial Leadership. Organization Science, 6(5), 524–540. https://doi.org/10.1287/orsc.6.5.524
Dery, K., Sebastian, I. M., & Meulen, N. van der. (2017). The Digital Workplace Is Key to Digital Innovation. AIS Journals at AIS Electronic Library, 16(2). https://aisel.aisnet.org/misqe%0ARecommended
Diogo;, R. A., Junior;, A. K., & Santos, N. dos. (2019). Digital transformation and knowledge management: Contributions to process improvement, productive, and organizational. 59–72. https://doi.org/https://doi.org/10.21721/p2p.2019v5n2.p154-175
Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., & Papadopoulos, T. (2019). Big Data and Predictive Analytics and Manufacturing Performance: Integrating Institutional Theory, Resource-Based View and Big Data Culture. British Journal of Management, 30(2), 341–361. https://doi.org/10.1111/1467-8551.12355
Dubey, R., Gunasekaran, A., Childe, S. J., Roubaud, D., Fosso Wamba, S., Giannakis, M., & Foropon, C. (2019). Big data analytics and organizational culture as complements to swift trust and collaborative performance in the humanitarian supply chain. International Journal of Production Economics, 210, 120–136. https://doi.org/10.1016/j.ijpe.2019.01.023
Eccles, R. G., Ioannou, I., & Serafeim, G. (2014). The impact of corporate sustainability on organizational processes and performance. Management Science, 60(11), 2835–2857. https://doi.org/10.1287/mnsc.2014.1984
Elidjen, Mihardjo, L. W. W., & Rukmana, R. A. N. (2019). Intervening role of innovation
License
Copyright (c) 2026 Muhammad Sadikin, Yolanda Masnita Siagian, Tiara Puspa, Lucy Warsindah

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International. that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.



