THE ROLE OF DIGITAL TRANSFORMATION AND INNOVATION ON ORGANIZATIONAL PERFORMANCE: AN EMPIRICAL STUDY ON INDONESIAN SCHOOLS

Abstract

The aim of this research is to analyze the relationship between digital transformation and school performance, analyze the relationship between digital transformation and school innovation, analyze the relationship between innovation and school performance. This research uses a quantitative approach. The respondents used in this research were 450 teachers who were determined using a simple random sampling method from elementary school to high school level. The time given for filling out the questionnaire is 2 weeks. The measurement instrument used to measure research variables uses a seven-point Likert scale starting with point 1 (strongly disagree) to point 7 (strongly agree). Data was obtained from distributing questionnaires via social media. Data analysis used structural equation modeling (SEM) partial least squares with SmartPLS 3.0 software tools. The data testing stage is the convergent validity test which can be said to be valid when the standard value of the factor loadings reaches a score of 0.4 to 0.7 and above. Test the reliability of the questionnaire instrument by looking at the Cronbach's alpha value greater than 0.6 and the composite reliability value greater than 0.7. Next, test the structural model (inner model) to test the causal relationship between latent variables or variables that cannot be measured directly by looking at the R-square value of the construct. The hypothesis of this research is said to be supported if the p-value is <0.05 (significant at the 5% level) and if the T-statistic value is higher than the T-table value with a confidence level of 95% (alpha 5 percent) then the T-table value for the hypothesis (two tailed) is ≥ 1.96. The results of this research are that digital transformation has a positive and significant relationship to school performance, digital transformation has a positive and significant relationship to innovation, innovation has a positive and significant relationship to school performance.

Keywords: Digital Transformation, Innovation, Organizational Performance, Schools