The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective

The COVID-19 pandemic forced non-essential sectors to limit operations, leading to financial decline. Organizational readiness to adopt digital technology has become critical for firms' survival. However, limited empirical research has explored the correlation between organizational readiness,...

Full description

Saved in:
Bibliographic Details
Main Authors: Zahwa Fitria Gumilang, Budhi Prihartono
Format: Article
Language:English
Published: Petra Christian University 2025-02-01
Series:Jurnal Teknik Industri
Subjects:
Online Access:https://jurnalindustri.petra.ac.id/index.php/ind/article/view/29601
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850044152551571456
author Zahwa Fitria Gumilang
Budhi Prihartono
author_facet Zahwa Fitria Gumilang
Budhi Prihartono
author_sort Zahwa Fitria Gumilang
collection DOAJ
description The COVID-19 pandemic forced non-essential sectors to limit operations, leading to financial decline. Organizational readiness to adopt digital technology has become critical for firms' survival. However, limited empirical research has explored the correlation between organizational readiness, financial performance, and project performance. This study aims to address this gap by examining these relationships. Using a quantitative approach, this study employed non-probability purposive sampling, collecting 85 data points between December 27, 2021, and January 27, 2022. A total of 30 indicators were used to measure five research constructs, and the data were analyzed using the PLS-SEM method with SmartPLS software. The findings indicate that organizational readiness positively influences project performance through the mediating effect of organizational capabilities, specifically dynamic capabilities and project management capabilities. Both dynamic capabilities and project management capabilities positively affect project performance. Additionally, the study reveals a positive correlation between project performance and financial performance. However, dynamic capabilities do not significantly impact project management capabilities. This study suggests that top management should optimize the utilization of existing assets, enhance technical capabilities, align resources with strategic objectives, foster innovation, secure organizational support, cultivate an innovative work environment, and maintain a clear business vision.
format Article
id doaj-art-2c64b638c4d94ccc8eef6b0d8319bd92
institution DOAJ
issn 1411-2485
2087-7439
language English
publishDate 2025-02-01
publisher Petra Christian University
record_format Article
series Jurnal Teknik Industri
spelling doaj-art-2c64b638c4d94ccc8eef6b0d8319bd922025-08-20T02:55:03ZengPetra Christian UniversityJurnal Teknik Industri1411-24852087-74392025-02-0127110.9744/jti.27.1.33-50The Impact of Organizational Readiness on Financial and Project Performance from the Employee's PerspectiveZahwa Fitria Gumilang0Budhi Prihartono1Universitas Islam BandungInstitut Teknologi Bandung The COVID-19 pandemic forced non-essential sectors to limit operations, leading to financial decline. Organizational readiness to adopt digital technology has become critical for firms' survival. However, limited empirical research has explored the correlation between organizational readiness, financial performance, and project performance. This study aims to address this gap by examining these relationships. Using a quantitative approach, this study employed non-probability purposive sampling, collecting 85 data points between December 27, 2021, and January 27, 2022. A total of 30 indicators were used to measure five research constructs, and the data were analyzed using the PLS-SEM method with SmartPLS software. The findings indicate that organizational readiness positively influences project performance through the mediating effect of organizational capabilities, specifically dynamic capabilities and project management capabilities. Both dynamic capabilities and project management capabilities positively affect project performance. Additionally, the study reveals a positive correlation between project performance and financial performance. However, dynamic capabilities do not significantly impact project management capabilities. This study suggests that top management should optimize the utilization of existing assets, enhance technical capabilities, align resources with strategic objectives, foster innovation, secure organizational support, cultivate an innovative work environment, and maintain a clear business vision. https://jurnalindustri.petra.ac.id/index.php/ind/article/view/29601Organizational readinessproject performancefinancial performanceorganizational capabilitiesdynamic capabilities
spellingShingle Zahwa Fitria Gumilang
Budhi Prihartono
The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
Jurnal Teknik Industri
Organizational readiness
project performance
financial performance
organizational capabilities
dynamic capabilities
title The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
title_full The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
title_fullStr The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
title_full_unstemmed The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
title_short The Impact of Organizational Readiness on Financial and Project Performance from the Employee's Perspective
title_sort impact of organizational readiness on financial and project performance from the employee s perspective
topic Organizational readiness
project performance
financial performance
organizational capabilities
dynamic capabilities
url https://jurnalindustri.petra.ac.id/index.php/ind/article/view/29601
work_keys_str_mv AT zahwafitriagumilang theimpactoforganizationalreadinessonfinancialandprojectperformancefromtheemployeesperspective
AT budhiprihartono theimpactoforganizationalreadinessonfinancialandprojectperformancefromtheemployeesperspective
AT zahwafitriagumilang impactoforganizationalreadinessonfinancialandprojectperformancefromtheemployeesperspective
AT budhiprihartono impactoforganizationalreadinessonfinancialandprojectperformancefromtheemployeesperspective