Local government performance model through innovation: leadership, organizational culture and competency in Padang Lawas Utara Regency Indonesia
Local government performance model through innovation: leadership, organizational culture and competency in Padang Lawas Utara Regency Indonesia

Summary/Abstract: This study aims to determine, analyze, and measure the direct and indirect effects of the relationship between local government performance, leadership, organizational culture, competence, and innovation. Furthermore, the sample was 486 public servants in echelon II, III, and IV, and the data were tested using SEM PLS by combining formative and reflective models. The performance measurement in this study is different from what has been previously carried out because it uses formative measurement indicators. Empirically, the data were processed through the outer model stage. The results showed several invalid indicators were removed for further analysis. Because the processing of discriminant validity, Cronbach alpha, and AVE met the requirements, the model was declared feasible. In the Inner model, the results of ten proposed hypotheses showed that six were accepted and four were rejected. Out of the six accepted hypotheses, five are the direct influence of leadership, organizational culture, competence, and innovation on local government performance as well as competence on innovation. Meanwhile, the indirect influence was competence on performance through innovation. The rejected hypotheses are the direct and indirect influence of leadership and organizational culture on innovation, as well as on the local government performance through innovation, respectively. This study supports previous literature that although the method of measuring performance is different from the previous ones, it was still found that the performance is based on outcomes.

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