Sustainable Innovation Strategy and Role of Learning Organization in Improving Business UnitPerformance Empirical Study on Electricity Company in Indonesia

Abstract

This study examines the influence of innovation strategies and the role of learning organization to the performance of PLN business units. The dimensions of innovation strategy are (1) entrepreneurial leadership, (2) process innovation (3) service innovation and (4) learning organization as mediation to improve business unit performance. Business units of PT. The questionnaire consisted of 42 questions of choice with five Likert scales and one open question for analysing the 5 latent variables of the study. Data processing using SPSS 19 and SEM with software application LISREL Version 8.8. The findings of this research is the role of learning organization and entrepreneurial leadership to innovation is a source of knowledge and new capabilities and can produce more quality and sustainable innovation that will ultimately improve business unit performance. This study also proves the positive effect of sustainable innovation strategies will improve performance. Proven business unit performance is influenced by itself or together by innovation factor of entrepreneurial leadership, process innovation, service innovation and mediated with learning organization. Variable learning organization has the most dominant influence on performance. This study shows that positively improving the effectiveness of innovation strategies and learning organization will result in improved performance.