Service Innovation Strategic Consensus: A Lesson from the Islamic Banking Industry in Indonesia

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Muafi Muafi, Erlina Diamastuti, Argo Pambudi

2020 Journal of Asian Finance, Economics and Business Vol. 7 Issue 11 Article Cited by 4 Quartile

Abstract

This study aims to analyze the agreement of service innovation using contingency approach (manager personality, organizational structure) moderated by leadership agility. The study has been carried out on Islamic banking companies’ managers in Indonesia, from East Java and Yogyakarta region using purposive sampling technique with questionnaire and interviews as the method of data collection. The total number of respondents in the sample is 184. This sample is then analyzed using Euclidience Distance Simple Regression and Simple Regression Moderation method. The results prove that: (1) there is a partial fit between incremental strategy with reactive personality and mechanical organizational structure, which increases the service performance; (2) there is a partial fit between radical strategy with proactive personality and organic organizational structure, which increases the service performance; (3) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and reactive personality toward service performance; (4) leadership agility is able to strengthen the fit the relationship between radical innovation strategy and proactive personality toward service performance; (5) leadership agility is able to strengthen the fit of the relationship between incremental innovation strategy and mechanical organizational structure toward service performance; and (6) leadership agility is able to strengthen the fit of the relationship between radical innovation strategy and organic organizational structure toward service performance ©Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License(https://creativecommons.org/licenses/by-ncM.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.

Affiliations

Universitas Islam Indonesia, Jl. SWK Ringroad Utara CondongCatur, Yogyakarta, 55283, Indonesia; Universitas Internasional Semen Indonesia, Indonesia; Universitas Negeri, Yogyakarta, Indonesia