Drivers of Strategic Insights for Institutions Sustainability through the Operation of Dynamic Capabilities: Evidence from Private Schools in Jakarta

Abstract

Ensuring school sustainability is a strategic priority for private schools in Indonesia. The objective of this research is to demonstrate a substantial impact between the sustainability of junior high schools receiving government operational funds and several key predictor variables. This study applies a causal-associative approach and a quantitative research method to assess how organizational culture, behaviour, dynamic capabilities, performance, and technology affect the sustainability of schools. Data from 371 junior high school principals in Jakarta (collected between October 2024 and February 2025) show that these variables influence sustainability in different ways. Organizational culture and organizational citizenship behaviour significantly influence dynamic capabilities (P = 0.004 and 0.000), which in turn positively impact organizational performance (P = 0.000). Moreover, organizational performance directly contributes to school sustainability (P = 0.000), while technological change plays various moderating roles. The research model demonstrated strong fit indices (RMSM = 0.022; RMSEA = 0.048; CFI = 0.904). Hence, the findings emphasize the need to integrate technology into financial governance and adopt a standardized work culture to address institutional challenges effectively. This research construct has never been conducted in Indonesia, where highlights of organizational culture, behavioral strategies, and technology can be integrated to enhance the sustainability of private schools beyond just financial interventions from the government. The results of the study provide managerial implications for school operational governance; prioritizing the strategic need for integrated governance and digital adoption is crucial.