BETWEEN PRODUCTIVITY BOOSTER AND STRUCTURAL RESISTANCE: A TRAJECTORY AND LIMIT OF AGILE GOVERNANCE

Abstract

The organization competes to increase its productivity by implementing a form of governance that is agile to technological changes. However, in its implementation, challenges inevitably arise, such as resistance to change, especially in terms of organizational structure. This study aims to examine the effect of agile governance, as proposed by Luna et al. (2015), consisting of six sub-variables (environmental factors, moderator factors, agile capabilities, governance capabilities, business operations, value delivery), on structural resistance (Kumar & Kant, 2006). This study uses a quantitative approach. Data were obtained by distributing questionnaires to 400 civil servants in Indonesia. Data were analyzed using partial least squares structural equation modeling (SEM-PLS) with the help of R software. The results showed that environmental factors, moderator factors, and agile capabilities have a negative and significant effect on structural resistance. On the other hand, business operations and value delivery have a positive and significant effect on structural resistance. Meanwhile, governance capabilities do not have a significant effect on the structural resistance of public-sector organizations. These findings contribute to the understanding of the challenges associated with implementing agile governance and highlight the importance of addressing resistance to change, particularly in terms of organizational structure.