Organizational Culture and Public Service Innovation: The Sequential Mediating Roles of Employee Collaboration, Knowledge Sharing and Organizational Learning in Indonesia Local Government
Abstract
Public service innovation has become a strategic priority for local governments in addressing increasingly complex governance challenges and rising public expectations. While organizational culture has frequently been identified as an important determinant of innovation, the organizational mechanisms through which it contributes to public service innovation remain insufficiently understood. This study examines the effect of organizational culture on public service innovation through the sequential mediating roles of employee collaboration, knowledge sharing, and organizational learning in Indonesian local government organizations. A quantitative explanatory research design was employed using a cross-sectional survey of 350 civil servants working in district-level local government agencies in South Sulawesi Province, Indonesia. Data were collected through structured questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that organizational culture positively influences employee collaboration, which subsequently strengthens knowledge sharing and organizational learning, ultimately enhancing public service innovation. More importantly, the sequential mediation analysis confirms that employee collaboration, knowledge sharing, and organizational learning jointly and significantly mediate the relationship between organizational culture and public service innovation (β = 0.324, t = 10.763, p < 0.001). These findings indicate that public service innovation develops through interconnected organizational capabilities rather than as a direct consequence of organizational culture alone. The study contributes to public administration literature by proposing an integrated organizational capability framework that explains how innovation emerges through sequential organizational processes within local government institutions. Practically, the findings suggest that local governments should strengthen collaborative work environments, institutionalize knowledge-sharing practices, and foster continuous organizational learning to build sustainable public service innovation and improve service quality.
Downloads
References
Alsharo, M., Gregg, D., & Ramirez, R. (2023). Knowledge sharing in organizations: A systematic review and future research directions. Journal of Knowledge Management, 27(4), 1021–1043.
Argote, L., & Miron-Spektor, E. (2011). Organizational learning: From experience to knowledge. Organization Science, 22(5), 1123–1137. https://doi.org/10.1287/orsc.1100.0621
Armstrong, J. S., & Overton, T. S. (1977). Estimating nonresponse bias in mail surveys. Journal of Marketing Research, 14(3), 396–402. https://doi.org/10.1177/002224377701400320
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Bock, G.-W., Zmud, R. W., Kim, Y.-G., & Lee, J.-N. (2005). Behavioral intention formation in knowledge sharing: Examining the roles of extrinsic motivators, social-psychological forces, and organizational climate. MIS Quarterly, 29(1), 87–111.
Bryson, J. M., Crosby, B. C., & Bloomberg, L. (2023). Public value governance: Moving beyond traditional public administration and the New Public Management. Public Management Review.
Bryson, J. M., Crosby, B. C., & Stone, M. M. (2015). Designing and implementing cross-sector collaborations: Needed and challenging. Public Administration Review, 75(5), 647–663. https://doi.org/10.1111/puar.12432
Cepiku, D., & Giordano, F. (2024). Collaborative governance and public sector innovation: New perspectives for public management. Public Management Review.
Crossan, M. M., Lane, H. W., & White, R. E. (1999). An organizational learning framework: From intuition to institution. Academy of Management Review, 24(3), 522–537. https://doi.org/10.5465/amr.1999.2202135
Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley & Sons.
Denison, D. R., Haaland, S., & Goelzer, P. (2003). Corporate culture and organizational effectiveness: Is Asia different from the rest of the world? Organizational Dynamics, 33(1), 98–109.
Denison, D. R., Nieminen, L., & Kotrba, L. (2023). Organizational culture and effectiveness: Revisiting the Denison model in contemporary organizations. Journal of Organizational Effectiveness: People and Performance.
De Vries, H., Bekkers, V., & Tummers, L. (2016). Innovation in the public sector: A systematic review and future research agenda. Public Administration, 94(1), 146–166. https://doi.org/10.1111/padm.12209
Easterby-Smith, M., & Lyles, M. A. (Eds.). (2011). Handbook of organizational learning and knowledge management (2nd ed.). Wiley.
Grant, R. M. (1996). Toward a knowledge-based theory of the firm. Strategic Management Journal, 17(S2), 109–122. https://doi.org/10.1002/smj.4250171110
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). Sage Publications.
Hartley, J. (2005). Innovation in governance and public services: Past and present. Public Money & Management, 25(1), 27–34.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Hoegl, M., & Gemuenden, H. G. (2001). Teamwork quality and the success of innovative projects: A theoretical concept and empirical evidence. Organization Science, 12(4), 435–449.
Jerez-Gómez, P., Céspedes-Lorente, J., & Valle-Cabrera, R. (2005). Organizational learning capability: A proposal of measurement. Journal of Business Research, 58(6), 715–725.
Kim, S., & Fernandez, S. (2022). Employee collaboration and organizational performance in public organizations. Public Management Review.
Kock, N. (2015). Common method bias in PLS-SEM: A full collinearity assessment approach. International Journal of e-Collaboration, 11(4), 1–10.
Lee, H., & Choi, B. (2021). Knowledge management enablers, processes, and organizational performance: An integrative perspective. Journal of Knowledge Management.
Mergel, I., Ganapati, S., & Whitford, A. B. (2021). Agile: A new way of governing. Public Administration Review, 81(1), 161–165. https://doi.org/10.1111/puar.13202
Nguyen, T. T., Nguyen, P. N., & Do, H. T. (2023). Organizational culture and innovation performance: Evidence from public organizations. International Journal of Public Administration.
Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company. Oxford University Press.
Nonaka, I., & Takeuchi, H. (2021). The wise company: How companies create continuous innovation. Oxford University Press.
Osborne, S. P. (2021). Public service logic: Creating value for public service users, citizens, and society. Routledge.
Podsakoff, P. M., MacKenzie, S. B., Lee, J. Y., & Podsakoff, N. P. (2003). Common method biases in behavioral research: A critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.
Schein, E. H., & Schein, P. A. (2021). Organizational culture and leadership (5th ed.). Wiley.
Senge, P. M. (2006). The fifth discipline: The art and practice of the learning organization (Rev. ed.). Doubleday.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.
Torugsa, N., & Arundel, A. (2017). Complexity of innovation in the public sector: A workgroup-level analysis of related factors and outcomes. Public Management Review, 19(3), 392–416.
Walker, R. M. (2008). An empirical evaluation of innovation types and organizational and environmental characteristics: Towards a configuration framework. Journal of Public Administration Research and Theory, 18(4), 591–615.
Wang, S., & Noe, R. A. (2010). Knowledge sharing: A review and directions for future research. Human Resource Management Review, 20(2), 115–131. https://doi.org/10.1016/j.hrmr.2009.10.001
Copyright (c) 2026 Sumarno Sumarno, Muhammad Aris, Andi Muhammad Fajar Maulana

This work is licensed under a Creative Commons Attribution 4.0 International License.

.png)


.png)



