The Impact of Digital Competence and Innovative Organizational Culture on Innovative Performance in Indonesian Public Sector

Digital transformation is critical for local governments like Tana Toraja Regency, where limited
infrastructure and bureaucratic challenges hinder public service innovation. This study aims to
examine how digital competence and innovative organizational culture influence the innovative
performance of civil servants. The research used a quantitative approach with an explanatory
correlational design, collecting data from 365 civil servants in Tana Toraja through proportionate
stratified random sampling. Questionnaires measured digital competence, innovative organizational
culture, and innovative performance. Data were analyzed using Structural Equation Modeling
Partial Least Squares. The findings show that digital competence strongly enhances innovative
organizational culture (path coefficient 0.63) and innovative performance (path coefficient 0.41),
while innovative organizational culture boosts innovative performance (path coefficient 0.46),
explaining 57% of its variance. These results, significant at p less than 0.001, highlight the
importance of digital skills and a supportive culture in driving innovation. The study, limited to
Tana Toraja, offers a strategic human resource management model to improve digital literacy and
foster an innovative culture, providing policy recommendations for local governments to enhance
public services despite regional constraints.