Title:
Corporate Entrepreneurship, Leadership, and Absorptive Capacity's Impact on Performance: Organizational Learning as a Mediator in Indonesian Investment Promotion Agencies

Authors:
Rizaldi Indra Janu, Bahtiar Usman, Wahyuningsih Santosa, Indonesia

Abstract:

This study investigates factors influencing investment distribution in Indonesia, focusing on Corporate Entrepreneurship, Transformational Leadership, and Absorptive Capacity's impact on Organizational Performance in Investment Promotion Agencies (IPA). Organizational Learning Capability acts as a mediating variable, with hypothesis testing conducted through Structural Equation Modelling (SEM-AMOS) on a sample of 373 IPA employees. Results indicate that Transformational Leadership, Corporate Entrepreneurship, Absorptive Capacity, and Organizational Learning Capability all positively and significantly affect Organizational Performance, with Absorptive Capacity exerting the strongest influence. Additionally, Absorptive Capacity also has the most substantial effect on Organizational Learning Capability compared to the other variables. Indirect influence tests reveal that Organizational Learning Capability partially mediates the impact of these factors on Organizational Performance. This research provides valuable insights for decision-makers, highlighting the importance of fostering Transformational Leadership, Corporate Entrepreneurship, and Absorptive Capacity to enhance performance in investment agencies. The study’s comprehensive model underscores both direct and indirect effects, offering a novel perspective for strategic management within Indonesian IPAs.

DOI: https://doi.org/10.51505/IJEBMR.2025.9110