The study focuses on technology-oriented companies in East Java, one of Indonesia’s most dynamic regions for digital transformation. As automation, artificial intelligence, and data-driven systems reshape industries, many firms invest heavily in new tools. Mohyi’s findings show that real competitive strength comes from how organizations manage their people and build cultures that can adapt to constant change.
Why This Research Matters Now
Across Southeast Asia, companies face intense pressure to innovate while remaining resilient. Digital transformation has accelerated since the pandemic, but many organizations struggle to translate new technologies into long-term performance gains. This research addresses a critical gap: why some firms thrive under disruption while others fall behind, despite similar access to technology.
The findings are especially relevant for business leaders, policymakers, and educators in emerging economies. Indonesia’s workforce is young, digitally literate, and increasingly mobile. Organizations that fail to adapt their management practices risk losing talent and market relevance. The study reinforces a growing global consensus that human capital and culture are decisive factors in the digital economy.
How the Research Was Conducted
The research used a quantitative survey approach involving 87 managers and senior staff from technology-based and digitally transformed companies operating in East Java. Respondents included HR managers, unit heads, and operational leaders who understand organizational strategy and internal culture.
Participants completed structured questionnaires measuring three core areas:
- Agile Human Resource Management practices
- Adaptive Organizational Culture
- Organizational Competitive Advantage
The data were analyzed using statistical software to assess reliability, relationships between variables, and overall explanatory power. This approach allowed the researcher to identify clear patterns linking management practices and culture to competitive outcomes, without relying on technical or abstract models.
Key Findings at a Glance
The results show a strong and consistent relationship between agile management, adaptive culture, and competitive performance.
Main findings include:
- Agile Human Resource Management has a strong positive effect on competitive advantage. Companies that empower employees, encourage flexible work, and support continuous skill development are more responsive to market change.
- Adaptive Organizational Culture significantly boosts competitiveness.Cultures that value learning, openness to innovation, and cross-functional collaboration help organizations adjust faster to disruption.
- Together, these two factors explain more than 75 percent of competitive performance differences among the surveyed organizations.This indicates that internal management systems and culture play a larger role than external factors alone.
Statistical analysis confirmed that both factors operate independently but reinforce each other when implemented together.
What This Means in Practice
The findings suggest that technology investments alone are not enough. Organizations that rely solely on new digital tools without changing how people work are unlikely to gain lasting advantages.
In practical terms, agile HR management means:
- Faster decision-making with less bureaucracy
- Performance systems focused on learning, not punishment
- Employees treated as strategic contributors, not just operational resources
An adaptive culture complements this by reducing resistance to change. Employees in such environments are more willing to experiment, adopt new technologies, and collaborate across departments.
According to Achmad Mohyi of Universitas Muhammadiyah Malang, organizational competitiveness today depends on internal readiness as much as external innovation. He emphasizes that firms able to align agile HR practices with adaptive cultural values are “more resilient, more innovative, and better prepared to face ongoing technological disruption.”
Broader Implications for Industry and Policy
For business leaders, the study offers a clear roadmap: invest in people and culture alongside technology. Firms that encourage autonomy, learning, and collaboration are better equipped to respond to shifting consumer demands and competitive pressures.
For policymakers, the findings support workforce development initiatives that emphasize adaptability, digital skills, and organizational learning. Supporting agile management practices can strengthen national competitiveness, especially in technology-driven sectors.
For universities and educators, the research highlights the importance of preparing graduates not only with technical skills, but also with collaborative mindsets and adaptive thinking suited to modern organizations.
Author Profile
Mohyi’s expertise focuses on human resource management, organizational culture, and competitive strategy, with particular attention to how organizations adapt to technological change in emerging economies.
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