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Public sector organizations have been facing a dynamic environment and the shift in global economic pressure, while serving the public with new and/or better services under limited budgets. Organizational innovation is believed to be able to encourage increased organizational performance. Based on the Resource Based View, New Public Management theory, and Innovation System Theory, this study aims to analyze the antecedents and consequences of organizational innovation in the public sector. Data were collected from organization units of the Central Bureau of Statistics throughout Indonesia with 125 sample units by self-enumeration and the sampling technique was purposive sampling. The results showed that the internal control system and organizational culture had a significant effect on organizational innovation, and organizational innovation has a positive effect on organizational performance. This study cannot prove the effect of transformational leadership on organizational innovation. Besides that, the study also proves that organizational innovation is an intervening variable in the relationship between internal control systems and organizational culture on organizational performance. However, it cannot prove the mediating role of organizational innovation in the relationship between transformational leadership and organizational performance.
Maqdliyan et al. (Thu,) studied this question.