Innovation at the core: investigating the impact of entrepreneurial orientation, digital literacy, and digital-based innovation adoption on public service performance

This study investigates the impact of entrepreneurial orientation, digital literacy, and the adoption of digital-based innovation on public service performance. It addresses the need for public organizations to improve their responsiveness to citizen demands.

An explanatory research design was employed, drawing on the Resource-Based View (RBV) and Affordance Theory to develop hypotheses. Data was collected through an online survey of 100 public sector employees in Indonesia who are directly involved in innovation processes. Data analysis was conducted using the Partial Least Squares-Structural Equation Modelling (PLS-SEM) method with SmartPLS 4 software.

The results demonstrate that entrepreneurial orientation and digital literacy positively influence the adoption of digital-based public service innovation. Furthermore, the adoption of digital innovation mediates the effect of entrepreneurial orientation on public service performance. However, digital literacy did not moderate the relationship between entrepreneurial orientation and digital innovation adoption.

The findings suggest that public organizations should enhance their adoption of digital innovations and equip their staff with both entrepreneurial orientation and digital literacy to improve service delivery and performance outcomes.

This study provides new insights into the role of entrepreneurial orientation and digital literacy as antecedents for promoting digital innovation in public organizations, offering guidance for public institutions aiming to optimize service performance in a rapidly digitalizing environment.