THE EFFECT OF INFORMATION TECHNOLOGY CAPABILITY, AND STRATEGIC PLANNING ON KNOWLEDGE MANAGEMENT MEDITED ORGANIZATIONAL PERFORMANCE IN THE ARMY CENTRAL IMPLEMENTING AGENCY

 

Eko Daryanto ¹, Farida Jasfar ², Kusnadi ³

 

^{1, 2, 3} Faculty of Economics, University Trisakti Jakarta, Indonesia

 

1. INTRODUCTION

The Indonesian Armed Forces of the Army has gradually implemented technology through rejuvenating the equipment and main tools of its weapons system on a computerized basis. The working mechanism in units of the Indonesian Army's National Armed Forces has used information systems through application development to simplify and speed up tasks and can provide more accurate data. Based on Decree number 66/2019 concerning the Organizational Structure of the Indonesian Army National Army. Then the Central Implementing Agency is a work unit at the Indonesian National Armed Forces Headquarters level and the Army Headquarters which serves as staff and implementers of activities at the central level within the scope of the Indonesian National Armed Forces Headquarters or the Army Headquarters. The Organization of the Central Implementing Body of the Indonesian Army National Armed Forces is an organization formed by overseeing other organizations including:

The Army Information Service was ratified based on the Army Chief of Staff Regulation No. 6 of 2015. The main task is to carry out the Information function in order to support the main tasks of the Army.

The Center for Passwords and Cyber ​​​​is established based on Army Chief of Staff Regulation No. 26 of 2019. The main task is to carry out personnel development as well as password and cyber functions in order to support the tasks of the Indonesian Army and the Indonesian National Army.

The Army Information and Data Processing Service is established based on the Army Chief of Staff Regulation No. 24 of 2017. The task of the Army Information and Data Processing Service is to organize information system development and data processing which includes the construction, development, maintenance and preparation of the Indonesian Armed Forces Information system. The Army electronically covering the fields of intelligence, operations, personnel, logistics/material, territorial, finance, force development planning, programs and budgets, methods and maintenance in order to support the tasks of the Indonesian Army.

The Indonesian Army National Army carries out its activities in a competitive environment, and if the ranks of the Indonesian Army National Army want to survive and exist, they must be prepared to face many challenges whose impacts will affect performance both positively and negatively. Organizations that can face challenges by using resources as much and efficiently as possible will be able to maintain and even improve their business performance. Organizational performance is a vital indicator of organizational success or failure. The challenge faced by the ranks of the Indonesian Armed Forces at this time is the unstoppable development of industry 4.0 so that an organizational reaction is needed to prepare all organizational resources which include knowledge and capabilities of Human Resources, capabilities in the field of information technology, capabilities in the field of Human Resource management and leadership.

An empirical study conducted by Jain (2016) proves that an increase in the use of technology significantly increases the need for human resource development such as formal and informal training and education (training and development). Purdue further, (2016) Purdue (2016) explains that in an environment where knowledge and technology continue to grow and develop, training and development are key factors in organizational success. Smart organizations invest in employee training and development to improve job performance, increase productivity and boost morale all of which are aimed at improving the overall performance of the organization. This is in line with Roth's research, (2016) Roth (2016) which suggests that technology development significantly improves personnel performance in supporting organizational performance. Military organizations are divided into systems, natural systems, rational systems and open systems. Natural system means that military organizations struggle to defend themselves and protect interests in an environment of scarce resources and conflict. The rational system means that military organizations aim to increase efficiency in how to secure the country. A military organization like this will determine a strategy based on the geography, technological development, and behavior of its adversary. Meanwhile, the open system means that the military organization is a manifestation of strong institutional rules and myths that bind its members.

The research gap found is that there is still limited comprehensive research in Indonesia related to the influence of Information Technology Capability in the military, Strategic Planning and Knowledge Management on the Organizational Performance of the Indonesian Army's military, as well as the nature of information on the military whose characteristics are limited and confidential. the first perception related to military information technology which is scientifically reviewed and published to the public. This can be seen from previous research: "Process of strategic planning and cognitive diversity as determinants of cohesiveness and performance" Nowak (2020). This study found a negative effect of cognitive differences among employees on unit cohesiveness and performance and a positive moderating effect of the strategic planning process on these relationships. Pham and Hoang (2019); Nowak (2020).

The novelty in this research is, Information Technology Capability and Strategic Planning, namely strengthening Information Technology Capability which is supported by the right plan and the placement of Knowledge Management to improve the Organizational Performance of the Indonesian Army's military.

 

2. LITERATURE REFERENCES

This study tries to develop theories about Information Technology Capabilities which is carried out to see how Information Technology Capabilities help human resources so that they will improve organizational performance. Alshaher (2020); Zheng et al. (2020).

Strategic Planning, which is carried out for organizational strategic planning, is found in several studies from (Barron Chou (2017); Esfahani et al. (2018); Dlamini et al. (2019); Al-Dhaafri and Alosani (2020). Knowledge Management also depends on the human aspect where some previous and recent studies that have become references are according to several experts including, (Inkinen (2016); Allam and Mohamed (2017); Yee et al. (2019)). Organizational Performance according to Antony & Bhattacharyya (2018); Oyewobi et al. (2019) The potential success of an organization depends to a large extent on performance, which is related to its ability to effectively implement strategies to achieve organizational goals. (Baird et al. (2019); Chen et al. (2020)).

Information Technology capabilities are the main drivers that support organizational management in doing business in the digital era (Turulja and Bajgoric (2019)), while knowledge and Human Resources (HR) are increasingly considered as the main drivers of global competitive advantage in a dynamic and complex business environment (Klimkiewicz and Oltra (2017); Stathakis et al. (2017). Human resource management and knowledge management are considered as important segments of organizational management to achieve competitiveness and superior business performance. Knowledge has become the most strategically significant resource of an organization due to its heterogeneity and immobility (Gupta et al. (2017)).

According to the Resource Based View theory, information technology resources can improve business performance, but only if accompanied by other resources such as (1) an effective organizational structure, (2) a productive culture, and (3) skills that support improving information technology assets. for organizational needs (Wade (2013); Barua and Mitragotri (2014); Acemoglu  (2015); Mathis et al. (2017); Parrish (2018); Van Waeyenberge (2019)).

The implementation of knowledge management is related to technology, organizational adjustment, evaluation of knowledge management activities and / or knowledge resources, regulating / managing activities and / or knowledge resources, employee motivation, and external factors can improve organizational performance (Holsapple et al. (2014)) . Synergy in knowledge management practices is needed so that it can have a significant impact on organizational performance. (Turulja and Bajgoric (2019)) shows that information technology capabilities will improve Human Resource management capabilities and improve information technology knowledge management capabilities. As a result, information technology knowledge management capabilities and Human Resources management capabilities will improve the organization's business performance. In addition, there is an interaction effect of knowledge management capability and Human Resource management capability on business performance. This study is in line with the results of research (Ahmed et al. (2018)) showing that the orientation of knowledge management capabilities strategies that are different and complementary to one another is an important relationship in the relationship between knowledge management strategies and organizational performance, but this study also shows there is no direct influence of knowledge management strategy orientation on organizational performance.

Strategic Planning is the approach of the Indonesian Army's National Armed Forces in carrying out the main organizational tasks carried out by the Indonesian Army's National Armed Forces Headquarters through the Indonesian Army's Central Implementing Body Organization. Coordinate with the organizational division of the Army Information Service, the Center for Passwords and Cyber, the Army Information and Data Processing Service. Organizational performance is influenced by several factors, including Strategic Planning (Bolland and Bolland  (2020)). Strategic Planning is a systemic process that is agreed upon by the organization and builds engagement among stakeholders, especially regarding the essential priorities for its mission and responsiveness to the operational environment (Barron and Chou (2017)).

The Department of Human Resource Management considers military experience a plus, in part, due to the mission-oriented work ethic of ex-military soldiers and quality management training. The military is related to the knowledge management program used in developing training quite comprehensively. The private sector can learn more from the military, including more effective ways of applying information technology to remote learning and teaching. (Frey  and Osborne (2017); Garcia-Lausin et al. (2019)).

 Knowledge Management has several views related to knowledge, namely: (i) The first group views human capital as the owner of knowledge, (ii) The second group views knowledge without involving Human Resources, (iii) The third group discusses Human Resources Management (human capital) and Knowledge Management that a) knowledge depends on people and b) the practice of Human Resources Management is fundamental to Knowledge Management in organizations (Klimkiewicz and Oltra (2017)). Military Knowledge faces many of the same challenges as the private sector in dealing with the realities of the Information age. The main focus of the military, centered on the development of new strategies that enable it to maintain a dominant military position in spite of funding constraints (Ruel et al. (2018)).

Organizational Performance of the Indonesian National Armed Forces The Army wants to give birth to the benefits of its intellectual capital, so the role of human capital should be seen as a strategic resource, because only humans can create knowledge. Organizations should pay attention to the dimensions of knowledge and the differences in value creation activities related to human capital as a superior resource for the organization. Organizations should be able to form an organizational physical environment that can encourage creativity and an organizational culture that has shared values and openness. With such a focus, organizations must be able to develop more significant programs, which can encourage innovation (Anwar et al. (2016)); (Pang, and Lu (2018)); (Pham and Hoang (2019).

 

3. METHODOLOGY

The qualitative method used in this study is to raise the facts that exist in the organization, namely to see the Capability of Information Technology (Zheng et al. (2020)) and Strategic Planning (Al-Dhaafri and Alosani (2020)) as independent and Organizational Performance (Chen et al. (2020)) as the dependent variable, while Knowledge Management (Pour et al. (2019)) as the mediating variable. In this study, using a descriptive and verification approach (Hair et al. (2015); Voler Hoffman (2015)). Descriptive approach is a method in examining the status of human groups, objects, conditions and systems of thought. The purpose of descriptive research is to make a systematic, factual and accurate description, picture or painting of the facts, characteristics and relationships of the phenomena being investigated. The verification approach is a research method that aims to determine the causal relationship between variables through a hypothesis test through a statistical calculation so that evidence is obtained that shows the hypothesis is rejected or accepted (Hair et al. (2015); Voler Hoffman (2015)).

The research method used in this study is a qualitative method. Research using qualitative methods, namely researchers using questionnaires in conducting data collection techniques. The qualitative method is a research method based on the philosophy of positivism, used to examine the condition of natural objects, (as opposed to experimentation) where the researcher is the key instrument, data collection techniques are carried out by triangulation (combined), data analysis is inductive/qualitative, and the results of qualitative research emphasize meaning rather than generalizations (Rahi (2017)).

This study consists of Independent Variables, namely Information Technology Capability (Zheng et al. (2020)) and Strategic Planning (Al-Dhaafri and Alosani (2020)). The dependent variable is Organizational Performance (Chen et al. (2020)) and Knowledge Management variables. (Pour et al. (2019)) as a mediating variable. The following is a conceptual definition and variable indicator. The types of data used in this study are classified into two types, namely:

1)     Primary data, namely data obtained directly through the distribution of questionnaires to respondents.

2)     Secondary data, namely data obtained indirectly by obtaining references in the form of literature books, scientific articles, research results, and other sources.

In this study, two data collection techniques were used, namely questionnaires conducted by giving a set of questions or written statements to respondents, and observations made directly to research objects, especially those concerning the variables studied.

Questionnaires were distributed to respondents who are military leadership officers of the Indonesian Army at the level of strategic or operational policy makers. The number of samples in this study that was successfully obtained would be respondents, using primary data and distributing questionnaires directly. The sample used is as many as 120 people. The sampling technique is purposive sampling. From this amount, this study will take a sample of respondents from the category of leaders who can make decisions. The results of these respondents are planned to be processed using SMART PLS/SEM.

Primary data collection in this study was carried out through a survey process. The survey was conducted using a questionnaire instrument. Questionnaires are the most commonly used data collection instrument in business research (Cooper and Schindler (2014)). The questionnaire made did not ask for the name of the respondent and the company where he worked to ensure that the respondent gave an objective answer. The cover letter also states that the data collected will be kept confidential and for academic purposes only, so to ensure its representation the probability sampling technique chosen is stratified random sampling. Another method that can be referred to to get the sample size is according to the Krejcie and Morgan Table.

 

4. RESULT AND DISCUSSION

Descriptive statistics is a process that can be carried out in research data in tabulated form so that it can be easily understood and interpreted. Descriptive statistical data analysis aims to analyze data by summarizing and describing numerical data regarding gender, age, status, position. Based on the results of descriptive analysis of respondents' data based on gender who participated in the study. That there are 85 male respondents (91.4%) and 8 female respondents (8.6%). These results indicate that more men are decision makers as officers and echelon officers in the Army Headquarters environment compared to women. Respondent data by age.

Table 1 Respondent Data by Age
Age	Frekwensi	Persentase
21- 30	2	2,2 %
31- 40	8	8,6 %
41- 50	73	78,5 %
51- 60	10	10,8 %
Total	93	100%
Source: Processed data (2022)

 

Table 1 shows that there are 2 people aged 21-30 with a percentage of 2.2% indicating that at this age the number of personnel who are appointed as decision-making officials is still in the process of leading a good career. Furthermore, for the age of 31-40 (8.6%) indicates the age that is starting to enter the process of increasing position towards a better and more productive level, namely 8 people. At this age the career path begins to show the organization that personnel have begun to increase. For ages 41-50 (78.5%) shows the maturity of decision makers at the Army Headquarters, Indonesian National Army Officers, Army staff and military leadership of the Indonesian Army, through the Central Implementing Body Organization of the Indonesian Army National Army. Coordinate with the organizational division of the Army Information Service, the Center for Passwords and Cyber. Army Information and Data Processing Service, for personnel who are experienced in their fields as many as 73 leaders, followed by the age of 51-60 (10.8%) with 10 people, the age of starting to retire at work because of a long career in the army. Military Organizations, especially the Army Headquarters. Respondents in this study also have different levels of education. Respondent data based on education

Table 2 Respondent Data Based on Education
Education	Frekwensi	Persentase
Senior High School	3	3,2%
Diploma/D3	4	4,3%
Bachelor/S1	36	38,7%
Magister/S2	50	53,8%
Doktor/S3	0	0
Total	93	100%
Source: Processed data (2022)

 

Table 2 shows the average level of education of respondents in Senior High School as much as 3 people (3.2%) indicating that decision makers who graduated from Senior High School or equivalent have started a little because they have started to understand education in organizational activities, and decision makers who They are still educated at Senior High School or equivalent because they have been loyal to work in military organizations for a long time, while continuing to pursue higher education is forgotten. There are 4 Diploma/D3 graduates (4.3%), this also shows that at the level of decision makers who pass a Diploma or equivalent, only a few people show that decision makers have started well to plan their future education. For undergraduate/S1 graduation as many as 36 people (38.7%). At the undergraduate level, many people begin to notice that education is important for making decisions and changing one's mindset. For graduation at the Masters/S2 level, 50 people (53.8%) indicate the quality of employees at the decision-making level at the Army Headquarters, both Army staff and military leadership of the Indonesian Army Army through the Central Executive Agency Organization of the Indonesian Army Army. Coordinate with the organizational division of the Army Information Service, the Center for Crypto and Cybersecurity, the Army Information and Data Processing Service, the ability to analyze and provide good service to other parties is also getting better, especially in the use of expertise based on education, especially military organizations and this level of education. demonstrate the ability of the strategic division, especially the decision makers to be able to analyze the concept and development of military organizations well.

The loading factor value for each indicator from the data processing results must be more than 0.5 and the average extracted variance (AVE) value must be more than 0.5 to assess convergent validity.

The results of the reliability test to see the value of Cronbach's alpha and composite reliability. The requirements for the value of Cronbach's alpha and composite reliability are 0.7. So that all variables in this study are said to be reliable. The results of reliability testing of the variables of this study are outlined in Table 3

 

 

 

Table 3 Reliability Test Results
Variabel	Dimensi	Cronbachs Alpha	Composite Reliability
Information Technology Capability	Knowledge Operation infrastructure	0.811	0.856
Strategic Planning	Top management Facilities and Infrastructure Fund Strategic Decision	0.855	0.906
Knowledge Management.	Altruistic Calling Emotional Healing Persuasive Mapping	0.88	0.909
Organizational Performance	Work Productivity Responsive Responsibilty	0.815	0.871
Source: Processed data (2022)

 

The results of testing the hypothesis of the influence of each variable are as follows:

H1. Information Technology capability has a T-Statistic value of 8.776 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Information Technology Capabilities have a positive significant effect on Organizational Performance

H2. Strategic Planning has a T-Statistic value of 5.409 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Strategic Planning has a significant positive effect on Organizational Performance.

H3. Information Technology Capability has a T-Statistic value of 16,261 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Information Technology Capabilities have a significant positive effect on Knowledge Management.

H4. Strategic Planning has a T-Statistic value of 4.043 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Strategic Planning has a significant positive effect on Knowledge Management.

H5. Knowledge Management has a T-Statistic value of 5.028 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Knowledge Management has a positive significant effect on Organizational Performance

H6. Information Technology Capability, has a T-Statistic value of 5.045 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Information Technology Capability has a positive effect on Organizational Performance mediated by Knowledge Management

H7. Strategic Planning has a T-Statistic value of 5.881 > 1.96 and a P-Value of 0.000 < 0.050. This figure shows that Strategic Planning has a positive effect on Organizational Performance mediated by Knowledge Management.

 

 

 

 

5. CONCLUSION

The results of this study provide a conclusion that in general, Information Technology Capability and Strategic Planning are variables that affect Organizational Performance and also Knowledge Management as a mediating variable. Likewise Knowledge Management has a good influence on Organizational Performance, as well as the Knowledge Management variable as a mediation on the Information Technology Capability variable and Strategic Planning has a strong influence on the Organizational Performance of Army Headquarters, this will have a positive impact on the performance of the Agency Implementing the Indonesian National Army Center for the Army. Coordinate with the organizational division of the Army Information Service, the Center for Crypto and Crypto, the Army Information and Data Processing Service. There needs to be a maximum change if the Indonesian National Army, especially the Army is getting better, especially in improving the quality of Human Resources as well as improving organizational infrastructure, so that in the face of change it will be more prepared and keep up with the times and increasingly advanced technology. Cooperation that must be carried out from every part of the organization of the Indonesian National Armed Forces, especially the Army, can be well established. The conclusions of the variables in this study are as follows:

Information Technology Capability has a positive effect on Organizational Performance, illustrating that the organization of resources in the Central Executive Agency of the Indonesian Armed Forces. greatly affects organizational performance, affecting all officers and echelon officials in making decisions so that they are able to provide maximum policy in maintaining the level and ability that will play a role in technological capacity (Baird et al. (2019); Chen et al. (2020))

Strategic planning has a positive effect on Organizational Performance, this positive effect gives the conclusion that Strategic planning is able to show good planning for organizational performance, is the goal of the Central Implementing Agency for the Indonesian Army National Army in producing quality resources, as well as good capabilities so that the direction of quality must meet the dimensions that serve as a reference for the quality of the performance of the Indonesian Army's Central Implementing Body for the Indonesian Army, this is still the main task if the Indonesian Army's Central Implementing Body wants to continue to be a quality military organization. (Wright et al. (2018); Al-Dhaafri and Alosani (2020))

Information Technology Capabilities, significantly positive effect on Knowledge Management, the meaning of this positive influence is that Information Technology Capabilities received can give a positive reaction to Knowledge Management. Improving Information Technology Capability should be done by increasing the dimensions of the organization of resources in the Central Implementing Agency of the Indonesian Armed Forces. Coordinate with the organizational division of the Army Information Service, Crypto and Crypto Center, Army Information and Data Processing Service. (Baird et al. (2019); Chen et al. (2020))

Strategic planning that has a positive effect on Knowledge Management illustrates that the purpose of the human resource planning strategy is to meet the standards expected for the progress of the Central Implementing Agency for the Indonesian Army National Army so that good planning is carried out, especially in addressing all synergy policies from officials related to other resources. Antonym and Bhattacharyya (2018); Dlamini et al. (2019); Al-Dhaafri and Alosani (2020))

Knowledge Management has a positive effect on Organizational Performance, a significant positive effect on Organizational Performance, this illustrates that management knowledge greatly influences the performance of the Central Executing Agency for the Indonesian Armed Forces. Maximum management knowledge is the extent to which the benefits of an outcome are felt in accordance with what is expected. So that Knowledge Management is a strong variable that affects organizational performance, it can be seen from how all parties involved work together to increase the maximum value for the needs and desires of the Central Executive Board of the Indonesian Armed Forces (Allam and Mohamed  (2017); Yee et al. (2019)).

Information Technology Capability, on Organizational Performance mediated by Knowledge Management. This shows that the existence of Knowledge Management that mediates the Information Technology Capabilities provided by the Central Implementing Agency of the Indonesian Army National Army can increase the influence on the performance of officers and echelon officials at the Central Implementing Agency of the Indonesian Army National Army. Good organizational performance will have a maximum impact on the progress of the Indonesian Army's Central Executing Agency for the Army in each section, in maintaining Information Technology Capability, organizational readiness can create the performance of the Indonesian Army's Central Executing Agency for the Indonesian Army. (Baird et al. (2019); Chen et al. (2020)).

Strategic planning, on Organizational Performance mediated by Knowledge Management. This shows that this illustrates that strategic planning has an effect on organizational performance, so with Knowledge Management as a mediation, it will further increase the positive influence of strategic planning on the performance of the Central Executive Board of the Indonesian Army National Army. Good resources will bring good quality also for an organization that maximally develops all aspects for the advancement of the Central Implementing Agency of the Indonesian Army National Army. (Al-Dhaafri and Alosani (2020))

Based on the results of the research conducted, the theoretical implications related to the development of Knowledge Management theory and Organizational Performance of Information Technology Capability and Strategic planning for the Central Implementing Body of the Indonesian Armed Forces are as follows:

Information Technology Capability and Strategic Planning The results of this study strengthen the positive and significant influence of Information Technology and Strategic Planning Capabilities on the Organizational Performance of the Central Executive Agency of the Indonesian Army, in line with previous research. (Baird et al. (2019); Chen et al. (2020)).

Knowledge Management as a mediating on Information Technology Capability and Strategic Planning is able to improve the performance of the Central Implementing Agency of the Indonesian Armed Forces. (Allam and Mohamed  (2017); Yee et al. (2019))

The results of the study conclude that increasing Knowledge Management through increasing its dimensions will be able to improve the performance of the Central Implementing Agency for the Indonesian Army, it can increase the trust and loyalty of related parties. Improvement and development of the quality of human resources must first, pay attention to policies and strategic plans. The development will provide a good indication of the performance of the Indonesian Army's Central Executing Agency for the Indonesian National Armed Forces. Yee et al. (2019)

 

 

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