Enhancing Organizational Performance through Dynamic Capability, Knowledge Sharing, and Entrepreneurial Orientation

Abstract

Organizational performance enhancement has become increasingly important as businesses seek to leverage emerging technologies within the Creative Economy in the era of Industry 4.0. Creative resources are essential in generating unique products, particularly those rooted in rural creative ideas; however, their potential has not been optimally utilized despite rapid technological development. Prior studies highlight the importance of technology adoption, yet a gap remains regarding how human resource management transformation, knowledge sharing, and entrepreneurial orientation collectively strengthen dynamic capability and organizational performance in creative industries. This study aims to explore the changing role of human resource management in improving Creative Industry performance in Denpasar City, with dynamic capability as a mediating variable influenced by knowledge sharing and entrepreneurial orientation. Hypotheses were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS. Data were collected through questionnaires distributed to 62 respondents selected using random quota sampling. Descriptive analysis was owners to explore creative industry management practices. The findings reveal that knowledge sharing and entrepreneurial orientation have positive and significant effects on both dynamic capability and organizational performance. Furthermore, dynamic capability significantly enhances organizational performance. The results emphasize that technology alone does not guarantee transformation; instead, effective human resource readiness, knowledge exchange, and entrepreneurial orientation are critical to ensuring that technological advancements positively contribute to sustainable performance improvement in the creative industry.