A moderate mediation model of VUCA skills and strategic leadership for increasing organizational innovation with resource-based strategies

Abstract

The telecommunications network sector plays a critical role in supporting Indonesia’s digital infrastructure, particularly in the expansion of 4G technology. Amidst rapid technological advancement and intensifying market competition over the past decade, sustaining organizational innovation (OI) has become essential for long-term competitiveness. Anchored in the resource-based view (RBV), this study investigates how resource-based management initiatives (RBMI) influence OI, while addressing inconsistencies in previous empirical findings. By integrating dynamic capability theory (DCV) and contingency leadership theory, the study introduces VUCA skills as a mediating variable and strategic leadership (SL) as a moderating factor. Using a quantitative approach, data were collected through descriptive and explanatory surveys from 311 managers in four wireless telecommunications infrastructure companies in Indonesia. The analysis conducted using Structural Equation Modelling–Partial Least Squares (SEM–PLS), reveals that RBMI positively influences VUCA skills, which significantly enhance OI. However, the hypothesized moderating effect of strategic leadership on the RBMI–OI relationship was not supported, indicating SL may act more as an external enabler than an internal organizational driver. These findings contribute to a deeper understanding of how strategic capability integration can support innovation in dynamic and uncertain environments.