The Impact of Innovation and Social Capital on Organizational Performance

A Sociotechnical Governance Model for Indonesia’s National Health Insurance Agency

Abstract

This study develops and empirically tests a sociotechnical governance model examining the joint influence of innovation and social capital on organizational performance within Indonesia’s National Health Insurance Agency (BPJS Kesehatan). As one of the largest single-payer health insurance systems globally, BPJS Kesehatan operates in a complex governance environment characterized by rapid enrollment expansion, fiscal sustainability challenges, and multi-stakeholder coordination demands. Using a quantitative explanatory design and Partial Least Squares–Structural Equation Modeling (PLS-SEM) with 400 respondents, innovation is operationalized through digital systems, ICT adoption, service redesign, and financing reform, while social capital comprises public trust, stakeholder engagement, participatory governance, and communication quality. Results indicate that innovation (β = 0.53, p < 0.001) and social capital (β = 0.41, p < 0.001) significantly enhance organizational performance, explaining 78.7% of its variance (R² = 0.787). Effect size analysis confirms moderate-to-strong contributions (f² = 0.39; f² = 0.26), and predictive relevance is supported (Q² = 0.52). The findings demonstrate that institutional resilience in large-scale public insurance systems depends on integrating technological modernization with relational legitimacy mechanisms.