Mediating Role of Organizational Change Readiness on Knowledge Management and Entrepreneurial Orientation for Innovation


  • Lily Sudhartio Universitas International Batam
  • Pulung Peranginangin Universitas International Batam
  • Mohammad Hamsal Binus University
  • Kasandika Ganiarsa Universitas Indonesia



COVID-19, entrepreneurial orientation, innovation, knowledge management, organizational change readiness


The research aimed to explore the factors that could help schools enhance their innovation which is challenging due to their institution nature. Three variables were investigated as the antecedents of innovations: entrepreneurial orientation, knowledge management, and organizational change readiness. In education, entrepreneurial orientation is gauged through five dimensions: innovativeness, proactiveness, risk-taking, autonomy, and competitive aggressiveness. The knowledge management process involves three dimensions: knowledge creation, knowledge sharing, and knowledge utilization. The relationship between knowledge management variables is formative, as no single dimension fully captures the entire process; each contributes uniquely. Organizational change readiness dimensions include changing commitment and change efficacy. Dependent variable innovation is assessed through technical, administrative, and managerial innovation. The empirical research was quantitative by design, and data were collected from 110 private secondary schools across Indonesia. The research model was tested using partial least squares – structural equation modeling (PLS-SEM) with the extended repeated indicator approach. The research finds that entrepreneurial orientation does not directly affect innovation, but it is fully mediated by organizational change readiness. Additionally, while knowledge management has a significant direct effect on innovation, organizational change readiness partially mediates the relationship. The research also highlights the importance of organizational change readiness, which has rarely been discussed in entrepreneurial orientation and knowledge management literature.


Plum Analytics

Author Biography

Mohammad Hamsal, Binus University

Doctor of Research in Management, Binus Business School



Abbas, J., & Sağsan, M. (2019). Impact of knowledge management practices on green innovation and corporate sustainable development: A structural analysis. Journal of Cleaner Production, 229, 611-620.

AlNuaimi, B. K., & Khan, M. (2019). Public-sector green procurement in the United Arab Emirates: Innovation capability and commitment to change. Journal of Cleaner Production, 233, 482-489.

Amels, J., Krüger, M. L., Suhre, C. J. M., & van Veen, K. (2020). The relationship between primary school leaders’ utilization of distributed leadership and teachers’ capacity to change. Educational Management Administration and Leadership, 49(5), 732-749.

Anderson, J. C., & Gerbing, D. W. (1988). Structural equation modeling in practice: A review and recommended two-step approach. Psychological Bulletin, 103(3), 411-423.

Balasubramanian, S., Yang, Y., & Tello, S. (2020). Does university entrepreneurial orientation matter? Evidence from university performance. Strategic Entrepreneurship Journal, 14(4), 661-682.

Becker, J.-M., Cheah, J.-H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2023). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management, 35(1), 321-346.

Breznik, K. (2018). Knowledge management – from its inception to the innovation linkage. Procedia - Social and Behavioral Sciences, 238, 141-148.

Cheng, E. C. K. (2020). Knowledge management for improving school strategic planning. Educational Management Administration & Leadership, 49(5), 824-840.

Donthu, N., & Gustafsson, A. (2020). Effects of COVID-19 on business and research. Journal of Business Research, 117, 284-289.

Doringin, F., Silaban, S., Tarigan, N., Oktriono, K., & Doringin, P. (2020). Knowledge management develops teaching-learning activities in school. Proceedings of the 1st International Conference on Information Technology and Education (ICITE 2020), 122-127.

Elrehail, H., Emeagwali, O. L., Alsaad, A., & Alzghoul, A. (2018). The impact of transformational and authentic leadership on innovation in higher education: The contingent role of knowledge sharing. Telematics and Informatics, 35, 55-67.

Ferraris, A., Giachino, C., Ciampi, F., & Couturier, J. (2021). R&D internationalization in medium-sized firms: The moderating role of knowledge management in enhancing innovation performances. Journal of Business Research, 128, 711-718.

Haelermans, C. (2010). Innovative power of Dutch secondary education. Innovation: Management, Policy & Practice, 12(2), 154-165.

Haelermans, C., & Blank, J. L. T. (2012). Is a schools’ performance related to technical change? - A study on the relationship between innovations and secondary school productivity. Computers and Education, 59(3), 884-892.

Hermansen, H., & Lund, A. (2023). Beyond implementation: Enabling sustainable transformations of digital teaching and learning in higher education. In R. Pinheiro, C. Edelhard Tømte, L. Barman, L. Degn, & L. Geschwind (Eds.), Digital Transformations in Nordic Higher Education (pp. 97-118). Springer International Publishing.

Ho, C. S. M., Lu, J., & Bryant, D. A. (2020). The impact of teacher entrepreneurial behaviour: a timely investigation of an emerging phenomenon. Journal of Educational Administration, 58(6), 697-712.

Ho, C. S. M., Lu, J., & Bryant, D. A. (2021). Understanding teacher entrepreneurial behavior in schools: Conceptualization and empirical investigation. Journal of Educational Change, 22(4), 535-564.

Hosseini, M., Dadfar, H., & Brege, S. (2018). Firm-level entrepreneurship and international performance: A simultaneous examination of orientation and action. Journal of International Entrepreneurship, 16(3), 338-368.

Hughes, M., Hughes, P., Morgan, R. E., Hodgkinson, I. R., & Lee, Y. (2020). Strategic entrepreneurship behaviour and the innovation ambidexterity of young technology-based firms in incubators. International Small Business Journal: Researching Entrepreneurship, 39(3), 202-227.

Inkinen, H. T., Kianto, A., & Vanhala, M. (2015). Knowledge management practices and innovation performance in Finland. Baltic Journal of Management, 10(4), 432-455.

Jalilvand, M. R., Nasrolahi Vosta, L., Khalilakbar, R., Khazaei Pool, J., & Tabaeeian, R. A. (2019). The effects of internal marketing and entrepreneurial orientation on innovation in family businesses. Journal of the Knowledge Economy, 10(3), 1064-1079.

Jiang, F., Wang, G., & Jiang, X. (2019). Entrepreneurial orientation and organizational knowledge creation: A configurational approach. Asia Pacific Journal of Management, 36(4), 1193-1219.

Krishnamurthy, S. (2020). The future of business education: A commentary in the shadow of the Covid-19 pandemic. Journal of Business Research, 117, 1-5.

Lam, L., Nguyen, P., Le, N., & Tran, K. (2021). The relation among organizational culture, knowledge management, and innovation capability: Its implication for open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 66.

Latif, K. F., Afzal, O., Saqib, A., Sahibzada, U. F., & Alam, W. (2021). Direct and configurational paths of knowledge-oriented leadership, entrepreneurial orientation, and knowledge management processes to project success. Journal of Intellectual Capital, 22(1), 149-170.

Nasution, M. D. T. P., Rafiki, A., Lubis, A., & Rossanty, Y. (2021). Entrepreneurial orientation, knowledge management, dynamic capabilities towards e-commerce adoption of SMEs in Indonesia. Journal of Science and Technology Policy Management, 12(2), 256-282.

Peñate, A. H., Padrón-Robaina, V., & Nieves, J. (2023). The role of technological resources in the reputation of vocational education schools. Education and Information Technologies.

Pérez-Luño, A., Wiklund, J., & Cabrera, R. V. (2011). The dual nature of innovative activity: How entrepreneurial orientation influences innovation generation and adoption. Journal of Business Venturing, 26(5), 555-571.

Rehman, U. U., & Iqbal, A. (2020). Nexus of knowledge-oriented leadership, knowledge management, innovation and organizational performance in higher education. Business Process Management Journal, 26(6), 1731-1758.

Rofiaty, R. (2019). The relational model of entrepreneurship and knowledge management toward innovation, strategy implementation and improving Islamic boarding school performance. Journal of Modelling in Management, 14(3), 662-685.

Sarstedt, M., Hair, J. F., Cheah, J. H., Becker, J. M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197-211.

Seetharaman, P. (2020). Business models shifts: Impact of Covid-19. International Journal of Information Management, 54.

Sudibjo, N., Aulia, S., & Harsanti, H. G. R. (2022). Empowering personal knowledge management among teachers in Indonesia: A multi-faceted approach using SEM. SAGE Open, 12(1).

Sullanmaa, J., Pyhältö, K., Pietarinen, J., & Soini, T. (2021). Relationships between change management, knowledge sharing, curriculum coherence and school impact in national curriculum reform: A longitudinal approach. International Journal of Leadership in Education, 1-25.

Supermane, S., & Tahir, L. M. (2018). An overview of knowledge management practice among teachers. Global Knowledge, Memory and Communication, 67(8-9), 616-631.

Uusitalo, P., & Lavikka, R. (2020). Overcoming path dependency in an industrialised house-building company through entrepreneurial orientation. Buildings, 10(3), 45.

Vincent-Lancrin, S., Urgel, J., Kar, S., & Jacotin, G. (2019). Measuring innovation in education 2019: What has changed in the classroom? In Educational Research and Innovation. Paris: OECD Publishing.

Wang, T., Olivier, D. F., & Chen, P. (2020). Creating individual and organizational readiness for change: Conceptualization of system readiness for change in school education. International Journal of Leadership in Education, 26(6), 1037-1061.

Weiner, B. J., Clary, A. S., Klaman, S. L., Turner, K., & Alishahi-Tabriz, A. (2020). Organizational Readiness for Change: What We Know, What We Think We Know, and What We Need to Know. In B. Albers, A. Shlonsky, & R. Mildon (Eds.), Implementation Science 3.0 (pp. 101-144). Springer International Publishing.

Zhai, Y. M., Sun, W. Q., Tsai, S. B., Wang, Z., Zhao, Y., & Chen, Q. (2018). An empirical study on entrepreneurial orientation, absorptive capacity, and SMEs’ innovation performance: A sustainable perspective. Sustainability, 10(2), 1-14.






Digital Transformation from Strategic Perspective in Developing Countries
Abstract 203  .
PDF downloaded 86  .