Main Article Content
Abstract
Purpose of the study: The purpose of this study is to provide in-depth analysis to formulate appropriate work regulation policies and stimulate innovative work behavior in order to maintain company performance amid the COVID-19 pandemic. Therefore this encourages the identification of the effect of flexible work arrangements on employee performance through innovative work behavior on banking sector employees in the East Java region, Indonesia.
Methodology: This study has used a quantitative research approach. Data analysis has been done by Structural Equation Model (SEM) method by Partial Least Square (PLS) supported by program computer software smart-PLS 3.0, and SPSS 23.0, in order to analyze the respondents’ characteristics, with sample size, which is 70 respondents working in the banking sector in the East Java region, Indonesia.
Main Findings: We find that employee perceptions about their flexible work arrangements do not significantly influence employee performance, flexible work arrangements are positively related to innovative work behavior, innovative work behavior is positively related to employee performance and this relationship is mediated by innovative work behavior.
Applications of this study: Banking management in the East Java region needs to consider innovation-related work behavior amid the COVID-19 pandemic, which is the use of non-cash payment methods by scanning the retinal eye. This study shows that in the absence of physical contact with the practice of using this machine, it can be a concrete COVID-19 era preventive solution to be applied to the wider community.
Novelty/Originality of this study: The relationship between flexible work arrangements and employee's performance has been well researched. However, there has been no study on the impact of flexible work arrangements on employee performance mediated innovative work behavior and how employee innovativeness leads to better employee performance on the pandemic COVID-19 era.
Keywords
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References
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- Burns, T., & Stalker, G. (1961). Mechanistic and Organic Systems of Management. In T. Burns & G. Stalke (Eds.), Burns T, Stalker GM (The manage). Oxford University Press.
- Cappelli, P., & Tavis, A. (2018). HR Goes Agile. Harvard Business Review.
- Chin, W. W. (1998). The Partial Least Squares Approach for Structural Equation Modeling. In Modern Methods for Business Research (G A Marcou, pp. 295–336). Lawrence Erlbaum Associates.
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- Jong, J. De, & Hartog, D. Den. (2007). How Leaders Influence Employees’ Innovative Behavior. European Journal Of Innovation Management, 10(1), 41–64. https://doi.org/10.1108/14601060710720546 DOI: https://doi.org/10.1108/14601060710720546
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- Kessel, M., Hannemann-weber, H., & Kratzer, J. (2012). Innovative work behavior in healthcare: The benefit of operational guidelines in the treatment of rare diseases. Health Policy, 105(2–3), 146–153. https://doi.org/10.1016/j.healthpol.2012.02.010 DOI: https://doi.org/10.1016/j.healthpol.2012.02.010
- Kochan, T. A., Riordan, C. A., Kowalski, A. M., Khan, M., & Yang, D. (2019). The changing nature of employee and labor-management relationships. Annual Review of Organizational Psychology and Organizational Behavior, 6, 195–219. https://doi.org/10.1146/annurev-orgpsych-012218-015335 DOI: https://doi.org/10.1146/annurev-orgpsych-012218-015335
- Masuda, A. D., Poelmans, S. A. Y., Allen, T. D., Spector, P. E., & Moreno-Velazquez, I. (2012). Flexible Work Arrangements Availability And Their Relationship With Work-To-Family Conflict, Job Satisfaction, And Turnover Intentions: A Comparison Of Three Country Clusters. Applied Psychology: An International Review, 61(1), 1–29. https://doi.org/10.1111/j.1464-0597.2011.00453.x DOI: https://doi.org/10.1111/j.1464-0597.2011.00453.x
- Mathis, R. L., & Jackson, J. H. (2008). Human Resource Management (J. W. Calhoun, M. S. Acuña, J. A. Sabatino, S. C. Smart, & R. Belanger (eds.); T W E L F). Thomson South-Western, a part of The Thomson Corporation.
- McCulloch, A. (2020). Staff face ‘temporary’ redundancies and reduced hours. Personnel Today. https://www.personneltoday.com/hr/businesses-face-reducing-employees-hours-and-temporary-redundancies/
- MENKES (2020). Decree of the Minister of Health of the Republic of Indonesia Number HK.01.07 / MENKES / 328/2020 Concerning the Prevention and Control of Corona Virus Disease 2019 (COVID-19) in Office and Industrial Workplaces in Supporting Business Sustainability in Pa, Pub. L. No. HK.01.07/MENKES/328/2020, 1 (2020).
- Muhammadi, S. N., & Qaisar, A. (2009). Impact Of Work Life Conflict On Job Satisfaction Of Employees In Pakistan. International Journal of Business Management, 4(5), 13–21. https://doi.org/10.5539/ijbm.v4n5p63 DOI: https://doi.org/10.5539/ijbm.v4n5p63
- Mungania, A. K., Waiganjo, E. W., & Kihoro, J. M. (2016). Influence of Flexible Work Arrangements on Performance of the Banking Industry in Kenya. International Journal of Academic Research in Business and Social Sciences, 6(7), 159–172. https://doi.org/10.6007/IJARBSS/v6-i7/2238 DOI: https://doi.org/10.6007/IJARBSS/v6-i7/2238
- Rahman, M., & Kistyanto, A. (2019). Hubungan Antara Iklim Psikologis Terhadap Kinerja Karyawan Melalui Kepuasan Kerja. Dinamika Ekonomi - Jurnal Ekonomi Dan Bisnis, 12(2), 410–429. https://stienas-ypb.ac.id/jurnal/index.php/jdeb/article/view/208
- Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (Seventh). John Wiley & Sons Ltd.
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- Shanker, R., Bhanugopan, R., Heijden, V. Der, & Farrell, M. (2017). Organizational Climate For Innovation And Organizational Performance: The Mediating Effect Of Innovative Work Behavior. Journal of Vocational Behavior, 1(17), 1–37. https://doi.org/10.1016/j.jvb.2017.02.004
- Shipton, H., Sparrow, P., Budhwar, P., & Brown, A. (2017). HRM And Innovation: Looking Across Levels. Human Resource Management Journal, 27(2), 246–263. https://doi.org/10.1111/1748-8583.12102 DOI: https://doi.org/10.1111/1748-8583.12102
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- Tovstiga, G. (2013). Strategy In Practice: A Practitioner’s Guide To Strategic Thinking (2nd ed.). https://doi.org/10.1002/9781119207931 DOI: https://doi.org/10.1002/9781119207931
- Turgut, E., & Begenirbaş, M. (2013). Çalışanların Yenilikçi Davranışları Üzerinde Sosyal Sermaye ve Yenilikçi İklimin Rolü: Sağlık Sektöründe Bir Araştırma. KHO Bilim Dergisi, 23(2), 101–124.
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- Yahya, R., & Mesakh, E. (2020). Cool, Regency Government of Karimun Kepri Apply Attendance Eye Retina Scan Technology, 12 Machines Already Installed. Suryakepri.Com. https://suryakepri.com/2020/06/03/keren-pemkab-karimun-kepri-terapkan-teknologi-absensi-scan-retina-mata-12-mesin-sudah-terpasang/2/?amp=1
- Yunus, O. M., Bustaman, H. A., Wan, M. R., & Wan, F. A. (2014). Conducive Business Environment: Local Government Innovative Work Behavior. Social and Behavioral Sciences, 129, 214–220. https://doi.org/10.1016/j.sbspro.2014.03.669 DOI: https://doi.org/10.1016/j.sbspro.2014.03.669
References
Afsar, B., Badir, Y., & Muddassar, M. (2015). Person–job fit, person-organization fit and innovative work behavior: The mediating role of innovation trust. Journal of High Technology Management Research, 26(2), 105–116. https://doi.org/10.1016/j.hitech.2015.09.001 DOI: https://doi.org/10.1016/j.hitech.2015.09.001
Albion, M. J. (2004). A Measure of Attitudes Towards Flexible Work Options. Australian Journal of Management,29(2), 275–294. https://doi.org/10.1177/031289620402900207 DOI: https://doi.org/10.1177/031289620402900207
Bhattacharya, M., Gibson, D. E., & Doty, D. H. (2005). The Effects of Flexibility in Employee Skills, Employee Behaviors, and Human Resource Practices on Firm Performance. Journal of Management, 31(4), 622–640. https://doi.org/10.1177/0149206304272347 DOI: https://doi.org/10.1177/0149206304272347
BI. (2013). Indonesian Bank Function. Bi.Go.Id. https://www.bi.go.id/id/tentang-bi/fungsi-bi/tujuan/Contents/Pendukung.aspx
Burns, T., & Stalker, G. (1961). Mechanistic and Organic Systems of Management. In T. Burns & G. Stalke (Eds.), Burns T, Stalker GM (The manage). Oxford University Press.
Cappelli, P., & Tavis, A. (2018). HR Goes Agile. Harvard Business Review.
Chin, W. W. (1998). The Partial Least Squares Approach for Structural Equation Modeling. In Modern Methods for Business Research (G A Marcou, pp. 295–336). Lawrence Erlbaum Associates.
Constance, N. W., Zawawi, D., Karim, J., Mansor, S. A., Sentosa, I., Nerina, R., Yusuf, R., Karim, J., Constance, N. W., Zawawi, D., & Karim, J. (2019). Supervisory Justice, Organizational Citizenship Behavior, and Innovative Behavior: The Mediating Role of Tacit Knowledge Sharing Among Nurses. International Journal of Academic Research in Economics & Management Sciences (IJAREMS), 8(4), 27–47. https://doi.org/10.6007/IJAREMS/v8-i4/6703 DOI: https://doi.org/10.6007/IJAREMS/v8-i4/6703
Daskalakis, S., & Mantas, J. (2008). Evaluating the impact of a service-oriented framework for healthcare interoperability. Proceedings of MIE2008 (Studies in Health Technology and Informatics), 285–290.
Derin, N., & Gökçe, S. G. (2016). Are cyberloafers also innovators?: A study on the relationship between cyberloafing and innovative work behavior. Social and Behavioral Sciences, 235, 694–700. https://doi.org/10.1016/j.sbspro.2016.11.070 DOI: https://doi.org/10.1016/j.sbspro.2016.11.070
Duncan, W. J., Yeager, V. A., Rucks, A. C., & Ginter, P. M. (2011). Surviving organizational disasters. Business Horizons, 54(2), 135–142. https://doi.org/10.1016/j.bushor.2010.10.005 DOI: https://doi.org/10.1016/j.bushor.2010.10.005
Garson, G. D. (2016). Partial Least Squares: Regression & Structural Equation Models (2016th ed.). Statistical Publishing Associates.
Ghozali, I., & Latan, H. (2015). PARTIAL LEAST SQUARES Concepts, Techniques and Applications Using the Smart 3.0 Program (2nd ed.). Badan Penerbit Universitas Diponegoro.
Govender, L., Migiro, S. O., & Kyule, A. K. (2018). Flexible Work Arrangements, Job Satisfaction and Performance. Journal of Economics and Behavioral Studies, 10(3), 268–277. https://doi.org/10.22610/jebs.v10i3.2333 DOI: https://doi.org/10.22610/jebs.v10i3.2333
Hartman, E. A., Tower, C. B., & Sebora, T. C. (1994). Information Sources and Their Relationship to Organizational Innovation in Small Business. Journal of Small Business Management, 32(1), 36–47.
Henseler, J., Ringle, C. M., & Sarstedt, M. (2012). Using Partial Least Squares Path Modeling in International Advertising Research: Basic Concepts and Recent Issues. In Handbook of Partial Least Squares: Concepts, Methods and Applications in Marketing and Related Fields (Okzaki, S, pp. 252–276). Springer.
Hill, E. J., Grzywacz, J. G., Allen, S., Blanchard, V. L., Matz-Costa, C., Shulkin, S., & Pitt-Catsouphesc, M. (2008). Defining And Conceptualizing Workplace Flexibility. Community Work & Family, 11, 149–163. https://doi.org/10.1080/13668800802024678 DOI: https://doi.org/10.1080/13668800802024678
Höck, M., & Ringle, C. M. (2006). Strategic Networks in The Software Industry: An Empirical Analysis of The Value Continuum. IFSAM World Congress. http://www.ibl-unihh.de/IFSAM06.pdf
https://en.wikipedia.org/wiki/COVID-19_pandemic_in_Indonesia. Retrieved July 1, 2020
Ioan, L., Codruta, O., & Patricia, R. (2010). The Role Of WLB Practices In Order To Improve Organizational Performance. European Research Studies, 8(1).
Jokowi. (2020). Working Visit to East Java. https://www.instagram.com/p/CB2zERvhY3-/?igshid=a7arjt0c6bj7
Jong, J. De, & Hartog, D. Den. (2007). How Leaders Influence Employees’ Innovative Behavior. European Journal Of Innovation Management, 10(1), 41–64. https://doi.org/10.1108/14601060710720546 DOI: https://doi.org/10.1108/14601060710720546
Jong, J. De, & Hartog, D. Den. (2010). Measuring Innovative Work Behavior. Creativity and Innovation Management, 19(1), 23–36. https://doi.org/10.1111/j.1467-8691.2010.00547.x DOI: https://doi.org/10.1111/j.1467-8691.2010.00547.x
Kessel, M., Hannemann-weber, H., & Kratzer, J. (2012). Innovative work behavior in healthcare: The benefit of operational guidelines in the treatment of rare diseases. Health Policy, 105(2–3), 146–153. https://doi.org/10.1016/j.healthpol.2012.02.010 DOI: https://doi.org/10.1016/j.healthpol.2012.02.010
Kochan, T. A., Riordan, C. A., Kowalski, A. M., Khan, M., & Yang, D. (2019). The changing nature of employee and labor-management relationships. Annual Review of Organizational Psychology and Organizational Behavior, 6, 195–219. https://doi.org/10.1146/annurev-orgpsych-012218-015335 DOI: https://doi.org/10.1146/annurev-orgpsych-012218-015335
Masuda, A. D., Poelmans, S. A. Y., Allen, T. D., Spector, P. E., & Moreno-Velazquez, I. (2012). Flexible Work Arrangements Availability And Their Relationship With Work-To-Family Conflict, Job Satisfaction, And Turnover Intentions: A Comparison Of Three Country Clusters. Applied Psychology: An International Review, 61(1), 1–29. https://doi.org/10.1111/j.1464-0597.2011.00453.x DOI: https://doi.org/10.1111/j.1464-0597.2011.00453.x
Mathis, R. L., & Jackson, J. H. (2008). Human Resource Management (J. W. Calhoun, M. S. Acuña, J. A. Sabatino, S. C. Smart, & R. Belanger (eds.); T W E L F). Thomson South-Western, a part of The Thomson Corporation.
McCulloch, A. (2020). Staff face ‘temporary’ redundancies and reduced hours. Personnel Today. https://www.personneltoday.com/hr/businesses-face-reducing-employees-hours-and-temporary-redundancies/
MENKES (2020). Decree of the Minister of Health of the Republic of Indonesia Number HK.01.07 / MENKES / 328/2020 Concerning the Prevention and Control of Corona Virus Disease 2019 (COVID-19) in Office and Industrial Workplaces in Supporting Business Sustainability in Pa, Pub. L. No. HK.01.07/MENKES/328/2020, 1 (2020).
Muhammadi, S. N., & Qaisar, A. (2009). Impact Of Work Life Conflict On Job Satisfaction Of Employees In Pakistan. International Journal of Business Management, 4(5), 13–21. https://doi.org/10.5539/ijbm.v4n5p63 DOI: https://doi.org/10.5539/ijbm.v4n5p63
Mungania, A. K., Waiganjo, E. W., & Kihoro, J. M. (2016). Influence of Flexible Work Arrangements on Performance of the Banking Industry in Kenya. International Journal of Academic Research in Business and Social Sciences, 6(7), 159–172. https://doi.org/10.6007/IJARBSS/v6-i7/2238 DOI: https://doi.org/10.6007/IJARBSS/v6-i7/2238
Rahman, M., & Kistyanto, A. (2019). Hubungan Antara Iklim Psikologis Terhadap Kinerja Karyawan Melalui Kepuasan Kerja. Dinamika Ekonomi - Jurnal Ekonomi Dan Bisnis, 12(2), 410–429. https://stienas-ypb.ac.id/jurnal/index.php/jdeb/article/view/208
Sekaran, U., & Bougie, R. (2016). Research Methods for Business: A Skill-Building Approach (Seventh). John Wiley & Sons Ltd.
Shafer, R. A., Dyer, L., Kilty, J., Amos, J., & Ericksen, J. (2001). Crafting A Human Resource Strategy To Foster Organizational Agility: A Case Study. Human Resource Management, 40(3), 197–211. https://doi.org/10.1002/hrm.1011 DOI: https://doi.org/10.1002/hrm.1011
Shanker, R., Bhanugopan, R., Heijden, V. Der, & Farrell, M. (2017). Organizational Climate For Innovation And Organizational Performance: The Mediating Effect Of Innovative Work Behavior. Journal of Vocational Behavior, 1(17), 1–37. https://doi.org/10.1016/j.jvb.2017.02.004
Shipton, H., Sparrow, P., Budhwar, P., & Brown, A. (2017). HRM And Innovation: Looking Across Levels. Human Resource Management Journal, 27(2), 246–263. https://doi.org/10.1111/1748-8583.12102 DOI: https://doi.org/10.1111/1748-8583.12102
Sylvers, E., & Foldy, B. (2020). Fiat Chrysler, VW close plants as manufacturers guard against coronavirus. The Wall Street Journal. https://www.wsj.com/articles/fiat-chrysler-volkswagen-halt-production-in-parts-of-europe-11584351826
Thomas, D., Campbell, P., & Hancock, A. (2020). Companies from ford to Unilever send staff to work from home. The Financial Times. https://www.ft.com/content/1d54d08a-6555-11ea-b3f3-fe4680ea68b5
Tovstiga, G. (2013). Strategy In Practice: A Practitioner’s Guide To Strategic Thinking (2nd ed.). https://doi.org/10.1002/9781119207931 DOI: https://doi.org/10.1002/9781119207931
Turgut, E., & Begenirbaş, M. (2013). Çalışanların Yenilikçi Davranışları Üzerinde Sosyal Sermaye ve Yenilikçi İklimin Rolü: Sağlık Sektöründe Bir Araştırma. KHO Bilim Dergisi, 23(2), 101–124.
Wei, T. T., & Wong, L. (2020). Firms urged to stagger work hours, let staff work from home. The Straits Times. https://www.straitstimes.com/singapore/firms-urged-to-stagger-work-hours-let-staff-work-from-home
WHO. (2020a). Naming the coronavirus disease (COVID-19) and the virus that causes it. World Health Organization. https://www.who.int/ emergencies/diseases/novel-coronavirus-2019/technical-guidance/naming-the-coronavirus-disease-(COVID-2019)-and-the-virus-that-causes-it
WHO. (2020b). WHO Director-General’s opening remarks at the media briefing on COVID-19-11 March 2020. World Health Organization. https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19—11-march-2020
Yahya, R., & Mesakh, E. (2020). Cool, Regency Government of Karimun Kepri Apply Attendance Eye Retina Scan Technology, 12 Machines Already Installed. Suryakepri.Com. https://suryakepri.com/2020/06/03/keren-pemkab-karimun-kepri-terapkan-teknologi-absensi-scan-retina-mata-12-mesin-sudah-terpasang/2/?amp=1
Yunus, O. M., Bustaman, H. A., Wan, M. R., & Wan, F. A. (2014). Conducive Business Environment: Local Government Innovative Work Behavior. Social and Behavioral Sciences, 129, 214–220. https://doi.org/10.1016/j.sbspro.2014.03.669 DOI: https://doi.org/10.1016/j.sbspro.2014.03.669