The Causal Relationship of Organizational Capabilities in Technological Competency Development for Aviation Business Employees Affecting Service Excellence And Business Performance
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Abstract
Nowadays’ competitive and rapidly evolving aviation business, external environment and technological advancements are crucial drivers of organizational success. Integrating the theories of resource-based view theory, contingency theory and system theory, this study aims 1) to test relationship of business complexity management and enterprise risk management affecting organizational capabilities in technological competency development for employees, 2) to test relationship of organizational capabilities in technological competency development for employees affecting service excellence and business performance, and 3) to examine the consistency of the model of organization capabilities in technological competency development for employees with the empirical data. Quantitative method is conducted by questionnaire from 220 executive managers of aviation business, then employing Path Analysis and Structural Equation Model analysis (PLS-SEM) to test the casual relationship. According to the result of Confirmatory Factor Analysis, it shows that the model is consistent with empirical data. Based on the chi-square = 350.123, degree of freedom = 194, P-Value = 0.23, the relative chi-square = 1.80, CFI = 0.98, GFI = 0.98, AGFI = 0.97, and RMSEA = 0.01. The research results can be used to develop the technological competency development for employees on how aviation business can achieve service excellence and organization performance.
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