The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable

International Journal of Social Science and Human Research ISSN (print): 2644-0679, ISSN (online): 2644-0695 Volume 08 Issue 12 December 2025 DOI: 10.47191/ijsshr/v8-i12-94, Impact factor8.007 Page No: 9971-9977 IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9971 The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable Golan Hasan1, Kelvin Yovanka2, Nahruddien Akbar M3 1,2, Faculty of Economics and Business University Internasional Batam, Indonesia 3 Faculty of Economics and Business University Pancasila Jakarta, Indonesia ABSTRACT: This study aims to analyze the influence of strategic sensitivity, resource fluidity, and leadership unity, and consider the role of innovation capability as a mediating variable. Data were collected through a survey involving 196 respondents from the Batam community, Indonesia. The data analysis method used was SmartPLS to test the direct and indirect relationships between variables. The results showed that strategic sensitivity and leadership unity had a positive and significant influence on performance. Meanwhile, innovation capability was shown to mediate the effects of strategic sensitivity and leadership unity on performance, with insignificant negative results. This study confirms the importance of strategic sensitivity and leadership unity on performance, with innovation capability as a mediating variable for communities and companies in Batam. These findings provide practical implications for several companies in Batam to focus more efforts on strategic sensitivity, resource fluidity, and leadership unity within their internal organizations in the future. KEYWORDS: Strategic Sensitivity, Resource Fluduity, Leadership Unity, Innovation Capability I. INTRODUCTION This research emerged in response to the increasingly complex business dynamics in the era of technology and globalization. Companies must adapt quickly, add value, and remain competitive in a rapidly changing business environment. Understanding and managing the components that influence business performance is considered a crucial approach to addressing this issue. In this context, this research identified key concepts such as strategic sensitivity, resource fluidity, and leadership unity, and considered the role of innovation capability as a moderating variable. Strategic sensitivity is the primary focus of this research because a business's ability to identify and respond to changes in its environment has become key in navigating uncertainty and global competition. Companies need to develop strategic sensitivity to identify new opportunities and address risks that may arise in a constantly changing business environment. Although numerous studies have emphasized the importance of strategic sensitivity, a deep understanding of how this component specifically impacts business performance remains lacking. (Wijaya and Rahmayanti 2023) This research also focuses on resource fluidity because of its crucial role in determining the extent to which a company can adapt its resources to environmental changes. Companies must have flexibility in allocating and utilizing their resources to adapt to market and technological dynamics. Resource flexibility encompasses a firm's ability to efficiently allocate, reconfigure, and combine resources to achieve its strategic objectives. While this concept has been a central focus in the management literature, a more indepth examination of how resource flexibility can impact business performance is needed. Leadership unity is the third component of focus due to the role of strong and successful leaders in guiding a company through change and directing it toward its strategic goals. Teams can succeed if their leaders can inspire, motivate, and manage them effectively. In this context, this study will investigate how different leadership styles can influence how a company responds to its external environment. In this study, innovation capability is proposed as a moderating variable because it is considered a determining factor in optimizing the impact of strategic sensitivity, resource fluidity, and leadership unity on performance. Innovation capability encompasses a company's ability to create, adopt, and implement innovations as part of its strategy. With this moderating variable, the study seeks to reveal the extent to which a company's innovation capability can strengthen or moderate the relationship between the other elements and performance. This study aims to add to the literature on strategic management and provide practical insights for business leaders and decisionmakers, as the researcher uses a holistic approach to understand the complex dynamics between strategic sensitivity, resource The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9972 fluidity, leadership unity, innovation capability, and performance. Companies can manage change more efficiently and enhance their competitiveness in a constantly changing global marketplace by understanding how these elements interrelate and interact. II. LITERATURE REVIEW 2.1 Strategic Sensitivity The concept of strategic sensitivity, a key concept in strategic management, encompasses an organization's ability to understand and carefully respond to changes in its external environment. In the modern business landscape characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), this has emerged as an indispensable characteristic. To navigate an ever-changing business environment, organizations require heightened awareness due to complex global market dynamics, technological advancements, and societal shifts. (Amini and Rahmani 2023) Strategic sensitivity not only impacts a company's survival but also its ability to advance and innovate. Strategically sensitive businesses are better able to identify unmet market needs, develop new products and services, and capitalize on opportunities. Such organizations can proactively shape their innovation agendas by keeping pace with shifts in consumer behavior and technological advancements. Strategic sensitivity is also crucial in risk management. Unforeseen risks can emerge unexpectedly in a rapidly changing environment, threatening an organization's survival. Strategically sensitive organizations not only identify risks early but also create proactive plans to mitigate them. Using these insights, organizations can build on strengths and even transform potential threats into strategic advantages (Zhang et al. 2023). Strategic sensitivity is a key pillar of the modern strategic management paradigm. It demonstrates an organization's ability to understand and respond to a constantly changing external environment. In an era characterized by volatility and rapid technological advancement, organizations that develop and enhance their strategic sensitivity are more likely to survive and thrive. This is an everchanging capability that requires a continuous commitment to adaptation, environmental scanning, and learning. Ultimately, strategic sensitivity is not just a strategic advantage; it is a prerequisite for an organization's long-term success in the complex and ever-changing modern business landscape. (Wang and Huang 2023) 2.2 Resource Fluidity To survive in an era of globalization and continuous change, organizations must possess the ability to adapt. In this context, the concept of resource fluidity has emerged as a crucial element in strategic management. Resource fluidity refers to an organization's ability to manage and allocate resources in a manner that adapts to the dynamics of its external environment. Resource accessibility becomes crucial for addressing challenges coming from multiple directions as business paradigms become increasingly complex. Overall, this concept has significant strategic implications related to how a company manages its resources and assets. In practice, organizations often face uncertainty from the external environment, and if not managed wisely, resources that were once strengths can become limitations. Therefore, resource flexibility demonstrates an organization's ability to alter resource allocation, configure assets, and adjust its portfolio according to changing market needs. (Uddin et al. 2023) In technology, resource flexibility demonstrates an organization's ability to quickly integrate, adopt, and manage new technologies. Organizations that successfully manage resource flexibility in this area will be able to embrace innovation and respond to technological change. Finally, resource flexibility in the context of knowledge refers to an organization's ability to dynamically manage knowledge and competencies. This encompasses things like employee training, international learning, and developing the company's intellectual capacity (Laihonen and Huhtamäki 2023). Resource flexibility cannot be measured solely by financial factors; factors such as organizational culture, leadership, and processes are also important. Organizations with cultures that support learning and flexibility tend to have higher levels of resource flexibility. Too much flexibility can lead to instability and uncertainty, and too little flexibility can hinder adaptation to change. Consequently, resource flexibility requires a balanced approach and a deep understanding of the business context the organization faces. For organizations seeking to remain relevant and sustainable in today's digital and global era, resource flexibility is essential. Change is constant, and organizations that can flexibly manage their resources will be more adept at facing challenges and capitalizing on opportunities. Therefore, resource flexibility is not only a strategic management concept but also an operational philosophy that reflects the way contemporary businesses operate. (Vogel 2023) 2.3. Leadership Unity People who play important roles in a group or organization are known as leaders. Leadership is not just about having power or a position, but rather the ability to inspire, motivate, and guide others toward a common goal. A leader leads not only with words, but also with actions and behavior. Good leaders have the ability to understand and manage different types of people. They have the ability to understand and respond to the desires, needs, and feelings of their group or team members. The ability to understand and communicate well is crucial for building strong relationships between those being led and their leaders. Good leaders not only listen but also understand others' perspectives. (Hoang, Yang, and Luu 2023) The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9973 A leader must also have a clear vision and be able to clearly communicate long-term and short-term goals. Effective leadership requires the ability to strategize and motivate others to achieve those goals. Visionary leaders see opportunities amidst difficulties and guide their teams toward achieving common goals. A leader must also have the ability to make difficult decisions and take responsibility for them. Courage and fairness are important qualities in handling conflict. Fair leaders can maintain fairness within their team or organization by making decisions that benefit all parties. Leadership relies on trust built through consistency in actions and decisions. (Singh et al. 2023) A leader in this era of constant change must have a broad understanding of various aspects of the industry and market due to the globalization and complexity of modern business. They must also possess management skills, data analysis, and technological savvy. A leader must also possess high integrity. Trustworthy leadership relies on honesty, responsibility, and good ethics. Leaders must be role models for their colleagues, building a positive organizational culture. Leadership isn't just a job or position; it's more like an active role that encourages, motivates, and motivates others to achieve shared goals. Good interpersonal skills, strategic ability, the courage to make difficult decisions, and moral integrity are all qualities necessary to be a good leader. Leaders can use these qualities to change things, create a productive workplace, and lead a team or organization to long-term success. (Riggio and Newstead 2023) 2.4. Innovation Capability Innovation capability encompasses an organization's ability to create, develop, and implement new concepts or major changes in its products, services, processes, or business models. To gain a competitive advantage in a constantly changing and evolving market, organizations with strong innovation capabilities tend to have a greater chance of leading in their industry and are better able to adapt to market changes. (Daronco et al. 2023) The ability to innovate begins with an organizational culture that supports innovation and experimentation. Opportunities for creative ideas are greater in companies that encourage their employees to think outside the box and take risks. This culture makes employees feel comfortable sharing ideas, collaborating, and trying new ideas without fear of punishment or criticism. Leadership is crucial to developing innovation capability, in addition to culture. The resources, inspiration, and direction needed to foster creativity are usually provided by visionary and innovation-supportive leaders. They view failure as a natural part of innovation and encourage teams to find new solutions. Optimizing innovation capability also requires a well-organized and managed innovation process. The process must be systematically organized, starting from problem or opportunity identification, idea development, concept testing, and implementation and evaluation. To respond quickly to market changes, organizations must be flexible in their innovation processes, but also remain focused and consistent. (Yusof et al. 2023) The ability to collaborate with others inside and outside the organization is also crucial. Internal and external stakeholders, such as customers, business partners, and industry stakeholders, are often involved in innovation. If an organization can collaborate and communicate well with various parties, they will have better access to knowledge and resources that will support their innovation projects. Innovation capability is also measured by investment in R&D. By allocating sufficient resources to research and development (R&D), organizations tend to have an advantage in creating new products or services that can meet evolving market needs. R&D is also crucial for increasing an organization's technological competitiveness and helping it stay ahead of new trends. Cultural change, risk management, and resource investment are challenges in developing innovation capabilities. A culture that does not support creativity, cannot manage risk, or lacks a commitment to research and development can be a barrier to creating an innovative environment. Consequently, organizations must commit to maintaining and enhancing their innovation capabilities. In today's dynamic and challenging business environment, having the ability to create a culture of innovation, lead with a clear vision, manage the innovation process effectively, and collaborate with various stakeholders is essential for companies to survive and thrive. (Tu et al. 2023) 2.5. Performance Performance, in an organizational or individual context, encompasses various elements that indicate the quality and efficiency of actions or work performed. As a measure, performance indicates the extent to which goals and expectations have been met and the extent to which an organization or individual can deliver optimal results. High performance is crucial in many areas of life, such as business, education, sports, and more. An individual's performance indicates the extent to which they achieve their goals and responsibilities. For example, employee performance can be measured through performance appraisals, productivity, and target achievement. High-performing employees tend to positively impact the productivity and sustainability of a company. An individual's performance can also be influenced by elements such as leadership, motivation, and skills. Achievements on the field or in the arena are often used to measure the performance of teams and athletes. For athletes, personal achievements such as breaking records or winning medals reflect exceptional individual performance. Conversely, a team's success in achieving a goal or winning a medal is a key indicator of performance. (Sutrisno et al. 2023) The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9974 Performance is also related to time and resource management. Organizations or individuals who manage their time well and allocate their resources appropriately tend to perform better. Good time management involves the ability to prioritize, organize schedules, and address issues that arise while working on tasks or projects. Feedback is crucial for improving performance. Feedback, whether received from superiors, coworkers, or customers, provides important information about issues that need to be addressed. Constructive responses can help an individual or organization continue to develop and improve performance. Furthermore, the organizational culture or environment in which an individual works can also influence performance. A culture that supports creativity, openness, and collaboration tends to create an environment in which performance can thrive. Conversely, a culture that stifles innovation or punishes mistakes can hinder the potential for achieving optimal results. (Gao et al. 2023) Performance is also influenced by physical and mental well-being. People who take good care of their health, including getting enough sleep, eating a balanced diet, and exercising, tend to have higher levels of energy and focus. Problems or stress are also important, as they can hinder performance. Therefore, performance is shaped by many interrelated factors. Individual ability, motivation, organizational culture, time management, and well-being are some of the factors that contribute to shaping performance, which in turn indicates success and quality. Therefore, it is crucial to understand and manage all these elements well to achieve peak performance in various life situations. (Rivaldo and Nabella 2023) 2.6. Relationships Between Variables Previous research conducted by (Al Taweel and Al-Hawary 2021) entitled "The Mediating Role of Innovation Capability on the Relationship between Strategic Agility and Organizational Performance" stated that strategic agility significantly influences organizational performance and innovation capability. Furthermore, innovation capability plays a mediating role in enhancing the relationship between strategic agility and organizational performance. Previous research conducted by (Rathore et al. 2020) entitled "Examining the Mediating Role of Innovative Capabilities in the Interplay Between Lean Processes and Sustainable Performance" stated that lean processes and sustainable performance influence innovative capabilities within a company due to the flexible resource fluidity within the company's operations. Previous research conducted by (Ba Phong et al. 2023) entitled "Transformational Leadership Unity and Innovation Capability: Roles of Knowledge-Centered Culture and Knowledge Sharing" stated that knowledge sharing behavior significantly mediates the transformational leadership-innovation relationship. This highlights the significant impact of explicit knowledge sharing compared to the influence of knowledge on innovation capability. Previous research conducted by Sari et al. (2023) entitled "The Role of Entrepreneurial Marketing & Innovation Capability in the Performance of SMEs During the COVID-19 Pandemic: Evidence from MSMEs in West Java" stated that entrepreneurial marketing (opportunity-driven, proactive, customer intensity, risk-taking, resource utilization, and value creation) and innovation capability (product innovation, service innovation, process innovation, and business model innovation) significantly influence MSME performance. The research model formulated in this study can be seen in Figure 2.1. Strategic Sensitivity (X1) Resource Fluidity (X2) Leadership Unity (X3) Innovation Capability (Z) Performance (Y) Figure 2.1. Research Model III. RESEARCH METHODOLOGY Focusing on the core problem and stated objectives, this study aims to discuss the role of strategic sensitivity, resource fluidity, and leadership unity, while considering the role of innovation capability as a moderating variable. Further analysis and discussion are deemed essential given global competition. This study will assess and analyze the impact of strategic sensitivity, resource fluidity, leadership unity, innovation capability, and performance. A quantitative approach was chosen as the research method The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9975 because it uses numerical data for analysis and assessment. This study employed a purposive sampling method to select its sample based on specific criteria. This study employed a sampling method. This method involves subjectively selecting a sample based on certain predetermined criteria. This sample was obtained by distributing a questionnaire link to targeted respondents who met the specified criteria.This study used primary data obtained by sharing a Google Form questionnaire link, which was then compiled. The questionnaire contained questions related to the variables studied, such as strategic sensitivity, resource fluidity, leadership unity, innovation capability, and performance.Data analysis is the process of finding final results and organizing data to extract usable information, draw conclusions, and support final decision-making. It utilizes various techniques and tools depending on the type of data and the purpose of the analysis, facilitating an understanding of patterns and relationships within the data. (025). The researcher used a quantitative method (026). The researcher used a quantitative method using descriptive statistics to analyze the data in the study. IV. ANALYSIS RESULTS AND DISCUSSION Based on gender, most respondents were male, comprising 76% of the total sample, while only 24% were female. In terms of education, most respondents had a high school education (76%), followed by those with a bachelor's degree (17.67%), and a small number with a doctoral or elementary school education. In terms of occupation, the majority of respondents were students (57%), with a small proportion working as private employees (31.33%) or entrepreneurs (4%). Tabel 4.1 Hasil Path Coefficient Original Sample (O) Sample Mean (M) Standard Deviation (STDEV) T Statistics (|O/STDEV|) P Values Hipotesis IC> P 0.439 0.455 0.130 3.775 0.000 Signifikan Positif LU>IC 0.400 0.388 0.106 3.781 0.000 Signifikan Positif LU>P 0.183 0.187 0.091 2.008 0.045 Signifikan positif RF>IC 0.437 0.448 0.114 3.841 0.000 Signifikan Positif RF> P 0.176 0.197 0.133 1.322 0.186 Tidak Signifikan SS>IC 0.151 0.151 0.069 2.191 0.029 Signifikan Positif SS>P 0.141 0.151 0.071 1.985 0.047 Signifikan Positif Sumber: Data Primer Diolah (2024). H1: Innovation Capability on Performance The test results show a p-value of 0.000 < 0.05 for innovation capability, indicating that the innovation capability variable has a significant positive effect on performance. The first hypothesis (H1), which states that innovation capability has a significant effect on performance, is accepted. This suggests that the higher the innovation capability in organizational performance, the higher the performance achieved. This result aligns with research conducted by (008) and (001), which found that innovation capability has a significant positive effect on performance. H2: Leadership Unity on Innovation Capability The test results show a p-value of 0.000 < 0.05 for leadership unitiness, indicating that leadership unitiness has a significant positive effect on innovation capability. The second hypothesis (H2), which states that leadership unitiness has a significant effect on innovation capability, is accepted. This research demonstrates that the higher the leadership unity in organizational performance, the higher the innovation capability achieved. H3: Leader Unity on Performance The results in the table above show a p-value of 0.045 < 0.05. Therefore, leader unity is proven to be significant on performance. This confirms that effective leader unity in leading and directing a company through periods of significant change toward achieving its strategic goals is crucial. H4: Resource Fluidity on Innovation Capability The results in the table above show a p-value of 0.000 < 0.05. Resource Fluidity is proven to be significant on Innovation Capability. This research demonstrates that effective Resource Fluidity allows for the allocation and management of organizational resources in a manner that adapts to the dynamics of the external environment. H5: Resource Fluidity on Performance The results reveal a p-value for Resource Fluidity of 0.186 > 0.05. Resource Fluidity does not significantly influence performance. The third hypothesis (H3) states that Resource Fluidity does not significantly influence performance. H6: Strategic Sensitivity to Innovation Capability The Effect of Strategic Sensitivity, Resource Fluidity and Leadership Unity on Performance with Innovation Capability as Moderator Variable IJSSHR, Volume 08 Issue 12 December 2025 www.ijsshr.in Page 9976 The p-value for this study is 0.029, indicating that Strategic Sensitivity has a positive influence on Innovation Capability. This research indicates that Strategic Sensitivity is a determinant of sustainable competitiveness in a globalized world, where markets are interconnected and boundaries are blurred. H7: Strategic Sensitivity to Performance The p-value for this study is 0.047 <0.05, indicating that Strategic Sensitivity has a positive influence on Performance. This research points to Strategic Sensitivity having a significant positive effect on Performance. V. CONCLUSION This study found that strategic sensitivity, resource fluidity, and leadership unity influence each other, while considering the role of innovation capability as a mediating variable.. Strategic sensitivity and leadership unity have a positive and significant influence on performance. Meanwhile, innovation capability is proven to mediate the influence of strategic sensitivity and unity on performance, with an insignificant negative result. This study emphasizes the importance of strategic sensitivity and leadership unity on performance, with innovation capability as a mediating variable for both companies and the community in Batam. These findings provide practical implications for several companies in Batam to focus more on strategic sensitivity, resource fluidity, and leadership unity in their internal organizations in the future. 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