INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 283

Collaboration and Employee Performance: The Mediating Role of

Innovation among Public Sector Employees in East Kalimantan

Ririn Octaviani., *Irsan Tricahyadinata., Dwi Martiyanti

Department of Management, Faculty of Economics and Business, Mulawarman University, Indonesia

*Corresponding Author

modeling (PLS-SEM) via SmartPLS 4. The findings indicate that collaboration exerts a positive and significant influence on

employee performance both directly and indirectly through innovation. Moreover, innovation plays a crucial mediating role,

suggesting that collaborative work environments promote creative problem-solving and knowledge exchange, ultimately enhancing

individual performance. These results contribute to the integration of Social Exchange Theory, Knowledge-Based View, and

Dynamic Capability Theory in elucidating performance improvement within the public sector. Practically, this study highlights the

importance of fostering collaborative cultures and innovation-driven management practices to improve bureaucratic efficiency and

public service delivery in developing regions.

Keywords: Collaboration, Innovation, Employee Performance, Public Sector

I. Introduction

Employee performance is a critical determinant of the efficacy of public organizations, particularly in the contemporary era of

mutual support in decision-making processes, and the establishment of working relationships based on trust and shared objectives.

Prior research indicates that collaboration is significantly associated with enhanced employee performance, as it facilitates social

learning, fosters synergy among individuals, and promotes the development of innovative solutions for task completion (Stefan et

al., 2024). Nonetheless, the efficacy of collaboration is often contingent on an organization's ability to cultivate a culture of

innovation that encourages the generation of novel ideas and the adoption of creative work practices.

Innovation in the public sector is increasingly acknowledged as a crucial catalyst for enhancing efficiency, productivity, and service

quality. Organizations that cultivate a collaborative environment are generally more adaptable to change, as employees actively

engage in identifying problems and creating innovations (Sun et al., 2023). In East Kalimantan, initiatives aimed at bureaucratic

reform through digital transformation and the reinforcement of a collaborative work culture encounter several challenges, including

suboptimal cross-sectoral coordination, a scarcity of creative human resources, and resistance to change. This scenario necessitates

of collaboration in government agencies exhibit unique characteristics—rooted in bureaucratic hierarchies, characterized by formal

procedures, and reliant on strategic policies—that can influence innovation effectiveness and employee performance.

This study empirically examines the impact of collaboration on employee performance, with innovation serving as a mediating

variable, within government agencies in East Kalimantan Province. The conceptual framework is grounded in the Social Exchange

and Knowledge-Based View theories, which posit that collaboration facilitates the exchange of information and knowledge, thereby

fostering the generation of new ideas and enhancing both individual and organizational performance. This study is anticipated to

contribute theoretically by expanding the understanding of innovation's role in reinforcing the relationship between collaboration

and employee performance in the public sector. Additionally, it aims to offer practical implications for local government human

resource management to bolster productive and innovative collaborations.

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 284

Consequently, this study advances the theoretical frameworks of public management and organizational behavior and offers

Collaboration is a fundamental component of fostering organizational excellence in both the public and private sectors.

Theoretically, Social Exchange Theory (SET) posits that interactions among employees, characterized by mutual trust, positive

feedback, and professional support, enhance individual commitment and productivity (Cropanzano & Mitchell, 2005). In the realm

of organizational cooperation, collaboration denotes the capacity of individuals to work across functions, share information, and

integrate diverse competencies to achieve shared objectives (Kundu and Mor, 2021). This process generates synergy, thereby

augmenting effectiveness, creativity, and work efficiency.

Empirical research indicates that collaboration significantly enhances employee performance. According to Ştefan et al. (2024),

well-structured collaboration can enhance employee involvement in decision-making and increase their sense of responsibility for

work outcomes. In the public sector, collaboration is a crucial foundation for establishing cross-unit coordination, particularly in

delivering complex public services involving multiple stakeholders (Lee & Kim, 2023). Collaboration not only enhances

H1: Collaboration has a positive and significant effect on employee performance.

Collaboration and Innovation

Innovation emerges from social interactions and effective knowledge exchange within organizations. According to the Knowledge-

Based View (KBV), knowledge is regarded as a crucial strategic resource for achieving competitive advantage (Grant, 1996).

Within this theoretical framework, collaboration functions as a fundamental mechanism for the transfer and integration of

knowledge among individuals, thereby fostering the generation of new ideas and innovations (Nonaka & Takeuchi, 1995).

Recent studies underscore the pivotal importance of collaboration in promoting innovation. Sun et al. (2023) assert that elevated

levels of collaboration facilitate the acceleration of collective learning processes, expand employee perspectives, and foster the

development of innovative solutions to complex challenges. Similarly, research conducted by Tuan et al. (2024) indicate that

collaboration enhances individual creativity by promoting open communication and active team participation.

H2: Collaboration has a positive and significant effect on innovation.

Innovation and Employee Performance

Innovation serves as a catalyst for enhancing employee performance by facilitating the development of more efficient work

processes, adopting new technologies, and enhancing public services. According to the Resource-Based View (RBV), innovation

is perceived as an organization's capacity to uniquely configure resources to achieve a sustainable competitive advantage (Barney,

1991). At the individual level, the capacity for innovation is closely associated with initiative, creativity, and willingness to learn,

all of which contribute to improved work performance (Prieto & Pérez-Santana, 2022).

Empirical research has substantiated a positive correlation between innovation and employee performance. Mireles et al. (2024)

assert that innovative employees exhibit enhanced efficiency in task completion and contribute improvement ideas that significantly

impact organizational effectiveness. Similarly, Hoxha et al. (2024) identified that innovation fosters emotional engagement among

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 285

is contingent on employees actively serving as agents of change by implementing creative ideas. Based on this theoretical

The relationship between collaboration and employee performance is not solely direct; it can also be enhanced by the presence of

innovation as a mediator. According to Dynamic Capability theory, organizations that can foster innovation through collaboration

possess a greater adaptive capacity to respond to external environmental changes (Teece, 2018). In this context, collaboration offers

a social and structural framework that facilitates the emergence of innovationthrough the exchange of ideas, open discussion, and

collective reflection, which subsequently enhances employee performance.

Empirical evidence indicates that innovation mediates the relationship between collaboration and performance. Ştefan et al. (2024)

demonstrated that employee collaboration enhances an organization's capacity to generate innovation, which in turn positively

influences productivity and work outcomes. Similarly, research conducted by Sun et al. (2023) found that public organizations

characterized by high levels of collaboration exhibited notable improvements in procedural innovation and public service

performance.

Research Design

This study utilized a quantitative methodology to investigate the causal relationships among variables through structural model

analysis, specifically employing structural equation modeling-partial least squares (SEM-PLS). This quantitative approach was

chosen because of its ability to empirically test both direct and indirect relationships among variables and to evaluate the mediating

effect of innovation on the relationship between collaboration and employee performance. The PLS-SEM model is considered

appropriate for this study because it can accommodate complex models with a relatively moderate sample size and latent variables

measured through multiple indicators (Hair et al., 2021).

The SEM-PLS method is particularly suitable for analyzing data that do not adhere to a normal distribution and emphasizes the

predictive relevance of variables. This approach aims to enhance the understanding of empirical phenomena through the

interpretation of path coefficients, effect sizes (f), and predictive accuracy (Q). Conceptually, this study is structured as an

digitalization of public services and the enhancement of information technology-based performance systems.

The purposive sampling method was used with the following criteria:

(1) Permanent employees who have worked for at least two years.

(2) involved in cross-field or work unit activities; and

(3) Have experience in innovative projects or activities of the agency.

Based on these criteria, 172 respondents were deemed eligible for the analysis. This sample size is considered adequate for PLS-

SEM analysis, as per the recommendation by Hair et al. (2021), who suggested that the minimum sample size should be ten times

Data Collection Procedures

Data were collected via a questionnaire survey administered both online and offline to participants employed in diverse sectors,

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

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conducted over a two-month period, achieving a response rate of 94 percent, which reflects a high level of participant engagement

Data Analysis Technique

(outer model) and (2) the evaluation of the structural model (inner model).

significance level.

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 288

The hypothesis testing results were obtained using the bootstrapping method at a 5 percent significance level (p < 0.05). The table

results indicate a Standardized Root Mean Square Residual (SRMR) value of 0.063, which is below the 0.08 threshold

recommended by Henseler et al. (2015). The Normed Fit Index (NFI) value of 0.927 suggests an excellent model fit. Furthermore,

the d_ULS and d_G values are also below the critical limit of the 95 percent confidence interval, corroborating that the model

exhibits a strong data fit and high estimation stability.

Summary of Empirical Findings

The research findings underscore the pivotal role of collaboration in enhancing employee performance within the public sector,

both directly and indirectly through the facilitation of increased innovation. Innovation is a critical driver that amplifies the impact

of collaboration on work outcomes. This suggests that employees working in collaborative environments are more likely to exhibit

creativity, adaptability, and productivity.

The findings further substantiate that cultivating a collaborative work environment within bureaucratic structures enhances

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 289

that encourages employees to assist each other, share experiences, and collectively address administrative challenges. Consequently,

collaboration serves as a source of social energy that bolsters employee engagement with the organization’s objectives.

These findings align with those of Ştefan et al. (2024), who demonstrated that collaboration among employees enhances work

effectiveness through improved coordination and expedited decision-making processes. Within a bureaucratic context,

collaboration mitigates the formation of silos between units, reduces work duplication, and promotes shared accountability for

outcomes. This phenomenon is observable in government agencies in East Kalimantan Province, where cross-sectoral, team-based

work mechanisms have been adopted to enhance program synergy.

From a public management perspective, collaboration can be conceptualized as a strategic instrument that enhances employee

performance through trust and emotional engagement. When employees perceive that their contributions are acknowledged and

valued by their colleagues, they are more likely to demonstrate proactive behavior, work with greater efficiency, and assume greater

processes and digitizing public administration.

Research conducted by Sun et al. (2023) found that organizations exhibiting high levels of collaboration tend to be more innovative,

as employees gain extensive access to knowledge resources. The findings of this study align with these observations, demonstrating

that a collaborative work culture within public agencies facilitates the exploration of novel ideas that can be implemented to enhance

the effectiveness of public services. In this context, collaboration is a crucial conduit for tacit knowledge transfer among employees.

The relationship between collaboration and innovation can be elucidated through the lens of Dynamic Capability Theory (Teece,

2018), which posits that organizations adept at managing internal social interactions are better positioned to adapt to external

changes. In East Kalimantan, the capacity of government agencies to innovate in public service delivery is significantly influenced

by the degree to which cross-sector collaboration is facilitated by leadership that is receptive to new ideas.

The observation that innovation exerts a positive influence on employee performance corroborates the findings of Prieto and Pérez-

government agencies in East Kalimantan, various digitalization initiatives, such as the implementation of e-office applications and

online attendance systems, exemplify innovations originating from employee ideas and have improved work efficiency.

Theoretically, innovation serves as a conduit between collaboration and employee performance. This relationship was substantiated

through a mediation analysis, which demonstrated that innovation significantly mediates the impact of collaboration on

performance. This finding corroborates the perspective of Ştefan et al. (2024), who assert that collaboration facilitates knowledge

exchange, thereby enhancing innovation, which, in turn, acts as a catalyst for improving organizational performance.

In an empirical framework, the concept of innovation mediation posits that collaboration does not invariably lead to direct-

performance enhancement. Instead, it establishes conditions conducive to innovation. In essence, collaboration lays the social

groundwork that fosters the generation of novel ideas, whereas innovation serves as a mechanism that converts collaboration into

quantifiable performance outcomes. This dynamic is particularly pertinent within public bureaucracies, which are traditionally

making efficiency in government organizations.

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

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The findings of this study have significant implications for human resource management in government contexts. A collaborative

body of research has concentrated on the role of innovation in the competitive private sector (Tuan et al., 2024), the public sector

is frequently perceived as less amenable to it. Nevertheless, findings from East Kalimantan reveal that a collaborative bureaucratic

framework can foster social innovation, thereby enhancing the quality of public services.

under constrained regulatory and resource conditions. Despite these limitations, such innovations exert a substantial influence on

administrative efficiency and employee motivation. Employees engaged in the innovation process often experience a heightened

sense of value and assume greater responsibility for their work tasks.

This study highlights the critical role of leadership in fostering collaboration and innovation from a managerial perspective. Leaders

who facilitate active participation and exchange of ideas enhance employee engagement. Within the East Kalimantan bureaucracy,

an inclusive and adaptive leadership approach expedites the implementation of innovation at the operational level.

This study demonstrates that social values, such as trust and solidarity at work, are crucial for fostering innovation in the public

sector. While digital technology has emerged as a pivotal instrument in the modernization of bureaucratic processes, the findings

of this study suggest that social factors continue to be the primary determinants of successful innovation and performance.

In the context of the globalization of public administration, these findings are pertinent to the increasing trend of collaborative

governance, wherein innovation and performance are perceived as outcomes of collective interaction among individuals, work

units, and stakeholders. The model observed in East Kalimantan may serve as a reference for other regions in Indonesia that aim to

balance bureaucratic stability with the need for continuous innovation.

This study substantiates the premise that collaboration is the foundation for fostering innovation and enhancing employee

performance in public organizations. Innovation functions as both a conceptual and empirical link, bridging collaborative social

processes and quantifiable work outcomes. The findings indicate that a collaborative and innovative bureaucratic structure not only

From a theoretical perspective, the findings of this study advance our understanding of the interrelationship among Social Exchange

Theory, Knowledge-Based View, and Dynamic Capability Theory within the context of public organizations. Collaboration serves

as a platform for social exchange, promoting trust and commitment; innovation arises from the interaction of knowledge within

collaborative processes; and employee performance reflects the organization's ability to adaptively configure its resources. The

integration of these three theories strengthens the argument that public sector performance can be enhanced through the systematic

management of social and knowledge mechanisms.

The empirical results from the PLS-SEM testing revealed that innovation partially mediates the relationship between collaboration

and employee performance. This finding suggests that collaboration not only directly enhances work effectiveness but also fosters

an environment conducive to developing and implementing new ideas. Consequently, this innovative process amplifies the impact

of collaboration on productivity and efficiency of the organization. Therefore, innovation functions as a conduit that translates the

INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,

MANAGEMENT & APPLIED SCIENCE (IJLTEMAS)

ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIV, Issue X, October 2025

www.ijltemas.in Page 291

The theoretical implications of this study underscore the significance of perceiving collaboration as a dynamic resource within the

engaged in bureaucratic reform and the digitalization of public services. Public managers and leaders of work units must foster an

environment conducive to cross-sector collaboration by implementing team-based work mechanisms, establishing forums for the

exchange of creative ideas, and instituting reward systems that recognize collective contributions. Enhancing employees’ innovative

This study affirms that for local governments, enhancing civil service performance necessitates more than stringent oversight and

the imposition of work targets. It also requires cultivating a collaborative and innovative work culture. Bureaucratic reform oriented

towards collaboration can foster social innovations that address public needs, such as simplifying procedures, accelerating digital

This study also offers practical insights into the development of employee-performance evaluation systems. The findings suggest

indicators. This approach allows for the evaluation of employee performance based not only on individual outcomes but also on

contributions to teamwork and the generation of new value within the organization.

collaborative innovation skills. Such programs should focus on enhancing cross-unit communication, facilitating knowledge

sharing, and promoting collective problem-solving. Consequently, innovation is not solely dependent on top-down policies but also

emerges from employee initiatives and interactions at the operational level.

strategic elements that significantly impact governance effectiveness. A collaborative bureaucratic environment can enhance

accountability through a deliberative decision-making process, whereas innovation bolsters public legitimacy by providing more

responsive and efficient services.

This research presents opportunities for scholars to enhance the theoretical model by incorporating moderating variables such as

transformational leadership, organizational culture and digital technology. Future studies could undertake comparative analyses of

regions may affect the dynamics of collaboration and innovation in distinct ways.

The second limitation pertains to the methodological approach used in this study. This study utilized a quantitative framework, with

data gathered through a perception questionnaire. Although this method allows for the empirical examination of relationships

between variables, it does not adequately capture the complexity of collaborative social processes, which are often dynamic and

context dependent. Employing qualitative or mixed-methods research could yield a more comprehensive understanding of the social

interaction mechanisms underpinning collaboration and innovation.

Third, external variables, such as leadership style, organizational support, and government policies, which may influence the

relationships between variables within the model, were not considered. Future research could incorporate moderating variables,

such as transformational leadership or an organizational learning climate, to provide a more comprehensive understanding of the

determinants of employee performance in the public sector.

comparative approach could enhance external validity and contribute to the literature on organizational behavior in developing