Assessing the Reliability and Validity of Organizational Resilience Using SMART PLS Structural Equation Modelling

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Muhamad Ali Pahmi, Ahmad Faisal Mohamad Ayob, Gendut Suprayitno, Wilarso

Abstract

Introduction: Organizational resilience has become a critical area of study as businesses face an increasingly complex and unpredictable environment, we are intrigued by this intriguing phenomenon and are keen to investigate further if a company's resilient aspect can be incorporated into a conceptual framework.


Objectives: This research establishes a foundation for evaluating reliability and validity in an Organizational Resilience Framework Model. It aims to pave the way for future empirical studies while shedding light on the methodological intricacies of this effort, within the context of an Organizational Resilient Framework Model.


Methods: The methodology in this research is analyzed using SEM - SEM-structural equations modelling in SmartPLS v (3.2.9) software version and analysis of the outer and inner models aspect. The data for the instrument were gathered through a questionnaire gathered via several methods including, WhatsApp, SMS, and social media via LinkedIn, and professional gatherings, which was distributed to 92 respondents using purposive judgment sampling. For the sample size, in this research, we use the path coefficient range of 0,21-0,3 with a significant level of 10%.


Results: This outer model analysis has high reliability and validity, which suggests a strong relationship between the observed variable and the underlying latent construct. the inner modelindicates that the ability of the independent variables in the analysis model is 76.2%, and the remaining 23.8% of the influence is explained by other variables outside of those discussed in this research, with a predictive relevance value 0.745>0so it can be concluded that the organizational resilience variable can predict the model well and with the acceptance of the H1 hypothesis, show that there are significance of the relationships between variables and the organization's resilience is conveyed through financial feasibility and is strongly connected to all variables in the macro-micro aspect.


Conclusions: Financial feasibility plays a crucial role in determining the organization's resilience and is closely related to other variables in both macro and micro contexts. In summary, the results indicate that the relationships between variables in the model are statistically significant, supporting the conclusion that financial feasibility is integral to the organization's resilience and is interconnected with other variables at different levels of analysis.

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