Building Organizational Performance with the Tawazun Response Capability (TRC) Concept

Abstract

Purpose: Dynamic capability is still a concern for many
researchers because of its influence on organizational performance.
Many of the previous studies have explored the factors that cause
this, but not many of them have used an Islamic perspective. Thus,
this paper offers a concept as a basis for organizational performance
through Tawazun Response Capability (TRC).
Methodology: The population in the study was 7,323 Bumdes
leaders in Central Java Province with a distribution of 35 districts.
The factor analysis test for each indicator was formed by looking at
the cross loading value > 0.7 using the Confirmatory Factor
Analysis (CFA) test for a total of 99 respondents. The test results
were declared to be in accordance with the requirements for both
the EFAand CFAtests.
Findings: The results of the study show that tawazun response
capability is built on one dimensions and four indicators, balance of
worldly and hereafter needs, balance of goals and benefits, balance
of organization and environment, and spiritual and physical
balance.
Originality: This article is perhaps the only one that explores the
concept of response capability based on Islamic values.
Practical and Social Implications: This research will equip
organizations, especially Village-Owned Enterprises (Indonesian:
Badan Usaha Milik Desa [BUMDes]) stakeholders, in running
organizations that do not deviate from Islamic values.