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. KAUJIE Classification: P, PO JELClassification: I-3

Keywords

Organizational Performance,Tawazun Response Capability (TRC), Dynamic Capability.