I. Introduction

Government institutions today face resource limitations, strict regulations, and high levels of scrutiny while being pushed towards digitalisation and increased responsiveness to the growing complexity and expectations of citizens [1], [2]. Rapid technological changes and global competition have heightened the need for adaptive strategies and resilience within public organisations [3]. These challenges require public organisations to move beyond relying solely on formal bureaucratic structures and instead cultivate internal capacity for continuous adaptation and systematic improvement of institutional performance. In this context, an organisational learning approach is becoming increasingly relevant as a strategy for strengthening government organisational performance [4]. The concept of organisational learning emphasises an organisation's ability to continuously create, acquire, and transform knowledge into practice, building capacity (including innovation, human resource management, knowledge management, and technology adoption) as crucial for performance in dynamic environments, particularly in the public sector [5], [6]. Principles of organisational learning are promoted as a holistic approach to institutional capacity building within government, enabling adaptation, innovation, and improved performance [7]. Various studies indicate that organisations capable of facilitating individual and collective learning tend to be more adaptable, innovative, and responsive to environmental changes [8]. However, much empirical research on organisational learning remains focused on the private sector, while empirical evidence within government institutions, particularly in developing countries, is relatively limited.

In addition to organisational learning, individual competencies are a key factor determining the performance of public organisations [9]. Competencies encompassing the knowledge, skills, and professional attitudes of government personnel play a vital role in ensuring the effectiveness of policy implementation and the quality of public services [10]. The development of individual competencies is inseparable from an organisational environment that supports learning processes, collaboration, and continuous reflection. Therefore, the integration of organisational learning practices and individual competency development is a strategic issue in public sector human resource management. Organisational culture plays a central role in shaping the behaviours, values, and patterns of interaction of government personnel [11]. A conducive organisational culture can strengthen the internalisation of learning values, encourage collaboration, and enhance commitment to organisational goals [11]. Conversely, a rigid bureaucratic culture can potentially hinder learning processes and competency development. While the relationship between organisational learning and institutional culture has been extensively discussed in the literature, the interconnectedness of organisational learning, individual competencies, and organisational culture with institutional performance within a single integrative framework remains underexplored empirically in the context of government institutions.

Within the context of the central government in Indonesia, the Badan Strategis Kebijakan Dalam Negeri (Domestic Policy Strategy Agency; BSKDN) Jakarta has a strategic role in supporting the Ministry of Home Affairs through policy formulation, policy development, and policy evaluation in the field of domestic governance. As a knowledge- based institution, BSKDN is required to have high institutional performance, organisational learning capacity, and competent personnel. This complexity serves to ensure that personnel develop knowledge, analytical skills, and professional attitudes in responding to policy dynamics at the national and regional levels.

Organisational learning is understood as an organisation's capacity to continuously create, acquire, and apply knowledge to enhance adaptive capacity and organisational performance. In government institutions, this concept is particularly relevant given the demands of policy changes, the complexity of public service delivery, and bureaucratic reform agendas. Unlike the private sector, public organisations often face structural limitations that can hinder learning processes. Several studies suggest that the implementation of organisational learning principles, such as continuous learning, knowledge sharing, and supportive leadership, contributes positively to the effectiveness of public organisations. However, consistent empirical evidence regarding the strategic role of organisational learning in improving the performance of government institutions remains limited, particularly in developing countries. This situation underscores the need for further research considering the institutional context of the public sector.

Individual competencies encompass the knowledge, skills, and attitudes that enable government personnel to perform their duties professionally and effectively. In public organisations, individual competencies are a key factor in successful policy implementation and improving the quality of public services. Competency development depends not only on formal training programmes but also on an organisational environment that supports ongoing learning and development. The literature indicates that organisations employing systematic learning practices tend to have personnel with higher levels of competency. However, much prior research still views individual competencies as a separate variable, without directly linking them to organisational learning practices within the context of government institutions. Organisational culture reflects shared values, norms, and patterns of behaviour that influence how individuals work and interact within an organisation. In government institutions, organisational culture is often shaped by a tradition of stability that emphasises orderliness and compliance. Such a culture can support administrative order but may also hinder innovation and learning.

Previous research suggests that an organisational culture that supports openness, collaboration, and continuous learning contributes positively to the performance of public organisations. A conducive culture enables personnel to internalise professionalism and enhance work effectiveness. However, the relationship between organisational culture and organisational learning in the public sector still requires further empirical investigation. Theoretically, organisational learning provides a systemic framework that enables the development of individual competencies and the formation of an organisational culture supportive of learning. Continuous learning practices enhance personnel competency, which in turn strengthens organisational values and norms. This interaction ultimately has a positive impact on government institutional performance. While each relationship between these variables has been extensively discussed in the literature, research integrating organisational learning, individual competencies, and organisational culture within a single empirical model remains relatively limited, particularly in the context of government institutions. This gap highlights the need for an integrative approach to comprehensively understand the determinants of public institutional performance.

This research gap highlights the need for a more holistic approach to understanding the factors determining the performance of government institutions. Previous research has tended to examine these variables partially, thus not fully explaining how interactions and integrations between them can drive institutional performance improvement. However, the performance of a government institution is not solely determined by individual capabilities but also by the organisational learning system and the work culture that surrounds it. This research aims to analyse the integration of organisational learning, individual competencies, and organisational culture in enhancing the institutional performance of BSKDN Jakarta. This study is expected to make a theoretical contribution by developing an integrative model that enriches management and organisational learning literature. Practically, the findings of this research are expected to serve as a reference for policymakers and leaders of government institutions in designing strategies to strengthen institutional performance through the development of organisational learning, competencies, organisational culture, and institutional performance at BSKDN Jakarta in a sustainable manner.

II. Method

This research employs a quantitative research design, meaning data collection and analysis will rely on numerical data [12], [13], [14]. The underlying paradigm is positivism, making this approach effective for testing established hypotheses by allowing the researcher to investigate and validate the research objectives and assumptions [15]. Research questions are translated into hypotheses, and these are applied to a larger population using sample data. A quantitative approach was chosen to examine the proposed relationships between variables and to provide empirical evidence based on data collected from government institution employees [16], [17].

The research was conducted at the BSKDN in Jakarta, Indonesia. BSKDN was selected due to its strategic role in strengthening human resource capacity and institutional performance in regional development governance. The research population consists of 205 employees working at BSKDN Jakarta, distributed across various organisational units, including administrative, functional, and technical divisions. This diverse unit composition provides a comprehensive representation of organisational learning practices, competency development, and organisational culture within the institution. The research location is presented in Figure 1.

Figure 1. The Research Location

Source: Researcher’s data

Given the relatively manageable population size, this research employs a census approach, inviting all 205 employees to participate as respondents. The census technique was chosen to minimise sampling bias and ensure adequate representation from all organisational units. In cases where complete responses could not be obtained from all employees, a minimum sample size was determined based on Structural Equation Modelling (SEM) requirements to ensure statistical power [18], [19]. Probability sampling techniques were used with proportionate stratified random sampling to ensure representation of work units and job levels [20], [21]. With a population of 205 individuals, Slovin's formula was used with a confidence level of 50%.

The final sample size obtained is 136 individuals. The division of the sample based on stratified random sampling techniques is presented in Table 1.

Table 1. Sample Distribution by Domestic Policy Strategy Agency (BSKDN) Jakarta

Source: Original work

Questionnaires were used as a reliable data source compared to interviews due to the potential for researcher bias. The data collection technique for this research is questionnaires using a Likert scale of 1-5, based on theories of organisational learning (Senge), competency theories, and organisational culture theories [22], [23], [20]. Data analysis techniques will employ PLS-SEM. Analysis techniques include descriptive analysis of respondents, model measurements testing, structural model testing, hypothesis testing, and mediation effect testing for competencies [24], [25], [26]. Instrument quality testing includes convergent validity, discriminant validity, and reliability [27], [28]. For hypothesis testing, the significance level is set at 5% with p-coefficient values, statistical values/p-values, and t-statistics > 1.96. Hypotheses will be accepted if the p-value < 0.05 or the t-statistic > 1.96. Based on SEM requirements, a total of 40 indicators will be used.

III . Result and Discussion

SEM was employed to analyse the data, with the process involving initial validation of data reliability and validity, followed by assessment of the structural model's reliability, validity, and overall fit. The initial step involved examining outer loadings to determine the correlation between indicators and latent variables. A loading >0.70 is considered acceptable, while values <0.40 are eliminated from further analysis [29], [30]. It is recommended not to include items with outer loadings below 0.4. The outer loading results are presented in Table 2.

Table 2. Outer Loading Results

Source: original work

From the results in Table 2, the values meet the important criteria. An outer loading > 0.70 indicates that 72% of the variability of all indicators is absorbed by their respective latent variables, and all indicators are retained in the subsequent analysis. In addition to factor loading values, validity was also assessed based on Average Variance Extracted (AVE), which is considered valid if the AVE value > 0.5 [31], [32]. The construct reliability and validity values are presented in Table 3.

Table 3. Construct Reliability and Validity Values

Source: original work

From Table 3, the AVE values are above 0.5, and the composite reliability values are above 0.7, indicating that all constructs have good reliability. The R-square values for dependent and independent variables are presented in Table 4.

Table 4. R-Square Values for Dependent and Independent Variables

From Table 4, the R-square (determination coefficient) value for the latent variable of individual competencies is 0.707, indicating that the organisational learning and organisational culture variables explain 70.7% of the variance in the endogenous variable of individual competencies. The R-square value for the latent variable of institutional performance is 0.785, indicating that organisational learning and organisational culture variables explain 78.5% of the variance in the endogenous variable of institutional performance. To test the hypotheses, the inner model was used in hypothesis testing within PLS-SEM, as illustrated in Figure 2:

Figure 2. Measurement Model for Hypothesis Testing

Source: original work

The hypothesis testing results for direct relationships are presented in Table 5.

Table 5. Hypothesis Testing for Direct Relationships

Source: original work

From Table 5, the path coefficient (original sample) from individual competencies to institutional performance is 0.406, which is positive, indicating a positive influence of individual competencies on institutional performance. The P-value = 0.000 < 0.05, so it can be concluded that individual competencies significantly influence institutional performance (hypothesis accepted). The original sample value from organisational learning to individual competencies is 0.841, which is positive, indicating a positive influence of organisational learning on individual competencies. The P-value = 0.000 < 0.05, so it can be concluded that organisational learning significantly influences individual competencies (hypothesis accepted).

The original sample value from organisational learning to institutional performance is 0.196, which is positive, indicating a positive influence of organisational learning on institutional performance. The P-value = 0.040 < 0.05, so it can be concluded that organisational learning significantly influences institutional performance (hypothesis accepted). The original sample value from organisational culture to institutional performance is 0.338, which is positive, indicating a positive influence of organisational culture on institutional performance. The P-value = 0.002 < 0.05, so it can be concluded that organisational culture significantly influences institutional performance (hypothesis accepted). The mediation testing results are presented in Table 6.

Table 6. Mediation Testing

Source: original work

From the mediation test results in Table 6 The indirect effect of organisational learning on institutional performance through individual competencies is 0.341, which is stronger than the direct effect of organisational learning on institutional performance, which is 0.196. This result indicates that individual competencies strengthen the mechanism through which organisational learning contributes to institutional performance.

This study examines the impact of organisational learning on sustainable government institutional performance, considering the effects of individual competencies and organisational culture, using 136 respondents. Considering these tests, the researcher can claim that “individual competencies significantly influence institutional performance,” which is the first hypothesis of this research, thus confirming it. The study also reveals that organisational learning significantly influences individual competencies by 84.1%. This result is significant at a 95% confidence level because the P-value is less than 0.05 and the confidence interval does not contain zero. Therefore, based on the test results, the researcher claims that the second hypothesis of this research, “organisational learning positively influences institutional performance”, is accepted. This study confirms that organisational learning significantly influences institutional performance (hypothesis accepted), as well as that organisational culture significantly influences institutional performance (hypothesis accepted).

Based on the literature, this study takes individual competencies as a mediating variable in the relationship between organisational learning and institutional performance: indirect effect of Organisational Learning » Individual Competencies » Institutional Performance = 0.341, which is equal to the direct effect of Organisational Learning » Institutional Performance = 0.341. The confidence interval for this relationship should not contain zero, and significance should be present (P < 0.05). The research results indicate a significant direct and mediating relationship between the research variables.

Theoretically, the significant effect of organisational learning on individual competencies indicates that learning processes within government institutions function as an internal mechanism for developing human capital. In the context of BSKDN Jakarta, organisational learning does not merely refer to formal training activities, but also to the ability of the institution to create, share, and apply knowledge in policy formulation, policy analysis, and public governance support. This explains why the path coefficient from organisational learning to individual competencies is very strong. When employees are continuously exposed to learning practices, knowledge sharing, reflection on work experience, and adaptive problem-solving, their knowledge, skills, and professional attitudes are strengthened. This finding is consistent with the view that organisational learning supports capacity building and improves employee competence in public sector organisations [5], [7], [8], [10].

The mediating role of individual competencies also provides an important theoretical explanation of how organisational learning contributes to institutional performance. The results show that organisational learning has both a direct effect on institutional performance and an indirect effect through individual competencies. This implies that learning practices will produce stronger institutional outcomes when they are translated into employee competencies. In other words, organisational learning becomes meaningful for government performance when employees are able to transform acquired knowledge into better work practices, more accurate policy analysis, more effective coordination, and improved public service delivery. This finding supports human capital theory, which argues that investment in knowledge, skills, and employee development can enhance productivity and organisational performance [28]. Therefore, individual competencies act as a strategic bridge between organisational learning and sustainable government institutional performance.

The positive effect of organisational culture on institutional performance shows that performance in government institutions is not determined only by individual capacity, but also by shared values, norms, and behavioural patterns within the organisation. A supportive organisational culture can strengthen discipline, accountability, collaboration, innovation, and service orientation among employees. In bureaucratic institutions such as BSKDN Jakarta, organisational culture plays an important role in aligning individual behaviour with institutional goals. A culture that supports openness, learning, and professionalism can reduce rigid bureaucratic tendencies and encourage employees to respond more effectively to policy dynamics and public service demands. Thus, organisational culture serves as a behavioural control mechanism that reinforces institutional performance by shaping how employees make decisions, interact, and implement organisational responsibilities [11], [14].

These findings have important implications for bureaucracy and public service delivery. For government institutions, improving performance should not rely solely on structural reform or administrative procedures, but should also involve strengthening organisational learning systems, employee competencies, and organisational culture. BSKDN Jakarta, as a knowledge-based government institution, needs to institutionalise continuous learning through systematic training, knowledge-sharing forums, mentoring, performance evaluation, and learning-based policy review. At the same time, organisational culture should be directed toward professionalism, accountability, innovation, and responsiveness to public needs. By integrating organisational learning, competency development, and a supportive organisational culture, public institutions can strengthen sustainable performance and improve the quality of public service delivery.

VII. Conclusion

This study concludes that organisational learning, individual competencies, and organisational culture are important determinants of sustainable institutional performance in government institutions. The findings show that organisational learning has a strong and significant effect on individual competencies, while individual competencies significantly improve institutional performance. Organisational learning also has a direct effect on institutional performance, although its indirect effect through individual competencies is stronger. In addition, organisational culture significantly contributes to institutional performance by shaping shared values, work discipline, collaboration, and service-oriented behaviour within the institution. The mediation analysis confirms that individual competencies mediate the relationship between organisational learning and institutional performance. This indicates that organisational learning improves institutional performance not only directly, but also by strengthening employees’ knowledge, skills, and professional attitudes. Therefore, learning activities in government institutions will be more effective when they are translated into concrete competency development and improved work practices.

These findings imply that government institutions, particularly BSKDN Jakarta, need to strengthen organisational learning systems through continuous training, knowledge sharing, mentoring, performance evaluation, and learning-based policy review. At the same time, organisational culture should be directed toward professionalism, accountability, innovation, and responsiveness to public service needs. These efforts can help improve institutional performance and support better public service delivery.This study has several limitations. First, the research was conducted only in one government institution, namely BSKDN Jakarta, so the findings may not fully represent all public sector organisations in Indonesia. Second, the study used a cross-sectional design, which limits the ability to explain changes in organisational learning, competencies, culture, and performance over time. Future research is recommended to involve broader government institutions, apply longitudinal designs, and examine additional variables such as leadership, digital capability, bureaucratic reform, or public service innovation to provide a more comprehensive explanation of sustainable government performance..