Organizational Innovation as a Mediation of the Influence of Innovation Capability on Organizational Performance in Manufacturing Companies in East Java

This research aims to analyze the influence of innovation capabilities on organizational innovation, analyze the influence of innovation capabilities on organizational performance, analyze the influence of organizational innovation on organizational performance, and analyze the influence of innovation capabilities on organizational performance through organizational innovation. The sample in this study involved 140 respondents. Sampling in this study was carried out using a simple random sampling technique. The analyses techniques used were descriptive analysis and structural equation modeling (SEM) analysis. The results of the analyses show that innovation capability influences organizational innovation. Innovation ability influences organizational performance. Organizational innovation influences organizational performance. Organizational innovation as a mediator of the influence of innovation capability on organizational performance. Implementing effective innovation capabilities and promoting a culture of innovation in organizations can be an effective strategy for improving organizational performance. In a competitive business era, the involvement of high-quality human resources and the ability to innovate is the key to achieving competitive advantage and sustainable growth. Keywords: innovation capability, organizational innovation, organizational performance