Unlocking Business Performance Banks: Exploratory Learning, Exploitative learning and Innovation Work Behavior

Abstract

The study aims to investigate whether exploratory learning can influence business performance, whether exploitative learning can affect the business performance of Rural banks, and whether innovative work behavior can mediate the relationship between exploratory learning and exploitative learning on business performance. The research explains the phenomenon of the behavior of directors of Rural banks in managing bank performance from a financial and non-financial business performance perspective. Data was collected from 176 BPRs in Indonesia, especially East Java. Total sampling was used by distributing Likert questionnaires with an interval scale of 1-5. The data were analyzed using SEM PLS with outer and inner analysis. The results of the research show that innovative work behaviorcan mediate the exploratory relationship to the business performance of 0.094 and exploitative learning to the businessperformance of 0.180, meaning that it can partially mediate. The findings of the study can help Indonesian rural bankdirectors manage the performance of their institutions. In addition, the research provides explicitly an overview of organizational learning.