Volume 30, Number 3, 2025

Corporate Reputation Links Dynamic Capabilities to Performance in Indonesian Life Insurance Firms

Ardyanto Budirachman  ^{a, *} , Bachtiar Usman  ^b , Wahyuningsih Santosa ^{c
a, b, c}  Program Doktor, Fakultas Ekonomi dan Bisnis, Universitas Trisakti, Indonesia
^*a ardhyanto@pa.adonai.co.id
^b  bachtiar.usman@trisakti.ac.id
^c wahyuningsih@trisakti.ac.id

ABSTRACT

Prior studies link agility and digital adoption to performance and show that reputation and moral hazard matter, but the evidence remains fragmented and rarely integrated in insurance settings. This study examines how innovation, technology adoption, employee moral competence, and organizational agility shape firm performance in Indonesian life insurance through corporate reputation and moral hazards. Grounded in resource‑based and dynamic capability perspectives, a survey of senior managers in Indonesian life insurance firms was conducted using partial least squares Structural Equation Modeling in Smart-PLS. Corporate reputation is the main pathway to performance; innovation, technology adoption, moral competence, and agility strengthen reputation, and reputation is strongly associated with better performance. Moral hazard control is selective: Organizational agility is associated with lower employee moral hazards, while the other antecedents show no direct association. Employees' moral hazards show a weak positive association with performance, pointing to potential short-run gains alongside conduct risk. This study integrates capability renewal, stakeholder evaluation, and ethical risk in an insurance-specific model for Indonesia, clarifying why performance gains depend more on reputation building and agile control than on capability investment alone.

JEL Classification: G22; L25; O33

Keywords: firm performance, corporate reputation, moral hazards, resource-based view, dynamic capabilities

Cite this article: 

Budirachman, A., Usman, B., and Santosa, W., 2025,  Corporate Reputation Links Dynamic Capabilities to Performance in Indonesian Life Insurance Firms,  International Journal of Business , 30(3), 003.  https://doi.org/10.55802/IJB.030(3).003