Objective - Configuration of organizational capability plays a very important role in creating service performance, and superior and sustainable company performance. The purpose of this study is to propose a conceptual to explain the role between configuration of organizational capability to service performance and its impact on sustainable local enterprise water services in West Kalimantan, Indonesia.

Methodology/Technique - The data was collected from 100 managers at the local enterprise water service in West Kalimantan Indonesia using a purposive sampling method. The analysis tool used was structural equation modeling partial least square (SEMPLS).

Findings - The model in this study was confirmed by the data collected which shows the importance of configuring organizational capability to improve both service performance and sustainability of the local enterprise water services in West Kalimantan. The classification of configuration organizational capability in local enterprise water services includes human capability, information technology capability, system capability, and dynamic capability.

Novelty - Most of the previous research focus on western countries. Therefore, this research is novel as it is carried out in the context of developing countries, particularly in local enterprise water services in West Kalimantan, Indonesia.

Type of Paper: Empirical.

Keywords: RBV; Configuration Organizational Capability; Service Performance; Sustainable Local Enterprise Water Service.

JEL Classification: M20, M29.

DOI: https://doi.org/10.35609/jber.2019.4.1(4)