The Role of Intellectual Agility in the Implementation of Transformative Leadership in Improving MSME Business Performance
DOI:
https://doi.org/10.31933/dijdbm.v4i6.2101Keywords:
Transformative Leadership, Intellectual AgilityAbstract
The leadership factor determines an organization in achieving success. Improving an organization's business performance requires an innovative and creative leader, so leaders are expected to have good intellectuals carrying out their roles. The effectiveness of transformative leadership and increasing intellectual agility are expected to improve MSME business performance to positively impact the economy for themselves and employees and reduce poverty. The objectives of this study are (1) to analyze the effect of transformative leadership on MSME business performance; (2) to analyze the effect of transformative leadership on intellectual agility; (3) to analyze the influence of intellectual agility on the business performance of MSMEs; (4) analyze the role of intellectual agility in mediating the effect of transformative leadership on MSME business performance. The data analysis method used is Structural Equation Modeling (SEM) measurements using SmartPLS software. The results of the study show (1) that transformative leadership has a significant positive effect on MSME business performance; (2) transformative leadership shows a significant positive effect on intellectual agility; (3) intellectual agility shows a significant positive effect on MSME business performance; (4) intellectual agility as a mediating influence of transformative leadership shows a significant positive effect on MSME business performance
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Wright, B.E., Moynihan, D.P., Pandey, S.K., 2012. Pulling the levers: transformational leadership, public service motivation, and mission valence. Publ. Adm. Rev. 72 (2), 206–215.
Xing, Y., Liu, Y., Boojihawon, D. K., & Tarba, S. (2020). Entrepreneurial team and strategic agility: A conceptual framework and research agenda. Human Resource Management Review, 30(1), Article 100696. https://doi.org/10.1016/j.hrmr.2019.100696.
Bagheri, A. (2017). The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. The Journal of High Technology Management Research, 28(2), 159–166.
Bakar, Sulaiman, M., dan Osman I. (2014) Exploring the Relationship between Business Factor and Performance in the Malaysian Halal Biotechnology SMEs Context. Procedia-Social and Behavioral Sciences, 121, 243-252
Caseiro, N., & Coelho, A. (2019). The influence of Business Intelligence capacity, network learning and innovativeness on startups performance. Journal of Innovation & Knowledge, 4(3), 139–145.
Cegarra-Navarro, J. G., & Martelo-Landroguez, S. (2020). The effect of organizational memory on organizational agility: Testing the role of counter-knowledge and knowledge application. Journal of Intellectual Capital. https://doi.org/10.1108/JIC-03-2019-0048.
Clausen, T.H., Demircioglu, M.A., Alsos, G.A., 2020. Intensity of innovation in public sector organizations: the role of push and pull factors. Publ. Adm. 98 (1), 159–176.
Chiu, T., Wang, T., 2019. The COSO framework in emerging technology environments: an effective in-class exercise on internal control. J. Emerg. Technol. Account. Teach. Notes 16 (2), 1–10.
Clausen, T.H., Demircioglu, M.A., Alsos, G.A., 2020. Intensity of innovation in public sector organizations: the role of push and pull factors. Publ. Adm. 98 (1), 159–176.
Dabi´c, M., La?znjak, J., Smallbone, D., & ?Svarc, J. (2019). Intellectual capital, organizational climate, innovation culture and SME performance: Evidence from Croatia. Journal of Small Business and Enterprise Development, 26(4), 522–544.
Demircioglu, M.A., Audretsch, D.B., 2017. Conditions for innovation in public sector organizations. Res. Pol. 46 (9), 1681–1691.
Hair, Joseph F. Jr. et al. 2010, Multivariate Data Analysis 7th Edition. Pearson Education Limited. Harlow. England
Harrison, C., Burnard, K., & Paul, S. (2018). Entrepreneurial leadership in a developing economy: A skill-based analysis. Journal of Small Business and Enterprise Development, 25(3), 521–548.
Kamukama, N., Ahiauzu, A., & Ntayi, J. M. (2010). Intellectual capital and performance: Testing interaction effects. Journal of Intellectual Capital, 11(4), 554–574.
Kansikas, J., Laakkonen, A., Sarpo, V., & Kontinen, T. (2012). Entrepreneurial leadership and familiness as resources for strategic entrepreneurship. International Journal of Entrepreneurial Behavior & Research, 18(2), 141–158.
Miao, Q., Eva, N., Newman, A., & Cooper, B. (2019). Ceo entrepreneurial leadership and performance outcomes of top management teams in entrepreneurial ventures: The mediating effects of psychological safety. Journal of Small Business Management, 57 (3), 1119–1135.
Mishra and Suar. 2010. Does Corporate Social Responsibility Influence Firm Performance of Indian Companies? Journal Of Business Ethics, 95: 571-601
Nguyen, N.P., 2018. Performance implication of market orientation and use of management accounting systems: the moderating role of accountants’ participation in strategic decision making. J. Asi. Busin. Econ. Stud. 25 (1), 33–49.
Nguyen, N.T., Hooi, L.W., Avvari, M.V., 2021. Leadership styles and organizational innovation in Vietnam: does employee creativity matter?. In: International Journal of Productivity and Performance Management. Advance online publication.
Robbins, S. P., dan Judge, T. A., 2015. Organizational Behavior. Pearson.
Sun, R., Henderson, A.C., 2017. Transformational leadership and organizationalprocesses: influencing public performance. Publ. Adm. Rev. 77 (4), 554–565.
Sambamurthy, V., Bharadwaj, A., & Grover, V. (2003). Shaping agility through digital options: Reconceptualizing the role of information technology in contemporary firms. MIS Quarterly, 237–263.
Santos-Rodrigues, H., Dorrego, P. F., & Jardon, C. F. (2010). The influence of human capital on the innovativeness of firms. International Business & Economics Research Journal (IBER), 9(9).
Sawaean, F., & Ali, K. (2020). The impact of entrepreneurial leadership and learning orientation on organizational performance of SMEs: The mediating role of innovation capacity. Management Science Letters, 10(2), 369–380.
Shamir, B., Howell, J.M., 2018. Organizational and contextual influences on the emergence and effectiveness of charismatic leadership. In: Katz, I., Eilam-Shamir, G., Kark, R., Berson, Y. (Eds.), Leadership Now: Reflections on the Legacy of Boas Shamir (Monographs in Leadership and Management, 9. Emerald Publishing Limited, Bingley, pp. 255–281.
Shanker, R., Bhanugopan, R., Van der Heijden, B.I., Farrell, M., 2017. Organizational climate for innovation and organizational performance: the mediating effect of innovative work behavior. J. Vocat. Behav. 100, 67–77.
Tajeddini, K., Trueman, M., & Gretchen, L. (2006). Examining the Effect of Market Orientation On Innovativeness. Journal of Marketing Management, 22, 529-551.
Vuorio, A., Torkkeli, L., & Sainio, L. M. (2020). Service innovation and internationalization in SMEs: antecedents and profitability outcomes. Journal of International Entrepreneurship, 18(1), 92–123.
Wright, B.E., Moynihan, D.P., Pandey, S.K., 2012. Pulling the levers: transformational leadership, public service motivation, and mission valence. Publ. Adm. Rev. 72 (2), 206–215.
Xing, Y., Liu, Y., Boojihawon, D. K., & Tarba, S. (2020). Entrepreneurial team and strategic agility: A conceptual framework and research agenda. Human Resource Management Review, 30(1), Article 100696. https://doi.org/10.1016/j.hrmr.2019.100696.
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2023-11-28
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