Innovative work behavior and self-efficacy: Does entrepreneurial leadership impact MSME business performance?
-
Author(s)Aniek RumijatiLink to ORCID Index: https://orcid.org/0000-0003-0154-8169
,
Arif Rahman HakimLink to ORCID Index: https://orcid.org/0009-0005-3661-1860
-
DOIhttp://dx.doi.org/10.21511/ppm.21(4).2023.24
-
Article InfoVolume 21 2023, Issue #4, pp. 304-315
- Cited by
- 278 Views
-
67 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The current business performance of micro, small, and medium enterprises (MSMEs) must be able to innovate in business strategies in a competitive era. MSMEs are at the forefront of contributing to Indonesia’s Gross Domestic Product (GDP) and have a considerable role in the Indonesian economy. The study aimed to assess factors contributing to the business performance of MSMEs in Sidoarjo Regency, Indonesia. The total population was 277 MSME owners; using the purposive sampling technique with the Slovin formula, 144 respondents were obtained with an error rate of 5%. Data analysis used SEM-PLS with SmartPLS-3 software. The findings show that entrepreneurial leadership directly affects business performance and innovative work behavior, and innovative work behavior affects business performance. Then, entrepreneurial leadership influences business performance through innovative work behavior. Interestingly, there is no moderating effect of self-efficacy on the effect of entrepreneurial leadership on business performance. MSMEs need to have innovative work behavior to improve their business performance by applying entrepreneurial leadership to increase innovation in business strategies to compete and survive in a competitive era.
- Keywords
-
JEL Classification (Paper profile tab)O15, L25, L26
-
References62
-
Tables5
-
Figures1
-
- Figure 1. Research framework
-
- Table 1. Respondent demographics
- Table 2. Convergent validity test
- Table 3. Model measurement analysis
- Table 4. Direct effect hypotheses testing results
- Table 5. Mediation and moderation test
-
- Achmadi, H., Jayanagara, O., & Sutawijaya, A. H. (2023). What was the impact of business performance on MSMEs during the COVID-19 pandemic? Asian Economic and Financial Review, 13(4), 279-292.
- Akbari, M., Bagheri, A., Imani, S., & Asadnezhad, M. (2021). Does entrepreneurial leadership encourage innovation work behavior? The mediating role of creative self-efficacy and support for innovation. European Journal of Innovation Management, 24(1), 1-22.
- Al Mamun, A., Ibrahim, M. D., Yusoff, M. N. H. Bin, & Fazal, S. A. (2018). Entrepreneurial leadership, performance, and sustainability of micro-enterprises in Malaysia. Sustainability, 10(5), 1591.
- Ali, I. (2003). A performance measurement framework for a small and medium enterprise. Univerity of Alberta.
- Almaududi Ausat, A. M., Widayani, A., Rachmawati, I., Latifah, N., & Suherlan, S. (2021). The effect of intellectual capital and innovative work behavior on business performance. Journal of Economics, Business, & Accountancy Ventura, 24(3).
- Amoako, G. K., Coffie, I. S., & Ocloo, E. C. (2023). Social media communication and sustainability perception in business: The moderating role of social media influencers. In I. Gigauri, M. Palazzo, & M. Ferri (Eds.), Handbook of Research on Achieving Sustainable Development Goals with Sustainable Marketing (pp. 129-148). IGI Global.
- Anatan, L., & Nur. (2023). Micro, small, and medium enterprises’ readiness for digital transformation in Indonesia. Economies, 11(6), 156.
- Appelbaum, S., Bartolomucci, N., Beaumier, E., Boulanger, J., Corrigan, R., Doré, I., Girard, C., & Serroni, C. (2004). Organizational citizenship behavior: A case study of culture, leadership and trust. Management Decision, 42(1), 13-40.
- Asbari, M., Purwanto, A., & Budi, P. (2020). Pengaruh iklim organisasi dan kepemimpinan transformasional terhadap produktivitas kerja inovatif pada industri manufaktur di pati Jawa tengah [The influence of organizational climate and transformational leadership on innovative work productivity in the manufacturing industry in Central Java]. Jurnal Produktivitas, 7(1), 62-69. (In Indonesian).
- Bagheri, A. (2017). The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. Journal of High Technology Management Research, 28(2), 159-166.
- Bagheri, A., Akbari, M., & Artang, A. (2022). How does entrepreneurial leadership affect innovation work behavior? The mediating role of individual and team creativity self-efficacy. European Journal of Innovation Management, 25(1), 1-18.
- Bagheri, A., Newman, A., & Eva, N. (2022). Entrepreneurial leadership of CEOs and employees’ innovative behavior in high-technology new ventures. Journal of Small Business Management, 60(4), 805-827.
- Bandura, A. (1997). Self-efficacy: The exercise of control (1st ed.). Worth Publishers.
- Boerner, S., Eisenbeiss, S. A., & Griesser, D. (2007). Follower behavior and organizational performance: The impact of transformational leaders. Journal of Leadership & Organizational Studies, 13(3), 15-26.
- Chen, M. H. (2007). Entrepreneurial leadership and new ventures: Creativity in entrepreneurial teams. Creativity and Innovation Management, 16(3), 239-249.
- Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In G. A. Marcoulides (Ed.), Modern methods of business research. Lawrence Erlbaum Associates.
- Choi, W. S., Kang, S. W., & Choi, S. B. (2021). Innovative behavior in the workplace: An empirical study of moderated mediation model of self-efficacy, perceived organizational support, and leader–member exchange. Behavioral Sciences, 11(12), 182.
- Dama, J., & Ogi, I. W. J. (2018). Pengaruh inovasi terhadap dan kreativitas terhadap kinerja karyawan pada PT Bank Mandiri (Persero) Tbk. Manado [The influence of innovation and creativity on employee performance at PT Bank Mandiri (Persero) Tbk. Manado]. Jurnal EMBA: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 6(1), 41-50. (In Indonesian).
- De Jong, J. P. J., & Den Hartog, D. N. (2010). Measuring innovative work behaviour. Creativity and Innovation Management, 19(1), 23-36.
- Ebersberger, B., & Kuckertz, A. (2021). Hop to it! The impact of organization type on innovation response time to the COVID-19 crisis. Journal of Business Research, 124, 126-135.
- Erikson, T. (2002). Entrepreneurial capital: The emerging venture’s most important asset and competitive advantage. Journal of Business Venturing, 17(3), 275-290.
- Farrukh, M., Meng, F., Raza, A., & Wu, Y. (2023). Innovative work behaviour: The what, where, who, how and when. Personnel Review, 52(1), 74-98.
- Ferdinand, A. (2013). Metode penelitian manajemen: Pedoman penelitian untuk penulisan skripi,tesis dan disertasi ilmu manajemen [Management research methods: Research guidelines for writing theses, theses and dissertations in management science]. (In Indonesian). Undip Press.
- Freeman, D., & Siegfried, R. (2015). Entrepreneurial leadership in the context of company start-up and growth. Journal of Leadership Studies, 8(4), 35-39.
- Ghozali, I., & Latan, H. (2015). Partial least square: Konsep, teknik, dan aplikasi menggunakan program SmartPLS 3.0 [Partial least square: Concepts, techniques, and applications using the SmartPLS 3.0 program]. (In Indonesian). Badan Penerbit Undip.
- Goossen, R. J. (2007). Entrepreneurial leaders reflections on faith and work. Trinity Western University.
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. W. (2019). Multivariate data analysis (8th ed.). Cengage Learning EMEA.
- Hsu, M. L. A., Hou, S. T., & Fan, H. L. (2011). Creative self-efficacy and innovative behavior in a service setting: Optimism as a moderator. Journal of Creative Behavior, 45(4), 258-272.
- Imaroh, T. S., & Widiyani, K. (2020). Improving performance and competitive advantage through innovation and design of UMKM products. International Journal of Innovative Science and Research Technology, 5(8), 1336-1346.
- Jankelová, N., Joniaková, Z., & Mišún, J. (2021). Innovative work behavior – A key factor in business performance? The role of team cognitive diversity and teamwork climate in this relationship. Journal of Risk and Financial Management, 14(4), 185.
- Javed, B., Khan, A. K., & Quratulain, S. (2018). Inclusive leadership and innovative work behavior: Examination of LMX perspective in small capitalized textile firms. Journal of Psychology: Interdisciplinary and Applied, 152(8), 594-612.
- Lanang, I. P. E. S., Kirya, I. K., & Cipta, I. W. (2014). Analisis faktor-faktor yang mempengaruhi kinerja usaha mikro kecil dan menengah (UMKM) di kabupaten bangli [Analysis of factors affecting the performance of micro, small and medium enterprises (msmes) in bangli regency]. E-Journal Bisma Universitas Pendidikan Ganesha, 2(1), 11-21. (In Indonesian).
- Latifah, L., Setiawan, D., Aryani, Y. A., & Rahmawati, R. (2021). Business strategy – MSMEs’ performance relationship: Innovation and accounting information system as mediators. Journal of Small Business and Enterprise Development, 28(1), 1-21.
- Leong, C. T., & Rasli, A. (2014). The relationship between innovative work behavior on work role performance: An empirical study. Procedia – Social and Behavioral Sciences, 129, 592-600.
- Li, C., Makhdoom, H. U. R., & Asim, S. (2020). Impact of entrepreneurial leadership on innovative work behavior: Examining mediation and moderation mechanisms. Psychology Research and Behavior Management, 2020(13), 105-118.
- Limanseto, H. (2022). Perkembangan UMKM sebagai critical engine perekonomian nasional terus mendapatkan dukungan pemerintah [The development of MSMEs as a critical engine of the national economy continues to receive government support]. Coordinating Ministry for Economic Affairs Indonesia. (In Indonesian).
- Lubis, R. L. (2017). Assessing entrepreneurial leadership and the law: Why are these important for graduate students in Indonesia? International Journal of Arts & Sciences, 10(2), 41-76.
- Malibari, M. A., & Bajaba, S. (2022). Entrepreneurial leadership and employees’ innovative behavior: A sequential mediation analysis of innovation climate and employees’ intellectual agility. Journal of Innovation and Knowledge, 7(4), 100255.
- Mangkunegara, A. P. (2013). Manajemen sumberdaya manusia perusahaan [Corporate human resource management] . (In Indonesian). PT. Remaja.
- Megawaty, M., Hendriadi, H., & Salam, K. N. (2022). The impact of entrepreneurial leadership on the performance of small and medium enterprises enterprises. Point of View Research Management, 3(4), 388-397.
- Mehmood, M. S., Jian, Z., & Gilal, F. G. (2020). Entrepreneurial leadership and employee innovative behavior: Intervening role of creative self-efficacy. Human Systems Management, 39(3), 329-343.
- Mehralian, M. M., & Khazaee, P. (2022). Effect of digital marketing on the business performance of MSMEs during the COVID-19 pandemic: The mediating role of customer relationship management. 37th Digital Marketing and Customer Behavior Science Conference.
- Miller, D. (2011). Miller (1983) revisited: A reflection on EO research and some suggestions for the future. Entrepreneurship: Theory and Practice, 35(5), 873-894.
- Naranjo-Valencia, J. C., Jiménez-Jiménez, D., & Sanz-Valle, R. (2016). Studying the links between organizational culture, innovation, and performance in Spanish companies. Revista Latinoamericana de Psicologia, 48(1), 30-41.
- Newman, A., Tse, H. H. M., Schwarz, G., & Nielsen, I. (2018). The effects of employees’ creative self-efficacy on innovative behavior: The role of entrepreneurial leadership. Journal of Business Research, 89, 1-9.
- Othumary Mgeni, T. (2015). Impact of entrepreneurial leadership style on business performance of SMEs in Tanzania. Journal of Entrepreneurship & Organization Management, 4(2).
- Rahim, H. L., Abidin, Z. Z., Mohtar, S., & Ramli, A. (2015). The effect of entrepreneurial leadership towards organizational performance. International Academic Research Journal of Business and Technology, 1(2), 193-200.
- Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), 54-74.
- Rivai, V., & Mulyadi, D. (2009). Kepemimpinan dan perilaku organisasi [Leadership and organizational behavior] (3rd ed.). Rajagrafindo Persada. (In Indonesian).
- Sarwoko, E. (2020). Entrepreneurial leadership and innovative work behavior: The role of creative self-efficacy. Journal of Economics, Business, & Accountancy Ventura, 23(2).
- Sawaean, F. A. A., & Ali, K. A. M. (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.
- Soleh, M. (2008). Analisis strategi inovasi dan dampaknya terhadap kinerja perusahaan (Studi kasus: UKM manufaktur di kota semarang). Universitas Diponegoro.
- Srimulyani, V. A., & Hermanto, Y. B. (2022). Impact of entrepreneurial self-efficacy and entrepreneurial motivation on micro and small business success for food and beverage sector in East Java, Indonesia. Economies, 10(1), 10.
- Sudjatmoko, A., Ichsan, M., Astriani, M., Mariani, & Clairine, A. (2023). The impact of COVID-19 pandemic on the performance of Indonesian MSME with innovation as mediation. Cogent Business and Management, 10(1), 2179962.
- Suminah, S., Suwarto, S., Sugihardjo, S., Anantanyu, S., & Padmaningrum, D. (2022). Determinants of micro, small, and medium-scale enterprise performers’ income during the Covid-19 pandemic era. Heliyon, 8(7), e09875.
- Taleb, T. S. T., Hashim, N., & Zakaria, N. (2023). Entrepreneurial leadership and entrepreneurial success: The mediating role of entrepreneurial opportunity recognition and innovation capability. Sustainability, 15(7), 5776.
- Thornberry, N. (2006). Lead like an entrepreneur. The McGraw-Hill Companies, Inc.
- Utoyo, I., Fontana, A., & Satrya, A. (2020). The role of entrepreneurial leadership and configuring core innovation capabilities to enhance innovation performance in a disruptive environment. International Journal of Innovation Management, 24(6), 2050060.
- Vargas, M. I. R. (2015). Determinant factors for small business to achieve innovation, high performance and competitiveness: Organizational learning and leadership style. Procedia – Social and Behavioral Sciences, 169, 43-52.
- Wicaksono, G., & Nuvriasari, A. (2012). Meningkatkan kinerja UMKM industri kreatif melalui pengembangan kewirausahaan dan orientasi pasar: Kajian pada peran serta wirausaha wanita di kecamatan moyudan, kabupaten sleman, propinsi DIY [Improving the performance of creative industry MSMEs through entrepreneurship development and market orientation: A study on the participation of women entrepreneurs in Moyudan sub-district, Sleman district, DIY province]. Jurnal Sosio Humaniora, 3(4), 27-39. (In Indonesian).
- Widagdo, B., & Sa’diyah, C. (2023). Business sustainability: Functions of financial behavior, technology, and knowledge. Problems and Perspectives in Management, 21(1), 120-130.
- Wijaya, Y. H., & Harjanti, D. (2013). Enterpreneurial leadership dan hubungannya dengan kinerja bisnis pada usaha mikro kecil di wilayah Jawa timur [Entrepreneurial leadership and its relationship with business performance in micro small enterprises in the East Java region]. Agora, 1(3). (In Indonesian).
-
Knowledge management technology: human-computer interaction & cultural perspective on pattern of retrieval, organization, use, and sharing of information and knowledge
Knowledge and Performance Management Volume 1, 2017 Issue #1 pp. 46-54 Views: 4171 Downloads: 1022 TO CITEKnowledge Management (KM) implementation is as much a challenge as it is a great opportunity for businesses worldwide in several sectors. The controversy over its worthwhile application persists among practitioners and scholars, with claims having arisen that business opportunities and performance are enhanced through KM adoption. Conversely, challenges regarding effective implementation of KM concerning individuals’ behaviors, beliefs, and practices prompt significant questioning regarding its complex basis: individual-technology-process-production. The purpose of this work is to shed light on some perspectives for the effective adoption of knowledge management technology, the consolidation of a favorable and aligned organizational culture, and patterns of use and retrieval of information in organizations. This study brings into focus the concept of knowledge management and technology, and culture in the organization through a systematic literature review and based on the researcher’s hypothesis and observations that successful KM implementation results from a clear understanding of its multidisciplinary, complex, and multifaceted process, which requires a methodical and strategic business practice concerning the application of technological tools, the establishment of a learning culture through shared vision of business’ and individuals’ needs, and consequential enhancement of processes and solutions. It concludes that investment in KM practice and the consolidation of a learning culture are correlated, reflecting a type of leadership that is favorable to the flow of information, generation, and sharing of knowledge (the intellectual capital) and optimization of decision making and business performance.
-
Industrial development in Saudi Arabia: disparity in growth and development
Anis Ali
doi: http://dx.doi.org/10.21511/ppm.18(2).2020.03
Problems and Perspectives in Management Volume 18, 2020 Issue #2 pp. 23-35 Views: 2545 Downloads: 878 TO CITE АНОТАЦІЯIndustrial development in any nation plays a vital role in the strengthening of the economy and employs human resources as per specifications and directly towards the mainstream of the nation. In Saudi Arabia, there was rapid industrialization for four decades. Some manufacturing industries performed well, while some internal and external business environment factors influenced the others’ performance. The study focuses on historical development, as well as recent trends of well-performing and poor-performing industries of Saudi Arabia. Small manufacturing industries in Saudi Arabia are underdeveloped and need more attention to attain sustainable and progressive growth rate in the form of the number of establishments to enjoy the potential. Manufacture of tobacco, computer, electronics and optics, pharmaceuticals and transport equipment are the deprived and underdeveloped industries of the manufacturing sector. There should be some easy credit schemes for the development of deprived or underdeveloped manufacturing industries. To attain sustainable growth and development of the manufacturing sector, a positive attitude of the government towards underdeveloped manufacturing industries, favorable labor laws, and entrepreneurial awareness, technical and financial assistance are necessary. The growth and development of the manufacturing sector of Saudi Arabia will be helpful in the attainment of goals of Vision 2030.
-
Impact of organizational politics on proactive behavior of government employees: the moderating role of self-efficacy
Fauzan Ali Rasyid ,
M. Sandi Marta
doi: http://dx.doi.org/10.21511/ppm.18(1).2020.33
Problems and Perspectives in Management Volume 18, 2020 Issue #1 pp. 385-393 Views: 1446 Downloads: 244 TO CITE АНОТАЦІЯIn today’s organizational environment, human resources are seen to be one of the most crucial assets that must be maintained, particularly the existence of employees’ proactive behavior, which is needed for the sustainability of organizational performance. One factor, which may affect the employees’ proactive behavior, is organizational politics. Therefore, the main objective of this study is to investigate the effect of organizational politics on proactive behavior of government employees and to test further whether this effect was moderated by self-efficacy. This study used a quantitative approach with an exploratory method to answer the proposed hypothesis. The samples were 310 local government employees in Bandung district, Cimahi City, Bandung City, and West Bandung Regency, Indonesia. For processing the data and testing the hypotheses, this research employed Moderated Regression Analysis by using STATA 13. The results showed that organizational politics has a negative effect on the proactive behavior of government employees, and the moderation effect of self-efficacy can weaken the negative relationship between organizational politics and proactive behavior. The study, therefore, makes a valuable contribution regarding the additional evidence to the organization within this field.
