Leadership strategy as the driver of achieving sustainable business: A case of endek weaving SMEs in Indonesia
-
Author(s)Made Ermawan Yoga AntaraLink to ORCID Index: https://orcid.org/0009-0008-8257-3553
,
Ida Ayu Putu Widani SugianingratLink to ORCID Index: https://orcid.org/0000-0001-8960-000X
,
Ida Ayu Oka MartiniLink to ORCID Index: https://orcid.org/0000-0003-0724-2435
-
DOIhttp://dx.doi.org/10.21511/ppm.22(4).2024.22
-
Article InfoVolume 22 2024, Issue #4, pp. 288-298
- 39 Views
-
5 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
The sustainable performance of the endek ikat weaving business is essential for the growth of small and medium enterprises and the local economy of Bali (Indonesia). This study intends to examine the direct effects of green entrepreneurial orientation and sustainable leadership on endek weaving SME performance, as well as their indirect effects through the mediation of green digital innovation. This analysis was conducted on endek ikat weaving SMEs in the province of Bali. The population included 1,391 management personnel. Using the proportional random sampling, the study selected 311 respondents. The research hypotheses were tested using a questionnaire distributed among SME management in Bali. Research data were analyzed using the PLS-SEM method and SmartPLS 3 as the analytical tool. The results revealed that sustainable leadership affects green digital innovation (β = 0.483, t-statistic = 5.968). Green entrepreneurial orientation affects sustainable performance and green digital innovation (β = 0.240, 0.445; t-statistic = 2.858, 5.457). Moreover, green digital innovation has the potential to mediate the effect of sustainable leadership and green entrepreneurial orientation toward sustainable performance (β = 0.317, 0.292; t-statistic = 4.184, 4.645). By integrating leadership strategies with a green entrepreneurial approach, as well as innovating through digital media, Balinese endek weaving SMEs can improve their performance to achieve business sustainability.
Acknowledgments
This is independent research that has not been funded by any institution. We would like to thank all parties who have provided immaterial support for this investigation.
- Keywords
-
JEL Classification (Paper profile tab)M21, L26, P25
-
References37
-
Tables7
-
Figures2
-
- Figure 1. Research model
- Figure 2. PLS analysis results
-
- Table 1. Sample characteristics
- Table 2. Convergent validity
- Table 3. Average variance extracted
- Table 4. Discriminant validity
- Table 5. Reliability testing
- Table 6. R-square testing
- Table 7. Hypotheses testing
-
- Afum, E., Issau, K., Agyabeng-Mensah, Y., Baah, C., Dacosta, E., Essandoh, E., & Agyenim Boateng, E. (2023). The missing links of sustainable supply chain management and green radical product innovation between sustainable entrepreneurship orientation and sustainability performance. Journal of Engineering, Design and Technology, 21(1), 167-187.
- Akter, S., D’ambra, J., & Ray, P. (2011). An evaluation of PLS-based complex models: The roles of power analysis, predictive relevance, and GoF index. Proceedings of the 17th Americas Conference on Information Systems (AMCIS2011) (pp. 1-7). Detroit, USA: Association for Information Systems.
- Alshebami, A. S. (2023). Green innovation, self-efficacy, entrepreneurial orientation and economic performance: Interactions among Saudi small enterprises. Sustainability, 15(3), Article 1961.
- Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.
- Burawat, P. (2019). The relationships among transformational leadership, sustainable leadership, lean manufacturing, and sustainability performance in the Thai SME manufacturing industry. International Journal of Quality and Reliability Management, 36(6), 1014-1036.
- Ekayani, N. N. S., Anom Purbawangsa, I. B., Artini, L. G. S., & Rahyuda, H. (2023). The mediating effect of technology innovation on intellectual capital performance: Evidence from Indonesian SMEs. Uncertain Supply Chain Management, 11(4), 1821-1830.
- Elkington, J., & Rowlands, I. H. (1999). Cannibals with forks: The triple bottom line of 21st-century business. Alternatives Journal, 25(4), 42-43.
- Farida, F. A., Hermanto, Y. B., Paulus, A. L., & Leylasari, H. T. (2022). Strategic entrepreneurship mindset, strategic entrepreneurship leadership, and entrepreneurial value creation of SMEs in East Java, Indonesia: A strategic entrepreneurship perspective. Sustainability, 14(16), Article 10321.
- Fatoki, O. (2019). Green entrepreneurial orientation and firm performance in South Africa. Entrepreneurship and Sustainability Issues, 7(1), 247-262.
- Faulks, B., Song, Y., Waiganjo, M., Obrenovic, B., & Godinic, D. (2021). Impact of empowering leadership, innovative work, and organizational learning readiness on sustainable economic performance: An empirical study of companies in Russia during the COVID-19 pandemic. Sustainability, 13(22), Article 12465.
- Guo, Y., Wang, L. F., & Chen, Y. (2020). Green entrepreneurial orientation and green innovation: The mediating effect of supply chain learning. SAGE Open, 10(1).
- Hair, J. Jr, Hair Jr, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2021). A primer on partial least squares structural equation modeling. Sage Publications.
- Hanelt, A., Firk, S., Hildebrandt, B., & Kolbe, L. M. (2021). Digital M&A, digital innovation, and firm performance: An empirical investigation. European Journal of Information Systems, 30(1), 3-26.
- Iqbal, Q., & Ahmad, N. H. (2021). Sustainable development: The colors of sustainable leadership in a learning organization. Sustainable Development, 29(1), 108-119.
- Iqbal, Q., & Piwowar-Sulej, K. (2022). Sustainable leadership in higher education institutions: Social innovation as a mechanism. International Journal of Sustainability in Higher Education, 23(8), 1-20.
- Iqbal, Q., Ahmad, N. H., Nasim, A., & Khan, S. A. R. (2020). A moderated-mediation analysis of psychological empowerment: Sustainable leadership and sustainable performance. Journal of Cleaner Production, 262, Article 121429.
- Jiang, W., Chai, H., Shao, J., & Feng, T. (2018). Green entrepreneurial orientation for enhancing firm performance: A dynamic capability perspective. Journal of Cleaner Production, 198, 1311-1323.
- Khan, E. A., & Quaddus, M. (2015). Development and validation of a scale for measuring sustainability factors of informal microenterprises – A qualitative and quantitative approach. Entrepreneurship Research Journal, 5(4), 347-372.
- Khin, S., & Ho, T. C. F. (2020). Digital technology, digital capability, and organizational performance: A mediating role of digital innovation. International Journal of Innovation Science, 11(2), 177-195.
- Majali, T., Alkaraki, M., Asad, M., Aladwan, N., & Aledeinat, M. (2022). Green transformational leadership, green entrepreneurial orientation and performance of SMEs: The mediating role of green product innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(4).
- Makhloufi, L., Djermani, F., & Meirun, T. (2024). Mediation-moderation model of green absorptive capacity and green entrepreneurship orientation for corporate environmental performance. Management of Environmental Quality, 35(1), 139-157.
- Makhloufi, L., Laghouag, A. A., Meirun, T., & Belaid, F. (2022). Impact of green entrepreneurship orientation on environmental performance: The natural resource-based view and environmental policy perspective. Business Strategy and the Environment, 31(1), 425-444.
- Maksum, I. R., Sri Rahayu, A. Y., & Kusumawardhani, D. (2020). A social enterprise approach to empowering micro, small, and medium enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3).
- McCann, J. T., & Holt, R. A. (2010a). Defining sustainable leadership. International Journal of Sustainable Strategic Management, 2(2), 204-210.
- McCann, J. T., & Holt, R. A. (2010b). Servant and sustainable leadership: an analysis in the manufacturing environment. International Journal of Management Practice, 4(2), 134-148.
- Muangmee, C., Dacko-Pikiewicz, Z., Meekaewkunchorn, N., Kassakorn, N., & Khalid, B. (2021). Green entrepreneurial orientation and green innovation in small and medium-sized enterprises (SMEs). Social Sciences, 10(4), Article 136.
- Paladino, A. (2007). Investigating the drivers of innovation and new product success: A comparison of strategic orientations. Journal of Product Innovation Management, 24(6), 534-553.
- Shah, N., Zehri, A. W., Saraih, U. N., Abdelwahed, N. A. A., & Soomro, B. A. (2024). The role of digital technology and digital innovation towards firm performance in a digital economy. Kybernetes, 53(2), 620-644.
- Shan, H. (2023). Digital innovation, dynamic capabilities, and enterprise innovation performance – Empirical analysis from China’s A-Share listed companies from 2010–2021. American Journal of Industrial and Business Management, 13(10), 1005-1023.
- Surahman, Shee, H., Fitrian, Z., Sasmoko Adi, A., & Yudaruddin, R. (2023). The effect of digital transformation and innovation on SMEs’ performance in times of COVID-19. Problems and Perspectives in Management, 21(4), 84-100.
- Tian, H., & Wang, A. (2023). Sustainable leadership, knowledge sharing, and frugal innovation: The moderating role of organizational innovation climate. SAGE Open, 13(4).
- Wahyono, & Hutahayan, B. (2021). The relationships between market orientation, learning orientation, and financial literacy, on the knowledge competence, innovation, and performance of small and medium textile industries in Java and Bali. Asia Pacific Management Review, 26(1), 39-46.
- Wahyuni, N. M., & Sara, I. M. (2020). The effect of entrepreneurial orientation variables on business performance in the SME industry context. Journal of Workplace Learning, 32(1), 35-62.
- Yasa, N. N. K., Ekawati, N. W., & Rahmayanti, P. L. D. (2019). The role of digital innovation in mediating digital capability on business performance. European Journal of Management and Marketing Studies, 4(2), 111-128.
- Yusliza, M. Y., Yong, J. Y., Tanveer, M. I., Ramayah, T., Noor Faezah, J., & Muhammad, Z. (2020). A structural model of the impact of green intellectual capital on sustainable performance. Journal of Cleaner Production, 249, Article 119334.
- Zavatin, I., Ene Constantin, A. B., Bujor, D., & Frațiloiu, B. A. (2023). Study on the impact of organizational culture, knowledge management and digitalization on sustainable leadership. Proceedings of the International Conference on Business Excellence, 17(1), 1702-1715.
- Zhang, Z., Zhu, H., Zhou, Z., & Zou, K. (2022). How does innovation matter for sustainable performance? Evidence from small and medium-sized enterprises. Journal of Business Research, 153, 251-265.
-
Sustainable leadership pre- and within the 21st century
Bloodless Dzwairo ,
Ntombenhle Nombela ,
Manoshni Perumal
doi: http://dx.doi.org/10.21511/ee.08(1).2017.08
Environmental Economics Volume 8, 2017 Issue #1 pp. 75-82 Views: 1218 Downloads: 899 TO CITE АНОТАЦІЯThis paper reviews literature on sustainable leadership pre- and within the 21st century, using the following nuances: (1) selected dynamics attributable to socio-demographics, (2) implications and barriers that skew gender and leadership bias, and (3) the role of cultural norms and values in leadership practices and processes within organizations.
The global challenge for research on sustainable leadership is also discussed, as it must take into account the different cultures, needs and requirements of different organizations within specific environmental contexts. A challenge spoke to the use of international models and strategies in order to achieve semantic interoperability. It is concluded that from the established theoretical framework, a focus on culture and sustainable leadership is needed, as these impact on various aspects of leadership including sustainability. It is suggested that for the future, emerging issues should incorporate sustainability into businesses in order to align environmental and social objectives with business strategies.
-
Unveiling the antecedents of sustainable performance: Insights from hospitality industry managers
Ajmal As’ad ,
Nurdin Brasit ,
Mahlia Muis ,
Fauziah Umar
doi: http://dx.doi.org/10.21511/ppm.22(4).2024.23
Problems and Perspectives in Management Volume 22, 2024 Issue #4 pp. 299-309 Views: 39 Downloads: 6 TO CITE АНОТАЦІЯThe hospitality industry faces significant challenges in achieving sustainable performance, particularly amidst a rapidly changing market and environmental uncertainties. Unfortunately, previous studies have paid limited attention to this specific aspect of performance. This study explores the antecedents – organizational resilience, dynamic capabilities, agile leadership, and organizational ambidexterity – that contribute to sustainable performance among managers in this sector. A self-administered electronic questionnaire was used to collect primary data from 210 hotel managers at various levels in Makassar, Indonesia, following a purposive sampling approach. The relationships were analyzed using partial least squares structural equation modeling (PLS-SEM) with SmartPLS 4.0. The results indicate that organizational resilience and agile leadership significantly influence sustainable performance, while dynamic capability and organizational ambidexterity do not show a significant impact. Furthermore, both organizational resilience and dynamic capability are significant to organizational ambidexterity, and they also significantly contribute to agile leadership. These findings illuminate the critical determinants affecting sustainable performance in the hospitality sector, providing valuable insights for practitioners and policymakers aiming to enhance sustainability practices in the industry.
