Leadership strategy as the driver of achieving sustainable business: A case of endek weaving SMEs in Indonesia

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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.

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    • 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
    • Conceptualization
      Made Ermawan Yoga Antara
    • Data curation
      Made Ermawan Yoga Antara, Ida Ayu Putu Widani Sugianingrat
    • Formal Analysis
      Made Ermawan Yoga Antara
    • Methodology
      Made Ermawan Yoga Antara
    • Resources
      Made Ermawan Yoga Antara
    • Software
      Made Ermawan Yoga Antara
    • Writing – original draft
      Made Ermawan Yoga Antara
    • Writing – review & editing
      Made Ermawan Yoga Antara, Ida Ayu Oka Martini
    • Investigation
      Ida Ayu Putu Widani Sugianingrat, Ida Ayu Oka Martini
    • Supervision
      Ida Ayu Putu Widani Sugianingrat, Ida Ayu Oka Martini
    • Validation
      Ida Ayu Putu Widani Sugianingrat, Ida Ayu Oka Martini
    • Visualization
      Ida Ayu Oka Martini