2020
DOI: 10.21511/ppm.18(3).2020.34
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Effect of transformational and transactional leadership on SMEs in Indonesia

Abstract: Leadership has an important role in achieving the SMEs’ innovation and performance. One of the great concepts of leadership styles is the Burns’ (1978) concept, which divides leadership into two: transformational and transactional. This study analyzed the direct and indirect effect of transformational and transactional leadership on SMEs’ performance. This was conducted in seven regencies/cities in East Java Province, with 165 SMEs on superior indigenous food and beverage. The main research data were obtained … Show more

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Cited by 19 publications
(17 citation statements)
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References 30 publications
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“…Indonesia pays extraordinary attention to the sustainability of the SME`s life cycle to survive amidst high business competition. In Indonesia, SMEs account for almost 97% of labor absorption and almost 60% of the gross domestic product (Feranita et al, 2020). SMEs are now operating in a hypercompetitive business climate marked by volatility, uncertainty, complexity, and ambiguity (VUCA) (Kaivo-oja & Lauraeus, 2018; Semke & Tiberius, 2020; Volberda, 1996).…”
Section: Introductionmentioning
confidence: 99%
“…Indonesia pays extraordinary attention to the sustainability of the SME`s life cycle to survive amidst high business competition. In Indonesia, SMEs account for almost 97% of labor absorption and almost 60% of the gross domestic product (Feranita et al, 2020). SMEs are now operating in a hypercompetitive business climate marked by volatility, uncertainty, complexity, and ambiguity (VUCA) (Kaivo-oja & Lauraeus, 2018; Semke & Tiberius, 2020; Volberda, 1996).…”
Section: Introductionmentioning
confidence: 99%
“…The level of job satisfaction is one of the key elements to measure performance in an organization. According to Magasi, (2021) [16] role of transformational leadership in performance is based on empowering employees, empowering employees and intellectually stimulating employees, this has resulted in a positive relationship with employee performance. The strength of this bond is enhanced by the application of innovation and creativity, elements that are characteristic of this type of leadership style.…”
Section: The Influence Of Leadership Style On Employee Performancementioning
confidence: 99%
“…Small-medium enterprises are a motor of rural economic development (Feranita, Nugraha, & Sampir, 2020) and plays a significant role in developing countries (Abbasov & Alizada, 2016). These enterprises are more resilient in sudden disturbances, like economic crises (Rosavina et al, 2019).…”
Section: Social Constraint-policy Nexus Of the Bamboo Small-medium Enterprise Developmentmentioning
confidence: 99%