Transformational Leadership in MSMEs in the city of Bandung

Abstract

Corporate leaders have faced two new challenges in the last ten years of the globalization era: expanding the company's worldwide reach and entrepreneurship as a result of conducting business outside of national borders, and implementing information technology-based innovations as soon as feasible. The reason for this is that there seem to be very few signs of innovative conduct. Entrepreneurship's human resource base determines how innovative a person becomes. People who use their knowledge, information, and experience as input resources are said to exhibit innovative behavior. Thus, the expertise and caliber of human resources are crucial to the success of innovative conduct. Here, human resources are inextricably linked to the way an entrepreneur's leadership style oversees the operation of the company he owns in order to provide him a competitive edge—especially in today globalized age. The purpose of this study is to examine how creative behavior and transformational leadership affect entrepreneurial orientation, or the use of entrepreneurship to mobilize human resources in company. This study use both quantitative and qualitative approaches to gather data from five primary and secondary entrepreneurs who meet the following criteria: (a) have at least ten members; (b) have been operating their businesses for three years in a row; and (c) have more than two business units. (d) Own more than $10 million in assets. In this study, eighty persons made up the sample. quantitative research methodology using analysis of primary data obtained from questionnaires. The Structural Equation Model was utilized in this study for both data analysis and hypothesis testing (SEM). Entrepreneurial Orientation in Business is significantly impacted by research employing innovative behavior characteristics and transformational leadership (H1). Innovational conduct and transformational leadership are not major factors influencing entrepreneurship in company (H0).