Unleashing Financial Performance in MSMEs: The Synergy Between Digital Transformational Leadership and Organizational Agility

Authors

  • Hidayatna Putri Universitas Satya Terra Bhinneka
  • Hendra Sakti Putra Siagian Universitas Satya Terra Bhinneka
  • Edgar Octoyuda Universitas Satya Terra Bhinneka
  • Chairia Universitas Satya Terra Bhinneka
  • Ria Nelly Sari Universitas Riau

Abstract

Leadership engagement and organisational agility are crucial for organisations in enhancing their performance, particularly in terms of financial performance. This study investigates how digital transformational leadership contributes to enhancing the financial performance of micro, small, and medium enterprises (MSMEs) by fostering organisational agility. Nevertheless, there is a lack of extensive research on the significance of digital transformational leadership, particularly within the context of MSMEs. This study specifically examines MSMEs located in North Sumatra. The sample size for this study consists of 138 employees from various organisation. The chosen analytical approach is Structural Equation Modelling (SEM), which is employed to examine the relationship between the variables under investigation. The research findings indicate that both digital transformational leadership and organisational agility have a substantial and beneficial influence on financial performance. Furthermore, it is observed that digital transformational leadership has a good impact on organisational agility. Organisational agility serves as a powerful intermediary in the connection between digital transformative leadership and enhanced financial performance of MSMEs. This study offers theoretical and practical advice for researchers and managers who are interested in devising methods to enhance financial performance in the MSME sector by implementing digital transformational leadership and fostering organisational agility. This study also examines other theoretical and practical contributions, and future research objectives.

Keywords: Digital Transformastional Leadership; Organizational Agility; Financial Performance; MSME.

Downloads

Published

2024-12-27

How to Cite

Putri, H., Siagian, H. S. P., Octoyuda, E., Chairia, & Sari, R. N. (2024). Unleashing Financial Performance in MSMEs: The Synergy Between Digital Transformational Leadership and Organizational Agility. Ekonomi Dan Bisnis, 11(2), 188–208. Retrieved from https://ejournal.upnvj.ac.id/ekobis/article/view/8052

Issue

Vol. 11 No. 2 (2024): EKONOMI DAN BISNIS

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish with this journal agree to the following terms:

Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution 4.0 International License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.

This work is licensed under a Creative Commons Attribution 4.0 International License.