Building Transformational Leadership, Learning, Innovation, Competitiveness, Environment affect the Performance of Handicraft SMEs in Medan City

• Published in: WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS 2022-01, Vol.19, p.505-520
• Main Authors: Thamrin, Muhammad Husni, Wahyudi, Sugeng, Ngatno, Ngatno, Widiartanto, Widiartanto, Yuwanto, Yuwanto
• Format: Article
• Language: English
• ISSN: 1109-9526; 2224-2899
• DOI: 10.37394/23207.2022.19.46

The main objective of this research is to develop a new concept of Transformational Leadership that is used to improve organizational learning capabilities, organizational innovation, organizational competitiveness and organizational environment in improving MSME Performance. This research uses a quantitative approach with SEM-PLS analysis techniques. The research data was obtained from the dissemination of questionnaires with the number of respondents amounting to 97 Handycraft owners in Medan City. Some of the study findings include; 1) Transformational Leadership has no positive and significant effect on MSME Performance. 2) Transformational Leadership has no positive and significant effect on Organizational Learning. 3) Organizational learning has no positive and significant effect on MSME Performance. 4) Transformational Leadership has a positive and significant influence on Organizational Innovation. 5) Organizational Innovation has no positive and significant effect on MSME Performance. 6) Transformational Leadership has a positive and significant effect on organizational competitiveness. 7) Organizational Competitiveness has a positive and significant effect on the performance of MSMEs. 8) Transformational Leadership has a positive and significant effect on the organizational environment. 9) Organizational environment has a positive and significant effect on MSME Performance. 10) Transformational Leadership has no indirect effect on MSME Performance by mediating by Organizational Learning. 11) Transformational Leadership has no indirect effect on MSME Performance by mediating by Organizational Innovation. 12) Transformational Leadership has a positive and significant effect on MSME Performance by mediating by Organizational Competitiveness. 13) Transformational Leadership has a positive and significant effect on MSME Performance by mediating by the Organizational Environment.