The Effect of Entrepreneural Leadership on Business Performance through Sustainability
Keywords:
entrepreneural leadership; business performance; sustainabilityAbstract
This study focuses on the effect of Entrepreneural Leadership on Business Performance through Sustainability. Respondents were 65 business in Masaingi and Bonenula Villages, Central Sulawesi. The data obtained were then analysed using SEM-PLS. This mediation context indicates partial mediation because although there is a direct effect of entrepreneurial leadership on business performance, there is also an indirect effect channeled through sustainability. Therefore, based on the model structure, the results of the entrepreneurial leadership pattern directly on business performance have a greater influence with an R Square value of 0.900 or 90.0% when compared to the value of entrepreneurial leadership through sustainability with a value of 0.721 or 72.1%, this indicates that other factors affect 10% of business performance. This research shows that the application of entrepreneurial leadership and business sustainability can be one approach to improving business performance.
References
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Saavedra García, M. L. (2022). La Sustentabilidad Empresarial y el desempeño financiero. Cuadernos de Administración, 38(72), 1–22. https://doi.org/10.25100/cdea.v38i72.10835
Sarwoko, E. (2020). Entrepreneurial Leadership and Innovative Work Behavior: The Role of Creative Self-efficacy. Journal of Economics, Business, & Accountancy Ventura, 23(2), 183–193. https://doi.org/10.14414/jebav.v23i2.2282
Sheehy, B., & Farneti, F. (2021). Corporate Social Responsibility, Sustainability, Sustainable Development and Corporate Sustainability: What Is the Difference, and Does It Matter? Sustainability, 13(11), 5965. https://doi.org/10.3390/su13115965
Shiferaw, R. M., Birbirsa, Z. A., & Werke, S. Z. (2023). Entrepreneurial leadership, learning organization and organizational culture relationship: A systematic literature review. Journal of Innovation and Entrepreneurship, 12(1), 38. https://doi.org/10.1186/s13731-023-00305-z
Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Setiyo Waloyo, L. A. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11), e21637. https://doi.org/10.1016/j.heliyon.2023.e21637
Sulistyawati, N. L. A. (2022). Pengaruh Desain Pekerjaan Dan Kepemimpinan Terhadap Kinerja Karyawan Pada Koperasi Simpan Pinjam (Ksp) Karya Perdana Desa Suli Indah Kecamatan Balinggi. Jurnal Ilmu Manajemen Universitas Tadulako (JIMUT), 8(1), 048–055.
Wolniak, R., Grebski, W., & Penn State Hazletonne, Pennsylvania State University. (2023). Comparision Of Traditional And Sustainable Business Practices. Scientific Papers of Silesian University of Technology. Organization and Management Series, 2023(177), 671–688. https://doi.org/10.29119/1641-3466.2023.177.39
Zahara, Z., Muslimin, M., & Chintya Dewi Buntuang, P. (2022). The impact of marketing innovations and business plans on business sustainability during the COVID-19 pandemic. Innovative Marketing, 18(3), 121–135. https://doi.org/10.21511/im.18(3).2022.11
Alkhodary, D. (2023). Integrating Sustainability into Strategic Management: A Path Towards Long-Term Business Success. International Journal of Professional Business Review, 8(4), e01627. https://doi.org/10.26668/businessreview/2023.v8i4.1627
Alshagawi, M., & Mabkhot, H. (2024). The impact of strategic entrepreneurship and entrepreneurial marketing, entrepreneurship values on small and medium enterprises’ performance: Evidence from Saudi Arabia. Cogent Business & Management, 11(1), 2316947. https://doi.org/10.1080/23311975.2024.2316947
Artha, B., & Satriadhi, B. (2023). Performance of Business: A Review of The Literature. Jurnal Ekonomi LLDIKTI Wilayah 1 (JUKET), 3(2), 41–47. https://doi.org/10.54076/juket.v3i2.398
Boeske, J. (2023). Leadership towards Sustainability: A Review of Sustainable, Sustainability, and Environmental Leadership. Sustainability, 15(16), 12626. https://doi.org/10.3390/su151612626
Chungyalpa, W. (2019). Understanding Business Sustainability: The What, the Why, and the How of Sustainable Business Practices. Indian Journal of Sustainable, 5(1), 24–37.
Ercantan, K., Eyupoglu, Ş. Z., & Ercantan, Ö. (2024). The Entrepreneurial Leadership, Innovative Behaviour, and Competitive Advantage Relationship in Manufacturing Companies: A Key to Manufactural Development and Sustainable Business. Sustainability, 16(6), 2407. https://doi.org/10.3390/su16062407
George, G., Haas, M. R., Joshi, H., McGahan, A. M., & Tracey, P. (2022). Introduction to the business of sustainability: An organizing framework for theory, practice and impact. In Handbook on the Business of Sustainability. Edward Elgar Publishing. https://doi.org/10.4337/9781839105340.00007
Hallinger, P., & Suriyankietkaew, S. (2018). Science Mapping of the Knowledge Base on Sustainable Leadership, 1990–2018. Sustainability, 10(12), 4846. https://doi.org/10.3390/su10124846
Hallo, L., Nguyen, T., Gorod, A., & Tran, P. (2020). Effectiveness of Leadership Decision-Making in Complex Systems. Systems, 8(1), 5. https://doi.org/10.3390/systems8010005
Hamsal, M., & Ichsan, M. (2021). Business sustainability in the times of crisis: Propositions and framework. IOP Conference Series: Earth and Environmental Science, 729(1), 012049. https://doi.org/10.1088/1755-1315/729/1/012049
Hensellek, S., Kleine-Stegemann, L., & Kollmann, T. (2023). Entrepreneurial leadership, strategic flexibility, and venture performance: Does founders’ span of control matter? Journal of Business Research, 157, 113544. https://doi.org/10.1016/j.jbusres.2022.113544
Hussain, N., & Li, B. (2022). Entrepreneurial Leadership and Entrepreneurial Success: The Role of Knowledge Management Processes and Knowledge Entrepreneurship. Frontiers in Psychology, 13, 1–18. https://doi.org/10.3389/fpsyg.2022.829959
Jiao, X., Zhang, P., He, L., & Li, Z. (2023). Business sustainability for competitive advantage: Identifying the role of green intellectual capital, environmental management accounting and energy efficiency. Economic Research-Ekonomska Istraživanja, 36(2), 2125035. https://doi.org/10.1080/1331677X.2022.2125035
Lee, S. W. (2022). Methods for testing statistical differences between groups in medical research: Statistical standard and guideline of Life Cycle Committee. Life Cycle, 2. https://doi.org/10.54724/lc.2022.e1
Mamun, A. A., & Ibrahim, M. D. (2018). Entrepreneurial Leadership, Performance, and Sustainability of Micro-Enterprises in Malaysia. Sustainability, 10(05), 1–23. https://doi.org/10.3390/su10051591
Munasinghe, A. A. S. N., & Ranasinghe, D. N. (2021). Achieving Continuous Growth through Entrepreneurial Leadership: A Comprehensive Study on ABC Institute. Business and Management Research, 10(022), 27–36. https://doi.org/10.5430/bmr.v10n2p27
Ni, W., & Sun, H. (2019). The effect of sustainable supply chain management on business performance: Implications for integrating the entire supply chain in the Chinese manufacturing sector. Journal of Cleaner Production, 232, 1176–1186.
Ogrean, C., & Herciu, M. (2020). Business Models Addressing Sustainability Challenges—Towards a New Research Agenda. Sustainability, 12(9), 3534. https://doi.org/10.3390/su12093534
Paudel, S. (2019). Entrepreneurial leadership and business performance: Effect of organizational innovation and environmental dynamism. South Asian Journal of Business Studies, 8(3), 348–369. https://doi.org/10.1108/SAJBS-11-2018-0136
Prayoga, P. R., Adda, H. W., Rossanti, N. P. E., & Dewi, C. (2024). Pengaruh Gaya Kepemimpinan Terhadap Peningkatan Motivasi Kerja Perawat RS. Samaritan Palu. Jurnal Ekonomi, Manajemen, Akuntansi, 03(03), 09–15.
Reyes, J. J. (2022). Concepts and organisational procedure for business sustainability: An overview. International Journal of Development and Sustainability, 11(12), 397–409.
Saavedra García, M. L. (2022). La Sustentabilidad Empresarial y el desempeño financiero. Cuadernos de Administración, 38(72), 1–22. https://doi.org/10.25100/cdea.v38i72.10835
Sarwoko, E. (2020). Entrepreneurial Leadership and Innovative Work Behavior: The Role of Creative Self-efficacy. Journal of Economics, Business, & Accountancy Ventura, 23(2), 183–193. https://doi.org/10.14414/jebav.v23i2.2282
Sheehy, B., & Farneti, F. (2021). Corporate Social Responsibility, Sustainability, Sustainable Development and Corporate Sustainability: What Is the Difference, and Does It Matter? Sustainability, 13(11), 5965. https://doi.org/10.3390/su13115965
Shiferaw, R. M., Birbirsa, Z. A., & Werke, S. Z. (2023). Entrepreneurial leadership, learning organization and organizational culture relationship: A systematic literature review. Journal of Innovation and Entrepreneurship, 12(1), 38. https://doi.org/10.1186/s13731-023-00305-z
Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Setiyo Waloyo, L. A. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11), e21637. https://doi.org/10.1016/j.heliyon.2023.e21637
Sulistyawati, N. L. A. (2022). Pengaruh Desain Pekerjaan Dan Kepemimpinan Terhadap Kinerja Karyawan Pada Koperasi Simpan Pinjam (Ksp) Karya Perdana Desa Suli Indah Kecamatan Balinggi. Jurnal Ilmu Manajemen Universitas Tadulako (JIMUT), 8(1), 048–055.
Wolniak, R., Grebski, W., & Penn State Hazletonne, Pennsylvania State University. (2023). Comparision Of Traditional And Sustainable Business Practices. Scientific Papers of Silesian University of Technology. Organization and Management Series, 2023(177), 671–688. https://doi.org/10.29119/1641-3466.2023.177.39
Zahara, Z., Muslimin, M., & Chintya Dewi Buntuang, P. (2022). The impact of marketing innovations and business plans on business sustainability during the COVID-19 pandemic. Innovative Marketing, 18(3), 121–135. https://doi.org/10.21511/im.18(3).2022.11
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Published
2024-11-19
How to Cite
Nurjannah. (2024). The Effect of Entrepreneural Leadership on Business Performance through Sustainability. International Student Conference on Business, Education, Economics, Accounting, and Management (ISC-BEAM), 2(1), 3055–3063. Retrieved from https://journal.unj.ac.id/unj/index.php/isc-beam/article/view/47078
