EXPLORING ISLAMIC LEADERSHIP ON SME PERFORMANCE: MEDIATED BY INNOVATIVE WORK BEHAVIOR AND FINANCIAL TECHNOLOGY

Rizki Febriani, Chalimatuz Sa'diyah

Abstract


The current condition of the Indonesian economy is far different from that of the economy ten years ago. One of the differences in the structure and construction of the Indonesian economy compared to 10 years ago is the rapid development of the digital economy and the 4.0 industrial revolution. This study examines the relationship between Islamic Leadership and SME Performance with the Mediation of Innovation Work Behavior and Financial Technology in the Indonesian Muslim Entrepreneurs Community. This type of research uses an explanatory research method. All members of the Indonesian Muslim Entrepreneurs Community, with a sample of 100 entrepreneurs, were among the population in this report. The research method used is the Smart-PLS method. The findings of this study demonstrate that through the mediation of innovative work behavior, Islamic leadership impacts SME performance. So it is hoped that Muslim entrepreneurs can improve this innovative behavior with broader insights and an open attitude to change. It is expected that further research will expand the discussion by adding other variables that have not been studied in this study and also bring up research novelty.

Keywords


Islamic Leadership, Firm Performance, Innovation Work Behavior, Financial Technology

Full Text:

PDF

References


Aabed, A., & Randall, V. (2005). A study of Islamic leadership theory and practice in K--12 Islamic schools in Michigan. 3206991, 220-220

Ahmad, K., & Ogunsola, O. K. (2011). An empirical assessment of islamic leadership principles. International Journal of Commerce and Management, 21(3), 291–318.

Alimirruchi, W. (2017). Analyzing operational and financial performance on the financial technology (Fintech) firm. [skripsi]. Semarang (ID): Universitas Diponegoro.

Bagheri, A., & Akbari, M. (2018). The Impact of Entrepreneurial Leadership on Nurses’ Innovation Behavior. Journal of Nursing Scholarship, 50(1), 28–35.

Berraies, S., & Bchini, B. (2019). EFFECT of LEADERSHIP STYLES on FINANCIAL PERFORMANCE: MEDIATING ROLES of EXPLOITATIVE and EXPLORATORY INNOVATIONS CASE of KNOWLEDGE-INTENSIVE FIRMS. International Journal of Innovation Management, 23(3), 1–33.

Boonsiritomachai, W., & Pitchayadejanant, K. (2019). Determinants affecting mobile banking adoption by generation Y based on the unified theory of acceptance and use of technology model modified by the technology acceptance model concept. Kasetsart Journal of Social Sciences, 40(2), 349–358.

Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10(AUG), 1–21.

Devezas, T.C., Leitao, J., Sarygulov, A. (2016). Industri 4.0: Entrepreneurship and Structural Change in The New Digital Landscape. Heidelberg: Springer.

Fatima, T., Majeed, M., & Saeed, I. (2017). Does Participative Leadership Promote Innovative Work Behavior: The Moderated Mediation Model. Business & Economic Review, 9(4), 141–158.

Ghozali, N. (2012). Metode Penelitian Kuantitatif. Cetakan ke-1. Bandung, Pustaka Setia, cv.

Gündoğdu, A. (2017). Analysis of the Relationship Between Financial Innovation and the Performance of Turkish Banking. International Review of Economics and Management, 5(3), 16–32.

Haddud, A., & McAllen, D. (2018). Digital workplace management: Exploring aspects related to culture, innovation, and leadership. PICMET 2018 - Portland International Conference on Management of Engineering and Technology: Managing Technological Entrepreneurship: The Engine for Economic Growth, Proceedings, 1–6.

Hair, J. F., Black, W. C., Babin, B. J., & E., A. R. (2014). Multivariate Data Analysis (7th ed.). New York, NY: Pearson Education Limited.

Hakim, A. (2012). The implementation of islamic leadership and islamic organizational Culture and its influence on islamic working motivation and islamic Performance PT bank Mu’amalat indonesia Tbk. Employee in the central java. Asia Pacific Management Review, 17(1), 77–90.

Hariyono, A., & Tjahjadi, B. (2021). The Role of Intellectual Capital in the Development of Financial Technology in the New Normal Period in Indonesia. Journal of Asian Finance, Economics and Business, 8(1), 217–224.

Hasan, R., Hassan, M. K., & Aliyu, S. (2020). Fintech and Islamic Finance: Literature Review and Research Agenda. International Journal of Islamic Economics and Finance (IJIEF), 3(1), 75–94.

Hieminga, G., Lande, F., & Nijboer, F. (2016). FinTech For Micro , Small and Medium Sized Enterprises. ING Economics Department, October, 1–38.

Hughes, D. J., Lee, A., Tian, A. W., Newman, A., & Legood, A. (2018). Leadership, creativity, and innovation: A critical review and practical recommendations. Leadership Quarterly, 29(5), 549–569.

Husti, I., & Mahyarni, M. (2019). Islamic Leadership, Innovation, Competitive Advantages, and Performance of SMEs in Indonesia. East

Jong, J. P. J. D., & Hartog, D. N. Den. (2008). Innovative Work Behavior : Measurement and Validation. Scientific Analysis of Entrepreneurship and SMEs, November, 1–27.

Khasawneh, S., Omari, A., & Abu-Tineh, A. M. (2021). The Relationship between Transformational Leadership and Organizational Commitment. Journal of Asian Finance, Economics and Business, 40(4), 494–508.

Kremer, H., Villamor, I., & Aguinis, H. (2019). Innovation leadership: Best-practice recommendations for promoting employee creativity, voice, and knowledge sharing. Business Horizons, 62(1), 65–74.

Leong, C. T., & Rasli, A. (2014). The Relationship between Innovative Work Behavior on Work Role Performance: An Empirical Study. Procedia - Social and Behavioral Sciences, 129, 592–600.

Lerner, J. (2006). The new new financial thing: The origins of financial innovations. Journal of Financial Economics, 79(2), 223–255.

Mawarni, I. (2017). Analisis persepsi masyarakat pengguna layanan transaksi digital pada financial technology [skripsi]. Bandung (ID): Universitas Telkom.

Nadin, D. (2012). Innovative Work Behavior: The Roles of Employee Expectations and Effects on Job Performance. Dissertation of the University of St.Gallen, School of Management, Economics, Law, Social Sciences and International Affairs to obtain the title of Doctor of Phil.

Nuruddin, A. (2011). Sharia resources, paper presented at the Medan: Forum Riset Perbankan Syariah, Bank Indonesia.

Ouakouak, M. L., & Mbengue, A. (2021). Strategic Planning and Firm Performance: the mediating role of Employee Strategic Alignment. Journal of Asian Finance, Economics and Business, 8(1), 12738.

Parker, S. K., Williams, H. M., & Turner, N. (2006). Modeling the antecedents of proactive behavior at work. Journal of Applied Psychology, 91(3), 636–652.

Purmamisari, T. (2012). Antecedent OCB and Its Effect on Employee Performance, Dr. Dissertation, Brawijaya University, Malang, Indonesia.

Puthusserry, P., Z. Khan, S. R. Nair, and T. King. 2021. Mitigating Psychic Distance and Enhancing Internationalization of Fintech SMEs from Emerging Markets: The Role of Board of Directors. British Journal of Management.

Rabbani, M. R., Y. Abdulla, A. Basahr, S. Khan, and M. A. Moh’d Ali. 2020. Embracing of Fintech in Islamic Finance in the Post COVID Era. Pp. 1230–34 in 2020 International Conference on Decision Aid Sciences and Application, DASA 2020. Kingdom University, Finance and Accounting Department, Riffa, Bahrain: Institute of Electrical and Electronics Engineers Inc.

Solans, E. D. (2003). Financial innovation and monetary policy. Excerpts of speech delivered at the 38th SEACEN Governors Conference and 22nd Meeting of the SEACEN Board of Governors on “Structural Change and Growth Prospects in Asia –Challenges to Central Banking”, Manila. Excerpts of Speech Delivered at the 38th SEACEN Governors Conference and 22nd Meeting of the SEACEN Board of Governors on “Structural Change and Growth Prospects in Asia –Challenges to Central Banking”, Manila.

Szczepańska-Woszczyna, K. (2015). Leadership and Organizational Culture as the Normative Influence of Top Management on Employee’s Behaviour in the Innovation Process. Procedia Economics and Finance, 34(15), 396–402.

Todorof, M. (2018). Shariah-compliant FinTech in the banking industry. ERA Forum, 19(1).

West, M. A. and Farr, J. L. (1990). Innovation and creativity at work: Psychological and organizational strategies, Wiley, Chichester.

White, L. J. (1997). Technological change, financial innovation, and financial regulation in the U.S: The challenges for public policy. Financial Institutions Center’s Conference on Performance of Financial Institutions, 1996, 1–45.




DOI: http://dx.doi.org/10.21776/ub.jam.2021.019.03.04

Refbacks

  • There are currently no refbacks.