Business Sustainability within the Dynamic Business Climate Change in Indonesia: The Role of Leadership Style and Innovation Culture

Authors

  • Sattar Taba Asia e University, Malaysia
  • Mohamad Mulyadi National Innovation and Research Council (BRIN), Indonesia
  • Farah Hida Sharin UniKL Business School, Universiti Kuala Lumpur, Malaysia

DOI:

https://doi.org/10.56982/dream.v2i06.128

Keywords:

component, business sustainability, transformational leadership, transactional leadership, innovation culture, Indonesia

Abstract

In this day and age, with the process of globalisation still in progress and dynamic change occurring in firms, it is essential to preserve the organisational culture by guiding it in the appropriate direction in order to achieve business sustainability. However, modern organisations require leaders more than ever since their focus is almost exclusively on short-term gains at the expense of any consideration of the future. To effectively navigate the business environment and meet the needs of its customers, leadership is an indispensable instrument. As a result of all of these changes, it is abundantly evident that the leaders who run firms confront major challenges when attempting to adapt to the new conditions. The purpose of this article is to set out to do two things: create a map of the leadership research landscape and make a contribution to the refinement of a conceptual model based on that landscape. Contingency or situational theory has been proposed to support the whole body of study. Any future study topic or scenario variables may be incorporated into the suggested framework. It will be a significant factor in the continued success of Indonesian enterprises.

Downloads

Download data is not yet available.

Metrics

Metrics Loading ...

References

Adam, N.A. & Alarifi, G. 2021. Innovation practices for survival of small and medium enterprises (SMEs) in the COVID-19 times: the role of external support Journal of Innovation and Entrepreneurship (2021) 10:15. https://doi.org/10.1186/s13731-021-00156-6 DOI: https://doi.org/10.1186/s13731-021-00156-6

Ahmed, W., Hizam, S. M., & Sentosa, I. 2020. Digital Dexterity: Employee as Consumer Approach towards Organizational Success, Human Resource Development International, Taylor & Francis. https://doi.org/10.1080/13678868.2020.1835107 DOI: https://doi.org/10.1080/13678868.2020.1835107

Akthar, N. 2022. Top Management Support: Underlying Mechanism between Green Human Resource Management Practices and Environmental Performance. Journal of Digitainability, Realism & Mastery (DREAM), 1(02), 48–62. https://doi.org/10.56982/journalo.v1i02.21 DOI: https://doi.org/10.56982/journalo.v1i02.21

Al-Shami, S. and Rashid, N. 2022, A holistic model of dynamic capabilities and environment management system towards eco-product innovation and sustainability in automobile firms, Journal of Business & Industrial Marketing, Vol. 37 No. 2, pp. 402-416. https://doi.org/10.1108/JBIM-04-2020-0217 DOI: https://doi.org/10.1108/JBIM-04-2020-0217

Avolio, B. J., & Bass, B. M. 2004. Multifactor Leadership Questionnaire. Manual and Sampler Set (3rd ed.). Redwood City, CA: Mindgarden. http://dx.doi.org/10.1207/s1532754xjprr1602_2 DOI: https://doi.org/10.1207/s1532754xjprr1602_2

Avolio, B. J., & Bass, B. M. 2002. Developing potential across a full range of leadership cases on transactional and transformational leadership. Mahwah, NJ: Lawrence Erlbaum Associates. DOI: https://doi.org/10.4324/9781410603975

Bansal, P., & Roth, K. 2000. Why companies go green: A model of ecological responsiveness. Academy of Management Journal, 43(4), 717-736. DOI: https://doi.org/10.5465/1556363

Bass, B. M., & Avolio, B. J. 1997. Full range leadership development: manual for the Multifactor Leadership Questionnaire, Mindgarden, Palo Alto, Calif.

Bedrule – Grigoruta, M.V., Neculaesei, A.-N., Tătăruşanu M. and Anastasiei, B.A., 2019. Model of the Relationship between Organizational Culture, Social Responsibility and Performance. Transformations in Business & Economics, 18, pp. 489-509.

Cai, Z., Q. Huang, H. Liu, and L. Liang. 2016. The Moderating Role of Information Technology Capability in the Relationship Between Supply Chain Collaboration and Organizational Responsiveness: Evidence from China. International Journal of Operations & Production Management 36 (10): 1247–1271. DOI: https://doi.org/10.1108/IJOPM-08-2014-0406

Cahigas, M.M.L.; Prasetyo, Y.T.; Alexander, J.; Sutapa, P.L.; Wiratama, S.; Arvin, V.; Nadlifatin, R.; Persada, S.F. 2022. Factors Affecting Visiting Behavior to Bali during the COVID-19 Pandemic: An Extended Theory of Planned Behavior Approach. Sustainability 2022, 14, 10424. https://doi.org/10.3390/ su141610424 DOI: https://doi.org/10.3390/su141610424

Conţu, E. 2020. Organizational performance – theoretical and practical approaches; study on students’ perceptions. Proceedings of the International Conference on Business Excellence. 14. 398-406. 10.2478/picbe-2020-0038. DOI: https://doi.org/10.2478/picbe-2020-0038

Crawford, C.B. 2005. Effects of transformational leadership and organizational position on knowledge management. Journal of knowledge management, 9(6), p.6-16 DOI: https://doi.org/10.1108/13673270510629927

Deans, P. C. & Kane, M. J. 1992. Information Systems and Technology, Boston, MA: PWS-Kent Publishing.

Delmas, M., & Toffel, M. W. 2008. Organizational responses to environmental demands: Opening the black box. Strategic Management Journal, 29(10), 1027-1055. DOI: https://doi.org/10.1002/smj.701

Epstein, M. J., Buhovac, A. R., & Yuthas, K. 2019. Making sustainability work: Best practices in managing and measuring corporate social, environmental, and economic impacts. Routledge. DOI: https://doi.org/10.4324/9781351280129

Fuller, J. B., Patterson, C. E. P., Hester, K., & Stringer, D. Y. 1996. A quantitative review of research on charismatic leadership. Psychological Reports, 78, p.271–287. DOI: https://doi.org/10.2466/pr0.1996.78.1.271

Greenleaf, R.K. 1977. Servant leadership: A journey into the nature of legitimate power & greatness. Mahwah, NJ: Paulist Press.

Habib, M.A, Balasubramanian. S, Shukla. V, Chitakunye, D. & Chanchaichujit J. 2022. Practices and performance outcomes of green supply chain management initiatives in the garment industry. Management of Environmental Quality: An International Journal, 33 (4), 882-912. DOI: https://doi.org/10.1108/MEQ-08-2021-0189

Hofstede, G., 2001. Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations.

House, R. J., & Shamir, B. 1993. Toward the integration of transformational, charismatic, and visionary theories. M. M. Chemers, & R. Ayman (Eds.), Leadership theory and research: Perspectives and direction, (pp. 81–107). San Diego, CA: Academic Press

Hossin, S., Ali, I. & Sentosa., I. 2020. Human Resource Management Practices from Islamic Perspective; a study on Bangladesh Context. International Journal of Islamic and Middle Eastern Finance and Management. 10(2). DOI: https://doi.org/10.6007/IJARBSS/v10-i6/7310

Kanayo, O., Agholor, I., & Olamide, E. 2021. Impact of sustainable entrepreneurship indicators on SMEs business success in south africa. Academy of Entrepreneurship Journal (AEJ), 27(4), 1-17

Kasmani, M. I., Muhamed Zamri, M. K., Abdul Halim, A. H., Noraini, M. F., & Misba, N. T. 2022. Does Good Governance Influence Organizational Performance? International Journal of Accounting, Finance and Business (IJAFB), 7(42), 80 - 88. eISSN: 0128-1844 DOI: 10.55573/IJAFB.074210

Khan, N. 2017. Adaptive or Transactional Leadership in Current Higher Education: A Brief Comparison. The International Review of Research in Open and Distributed Learning, 18, 178-183. https://doi.org/10.19173/irrodl.v18i3.3294 DOI: https://doi.org/10.19173/irrodl.v18i3.3294

Khan, Z.A., Nawaz, A. & Khan, I. 2016. Leadership Theories and Styles: A Literature Review. Journal of Resources Development and Management. Vol.16, 2016. Journal of Resources Development and Management ISSN 2422-8397 www.iiste.org

Klofsten, M., Urbano, D. & Heaton, S. 2020. Managing intrapreneurial capabilities: An overview, Technovation 99 102177, https://doi.org/10.1016/j.technovation.2020.102177 DOI: https://doi.org/10.1016/j.technovation.2020.102177

Knezevich, S. J. 1984. Administration of public education. New York: Harper & Row

Lozano, R., Ceulemans, K., Alonso-Almeida, M., Huisingh, D., Lozano, F. J., & Waas, T. 2016. A review of commitment and implementation of sustainable development in higher education: Results from a worldwide survey. Journal of Cleaner Production, 108, 1-18. DOI: https://doi.org/10.1016/j.jclepro.2014.09.048

Linnenluecke, M. K., & Griffiths, A. 2013. Corporate sustainability and organizational culture. Journal of World Business, 48(3), 350-359.

McGregor, D. M. 2003. The human side of enterprise. New York: McGraw-Hill

Mishra, S. & Mohanty, P. 2014. Corporate governance as a value driver for firm performance: evidence from India, Corporate Governance, VOL. 14, NO. 2, pp. 265-280. DOI: https://doi.org/10.1108/CG-12-2012-0089

Northouse, P. G. 2015. Leadership: Theory and Practice (7th ed.). Thousand Oaks, CA: SAGE.

Pratono, A. H. 2016. Strategic Orientation and Information Technological Turbulence: Contingency Perspective in SMEs. Business Process Management Journal 22 (2): 368–382. DOI: https://doi.org/10.1108/BPMJ-05-2015-0066

Rengiah, P. & Sentosa, I. 2016. Inclination of the Australian Indigenous Students in Obtaining Tertiary Education in Australian Universities. World Review of Business Research Vol. 6. No. 1. March 2016 Issue. Pp. 143 – 160.

Richter, N. F., Schmidt, R., Ladwig T.J. & Wulhorst, F. 2017. A critical perspective on the measurement of performance in the empirical multinationality and performance literature, Critical perspectives on international business, Vol. 13 No. 2, pp. 94-118. DOI: https://doi.org/10.1108/cpoib-06-2013-0015

Roomi, M.A., Saiz-Alvarez, J.M., & Coduras, A. 2021. Measuring Sustainable Entrepreneurship and Eco-Innovation: A Methodological Proposal for the Global Entrepreneurship Monitor (GEM). Sustainability 2021, 13, 4056. https://doi.org/10.3390/su13074056 DOI: https://doi.org/10.3390/su13074056

Samad, S. 2012. The influence of Innovation and Transformational Leadership on Organizational Performance. Procedia Social and Behavioural Sciences, 57 (2012) 486- 493. DOI: https://doi.org/10.1016/j.sbspro.2012.09.1215

Sarango-Lalangui, P. 2022. Orientation towards Sustainable Entrepreneurship: Empirical evidence on SMEs. 10.13140/RG.2.2.25336.32002.

Sentosa, I., Shamsudin, M.F. & Sharin, F.H. 2021. Business Innovation, Strategy and Sustainability, ABRN Asia Publication, ISBN 978-967-25891-50

Sharin, F.H., Shamsudin, M.F., Sentosa, I. 2023. Defender or Attacker? An Approach to Dynamic Sustainability in the Dynamic Business Climate of Rural Tourism. In: Hassan, A., Rahman, N.A.A. (eds) Technology Application in Aviation, Tourism and Hospitality. Springer, Singapore. https://doi.org/10.1007/978-981-19-6619-4_10 DOI: https://doi.org/10.1007/978-981-19-6619-4_10

Shepherd, D.A.; Patzelt, H. (2011), The New Field of Sustainable Entrepreneurship: Studying Entrepreneurial Action Linking “What Is to Be Sustained” With “What Is to Be Developed.” Entrep. Theory Pr., 35, 137–163, doi:10.1111/j.1540-6520.2010.00426. x. DOI: https://doi.org/10.1111/j.1540-6520.2010.00426.x

Streimikiene, D., Mikalauskiene, A., Digriene, L. and Kyriakopoulos, G., 2021. Assessment of the Role of a Leader in Shaping Sustainable Organizational Culture. Amfiteatru Economic, 23(57), pp.483-503. DOI: 10.24818/EA/2021/57/483 DOI: https://doi.org/10.24818/EA/2021/57/483

Stogdill, R.M. 1948. Personal Factors Associated with Leadership: A survey of The Literature. Journal of Psychology. 25: 35-71. DOI: https://doi.org/10.1080/00223980.1948.9917362

Taba, S. 2021. BUMN Dalam Menunjang Pendapatan Negara. Edited by Effendy, K & Lukman, S., CV. Indra Prahasta

Taba, S. 2019. Pekerja Keras Berbuah Professionalisme. ProDeleader. ISBN: 978-623-7133-00-1

Taba, S. 2002. Keluar Dari Krisis, Catatan 12 Tahun Bersama Semen Kupang in Piet Alexander Tallo (Nusa Tenggara Timur Gavernor). Intermedia Publishing. Makassar.

Wang, X., Xiao, H., Chen, K. and Niu, X., 2020. Why administrative leaders take pro‐environmental leadership actions: Evidence from an eco‐compensation programme in China. Environmental Policy and Governance, 30(3), pp.1-14. DOI: 10.1002/eet.1902. DOI: https://doi.org/10.1002/eet.1902

Yan, C. 2015. We can’t change much unless the exams change: Teachers’ dilemmas in the curriculum reform in China. Improving Schools, 18(1), 5-19. DOI:10.1177/1365480214553744 DOI: https://doi.org/10.1177/1365480214553744

Yang, L., Yan, Q., Balezentis, T. and Li, M., 2020. Licensing Strategy and Tariff Policy in an International Trade Model with Foreign Stackelberg Leadership. Transformations in Business & Economics, 19(1), pp. 284-305

Yunus, A. J. 2008. Human Capital Development and Performance Management, Programme for Local Government and District Management, National Institute of Public Administration, Kuala Lumpur, Malaysia.

Yusoff, A. 2022. The Factors Influencing Business Sustainability of SME's Network Facilities Providers: The Roles of Value Management Practices and Government Support, DBA Thesis, Asia E University, Malaysia.

Downloads

Published

2023-06-18

How to Cite

Taba, S., Mulyadi, M., & Sharin, F. H. (2023). Business Sustainability within the Dynamic Business Climate Change in Indonesia: The Role of Leadership Style and Innovation Culture . Journal of Digitainability, Realism & Mastery (DREAM), 2(06), 1–13. https://doi.org/10.56982/dream.v2i06.128