Strengthening Employee Performance in Indonesian SMEs:

The Key Impact of Transformative Leadership, Internal Motivation, and Self-efficacy

DOI

10.2991/978-2-38476-090-9_29How to use a DOI?

Keywords

Transformational Leadership; Employee Creativity; Employee Performance; Creative Self-Efficacy; Intrinsic Motivation

Abstract

According to research that has already been conducted in this field, the leadership style is a crucial factor in improving the creative self-efficacy and motivation of workers who are employed by small and medium companies (SME). This research was conducted in the United Kingdom. The objective of this study is to assess the effect that transformational leadership, as the most important predictor of the intrinsic effect of employee motivation and creative self-efficacy, has on the inventiveness and performance of workers while they are at work. Specifically, the study will look at how transformational leadership affects creative self-efficacy and employee motivation. A quantitative method was utilized in this investigation by way of the administration of questionnaires to a sample population consisting of 110 individuals who were employed by 25 SMEs in the city of Malang. An analysis of the data was carried out with the use of SEM-PLS so that the hypotheses could be validated and tested, and so that the outer model could be established. The findings indicate that transformational leadership has an effect that is both favorable and considerably impacting on the creative self-efficacy (CSE) and motivation of individuals. In addition, an employee's degree of motivation has a favorable and significant influence not just on the amount of original work they do but also on their overall performance. On the other hand, the impact of creative self-efficacy on the creativity and performance of employees was completely insignificant from a statistical point of view. The results of the research indicate that there is a significant correlation between employee creativity (EC) and performance.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Heru Susilo
AU  - Endang Siti Astuti
AU  - Zainul Arifin
AU  - Mukhammad Kholid Mawardi
AU  - Riyadi
AU  - Wiyata
PY  - 2023
DA  - 2023/08/01
TI  - Strengthening Employee Performance in Indonesian SMEs:
BT  - Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022)
PB  - Atlantis Press
SP  - 358
EP  - 372
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-090-9_29
DO  - 10.2991/978-2-38476-090-9_29
ID  - Susilo2023
ER  -