The Role Of Innovation Capability In Mediation Of Social Capital Relationship And Entrepreneurship Leadership To Sme Performance In Denpasar City

Anak Agung Sri Purnami, Anak Agung Erna Trisnadewi, I Gusti Lanang Putra

Abstract


Small and Medium Enterprises (SMEs) is one of the businesses that is currently in the spotlight which is classified as a tool for a country's economic growth. So far, the role of SMEs is believed to be able to drive the economy of a region and a country. The huge potential of SMEs will be threatened if their performance is still poor, especially until now the world is still hit by the COVID-19 pandemic. This study aims to answer the main problem, namely how the role of innovation capability in mediating the influence of social capital and entrepreneurial leadership on the performance of SMEs. The population of this study is all SMEs in Denpasar City with a total of 1489 SMEs, then by using the Slovin formula approach at an error threshold of 5%, a sample of 315 is obtained. The sampling method used in this study is the convenience sampling method. The data analysis technique used to test the hypothesis is to use a structural equation model, with the help of SmartPLS V.3.2.9 Software. The results of the study show that social capital has a significant direct effect on the business performance of SMEs in Denpasar City, but the role of innovation capability has not been able to mediate in producing more comprehensive results. Furthermore, entrepreneurial leadership has not directly been able to improve its business performance, although it is directly able to encourage the innovation capabilities of SMEs. However, this increase in innovation has not been able to improve the performance of SMEs. with the help of Software SmartPLS V.3.2.9. The results of the study show that social capital has a significant direct effect on the business performance of SMEs in Denpasar City, but the role of innovation capability has not been able to mediate in producing more comprehensive results. Furthermore, entrepreneurial leadership has not directly been able to improve its business performance, although it is directly able to encourage the innovation capabilities of SMEs. However, this increase in innovation has not been able to improve the performance of SMEs. with the help of Software SmartPLS V.3.2.9. The results of the study show that social capital has a significant direct effect on the business performance of SMEs in Denpasar City, but the role of innovation capability has not been able to mediate in producing more comprehensive results. Furthermore, entrepreneurial leadership has not directly been able to improve its business performance, although it is directly able to encourage the innovation capabilities of SMEs. However, this increase in innovation has not been able to improve the performance of SMEs. Furthermore, entrepreneurial leadership has not directly been able to improve its business performance, although it is directly able to encourage the innovation capabilities of SMEs. However, this increase in innovation has not been able to improve the performance of SMEs. Furthermore, entrepreneurial leadership has not directly been able to improve its business performance, although it is directly able to encourage the innovation capabilities of SMEs. However, this increase in innovation has not been able to improve the performance of SMEs

Keywords


Social Capital; Entrepreneurial Leadership; Innovation Capability; SME Performance

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DOI: http://dx.doi.org/10.52155/ijpsat.v35.1.4702

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