•  
  •  
 

Abstract

Research Aims: Expand the insights for social enterprises (SEs) to sustain their economic and social performance, considering the impact of leader’s motivation, entrepreneurial leadership, organisational agility, and competitive advantage.

Design/Methodology/Approach: The dataset was obtained from a survey of 102 SE strategic leaders in Indonesia, which was processed using PLS and SEM to test the hypothesis.

Research Findings: Motivation has a positive effect on entrepreneurial leadership but not on organisational agility. Entrepreneurial leadership has tridirectionally relationships with organisational agility, competitive advantage, and social firm performance. Organisational agility has bidirectional relationships with competitive advantage and economic firm performance, whereas competitive advantage only positively affects social firm performance.

Theoretical Contribution/Originality: Illuminated a way for SEs to improve economic and social performance by making several variables as a unit. So that SEs know where to put their focus and the impact of the decisions and steps they take. This study also paved the way for researchers to determine future research topics that must be explored.

Managerial Implication in the South East Asian Context: As insights for SE leaders in making decisions and finding solutions to the challenges or problems they face while contributing to the development of organisational performance in terms of economic and social.

Research Limitations & Implications: This study is a descriptive, cross-sectional study that only analyses Indonesian SEs. Therefore, this study's results only represent SE conditions at the specific time of this research.

References

Alberts, D. S., & Hayes, R. E. (2003). Power to the Edge: Command . . . Control . . . in the Information Age.

Alromeedy, B. S. (2019). Strategic Agility as a Competitive Advantage in Airlines-Case Study: Egypt Air. Journal of the Faculty of Tourism and Hotels, 3(1), 1–15.

Austin, J., Stevenson, H., & Wei-Skillern, J. (2006). Social and Commercial Entrepreneurship: Same, Different, or Both? Entrepreneurship: Theory and Practice, 30(1), 1–22.

Badura, K. L., Grijalva, E., Galvin, B. M., Owens, B. P., & Joseph, D. L. (2020). Motivation to lead: A meta-analysis and distal-proximal model of motivation and leadership. Journal of Applied Psychology, 105(4), 331–354. Bagheri, A. (2017). The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. Journal of High Technology Management Research, 28(2), 159–166.

Barbuto, J. E. (2005). Motivation and Transactional, Charismatic, and Transformational Leadership: A Test of Antecedents. Journal of Leadership & Organizational Studies, 11(4), 26–40.

Barney, J. B. (2001). Resource-based theories of competitive advantage: A ten-year retrospective on the resource-based view. Journal of Management, 27(6), 643–650.

Bernard, L. C., Mills, M., Swenson, L., & Walsh, R. P. (2005). An evolutionary theory of human motivation. Genetic, Social, and General Psychology Monographs, 131(2), 129–184.

Besley, T., & Ghatak, M. (2017). Profit with purpose? A theory of social enterprise. American Economic Journal: Economic Policy, 9(3), 19–58.

Bhattarai, C. R., Kwong, C., & Tasavori, M. (2019). Market orientation, market disruptiveness capability and social enterprise performance: An empirical study from the United Kingdom. Journal of Business Research, 96, 47–60.

Bradford, A., Luke, B., & Furneaux, C. (2020). Exploring Accountability in Social Enterprise: Priorities, Practicalities, and Legitimacy. Voluntas, 31(3), 614–626.

British Council. (2018). Creative and Social Enterprise in Indonesia. https://www.britishcouncil.id/sites/default/files/dice_creative_and_social_enterprise_in_indonesia_report_en_final.pdf.

Butler, D., Gregory, P., Holbrook, L., Minns, K., Murray, S., Perera, C., & Wigglesworth, F. Y. (2017). State of Social Enterprise Survey. The Future of Business, 47. https://www.socialenterprise.org.uk/Handlers/Download.ashx?IDMF=a1051b2c-21a4-461a-896c-aca6701cc441.

Cai, W., Lysova, E. I., Khapova, S. N., & Bossink, B. A. G. (2019). Does Entrepreneurial Leadership Foster Creativity Among Employees and Teams? The Mediating Role of Creative Efficacy Beliefs. Journal of Business and Psychology, 34(2), 203–217.

Cater, T., & Pucko, D. (2005). How competitive advantage influences firm performance: The case of Slovenian firms. Economic and Business Review for Central and South-Eastern Europe, 7(2), 119.

Cegarra-Navarro, J. G., Soto-Acosta, P., & Wensley, A. K. P. (2016). Structured knowledge processes and firm performance: The role of organizational agility. Journal of Business Research, 69(5), 1544–1549.

Cogliser, C. C., & Brigham, K. H. (2004). The intersection of leadership and entrepreneurship: Mutual lessons to be learned. Leadership Quarterly, 15(6), 771–799.

Council, B. (2018). Building an Inclusive and Creative Economy Economy Creative, 101.

Dabić, M., Stojčić, N., Simić, M., Potocan, V., Slavković, M., & Nedelko, Z. (2021). Intellectual agility and innovation in micro and small businesses: The mediating role of entrepreneurial leadership. Journal of Business Research, 123, 683–695.

Dacin, P., Dacin, M., & Matear, M. (2010). Social entrepreneurship: Why we don’t need a new theory and how we move forward from here. Academy of Management Perspectives, 24(3),

Esmer, Y., & Dayi, F. (2017). Entrepreneurial leadership: a theoretical framework. Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 4(2), 112–124.

Farahani, A. H., & Salimi, F. (2015). The Study of the Relationship between Employees ’ Empowerment and Organizational Agility : A Case Study in Azarab Industrial Company. Journal of Natural and Social Sciences, 4(1), 1067–1076.

Folmer, E., Nederveen, C., & Schutjens, V. (2018). Network importance and use: commercial versus social enterprises. Social Enterprise Journal, 14(4), 470–490.

Ghozali, I. (2014). Structural Equation Modeling Metode Alternatif dengan Partial Least Squares (PLS). Semarang: Badan Penerbit Universitas Diponegoro.

Griethuijsen, R. A. L. F., van Eijck, M. W., Haste, H., den Brok, P. J., Skinner, N. C., Mansour, N., Gencer, A. S., & BouJaoude, S. (2015). Global patterns in students’ views of science and interest in science. Research in Science Education, 45(4), 581–603.

Gupta, P., Chauhan, S., Paul, J., & Jaiswal, M. P. (2020). Social entrepreneurship research: A review and future research agenda. Journal of Business Research, 113(Iim), 209–229.

Hair, Joe F., Ringle, C. M., & Sarstedt, M. (2011). PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice, 19(2), 139–152.

Hair, Joe F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121.

Hair, Joseph F, Black, W. C., Jabin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (seventh edition). London: Pearson Education Limited.

Hair, Joseph F, Money, A. H., Samouel, P., & Page, M. (2007). Research Methods for Business. Education + Training, 49(4).

Hansson, P. H., & Andersen, J. A. (2007). The Swedish principal: Leadership style, decision-making style, and motivation profile. International Electronic Journal for Leadership in Learning, 11(1).

Haryono, S. (2017). Metode SEM untuk penelitian manajemen dengan AMOS LISREL PLS. Jakarta: PT. Intermedia Personalia Utama.

Heap, S. (1998). NGOs and the private sector: Potential for partnerships?. Oxford: Intrac.

Henseler, J., Hubona, G., & Ray, P. A. (2016). Using PLS path modeling in new technology research: Updated guidelines. Industrial Management and Data Systems, 116(1), 2–20.

Huang, S., Ding, D., & Chen, Z. (2014). Entrepreneurial leadership and performance in chinese new ventures: A moderated mediation model of exploratory innovation, exploitative innovation and environmental dynamism. Creativity and Innovation Management, 23(4), 453–471.

Ibrahim, A., & Rashid, W. N. (2019). The Role of Entrepreneurial Leadership in Enhance Organizational Agility in Telecommunication Sector You are here. Sj.Sulicihan.Edu.Krd, 3(1), 182–196.

Ibrahim, A., & Rashid, W. N. (2019). The role of entrepreneurial leadership in enhance organizational agility in telecommunication sector. The Scientific Journal of Cihan University—Sulaimaniya, 3(1), 182-196.

Ireland, R. D., Hitt, M. A., & Sirmon, D. G. (2003). A Model of Strategic Entrepreneurship: The Construct and its Dimensions. Journal of Management, 29(6), 963–989.

Ismail, M. D., & Alam, S. S. (2019). Innovativeness and Competitive Advantage among Small and Medium Enterprise Exporters: Evidence from Emerging Markets in South East Asia. The South East Asian Journal of Management, 13(1).

Kark, R., & Van Dijk, D. (2007). Motivation to lead, motivation to follow: The role of the self-regulatory focus in leadership processes. Academy of Management Review, 32(2), 500–528.

Kirkwood, J. (2009). Motivational factors in a push-pull theory of entrepreneurship. Gender in Management, 24(5), 346–364.

Lakdawalla, D., & Philipson, T. (2006). The nonprofit sector and industry performance. Journal of Public Economics, 90(8–9), 1681–1698.

Latan, H., & Ghozali, I. (2015). Partial Least Squares: Concepts, Techniques and Applications using SmartPLS 3.

Latham, G. P., & Pinder, C. C. (2005). Work motivation theory and research at the dawn of the twenty-first century. Annual Review of Psychology, 56, 485–516.

Lee, O. K. D., Sambamurthy, V., Lim, K. H., & Wei, K. K. (2007). IT-enabled organizational agility and firms’ sustainable competitive advantage. ICIS 2007 Proceedings - Twenty Eighth International Conference on Information Systems.

Lehner, O. M., & Germak, A. J. (2014). Antecedents of social entrepreneurship: between public service motivation and the need for achievement. International Journal of Social Entrepreneurship and Innovation, 3(3), 214.

Mcclelland, D. C., & David, H. (1976). Power is the Great Motivator (Vol. 81, Issue 1).

Melián-Alzola, L., Fernández-Monroy, M., & Hidalgo-Peñate, M. (2020). Information technology capability and organisational agility: A study in the Canary Islands hotel industry. Tourism Management Perspectives, 33, 100606.

Mgeni, T .O. (2015). Impact of Entrepreneurial Leadership Style on Business Performance of SMEs in Tanzania. Journal of Entrepreneurship & Organization Management, 04(02).

Moizer, J., & Tracey, P. (2010). Strategy making in social enterprise: The role of resource allocation and its effects on organizational sustainability. Systems Research and Behavioral Science, 27(3), 252–266.

Murniningsih, R., & Hanafi, M. (2020, May). The Role of Entrepreneurial Leadership and ICT in Encouraging Competitive Advantage in SME’s. In 1st Borobudur International Symposium on Humanities, Economics and Social Sciences (BIS-HESS 2019), 56-761. Atlantis Press.

Nascimento, L. da S., & Salazar, V. S. (2020). On social enterprises and social entrepreneurship: An extension. BAR - Brazilian Administration Review, 17(2), 1–25.

Newbert, S. L. (2008). Value, Rareness, Competitive Advantage, and Performance: A Conceptual-Level Empirical Investigation of the Firm Resource-Based View of the Firm. Strategic Management Journal, 29, 745–768.

Newman, A., Neesham, C., Manville, G., & Tse, H. H. M. (2018). Examining the influence of servant and entrepreneurial leadership on the work outcomes of employees in social enterprises. International Journal of Human Resource Management, 29(20), 2905–2926. Palalic, R. (2017). The phenomenon of entrepreneurial leadership in gazelles and mice: A qualitative study from Bosnia and Herzegovina. World Review of Entrepreneurship, Management and Sustainable Development, 13(2–3), 211–236.

Phangestu, J., Kountur, R., & Prameswari, D. A. (2020). The Moderating Effect of Entrepreneurial Leadership and Competitive Advantage on the Relationship Between Business Model Innovation and Startup Performance. Journal of Business & Retail Management Research, 14(03), 53–61.

Potjanajaruwit, P. (2018). Competitive advantage effects on firm performance: a case study of startups in Thailand. Journal of International Studies, 11(3), 104–111.

Rahim, H. L., Abidin, Z. Z., Mohtar, S., & Ramli, A. (2015). The Effect of Entrepreneurial Leadership Towards Organizational Performance. International Academic Research Journal of Business and Technology, 1(2), 193–200.

Ranjan, S. (2018). Entrepreneurial leadership: A review of measures, antecedents, outcomes and moderators. Asian Social Science, 14(12), 104-114.

Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), 54–74.

Richardson, S., Kettinger, W. J., Banks, M. S., & Quintana, Y. (2014). IT and agility in the social enterprise: A case study of St Jude Children’s Research Hospital’s “Cure4Kids” IT-platform for international outreach. Journal of the Association for Information Systems, 15(1), 1–32.

Ridley-Duff, R., & Southcombe, C. (2011). The Social Enterprise Mark: a critical review of its conceptual dimensions. Social Enterprise Journal, 8(3), 178-200.

Rostiani, R., Paramita, W., Audita, H., Virgosita, R., Budiarto, T., & Purnomo, B. R. (2015). Understanding Social Enterprises in Indonesia: Journal of Indonesian Economy and Business, 29(2), 183–191.

Ruvio, A., Rosenblatt, Z., & Hertz-Lazarowitz, R. (2010). Entrepreneurial leadership vision in nonprofit vs. for-profit organizations. Leadership Quarterly, 21(1), 144–158.

Saebi, T., Foss, N. J., & Linder, S. (2019). Social Entrepreneurship Research: Past Achievements and Future Promises. Journal of Management, 45(1), 70–95.

Sasaki, S., & Koizumi, M. (2016). Elaborating upon the Social Enterprise Spectrum Through the Perspective of Ethical Capitalism.

Sekaran, U., & Bougie, R. (2016). Research Methods for Business (Seventh). John Wiley & Sons Ltd. All.

Shahrabi, B. (2012). The Role of Organizational Learning and Agility in Change Management in State Enterprises: A Customer-Oriented Approach. International Research Journal of Applied and Basic Sciences, 3(12), 2540–2547.

Shmueli, G., Ray, S., Velasquez Estrada, J. M., & Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of Business Research, 69(10), 4552–4564.

Stone, D. L. (2010). Creating knowledge that makes important contributions to society. Journal of Managerial Psychology, 25(3), 192–200.

Streukens, S., & Leroi-Werelds, S. (2016). Bootstrapping and PLS-SEM: A step-by-step guide to get more out of your bootstrap results. European Management Journal, 34(6), 618–632.

Sulistyowati, A. (2018). Pengaruh Entrepreneurial Leadership Dan Innovation Capacity Terhadap Competitive Advantage Pada Usaha Kecil Dan Menengah (Ukm) Binaan Dinas Perdagangan Kota Surabaya. Aplikasi Administrasi: Media Analisa Masalah Administrasi, 21(1), 30.

Tallon, P. P., & Pinsonneault, A. (2011). Competing perspectives on the link between strategic information technology alignment and organizational agility: insights from a mediation model. MIS quarterly, 463-486.

Umar, A., Sasongko, A. H., Widyastuti, I. T., & Christanti, Y. (2020). Improving the Social Enterprise-Based Business Performance from the Aspect of Social Business Model Canvas. International Journal of Entrepreneurship, 24(1), 1–12.

Utoyo, I., Fontana, A., & Satrya, A. (2020). The Role Of Entrepreneurial Leadership And Configuring Core Innovation Capabilities To Enhance Innovation Performance In A Disruptive Environment. International Journal of Innovation Management, 24(6).

Veiseh, S., shiri, A., & Eghbali, N. (2014). A study on ranking the effects of transformational leadership style on organizational agility and mediating role of organizational creativity. Management Science Letters, 4(9), 2121–2128.

Voynarenko, M., Dzhedzhula, V., & Yepifanova, I. (2020). Modeling of the process of personnel motivation for innovation activity. WSEAS Transactions on Business and Economics, 17, 467–477.

Wageeh, N. A. (2016). Organizational Agility: The Key to Organizational Success. International Journal of Business and Management, 11(5), 296.

Wagner-Tsukamoto, S. (2005). An economic approach to business ethics: Moral agency of the firm and the enabling and constraining effects of economic institutions and interactions in a market economy. Journal of Business Ethics, 60(1), 75–89.

Weerawardena, J., & Sullivan Mort, G. (2006). Investigating social entrepreneurship: A multidimensional model. Journal of World Business, 41(1), 21–35.

Yang, M. H., Wu, J. T. B., Su, C. J., Kao, T. Y., & Lin, C. C. (2010). The study of social enterprise management. International Journal of Revenue Management, 4(2), 145-162.

Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention. Academy of Management Perspectives, 26(4), 66–85.

Yusnita, M., & Wahyudin, D. N. (2017). Entrepreneurial Leadership melalui Kapasitas Inovasi sebagai Upaya Peningkatan Keunggulan Kompetitif UMKM di Era Masyarakat Ekonomi ASEAN (MEA) (Kajian Usaha Mikro di Kabupaten Bangka). Integrated Journal of Business and Economics (IJBE), 1(1), 10–18.

Zainol, F. A., Daud, W. N. W., Abubakar, L. S., Shaari, H., & Halim, H. A. (2018). A Linkage between Entrepreneurial Leadership and SMEs Performance: An Integrated Review. International Journal of Academic Research in Business and Social Sciences, 8(4), 104–118.

Download

Share

COinS