The Role Of Entrepreneurial Leadership In Driving Green Management And Innovation Performance Among Creative Industry SMEs in Bali
Keywords:
entrepreneurial leadership, green management, innovation performance, creative industry SMEs, BaliAbstract
This study examines the role of entrepreneurial leadership and green management in driving innovation performance among creative industry SMEs in Bali. Increasing environmental pressures and market uncertainty require SMEs to remain innovative while adopting environmentally responsible management practices. Drawing on Dynamic Capabilities Theory, this study conceptualizes innovation performance as an outcome of internal managerial capabilities orchestrated by entrepreneurial leadership and supported by green management practices. A quantitative explanatory research design was employed using survey data collected from 86 owners or managers of creative industry SMEs in Bali. Data were analyzed using multiple linear regression to test the direct effects of entrepreneurial leadership and green management on innovation performance. The results indicate that both entrepreneurial leadership and green management have a positive and significant effect on innovation performance. However, entrepreneurial leadership demonstrates a more dominant influence, while the contribution of green management is relatively weak, suggesting that environmental practices in SMEs are still largely operational rather than strategically oriented toward innovation. These findings highlight the central role of entrepreneurial leadership in transforming managerial capabilities into innovation outcomes and suggest that green management requires deeper strategic integration to enhance innovation performance in SMEs effectively. This study contributes to the literature by providing empirical evidence from a developing-country context and offers practical implications for strengthening innovation-oriented and sustainable management in creative industry SMEs.
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