Nur Laily, Hening Widhi Oetomo, D. Djawoto


The purpose of this study was to determine the effect of Transformational Leadership on Innovation Capability and Business Performance of women entrepreneurs, as well as the role of Innovation capability as a moderating variable. The population in this study was women entrepreneurs. The sample was 286 respondents using particular criteria. The questionnaire was used as a research instrument by using an online application. Data analysis using SEM PLS. The results show that transformational leadership and innovation capability affect the business performance of women entrepreneurs, and transformational leadership affects innovation capability. Besides, innovation capability is capable of being a mediator of transformational leadership in business performance. The management implication is that innovation plays a critical role in running MSME businesses. Innovation can create a competitive advantage.


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