How Leadership And Organizational Culture Shape Organizational Agility In Indonesian SMEs??

Abstract

A highly competitive market has increased the importance of organizational agility in attaining competitiveness through strengthening leadership and organizational culture. This study aims at examining the effect of entrepreneurial leadership on organizational agility mediated by organizational culture in Indonesian Small and Medium-sized Enterprises. There was a lack of evidence on which entrepreneurial leadership could significantly influence organizational agility through organizational culture. Using simple random sampling technique, a total of 200 employees from the centre of Industrial Village in East Jakarta, Indonesia was selected as the sample. Data were obtained through survey method and quantitatively analysed using Structural Equation Modelling with LISREL 8.8 software. The findings show that entrepreneurial leadership and organizational culture respectively have positive and significant direct effects on organizational agility. Entrepreneurial leadership has a positive and significant direct effect on organizational culture, and entrepreneurial leadership has a positive and significant indirect effect on organizational agility mediated by organizational culture. The research findings can provide guidelines for the SMEs entrepreneur to facilitate appropriate leadership and organizational culture, so as to foster organizational agility and achieve business benefits.

Analysis of Leadership, HR Practices, Organizational Agility, and Employee Performance at the Emergency Department of XYZ Hospital

“…This result differs from several previous studies such as Melián-Alzola et al (2020), Khalid et al (2020), and Tamer (2021). These studies indicated that leadership had a decisive effect on organizational agility with various leadership styles.…”

“…Consequently, it requires a fast response, cooperation, and high effectiveness in terms of management, such as leadership and implementation of HR practices, as well as general employees and medical personnel. Several previous studies have also proven that health service organizations such as hospitals must have agility in organizational structure through leadership, as well as implementation of management practices and human resources (Aronsson et According to Khalid et al (2020) and Menon and Suresh (2021), leadership style significantly determines organizational agility. Tamer (2021) also stated leadership influences organizational agility in health organizations.…”

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“…Compatibilities and incompatibilities between organizational agility and organizational culture have been identified as one explanation for the difficulties encountered (for example, Felipe et al [64] and Khalid et al [65]). According to the results of our research, organizational culture in a company has a positive effect on the agile work environment.…”

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