Improving SMEs Innovative Work Behavior: How the Role of Transformational Leadership and Knowledge Sharing in the Digital Era

Abstract

Purpose: There has been no previous research on innovative work behavior in SMEs, the variables of Transformational Leadership and Knowledge Sharing. This study aims to analyze Knowledge sharing on innovative work behavior and Transformational Leadership on innovative work behavior in SMEs
 
 Design/methodology/approach: This research uses quantitative research methods. The dimensions of transformational leadership are ideal influence, inspirational motivation, intellectual stimulation, and individual consideration. The dimensions of innovative behavior are exploring ideas, creating ideas, fighting for ideas, and implementing ideas. The population in this study are SMEs managers. Respondents in this study were 640 SMEs managers who were determined by simple random sampling method. Data collection was carried out through an online questionnaire using a Likert scale using a scale of 7. Data analysis in this study used the Partial Least Square structural equation model (SEM) with SmartPLS 3.0 data processing software. The stages of data analysis begin with testing the validity and reliability of the instrument, determining and finally testing the hypothesis.
 
 Findings: The variable Knowledge sharing has a positive and significant effect on the innovative work behavior variable, the transformational leadership variable has a positive and significant effect on the innovative work behavior variable.
 
 Practical implications: The findings of this research can be used by SMEs managers to implement knowledge sharing and transformational leadership, to encourage increased innovative work behavior in SMEs, as well as for academics to support new knowledge and support theory..
 Authenticity/value: The novelty of this research is the relationship model of Innovative Work Behavior with transformational Leadership and knowledge sharing in the digital era which has not existed in previous studies.