The Effect of Relation Between Digital Leadership and Learning Organization on the Individual Performance of SMEs

Abstract

Objective: This research aims to analyze the relationship between digital leadership variables and individual performance of SMEs, to analyze the relationship between learning organization variables and individual performance of SMEs. Method: This research method is a quantitative survey, data analysis using partial least squares (PLS) structural equation modeling (SEM) with SmartPLS 3.0 software tools. Data was obtained by distributing online questionnaires via social media. The questionnaire was designed using statements with a Likert scale of 1 to 7. The respondents of this study were 350 SMEs owners in Indonesia who were determined through simple random sampling. The analysis stages are validity test, reliability test and significance test. The independent variables of this research are digital leadership and learning organization variables. The dependent variable is the individual performance of SMEs. Results: The results of this research are that digital leadership has a positive and significant relationship to individual performance. Learning organizations have a positive and significant relationship to individual performance of SMEs. Research implications: Such findings contribute to our better understanding of the relationship between digital leadership and learning organization on the individual performance of SMEs. Also, it can have implications for stakeholders in developing performance of SMEs. Originality/value: This study addresses the gap in the body of digital leadership and learning organization on the individual performance of SMEs, creating a new correlation model of the relationship between digital leadership and learning organization on the individual performance of SMEs.