The transglobal leadership-based strategy of MSMEs performance optimization of Malang Raya and the implementation of quality of work life

Abstract

PurposeThe purpose of this paper is to examine the influence of transglobal leadership on quality of work-life, job involvement and its impact on the performance of micro, small and medium enterprises (MSMEs) employees throughout Malang Raya.Design/methodology/approachThe population of the paper was all of MSME employees in Malang Raya and MSME developing in East Java regions, namely Sidoarjo, Pasuruan District, Pasuruan City, Kediri District, Jombang, Surabaya City, Blitar City and Blitar District. This paper uses GSCA for several reasons. First, it uses a structural model (involving several endogenous variables). Second, it involves unobservable variables that require a measurement model (variable measurement of the indicators). Third, it needs a comparative model testing that compares several groups of objects using the multigroup GSCA.FindingsTransglobal leadership has a significant effect on quality of work life and job involvement in the five regions. It also has a significant effect on employee performance in the four regions, except Malang Regency. Quality of work life has a significant effect on job involvement in two regions, namely Malang City and Malang Regency, but not in the other three regions. Quality of work life and job involvement together has a significant effect on employee performance in all study sites.Originality/valueThese gaps motivate the researchers to comprehensively examine the relationship between QWL and employee performance, QWL and job involvement and job involvement and employee performance – these are the originality of the present study, in addition to different research locations. Small- and medium-sized enterprises (SMEs) in Malang are divided into three main groups, namely manufacturing business, merchandising business and service business.