Transformational Leadership, Communication Skill and Performance of Rural Companies: Moderated by Environmental Uncertainty

Abstract

Purpose: Establishing companies in rural areas is one solution for equitable development. However, in reality, there are still many companies in rural areas that are not yet operating optimally. This is due to many factors. This research aims to analyze how transformational leadership and communication skills play a role in improving company performance in rural areas. Additionally examined in this study as a moderating factor is environmental uncertainty
 Design/Methodology/Approach: The population in this study was 57 rural companies in Indonesia spread across Riau Province. The sampling technique used is stratified sampling. Respondents in this study are company managers. A total of 137 respondents participated in this study. The data-gathering technique employs questionnaires, which are dispersed by delivering them directly to respondents. This study employs the partial least squares method to evaluate the hypothesis.
 Findings: According to data analysis, environmental uncertainty, communication abilities, and transformational leadership all have a effect on improving business performance. Environmental uncertainty moderates the impact of transformative leadership on corporate performance but not the impact of communication skills on company performance.
 Implications/Originality/Values: This research contributes to the importance of transformational leaders and communication skills to improve company performance in rural areas. Environmental factors must also be considered in making decisions. To form transformational leadership, leadership training is necessary.