Determinants of Innovative Work Behavior among Digital MSME Employees: The Roles of Entrepreneurial Leadership and Digital Mindset

Riskia Putra; Achmad Kholif Rosyidi; Denny Prabu Syahputra

doi:10.26740/joaep.v6n1.p1-10

Authors

Riskia Putra Faculty of Islamic Economics and Business, Kiai Haji Achmad Siddiq University
Achmad Kholif Rosyidi Faculty of Islamic Economics and Business, Kiai Haji Achmad Siddiq University
Denny Prabu Syahputra Faculty of Islamic Economics and Business, Kiai Haji Achmad Siddiq University

DOI:

https://doi.org/10.26740/joaep.v6n1.p1-10

Keywords:

Digital Mindset, Entrepreneurial Leadership, Innovative Work Behavior, Digital MSMEs

Abstract

This study examines the determinants of innovative work behavior among employees of digital micro, small, and medium-sized enterprises (MSMEs), focusing on the roles of entrepreneurial leadership and digital mindset. A quantitative explanatory research design was employed, with data collected from 120 employees of digital MSMEs in East Java Province. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings indicate that entrepreneurial leadership does not have a statistically significant direct effect on innovative work behavior. However, entrepreneurial leadership significantly influences employees’ digital mindset, which in turn has a positive and significant effect on innovative work behavior. Furthermore, mediation analysis reveals that digital mindset mediates the relationship between entrepreneurial leadership and innovative work behavior, with an indirect effect of 0.060, indicating full mediation. These results suggest that the influence of entrepreneurial leadership on innovative work behavior operates primarily through cognitive mechanisms rather than direct effects. From a theoretical perspective, this study extends social learning theory by demonstrating the central role of digital mindset in linking leadership and innovation within technology-driven work environments. From a practical perspective, the findings highlight the importance for leaders of digital MSMEs to foster employees’ digital mindset as a strategic means of enhancing sustainable, innovative work behavior.

Downloads

Download data is not yet available.

References

Amabile, T. M., Conti, R., Coon, H., Lazenby, J., & Herron, M. (2004). Assessing the work environment for creativity. Academy of Management Journal, 39(5), 1154–1184. https://doi.org/10.2307/256995

Bagheri, A. (2017). The impact of entrepreneurial leadership on innovation work behavior and opportunity recognition in high-technology SMEs. Journal of High Technology Management Research, 28(2), 159–166. https://doi.org/10.1016/j.hitech.2017.10.003

Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. Englewood Cliffs, NJ: Prentice-Hall.

Bouwman, H., Nikou, S., de Reuver, M., Shahrokh, N., & de Jong, M. (2019). Digitalization, business models, and SMEs. Telecommunications Policy, 43(9), 101828. https://doi.org/10.1016/j.telpol.2019.101828

De Jong, J. P. J., & Den Hartog, D. N. (2010). Measuring innovative work behaviour. Creativity and Innovation Management, 19(1), 23–36. https://doi.org/10.1111/j.1467-8691.2010.00547.x

Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

Hülsheger, U. R., Anderson, N., & Salgado, J. F. (2009). Team-level predictors of innovation at work: A comprehensive meta-analysis. Journal of Applied Psychology, 94(5), 1128–1145. https://doi.org/10.1037/a0015978

Janssen, O. (2000). Job demands, perceptions of effort–reward fairness and innovative work behaviour. Journal of Occupational and Organizational Psychology, 73(3), 287–302. https://doi.org/10.1348/096317900167038

Kane, G. C., Phillips, A. N., Copulsky, J., & Andrus, G. (2019). The technology fallacy: How people are the real key to digital transformation. MIT Sloan Management Review Press.

Newman, A., Neesham, C., Manville, G., & Tse, H. H. M. (2018). Examining the influence of entrepreneurial leadership on the work outcomes of employees. International Journal of Human Resource Management, 29(20), 2905–2926. https://doi.org/10.1080/09585192.2017.1359792

Renko, M., El Tarabishy, A., Carsrud, A. L., & Brännback, M. (2015). Understanding and measuring entrepreneurial leadership style. Journal of Small Business Management, 53(1), 54–74. https://doi.org/10.1111/jsbm.12086

Rosing, K., Frese, M., & Bausch, A. (2011). Explaining the heterogeneity of the leadership–innovation relationship. The Leadership Quarterly, 22(5), 956–974. https://doi.org/10.1016/j.leaqua.2011.07.014

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001