Can Spiritual Leadership Increase the Performance of MSMEs in Indonesia?

Susanto, Sukiman Can Spiritual Leadership Increase the Performance of MSMEs in Indonesia? Soetomo Management Review.

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Abstract

Currently, the number of MSMEs in Indonesia has increased and is in very tight competition. Therefore, every organization must create a good work system to perform well. Therefore, an appropriate leadership style is needed to create a good work system. This study empirically tests the influence of spiritual leadership style on organizational performance. In addition, this research also wants to empirically test the mediation role of workplace spirituality on the influence of spiritual leadership style on organizational performance. The research data was collected by distributing questionnaires to 400 respondents from MSMEs in Indonesia. Determining the number of samples and the sampling process was done using the Slovin formula and accidental sampling. The data analysis process was carried out using path analysis. The study results show that a spiritual leadership model is needed to create workplace spirituality, which will ultimately create better organizational performance. Therefore, it is highly recommended for every organization to apply a spiritual leadership style model in the work environment.

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