The Role of Company Assets and Leadership Style in the Sustainable Business Performance of the Digital Creative Companies in Java

Dedy Edward, Mts. Arief, Gatot Soepriyanto, Toto Rusmanto

Abstract

This study aims to determine the effect of company assets and leadership style on the sustainable business performance of digital creative industry companies in Java. The type of research in this study was verification. The unit of analysis in this study was a digital creative industry company on the island of Java, while the unit of observation was the management of a digital creative industry company on the island of Java. Data collection is carried out in a cross-section/one-shoot timeframe, namely in 2022. The population includes all companies that are members of the digital creative industry group on Java Island, which consists of 16 industrial sub-sectors. Data were taken from a sample of 100 respondents. The results of the study reveal that the company’s assets and leadership style have a significant influence on sustainable business performance. Leadership style plays a bigger role than company assets in driving sustainable business performance. The novelty in this research instills the right leadership style to build sustainable business performance, which is supported by the development of the company’s assets, in developing a leadership style, management should prioritize digital orientation, followed by the development of envisioning, governance, engagement, and disruptive innovation.

 

Keywords: company assets, leadership style, sustainable business performance.

 

DOI: https://doi.org/10.55463/hkjss.issn.1021-3619.60.16

 


Full Text:

PDF


References


AMIT, R. & SCHOEMAKER, P.J.H. (2016). Firm Resources. The Palgrave Encyclopedia of Strategic Management. Edited by Mie Augier and David Teece.

BEST, R. J. (2009). Market-Based Management Strategies for Growing. Customer Value and Profitability. Fifth Edition. New Jersey: Pearson Education, Inc.

BEST, R.J. (2014). Market-Based Management Strategies for Growing Customer. Value and Profitability. New Jersey: Pearson Education, Inc.

CHIN, W.W. (2000). Partial Least Squares for Researcher: An Overview and Presentation of Recent Advances Using the PLS Approach. ICIS 2000 Proceedings. 88. https://aisel.aisnet.org/icis2000/88

DOANE, D. & MACGILLIVRAY, A. (2001). Economic sustainability the business of staying in business. R&D Report for SIGMA Project 2001.

DUIGNAN, P. (2004). Forming capable leaders: From competencies to capabilities. New Zealand Journal of Educational E-leadership, 19(2), 5-13.

HAFEEZ, M.H, SHARIFF, M.N.M., & MAD LAZIM, H. (2012). Relationship between Entrepreneurial Orientation, Firm Resources, SME Branding and Firm’s Performance: Is Innovation the Missing Link? American Journal of Industrial and Business Management, 2, 153-159. https://doi.org/10.4236/ajibm.2012.24020.

HAIR, J.F., BLACK, W.C., BABIN, B.J. and ANDERSON, R.E. (2010). Multivariate Data Analysis. 7th Edition, Pearson, New York.

HUANG, T-T A., STEWART, R.A., & CHEN, L. (2010). Identifying key enablers to improve business performance in Taiwanese electronic manufacturing companies. International Journal of Operations & Production Management, 30(2), 155-180.

KARAMI, S., SOLTANPANAH, H., & RAHMANI, M. (2015). The Relationship between Corporate Reputation and Organizational Citizenship Behavior in Private Banks City of Sanandaj in Iran. Interdisciplinary Journal of Contemporary Research in Business, 5(3), 713-725.

KRAJA (2018). The Impact of Tangible and Intagible Assets on the SMEs Success. The Albanian Case. In: Entrepreneurship in Post-Communist Countries New Drivers towards a Market Economy. Editors: Jovo Ateljević & Jelena Budak, 135-145. Springer.

MASOOD, O., AKTAN, B., JAVARIA, K., TUREN, S., & ELSEOUD, M.S.A. (2017). Which resources matter the most to firm performance? An experimental study on Malaysian listed firms. Problems and Perspectives in Management, 15(2), 74-80. https://doi.org/10.21511/ppm.15(2).2017.07

NUNNALLY, J.C. & BERNSTEIN, I.H. (1994). Psychometric Theory. 3th edition. New York: McGraw Hill.

ÖZER, F. & TINAZTEPE, C. (2014). Effect of Strategic E-leaderships on Firm Performance: A study in a Turkish SME. Procedia – Social and Behavioral Sciences, 150, 778-784.

PEARCE, J.A. II & ROBINSON Jr., R.B. (2015). Strategic Management: Planning for Domestic & Global Competition. International Edition. New York: McGraw Hill.

RAHIM, R.E.A. & RAHMAN, A.A. (2013). Applicability of resource-based environmental studies in Green IT. Journal of Systems and Information Technology, 15(3), 269-286. Emerald Group Publishing Limited.

SZEKELY, F. & KNIRSCH, M. (2005). Responsible leadership and corporate social responsibility: metrics for sustainable performance. European Management Journal, 23 (6), 628-647

THOMPSON, AA, PETERAF, M.A. GAMBLE, J.E., & STRICKLAND III, A.J. (2020). Crafting and executing strategy: the quest for competitive advantage: concepts. 22th edition. New York: McGraw-Hill.

WESTERMAN, G, BONNET, D. & MCAFEE, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.

YANNEY, J.P. (2014). Business Strategy and E-leadership: Impact on Organizational Performance in the Manufacturing Sector of Ghana. American Journal of Industrial and Business Management, 04(12), 767-775. https://doi.org/10.4236/ajibm.2014.412083.

YILDIZ, S., BAŞTÜRK, F., & BOZ, I.T. (2014). The Effect of E-leadership and Innovativeness on Business Performance. Procedia – Social and Behavioral Science, 150, 785-793.


Refbacks

  • There are currently no refbacks.