The Influence of Digital Leadership on Innovation Performance in MSME Startups in the Industry 4.0 Era

Sukmono Bayu Adhi; Isroni Isroni; Dedi Suharyadi; Roy  Irawan

doi:10.30640/jmcbus.v4i3.6879

Authors

Sukmono Bayu Adhi Universitas Bina Sarana Informatika
Isroni Isroni Universitas Bina Sarana Informatika
Dedi Suharyadi Universitas Bina Sarana Informatika
Roy Irawan Universitas Bina Sarana Informatika

DOI:

https://doi.org/10.30640/jmcbus.v4i3.6879

Keywords:

Digital Leadership, Industry 4.0, Innovation Performance, MSME Startups, SEM-PLS

Abstract

This study aims to analyze the effect of digital leadership on innovation performance in SME startups in the industry 4.0 era. Rapid digital transformation requires SMEs to adapt their business activities, improve operational efficiency, and create sustainable innovations. In this context, digital leadership plays a crucial role in directing technology utilization, fostering an adaptive work culture, and encouraging data-driven decision-making. This study employed a quantitative approach with an explanatory research design. Data were collected through Likert-scale questionnaires distributed to SME startup actors who had adopted digital technologies in their business operations. The sampling technique used was purposive sampling, and the data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The results indicate that digital leadership has a positive and significant effect on innovation performance, with a path coefficient of 0.684, a t-value of 11.326, and a p-value of less than 0.001. The R-square value of 0.468 indicates that digital leadership explains 46.8% of the variance in innovation performance. These findings suggest that innovation success is influenced not only by technology adoption but also by leaders’ ability to integrate technology into business strategies. Therefore, strengthening digital leadership competencies should become an essential component of SME startup development programs to enhance competitiveness in the digital economy.

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