EXAMINING THE EFFECT OF ENTREPRENEURIAL LEADERSHIP ON ORGANIZATIONAL AGILITY THROUGH ORGANIZATIONAL LEARNING IN INDONESIAN SMES

Abstract

Tremendous change in environment during the Corona virus pandemic has put organizational agility as one of the most important discussion topics among scholars in the world. Small and Medium-sized Enterprises (SMEs) with limited resources, need to have strong agility to thrive in today's increasingly competitive market.  It is, therefore, crucial to study the factors that may affect organizational agility. This study aims to examine the effects of entrepreneurial leadership on organizational agility through organizational learning in the perspective of organizational behavior. There was a scarcity of evidence on which entrepreneurial leadership could significantly influence organizational agility through organizational learning. The respondents are 200 employees who work at SMEs within the Small Industrial Village which is called Perkampungan Industri Kecil (PIK) in East Jakarta, Indonesia. Data were obtained through the survey method and quantitatively analyzed using SEM – LISREL 8.8. The results indicated that each entrepreneurial leadership and organizational learning has significantly affected organizational agility, and entrepreneurial leadership has significantly affected organizational learning. This study also found that organizational learning partially mediates the relationship between entrepreneurial leadership and organizational agility. These results provide recommendations for SMEs entrepreneurs to promote organizational learning in order to enhance the effect of entrepreneurial leadership to increase organizational agility.