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Vol 39 No 3 (2024): September

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Sep 10, 2024
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Rural Government Cooperation Intensity and Leadership in Fostering the Innovation Capabilities of Rural Microbusinesses

https://doi.org/10.22146/jieb.v39i3.10068
Ardy Wibowo
Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro, 50139, Indonesia
Defia Ifsantin Maula
defia@almaata.ac.id
Department of Management, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia
Dani Fikri Setiawan
Department of Accounting, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia
Muhammad Hisam
Department of Management, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia

Corresponding Author(s) : Defia Ifsantin Maula

defia@almaata.ac.id

Journal of Indonesian Economy and Business, Vol 39 No 3 (2024): September

Abstract

Introduction: The growth of rural entrepreneurship significantly impacts economic growth and the well-being of rural communities. Background Problem: Innovation is crucial for entrepreneurs' success, with rural government playing a pivotal role in rural societies. Novelty: This study overviews the role of rural government in fostering entrepreneurial innovation, focusing on inter-organizational collaboration and the village head's leadership style. Research Method: Employing a quantitative survey methodology, the study undertook direct surveys of 300 rural micro- and small-scale entrepreneurs from diverse industries in Indonesia. A simple random sampling technique was used to ensure a representative sample of the population. Data were analyzed using Structural Equation Modeling—Partial Least Squares. Findings: The analysis reveals that rural government cooperation and transformative leadership positively influence entrepreneurs' perceptions of organiza­tional support. In turn, perceived organizational support significantly impacts the desire for knowledge sharing and innovation capability enhancement. This study diverges from previous research by examining the mediating roles of knowledge sharing and perceived organizational support in innovation capability enhancement. It confirms that perceived organizational support is a vital mediator in the relationship between government cooperation intensity, transformational leadership, and innovation capability. Conclusions: The findings underscore the need for rural governments to practice effective cooperation and leadership and provide consistent support. Such strategies facilitate a supportive environ­ment that fosters knowledge sharing and significantly boosts rural entrepreneurs' innovation capabilities.

Keywords

government cooperation intensity transformational leadership perceived organizational support knowledge sharing innovation capability rural entrepreneurship
Wibowo, A., Maula, D. I., Setiawan, D. F., & Hisam, M. (2024). Rural Government Cooperation Intensity and Leadership in Fostering the Innovation Capabilities of Rural Microbusinesses. Journal of Indonesian Economy and Business, 39(3), 282 -. https://doi.org/10.22146/jieb.v39i3.10068
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Author Biographies

Ardy Wibowo, Department of Business Administration, Faculty of Social and Political Sciences, Universitas Diponegoro, 50139, Indonesia

Ardy Wibowo is a lecturer and researcher at the Department of Business Administration, Universitas Diponegoro (UNDIP), Indonesia where he has been a faculty member since 2024. He earned his Applied Bachelor’s degree in International Business Management at the Department of Business Administration, Politeknik Negeri Semarang, Indonesia. He did his Master’s degree in Master of Business Administration at National Kahosiung University of Scienve and Technology, Taiwan. Besides, he completed his Ph.D. from National Kaohsiung University of Science and Technology, Taiwan. His research interests lie in the areas of digital marketing, consumer psychology, innovation & creativity management and entrepreneurship. He has collaborated actively with other researchers from various fields in many research projects. He successfully published many articles in different top tier international journals.

Defia Ifsantin Maula, Department of Management, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia

Defia Ifsantin Maula is a lecturer and researcher at the Department of Management, Universitas Alma Ata, Indonesia where she has been a faculty member since 2018. She earned his Bachelor’s degree in Political Scinece at the Department of Politics and Government, Universitas Gadjah Mada , Indonesia. She did her Master’s degree in Master of Business Administration at Universitas Gadjah Mada, Indonesia. Her research interests lie in the areas of entrepreneurship, leadership, and human resource management. She has collaborated actively with other researchers from various fields in many research projects. She successfully published many articles in different journals.

Dani Fikri Setiawan, Department of Accounting, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia

Dani Fikri Setiawan is a student at the Accounting Department of Alma Ata University, he has been a student since 2020.

Muhammad Hisam, Department of Management, Faculty of Economic and Business, Alma Ata University, 55184, Indonesia

Muhammad Hisam is a student in the Management Department of Alma Ata University, he has been a student since 2019.

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