Model of improving the business performance through innovation capability based on transformational leadership


  • Enita Fatmawati Universitas Islam Sultan Agung
  • Nurhidayati Nurhidayati Universitas Islam Sultan Agung



Business performance, Innovation capability, Transformational leadership


This study aimed to analyze the effect of transformational leadership through innovation capability on business performance studies at Village-Owned Enterprises (Village-Owned Enterprises) in Semarang Regency. Innovation capability is a measure of the achievement of good business performance in Village-Owned Enterprises in Semarang Regency. Respondents in this study were the managers of Village-Owned Enterprises in Semarang Regency. Data were collected through a questionnaire method that was filled out independently by 125 selected respondents where the respondents had managed Village Owned Enterprises in their respective villages in 19 sub-districts in Semarang Regency. The analytical method used is Structural Equation Modeling (SEM) analysis which is run with the SMART-PLS 3.2.9 program. The results of hypothesis testing with SMART-PLS 3.2.9 showed that transformational leadership had a direct effect on innovation capability, transformational leadership had a direct effect on business performance, innovation capability had a direct effect on business performance, and innovation capability was proven to be able to mediate transformational leadership in improving the business performance of Village-Owned Enterprises.



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How to Cite

Fatmawati E, Nurhidayati N. Model of improving the business performance through innovation capability based on transformational leadership. REVENUE [Internet]. 2021Apr.30 [cited 2023Mar.24];2(1):1-16. Available from: