The Role of Entrepreneurial Leadership, Knowledge Management, and Digital Capability in Enhancing Entrepreneurial Performance and Value Co-Creation in the Education Sector

This study investigates the influence of entrepreneurial leadership, knowledge management, and digital capability on entrepreneurial performance in Indonesia’s education sector while also examining the mediating role of value co-creation. Grounded in the Resource-Based Theory, Capability Theory, Behavioral Approach to Leadership, Service-Dominant Logic, and Entrepreneurship Theory, this research provides a comprehensive framework to understand how intangible resources, leadership behavior, and value co-creation jointly enhance institutional performance. Employing a quantitative research design, data were collected through a survey of 350 junior high schools selected via multistage cluster sampling, with respondents comprising principals, teachers, and school committee members. Structural Equation Modeling (SEM) was applied to test the reliability, validity, model fit, and structural relationships among variables. The results reveal that knowledge management and digital capability play a pivotal role in improving entrepreneurial performance. Furthermore, entrepreneurial leadership, knowledge management, and digital capability collectively enhance value co-creation within educational institutions. These findings suggest that strengthening knowledge management and digital capability strategies is essential for advancing school-level entrepreneurial performance. From a policy perspective, this study highlights the need for training initiatives, supportive regulations, and institutional frameworks to promote sustainable educational entrepreneurship.