IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v16y2025i2d10.1007_s13132-024-02254-8.html
   My bibliography  Save this article

The Influence of Leadership Strategies and Social Capital on the Business Performance and Resilience of Indonesian MSMEs

Author

Listed:
  • Reniati Reniati

    (Universitas Bangka Belitung)

  • Badrun Susantyo

    (National Research and Innovation Agency (BRIN))

  • Nyi R. Irmayani

    (National Research and Innovation Agency (BRIN))

  • Fadillah Sabri

    (Universitas Muhammadiyah Bangka Belitung)

  • Widiastuti Widiastuti

    (Universitas Islam Negeri Sunan Kalijaga)

Abstract

This study aims to study how leadership strategies and business capital influence the performance and resilience of Micro, Small, and Medium-sized Enterprises (MSMEs) in the Bangka Belitung Islands Province, Indonesia, particularly in dealing with rapid financial fluctuations in 2023. The goal is to offer valuable insights for managing MSMEs effectively. This study used quantitative research to collect primary data from 101 MSMEs with valid business licenses in the Bangka Belitung Islands Province, Indonesia. It employed the partial least squares (PLS) analysis method, covering measurements and structural models. A leader’s management style does not directly affect how well a business can handle challenges, and having good business connections does not make a big difference. However, certain aspects of a leader’s plan can improve the business’s overall performance. Surprisingly, the business’s current performance does not strongly impact its ability to handle tough situations, and it does not change how a leader’s management style and connections influence this resilience. These findings help us understand how these factors interact in small businesses in the province. This study demonstrates the connections between leadership strategies, social capital, business performance, and resilience in a specific location. Small business leaders in the Bangka Belitung Islands Province can utilize this research to enhance their strategies. Improved resilience among MSMEs can contribute to the economic strength and growth of the local community in the Bangka Belitung Islands Province. This study is unique because it looks closely at one particular place and how leadership, social capital, business performance, and resilience are all connected in small businesses. The results help manage these businesses, especially when dealing with the challenges of fast-changing finances in 2023.

Suggested Citation

  • Reniati Reniati & Badrun Susantyo & Nyi R. Irmayani & Fadillah Sabri & Widiastuti Widiastuti, 2025. "The Influence of Leadership Strategies and Social Capital on the Business Performance and Resilience of Indonesian MSMEs," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(2), pages 9932-9971, June.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-02254-8
    DOI: 10.1007/s13132-024-02254-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-024-02254-8
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-024-02254-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Joon-ho Kim & Yae-ri Kim & Seung-hye Jung & Hyun-ju Choi & June-hyuk Kwon, 2022. "The effects of cluster collaboration and the utilization of big data on business performance: A research based on the expansion of open innovation and social capital," African Journal of Science, Technology, Innovation and Development, Taylor & Francis Journals, vol. 14(4), pages 1032-1049, June.
    2. Zachary A. Collier & James H. Lambert & Igor Linkov, 2019. "Advances in machine learning and decision making," Environment Systems and Decisions, Springer, vol. 39(3), pages 247-248, September.
    3. Michiel Frederick Coetzer & Mark Bussin & Madelyn Geldenhuys, 2017. "The Functions of a Servant Leader," Administrative Sciences, MDPI, vol. 7(1), pages 1-32, February.
    4. Yuliansyah Yuliansyah & Johnny Jermias, 2018. "Strategic performance measurement system, organizational learning and service strategic alignment," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 34(4), pages 564-592, October.
    5. Grandori, Anna, 2020. "Black Swans and Generative Resilience," Management and Organization Review, Cambridge University Press, vol. 16(3), pages 495-501, July.
    6. Wulandhari, Nur Baiti Ingga & Gölgeci, Ismail & Mishra, Nishikant & Sivarajah, Uthayasankar & Gupta, Suraksha, 2022. "Exploring the role of social capital mechanisms in cooperative resilience," Journal of Business Research, Elsevier, vol. 143(C), pages 375-386.
    7. repec:eme:ijoes0:ijoes-07-2018-0102 is not listed on IDEAS
    8. Sarkar, Soumodip & Osiyevskyy, Oleksiy, 2018. "Organizational change and rigidity during crisis: A review of the paradox," European Management Journal, Elsevier, vol. 36(1), pages 47-58.
    9. Abdelbaki Laidoune & Chaher Zid & Nabil Sahraoui, 2022. "Innovate and Overcome Resistance to Change to Improve the Resilience of Systems and Organizations," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2986-3001, December.
    10. Altig, David & Barrero, Jose Maria & Bloom, Nicholas & Davis, Steven J. & Meyer, Brent & Parker, Nicholas, 2022. "Surveying business uncertainty," Journal of Econometrics, Elsevier, vol. 231(1), pages 282-303.
    11. Saud Asaad Al‐Thaqeb & Barrak Ghanim Algharabali & Khaled Tareq Alabdulghafour, 2022. "The pandemic and economic policy uncertainty," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(3), pages 2784-2794, July.
    12. Wondmagegn Biru Mamo, 2023. "Growth Determinants of Micro and Small Enterprises (MSEs): Evidence from Entrepreneurs in the Eastern Region of Ethiopia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 138-160, March.
    13. Renata Peregrino de Brito & Anna-Katharina Lenz & Michelle Gonçalves Marques Pacheco, 2022. "Resilience building among small businesses in low-income neighborhoods," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(5), pages 1166-1201, September.
    14. Syamsari Syamsari & Muhammad Ramaditya & Irma Andriani & Ayu Puspitasari, 2022. "Selecting Priority Policy Strategies for Sustainability of Micro, Small, and Medium Enterprises in Takalar Regency," Sustainability, MDPI, vol. 14(23), pages 1-12, November.
    15. Brahim Herbane, 2020. "Locational Contiguity and Business Continuity: Perceived Organizational Resilience of Small- and Medium-Sized Enterprises in U.K. Business Parks," SAGE Open, , vol. 10(2), pages 21582440209, May.
    16. Renee D. Wiatt & Yoon G. Lee & Maria I. Marshall & Virginia S. Zuiker, 2021. "The Effect of Cash Flow Problems and Resource Intermingling on Small Business Recovery and Resilience After a Natural Disaster," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 203-214, March.
    17. Titik Anas & Hal Hill & Dionisius Narjoko & Chandra Tri Putra, 2022. "The Indonesian Economy in Turbulent Times," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 58(3), pages 241-271, September.
    18. Muñoz, Pablo & Naudé, Wim & Williams, Nick & Williams, Trenton & Frías, Rodrigo, 2020. "Reorienting entrepreneurial support infrastructure to tackle a social crisis: A rapid response," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    19. Tulus Tambunan, 2019. "Recent evidence of the development of micro, small and medium enterprises in Indonesia," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-15, December.
    20. Ana KuntariÄ & Erich J. Schwarz & Robert J. Breitenecker & Malgorzata A. Wdowiak, 2012. "The effects of social capital on the performance of newly founded businesses in Slovenia," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 15(1), pages 100-115.
    21. Jonathan Michie, 2022. "The coming financial crisis," International Review of Applied Economics, Taylor & Francis Journals, vol. 36(3), pages 291-301, May.
    22. Peter Gianiodis & Soo-Hoon Lee & Hao Zhao & Maw-Der Foo & David Audretsch, 2022. "Lessons on small business resilience," Journal of Small Business Management, Taylor & Francis Journals, vol. 60(5), pages 1029-1040, September.
    23. Paulo Garrido, 2016. "The Systemic and Global Dimension of Business Resilience in a Socio-Technical Perspective," Sustainability, MDPI, vol. 8(3), pages 1-18, February.
    24. Caroline Orchiston, 2013. "Tourism business preparedness, resilience and disaster planning in a region of high seismic risk: the case of the Southern Alps, New Zealand," Current Issues in Tourism, Taylor & Francis Journals, vol. 16(5), pages 477-494.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Min, Jungwon, 2025. "Fieldwide versus organization-specific crises in the global airline industry: The advantages of shared adversity," Journal of Air Transport Management, Elsevier, vol. 125(C).
    2. Jorge Espinoza-Benavides & Maribel Guerrero, 2025. "Re-entrepreneurial experience and learning during challenging times," Small Business Economics, Springer, vol. 64(1), pages 59-92, January.
    3. Santos, Susana C. & Liguori, Eric W. & Garvey, Erin, 2023. "How digitalization reinvented entrepreneurial resilience during COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    4. Ali Zackery & Joseph Amankwah-Amoah & Zahra Heidari Darani & Shiva Ghasemi, 2022. "COVID-19 Research in Business and Management: A Review and Future Research Agenda," Sustainability, MDPI, vol. 14(16), pages 1-32, August.
    5. Chen, Cheng & Senga, Tatsuro & Sun, Chang & Zhang, Hongyong, 2023. "Uncertainty, imperfect information, and expectation formation over the firm’s life cycle," Journal of Monetary Economics, Elsevier, vol. 140(C), pages 60-77.
    6. Ayla Amamou & Safa Chabouh & Lilia Sidhom & Alaeddine Zouari & Abdelkader Mami, 2025. "Agri-Food Supply Chain Sustainability Indicators from a Multi-Capital Perspective: A Systematic Review," Sustainability, MDPI, vol. 17(9), pages 1-34, May.
    7. Sirola, Nina, 2023. "Going beyond the call of duty under conditions of economic threat: Integrating life history and temporal dilemma perspectives," Organizational Behavior and Human Decision Processes, Elsevier, vol. 179(C).
    8. Nicholas Bamegne Nambie & Philomena Dadzie & Dorcas Oye Haywood-Dadzie, 2023. "Measuring the Effect of Income Inequality, Financial Inclusion, Investment, and Unemployment, on Economic Growth in Africa: A Moderating Role of Digital Financial Technology," International Journal of Economics and Financial Issues, Econjournals, vol. 13(4), pages 111-124, July.
    9. Hong, T., 2021. "Revisiting the Trade Policy Uncertainty Index," Cambridge Working Papers in Economics 2174, Faculty of Economics, University of Cambridge.
    10. Altig, Dave & Baker, Scott & Barrero, Jose Maria & Bloom, Nicholas & Bunn, Philip & Chen, Scarlet & Davis, Steven J. & Leather, Julia & Meyer, Brent & Mihaylov, Emil & Mizen, Paul & Parker, Nicholas &, 2020. "Economic uncertainty before and during the COVID-19 pandemic," Journal of Public Economics, Elsevier, vol. 191(C).
    11. Barrero, Jose Maria & Bloom, Nick & Davis, Steven J., 2020. "Why Working From Home Will Stick," SocArXiv wfdbe, Center for Open Science.
    12. Nicholas Bloom & Philip Bunn & Paul Mizen & Pawel Smietanka & Gregory Thwaites, 2025. "The Impact of Covid-19 on Productivity," The Review of Economics and Statistics, MIT Press, vol. 107(1), pages 28-41, January.
    13. Marek Matejun, 2024. "The Ordinariness and Denaturation of Small Business:Conceptual Framework and Empirical Evidence from the European Union," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 187-214.
    14. Blanas, Sotiris & Oikonomou, Rigas, 2023. "COVID-induced economic uncertainty, tasks and occupational demand," Labour Economics, Elsevier, vol. 81(C).
    15. Brucal,Arlan Zandro Ilagan & Grover,Arti Goswami & Reyes Ortega,Santiago, 2021. "Damaged by the Disaster : The Impact of COVID-19 on Firms in South Asia," Policy Research Working Paper Series 9604, The World Bank.
    16. Nicholas Bloom & Philip Bunn & Scarlet Chen & Paul Mizen & Pawel Smietanka & Gregory Thwaites, 2019. "The Impact of Brexit on UK Firms," NBER Working Papers 26218, National Bureau of Economic Research, Inc.
    17. Mar Ortiz-Gómez & Gabriele Giorgi & Horacio Molina-Sánchez & Antonio Ariza-Montes, 2020. "Development and Validation of a Spanish Short Servant Leadership Survey (SSLS6-3F) among Spanish Workers in Religious Non-Profit Organizations," Sustainability, MDPI, vol. 12(9), pages 1-18, May.
    18. Maria R.H. Takeuchi & Tatsuya Hasegawa & Linda McKinley & Gian Powell Marquez & Keiichi N. Ishihara, 2020. "What Is Suitable Leadership for High-Level Radioactive Waste (HLW) Management?," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    19. Yuchong Hu & Yifan Pan & Miao Yu & Peishen Chen, 2024. "Navigating Digital Transformation and Knowledge Structures: Insights for Small and Medium-Sized Enterprises," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16311-16344, December.
    20. Nicholas Bloom & Robert S. Fletcher & Ethan Yeh, 2021. "The Impact of COVID-19 on US Firms," NBER Working Papers 28314, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:jknowl:v:16:y:2025:i:2:d:10.1007_s13132-024-02254-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.