Organizational Performance in Sme’s Industry Jepara

Abstract

—Small and Medium Enterprises (SMEs) is one of the Central Java 7% revenue supporting factor in 2021. Small and Medium Enterprises (SMEs) is a high potential sector to be developed. Activities of SMEs in the Jepara Residency will affect in many PAD supporting sectors such as raw material providers, craftsmen, tourism, trade, industry, transportation and other related sectors. This study aims to analyze the effect of Collaborative Agility and Intellectual Stimulation Leadership on Organizational Performance with Creativity Engagement as a mediating variable. This research was conducted in Jepara, Kudus and Rembang on craftsmen from 87 SMEs, data obtained using SEM PLS software. The results showed that Collaborative Agility has not significant relationship in SMEs performance, and will improve the performance through Collaborative Agility as a mediating variable. In influencing the optimal performance achievements SMEs requires creativity engagement and intellectual stimulation leadership whose can motivate and inspire their subordinates by communicating high hopes and clear work struggles. Creativity engagement is moved by collaborative agility and intellectual stimulation leadership. Creativity Engagement has a large influence on SME Performance. The limitation and implication is discussed as follow.