Influences of Transformational Leadership and Strategic Management on Achieving Competitive Advantage through the Innovative Capabilities of a Gold Trading Business
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Abstract
This research aims to: 1) examine the levels of transformational leadership, strategic management, innovation capability, and competitive advantage; 2) investigate the direct and indirect influences of transformational leadership, strategic management, innovation capability, and competitive advantage; and 3) the influence of transformational leadership and strategic management influence effecting the competitive advantage through innovation capabilities of gold trading businesses. This study employs a mixed-methods research approach, combining both quantitative and qualitative methods. The quantitative aspect uses a sample of 300 gold trading business operators. The sample size is determined based on a criterion of 20 times the number of observed variables, with a purposive sampling method and data collected via a questionnaire. The data is are analyzed using structural equation modeling. For the qualitative aspect, data are gathered through in-depth interviews of academics or experts totaling 9 participants. Data is are analyzed through content analysis.
The findings of the study reveal that: 1) transformational leadership, strategic management, innovation capability, and competitive advantage in gold trading businesses are highly significant. 2) transformational leadership and strategic management, through innovation capability, have a statistically significant positive influence on the competitive advantage of gold trading businesses. 3) influences of transformational leadership and strategic management effecting competitive advantage via innovative capabilities had statistically significant correlation to the empirical data, with a chi-square value of .129, and p-value of 0.313 which is below the critical value at a 0.05 significance level, indicating that it is consistent with other indices such as GFI, AGFI, CFI, and RMSEA as a structural equation which focus on creating competitive advantage in gold trading businesses.
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