Transformational Leadership Moderates the Relationship between Innovation and Marketing Performance of Small Businesses: A Case Study of Jambi Batik Business

The title of this article is transformational leadership moderates the relationship between innovation and marketing performance of small businesses: a case study of Jambi batik business. The purpose of this study was to determine whether transformational leadership moderates the relationship between innovation and marketing performance of Jambi batik businesses. For this purpose, data was collected from 120 respondents consisting of owners, leaders (managers), and employees of Jambi batik businesses. The data were collected through questionnaires. To analyze the collected data, there were two stages of analysis. The first stage is simple regression analysis. The purpose of this analysis is to determine whether innovation significantly affects marketing performance. The second stage is MRA analysis. The purpose of the analysis is to determine the moderating effect of transformational leadership on the relationship between innovation and marketing performance. The results of the analysis show that (a) innovation is positively and significantly correlated with marketing performance, and (b) transformational leadership significantly moderates the relationship. Based on these findings, it is recommended that for the development of Jambi batik businesses in the future, especially improving its marketing performance, leaders with transformational characters are needed. It is also recommended that policy makers facilitate transformational leadership training for Jambi batik business owners/managers.