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The Effects of Innovative Islamic Leadership on Business Performance Halal Food SMEs: The Role of Moderation in Competitive Advantage
Abstract
This study aims to examine the relationship between innovative Islamic leadership, competitive advantage, and the performance of small and medium-sized enterprises (SMEs) in Indonesia. The study focuses on the SMEs that produce food products in Cirebon, West Java. The study used a quantitative approach with a survey method to gather data from 110 Cirebon-typical culinary halal SMEs. The results of the research showed that there was a significant positive relationship between the innovation of Islamic leadership and the performance of SMEs, as well as the superiority of their resources and products. The findings imply that SME owners must apply innovative Islamist leadership models as a source of competitiveness in their business operations. Based on the moral values of honesty, the owners are expected to foster an innovative culture, thereby enhancing the company's competitiveness and sustainable growth. The research also suggests the importance of genuine, inspiring, and enthusiastic leaders to foster innovative behavior that becomes a competitive advantage among SME employees.
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