Role of Leader in Creating Organizational Culture and Product Innovation to Reach Sustainable Competitive Advantage (Study on Ngingas Metal Village SME of Sidoarjo, East Java)

Abstract

Sustainable competitive advantage is effort of all SME in facing fierce competition. This research was based on effort to look how far leadership, organizational culture and innovation affecting sustainable competitive advantage in SME village located in Sidoarjo city also tried to look relationship between organizational culture and innovation on sustainable competitive advantage. Population of research was metal craftsmen in Ngingas village. The data of their responses were analyzed of their fitness with research model developed from theoretical framework using SEM confirmatory analysis.

Research result indicated that leadership has no effect on organizational culture, motivation and sustainable competitive advantage. Also innovation had no effect on sustainable competitive advantage. Only organizational culture had effect on sustainable competitive advantage.