Author(s): Anak Agung Dwi Widyani
The purpose this paper to examine the effect of entrepreneurial leadership on LPD (Lembaga Perkreditan Desa) innovation in Bali, the effect of entrepreneurial leadership on LPD performance in Bali, the effect of knowledge sharing on LPD innovation in Bali, the effect of knowledge sharing on LPD performance in Bali and the effect of innovation on LPD performance in Bali.
This research was conducted at LPDs in Bali Province. The target populations of this study were 956 LPDs classified as healthy in nine regencies/cities in Bali Province (LPLPD, 2016). Determination of LPD sample in each regency/city was done by proportional random sampling. Research sample determination of 151 LPDs classified as healthy was done by lottery. In each selected LPD, 3 people as the respondent were taken i.e. the chairman, administration and cashier.
In this research, it is found that ethical entrepreneurial leadership influences the innovation and performance of LPD, LPD serves the capital needs of most rural communities with no services access to commercial banks. The study on LPD is unique because LPD is operationally different from the banking institutions in general. This encourages the researchers to make LPDs in Bali as research objects. This study integrates entrepreneurial leadership containing ethical elements i.e. Satya laksana (loyalty, honesty and responsibility in deeds) and knowledge sharing culture to encourage innovation in order to improve organizational performance.