How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital

The main objective of this study was to investigate how ambidextrous leadership contributes to competitive advantage and financial performance in Indonesia's microfinance institutions (MFIs). A secondary aim was to analyze the moderating effect of intellectual capital on the relationship betwee...

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Main Authors: Syahrul Effendi, Idris Gautama So, Nugroho Juli Setiadi, Gatot Soepriyanto
Format: Article
Language:English
Published: Frontiers Media S.A. 2024-12-01
Series:Frontiers in Sociology
Subjects:
Online Access:https://www.frontiersin.org/articles/10.3389/fsoc.2024.1482796/full
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author Syahrul Effendi
Idris Gautama So
Nugroho Juli Setiadi
Gatot Soepriyanto
author_facet Syahrul Effendi
Idris Gautama So
Nugroho Juli Setiadi
Gatot Soepriyanto
author_sort Syahrul Effendi
collection DOAJ
description The main objective of this study was to investigate how ambidextrous leadership contributes to competitive advantage and financial performance in Indonesia's microfinance institutions (MFIs). A secondary aim was to analyze the moderating effect of intellectual capital on the relationship between ambidextrous leadership and competitive advantage and the mediating role of competitive advantage in the indirect link between ambidextrous leadership and financial performance. Data were collected from 88 firms in the MFI sector through purposive sampling. The Moderation-Mediation (MODMED) procedure was used to assess four proposed relationships. The results indicated that ambidextrous leadership is crucial for achieving competitive advantage, with intellectual capital as a moderator in this relationship. Furthermore, competitive advantage was found to significantly explain financial performance and serve as an intermediary in the connection between ambidextrous leadership and financial performance. This study addresses the existing literature gap by examining ambidextrous leadership's influence on competitive advantage. It also introduces a fresh perspective by suggesting that intellectual capital acts as a boundary condition in the link between ambidextrous leadership and competitive advantage. The findings offer pragmatic insights for organizations, particularly MFIs in Indonesia, to enhance their competitive advantage through effective leadership and strategic management of intellectual resources.
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spelling doaj-art-0c5bc0840c724c309c5f4b18b75cfdcb2025-08-20T02:50:37ZengFrontiers Media S.A.Frontiers in Sociology2297-77752024-12-01910.3389/fsoc.2024.14827961482796How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capitalSyahrul Effendi0Idris Gautama So1Nugroho Juli Setiadi2Gatot Soepriyanto3Management Department, BINUS Business School, Bina Nusantara University, Jakarta, IndonesiaManagement Department, BINUS Business School, Bina Nusantara University, Jakarta, IndonesiaManagement Department, BINUS Business School, Bina Nusantara University, Jakarta, IndonesiaAccounting Department, School of Accounting, Bina Nusantara University, Jakarta, IndonesiaThe main objective of this study was to investigate how ambidextrous leadership contributes to competitive advantage and financial performance in Indonesia's microfinance institutions (MFIs). A secondary aim was to analyze the moderating effect of intellectual capital on the relationship between ambidextrous leadership and competitive advantage and the mediating role of competitive advantage in the indirect link between ambidextrous leadership and financial performance. Data were collected from 88 firms in the MFI sector through purposive sampling. The Moderation-Mediation (MODMED) procedure was used to assess four proposed relationships. The results indicated that ambidextrous leadership is crucial for achieving competitive advantage, with intellectual capital as a moderator in this relationship. Furthermore, competitive advantage was found to significantly explain financial performance and serve as an intermediary in the connection between ambidextrous leadership and financial performance. This study addresses the existing literature gap by examining ambidextrous leadership's influence on competitive advantage. It also introduces a fresh perspective by suggesting that intellectual capital acts as a boundary condition in the link between ambidextrous leadership and competitive advantage. The findings offer pragmatic insights for organizations, particularly MFIs in Indonesia, to enhance their competitive advantage through effective leadership and strategic management of intellectual resources.https://www.frontiersin.org/articles/10.3389/fsoc.2024.1482796/fullambidextrous leadershipintellectual capitalcompetitive advantagefinancial performancemicrofinance industryIndonesia
spellingShingle Syahrul Effendi
Idris Gautama So
Nugroho Juli Setiadi
Gatot Soepriyanto
How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
Frontiers in Sociology
ambidextrous leadership
intellectual capital
competitive advantage
financial performance
microfinance industry
Indonesia
title How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
title_full How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
title_fullStr How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
title_full_unstemmed How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
title_short How can microfinance institutions successfully navigate a competitive advantage and financial performance? Exploring the role of ambidextrous leadership and intellectual capital
title_sort how can microfinance institutions successfully navigate a competitive advantage and financial performance exploring the role of ambidextrous leadership and intellectual capital
topic ambidextrous leadership
intellectual capital
competitive advantage
financial performance
microfinance industry
Indonesia
url https://www.frontiersin.org/articles/10.3389/fsoc.2024.1482796/full
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