Leadership, Entrepreneurial Characteristics, and MSME Performance: The Mediating Role of Interpersonal Communication

Authors

  • Nandang Nandang Universitas Buana Perjuangan Karawang
  • Asep Jamaludin Universitas Buana Perjuangan Karawang
  • Wanta Wanta Universitas Buana Perjuangan Karawang
  • Rengga Madya Pranata Universitas Buana Perjuangan Karawang

DOI:

https://doi.org/10.55583/ijisim.v3i2.2024

Keywords:

Leadership, Entrepreneurial Characteristics, Interpersonal Communication, Business Performance

Abstract

This study aims to examine the effects of leadership and entrepreneurial characteristics on business performance, with interpersonal communication serving as a mediating variable among Micro, Small, and Medium Enterprises (MSMEs) in Telukjambe Timur District, Karawang Regency. The study population comprised 147 MSME actors, from which a sample of 105 respondents was selected. A descriptive quantitative approach was employed, and Structural Equation Modeling (SEM) was used to analyze the relationships among the variables in the proposed research model. The findings reveal that leadership and entrepreneurial characteristics have positive and significant effects on interpersonal communication. Furthermore, both leadership and entrepreneurial characteristics positively influence business performance. Interpersonal communication also demonstrates a positive effect on business performance and plays a significant mediating role in the relationship between leadership, entrepreneurial characteristics, and business performance. These results highlight the importance of effective leadership, strong entrepreneurial traits, and interpersonal communication in enhancing MSME performance.

References

Ageli, R., & Üstüner, M. (2025). How entrepreneurial leadership drives sustainable performance: The mediating role of employee creativity. Sustainability, 17(20), 9259. https://doi.org/10.3390/su17209259

Awotunde, M. O. (2025). Effect of leadership styles on entrepreneurship success. Cogent Business & Management, 12(1), 111–130. https://doi.org/10.1080/23311975.2025.2516176

Ayeni, A. A. W. (2025). Entrepreneurial abilities and business performance: Evidence from informal sectors. Entrepreneurship Journal, 6(2), 75–92. https://doi.org/10.3390/enterpreneurship6020075

Baron, R. A., & Tang, J. (2020). Entrepreneurs’ social skills and new venture performance: Mediating mechanisms and cultural generality. Journal of Business Venturing, 35(1), 105–125. https://doi.org/10.1016/j.jbusvent.2019.04.001

Beta, K. W., & Gezahegn, M. (2025). Entrepreneurial leadership and MSME performance in resource-constrained environments. Cogent Business & Management, 12(1), 2573189. https://doi.org/10.1080/23311975.2025.2573189

Duangjan, C. (2025). Entrepreneurial competencies for MSME success: Evidence from Thailand. TEM Journal, 14(1), 174–185.

Gofur, M. A., Sundari, S., & Kustiari, T. (2021). The effect of leadership on culinary MSME performance in Jember Regency through learning organization as an intervening variable. Agrinika: Journal of Agrotechnology and Agribusiness, 5(2), 129–137. https://doi.org/10.30737/agrinika.v5i2.1908

Gupta, V., MacMillan, I. C., & Surie, G. (2022). Entrepreneurial leadership: Developing and measuring a cross-cultural construct. Journal of Business Research, 144, 212–225. https://doi.org/10.1016/j.jbusres.2022.02.022

Gunawan, A. F. (2024). The impact of entrepreneurial characteristics and competencies on business performance in the creative industry. Asia Pacific Journal of Innovation and Entrepreneurship, 18(3), 300–318. https://doi.org/10.1108/APJIE-02-2024-0102

Hassan, S., & Iqbal, A. (2023). Interpersonal communication as a mediator between leadership and performance in microenterprises. International Journal of Organizational Analysis, 31(7), 1245–1268. https://doi.org/10.1108/IJOA-09-2022-3505

Hutapea, C. N. (2020). Interpersonal communication and small and medium enterprise performance in Palangka Raya: Knowledge sharing as a mediating variable. Journal of Management Science and Organization, 1(3), 161–170.

Iqbal, A., & Ahmad, Z. (2023). Interpersonal communication competence and performance outcomes in entrepreneurial teams. Journal of Small Business & Entrepreneurship, 35(6), 783–806. https://doi.org/10.1080/08276331.2022.2147691

Lee, G., & Xia, W. (2021). Communication effectiveness, leadership, and organizational outcomes in SMEs. Journal of Small Business Management, 59(2), 244–259. https://doi.org/10.1080/00472778.2020.1773938

Mukoffi, A., & As’adi, A. (2021). The effects of entrepreneurial characteristics, business capital, and technological sophistication on MSME performance during the COVID-19 pandemic. Paradigma Ekonomika Journal, 16(2), 235–246. https://doi.org/10.22437/jpe.v16i2.12552

Nawaz, A., Wenqi, J., & Akhtar, S. (2025). Entrepreneurial leadership and organizational performance: Employee creativity and behavior as mediators. Journal of Leadership in Organizations, 9(4), 442–461.

Ogundele, O. J. K., Akingbade, W. A., & Olaore, G. O. (2019). Entrepreneurship training and firm performance: Empirical evidence. Journal of Entrepreneurship Education, 22(1), 1–15.

Reniati, S., Susantyo, B., Irmayani, N. R., Sabri, F., & Widiastuti, W. (2024). The influence of leadership strategies and social capital on MSME business performance and resilience. Journal of Technology Innovation & Entrepreneurship, 19(2), 150–172. https://doi.org/10.1007/s13132-024-02254-8

Sari, N. M. W., Suwarsinah, H. K., & Baga, L. M. (2016). The effect of entrepreneurial characteristics on micro, small, and medium enterprise (MSME) performance of palm sugar businesses in West Lombok Regency. Jurnal Penyuluhan, 12(1). https://doi.org/10.25015/penyuluhan.v12i1.11320

Tadesse, S., & Chandran, D. (2024). Leadership styles and SME performance in emerging markets: The mediating role of communication climate. Journal of International Business Studies, 55(1), 112–134. https://doi.org/10.1057/s41267-023-00621-9

Turgut, M., Aykan, E., & Haskebapci, F. H. (2025). The impact of entrepreneurial leadership on employee performance: Mediating role of creativity and moderating role of organizational support in Kayseri SMEs. Research Journal of Business and Management, 12(1), 1–14. https://doi.org/10.17261/Pressacademia.2025.1970

Zhao, H., Seibert, S. E., & Hills, G. E. (2019). An integrative review of entrepreneurial traits and firm performance. Journal of Business Venturing, 34(3), 258–285. https://doi.org/10.1016/j.jbusvent.2019.01.003

Downloads

Published

2025-12-31

How to Cite

Nandang, N., Jamaludin, A., Wanta, W., & Pranata, R. M. (2025). Leadership, Entrepreneurial Characteristics, and MSME Performance: The Mediating Role of Interpersonal Communication. International Journal of Information System and Innovation Management (IJISIM), 3(2), 73-85. https://doi.org/10.55583/ijisim.v3i2.2024