INVESTIGATING THE INFLUENCE OF ENTREPRENEURIAL ORIENTATION AND TRANSFORMATIONAL LEADERSHIP ON ORGANISATIONAL PERFORMANCE WITH THE MEDIATION OF INNOVATION: EVIDENCES FROM A STATE-OWNED ELECTRICITY COMPANY IN INDONESIA

The research findings regarding the influence of entrepreneurial orientation and transformational leadership on organisational performance are inconsistent. This research aims to investigate the direct influence of entrepreneurial orientation and transformational leadership on organisational performance and their indirect influence with the mediation of innovation. The population of this research is 301 business units of Indonesia's State-Owned Electricity Company of Java and Bali distribution region, from which 168 were selected as the sample. The managerial or practical implications of this research are that it provides a better understanding, proposes suggestions to the organisation in maximising and optimising its intangible resources in relation with entrepreneurial orientation, and encourages activities related to its innovation in order to increase its organisational performance, especially in the specific nature of state-owned enterprise's context and business model. In addition, the organisation needs to encourage transformational leadership among its leaders to enhance activities related to innovation.