LEADERSHIP STYLE TOWARD COMPETITIVE ADVANTAGE OF BUSINESS EDUCATION

Leadership style used in a higher education institution affects the competence-based performance of the lecturers and the administrative staff. In turn, their performance will affect the institution performance. So, leadership style influences the institution toward strengthening its strategy to sustain. This study examined the transactional and transformational leadership styles toward the lecturers and the administrative staff of STIR Perbanas Surabaya. Transformational leadership was measured using ideal, inspirational, and intellectual stimuli; while transactional leadership was measured using exceptional management and contingency reward. The indicators used to measure the lecturers' performance were on teaching, module, research, civil services, IT, English; while for administrative staff were integrity, service, professionalism, learning, adaptation, documenting, English. The survey involved 32 lecturers and 31 administrative staff. The data was collected using questionnaire and was statistically analyzed using multiple regressions. The result was that transformational leadership significantly influenced both the lecturers and the administrative staff, while transactional leadership did not affect both the lecturers and the administrative staff. The implication was that the top management can set strategies of putting motivation of all organization members in the frame of improving their competence thus this will help the institution grow and sustain.