Rafida Bangki
Universitas Nadhlatul Ulama Sulawesi Tenggara

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The Impact of Sharia Business Governance and Transformational Leadership on MSMEs Performance Moderated by Religiosity Ahmad Hamid; Ria Rezky Amalia; Dian Mayafaty Rauf; Rafida Bangki; Wiwin Sultraeni
Business Management Analysis Journal (BMAJ) Vol. 9 No. 2 (2026): Business Managament Analysis Journal (BMAJ)
Publisher : Universitas Muria Kudus

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Abstract

Micro, Small, and Medium Enterprises play a vital role in Kendari economy, contributing significantly to region income and employment. This study explores the factors influencing sustainable MSMEs performance in Kendari City, Southeast Sulawesi focusing on Sharia business governance, transformational leadership, religiosity. This research employed a quantitative method and causally associative approach. MSMEs owners in Kendari City were being populations in this research. The research sample was 166 MSMEs owners was chosen using purposive sampling. Survey methods are used in data collection, business owners are given questionnaires to complete. In this study, SmartPLS is utilized for data analysis, which employs Partial Least Squares-Structural Equation Modeling (PLS-SEM). Based on the study findings, Sharia business governance and transformational leadership significantly and positively affect MSME performance. In contrast, religiosity did not have a significant effect on MSME performance. Religiosity is able to strengthen moderate the effect of Sharia business governance and also transformational leadership on MSME performance. This research contributes to the growing literature on Islamic entrepreneurship by empirically validating how Shariah principles can be operationalized through managerial capacity. The findings provide a model for linking Islamic ethics, and also human resources development in strengthening MSME performance.