Business and Applied Management Journal
Vol. 4 No. 1 (2026)

From Transformational Leadership to Social Entrepreneurship: Strengthening Innovation and Sustainability in Faith-Based Organizations

Muhammad Hafidh Nasrullah (Universitas Dr. Soetomo Surabaya)
Sukesi Sukesi (Universitas Dr. Soetomo Surabaya)
Slamet Riyadi (Universitas Dr. Soetomo Surabaya)



Article Info

Publish Date
21 May 2026

Abstract

This study aims to analyze the influence of transformational leadership, social entrepreneurship, and social capital on pesantren performance in East Java through creativity and social value creation. This study employed an explanatory quantitative approach with a causal-predictive design. Data were collected from pesantren leaders and business unit managers and analyzed using SEM-PLS with SmartPLS 4.1. The results show that all constructs met the validity and reliability criteria. Transformational leadership, social entrepreneurship, and social capital positively affect creativity, while transformational leadership and social entrepreneurship influence social value creation. The research model explains 61.2% of the variance in pesantren performance. The discussion confirms that creativity serves as the main mechanism that transforms leadership capacity, entrepreneurial orientation, and relational resources into improved institutional performance. In conclusion, pesantren performance is more effectively strengthened through creativity-based organizational innovation than through social value creation, which has not yet been fully measured. The implication is that pesantren need to strengthen governance, social performance indicators, and entrepreneurial management systems. These findings extend the literature on leadership and social entrepreneurship in faith-based organizations and provide empirical relevance for pesantren institutional development.

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Journal Info

Abbrev

bamj

Publisher

Subject

Humanities Economics, Econometrics & Finance Education Environmental Science Social Sciences

Description

Business and Applied Management Journal is Peer-reviewed refereed journal aiming at engaging academicians as well as practitioners. Focus on the areas of economics, finance, banking, capital markets, takaful and law. The aim of the Journal is to foster academic research by publishing original ...