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leader supervises hisher subordinates well and clearly, making them aware of they are supposed to be able to do their jobs. If further observed from the descriptive analysis, it
seems that the good leadership can also be seen from the Paca Brata-Baruna aspect. The
company’s leader is willing to listen to what hisher subordinators complain of. In addition, heshe does hisher best to settle any problems properly, as reflected by the
Agni Brata. If one employee breaks any regulation already stipulated, then the leader will punish himher
proportionally. Such a condition of leadership affects the employee creativity; the employees feel
motivated as their creative opinions are appreciated. This is valuable to the achievement of what is aimed at by the company. In addition, creativity is also shown by the creative
employees. The new combinations they make and the ways in which they complete their jobs are valuable to the company. Creativity is also shown by the employees by creating
products with different designs, and doing their jobs innovatively. In this way, they can contribute to the company. From the process, the creativity of the key employees is shown
by the product designs they propose and the way in which they do their jobs which is different from that which used to be implemented by the company. In this way, what they
do will be more valuable to the company.
5.4 Impact of the Employee Creativity on Innovation
Based on the result of the examination of hypothesis, it is proved that creativity positively and significantly contributes to innovation, meaning that the better the employee
creativity, the better the innovation will be. As explained in the descriptions of the variables, the creativity of the employees of the manufacturing UMKM in Gianyar
Regency can be classified as good creative, indicated by the fact that they feel motivated to do their jobs as the companies for which they work highly appreciate the creative
opinions they propose. In addition, the companies for which they work also highly contribute to the ideas they propose. This contributes to the achievement of what is aimed
at by the companies. The employee creativity is also shown by the fact that the employees creatively make new combinations when they do their jobs. Apart from that, they also
improve the ways in which they do their jobs. The outcome makes the products they produce more meaningful to the companies.
The creativity of the key employees is also shown by creating creative product designs, the innovative ways in which they do their jobs. From the process point of view,
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the key employees propose different product designs and the ways in which they do their jobs is different from the ways in which they did their jobs before, meaning that what they
do will be more valuable to the companies. The creativity which is shown by the key employees of the manufacturing UMKM can lead to innovative products, innovative
processes and innovative management which can strengthen the companies’ competitiveness.
In relation to the process innovation, the employees show innovation by improving the product making process using newer tools in order to produce the products which can
be accepted by the market. As far as the product innovation is concerned, the product design is modified, the main and supporting raw materials are used, the same as before. In
this product innovation, the uniqueness of the Balinese local culture is also shown; the main raw materials are modified and the supporting ones are too; the objective is to
produce innovative products. The result of the present study supports the study conducted by Alves et al. 2007
in which it was stated that creativity is part of innovation, and that innovation is the implementation of the outcome of creativity. It is also supported by the study conducted by
Wawan Dhewanto et al. 2014 in which it is stated that creativity and knowledge are highly important when implementing an innovation.
5.5 Impact of the Structural Empowerment on Innovation
