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It is evidenced that the Psychological Empowerment X2 positively but insignificantly contributes to Creativity Y1, as shown by the fact that the lane coefficient
value is 0.110215 and the T-statistical value is equal to 1.281721, which is lower than the T-critical value, which is 1.96, meaning insignificance. Thus, hypothesis 2 in which it was
stated that the psychological empowerment significantly contributed to creativity cannot be evidenced.
The Asta Brata leadership X3 turns out to contribute positively and significantly
to Creativity Y1, as shown by the lane coefficient, that is, 0.347938, and the T-statistical value, that is, 3.302404, which is higher than the t-critical value, which is 1.96. Thus, it
can be inferred that the better the implementation of the asta brata leadership the better the
employee creativity will be, meaning that the asta brata leadership significantly
contributes to creativity can be evidenced. Creativity Y1 turns out to positively and significantly contribute to Innovation
Y2. The result of the data analysis shows that the lane coefficient is 0.261187 and that the T-statistics value is equal to 2.418521, which is lower than the T-critical value, which is
1.96. Such a result of examination indicates that the better the creativity, the better the innovation will be. Thus, hypothesis 4 in which it was stated that creativity significantly
affected creativity can be evidenced. The Structural Empowerment X1 turns out to positively but insignificantly affect
Innovation Y2, as can be identified from the lane coefficient, which is 0.024062, and the T-Statistical value, which is equal to 0.256907, which is lower than the T-critical value,
which is 1.96. Thus, hypothesis 5 in which it was stated that the structural empowerment significantly affected innovation cannot be evidenced.
The Psychological Empowerment X2 positively and significantly contributes to Innovation Y2, as shown by the lane coefficient value, which is 0.334554 and the T-
statistical value, that is, 3.492114, which is higher than the T-critical value, that is, 1.96. Thus, hypothesis 6 in which it was stated that the psychological empowerment
significantly affected innovation can be evidenced. The
Asta Brata leadership X3 positively and significantly contributes to Innovation Y2. Based on the result of data analysis obtained from the lane coefficient
value, which is 0.374291, and the T-statistical value, which is 3.458552 and higher than the T-critical value, which is 1.96, hypothesis 7, in which it was stated that the
Asta Brata leadership significantly affected innovation can be evidenced.
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5. Discussion 5.1 Impact of the Structural Empowerment on the Employee Creativity
Based on the result of the examination of hypothesis, it can be evidenced that the structural empowerment positively and significantly contributes to creativity, meaning that
the better the structural empowerment which is felt by the key human resources of the manufacturing UMKM, the more creative they will be. This indicates that the key human
resources in the manufacturing UMKM in Gianyar Regency has been well empowered, as can be identified from the support given by the companies by appreciating the innovative
ideas given and attempts made by the key employees in their jobs. In addition, opportunities are given to them to improve their skills through internal trainings and the
access to information. In addition, the support given to the employees to develop their innovative ideas for their jobs has also improved their creativities in creating new products,
repairing the existing products, or making new combinations as their responsibilities. The empowerment which is felt by the employees can make them more motivated as the
creative concepts proposed to the companies for which they work are appreciated. The companies also appreciate the concepts proposed by their employees as they are
meaningful to the achievement of the companies’ objectives. The result of the study is supported by the result of the study conducted by Ayupp
and Chung 2010 in which they affirmed that the effective empowerment program pays attention to important factors such as various types of information, the implementation of
the participatory working environment and the performance-based appreciation. The atmosphere in which the structural empowerment is implemented in a company can
develop the skills and creativities of its employees. Isaksen and Lauer 2002 in Wawan Dhewanto et al., 2014, stated that the main factors such as confidence, team motivation,
and participation in making decisions contribute to creativity.
5.2 Impact of the Psychological Empowerment on the Employee Creativity
The result of the hypothesis examination proved that the psychological empowerment positively but insignificantly contributes to creativity, meaning that the
better the psychological empowerment which is felt by the employees, the better their creativities will be. However, such an empowerment does not give any real contribution.
The result of the study proves that the psychological empowerment which is felt by the key employees in the manufacturing UMKM in Gianyar Regency can be classified as good. In
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this present study, there are four cognitions which reflect the psychological empowerment; they are meaning, competence, self-determination, and impact. Among the four aspects,
the aspect of meaning turns out to be the strongest indicator which shows such an empowerment, meaning that there is an opinion that the jobs done by the employees are
important and highly meaningful to themselves. This is completed with competence, that is, being confident about the ability and skill which someone has to be able to do hisher
job perfectly. Such a condition of empowerment positively contributes to the employee creativity.
In this case, creativity mainly refers to the good motivation which someone has as the company for which heshe works highly appreciates the creative concepts heshe
proposes. In addition, the company also appreciates the concepts given by its employees which can make the achievement of the company’s objective more valuable. Creativity is
also related to the personal human resources who creatively make new combinations in their jobs, making the products produced more valuable to the company. Apart from that
creativity is also related to the improved ways of doing someone’s job as hisher
responsibility, making the products produced more valuable to the company. In this case, the result of the present study does not support the result of the study
conducted by Sun et al. 2012 as far as the contribution of the psychological empowerment to creativity is concerned. In this present study, it turns out that the
psychological empowerment significantly contributes to the creativity of subordinators. It is affirmed that one employee who feels that hisher job is meaningful and valuable to the
objective of hisher life, strengthened by the competence heshe has, will become more creative in hisher job.
5.3 Impact of the Asta Brata Leadership on the employee creativity
In this present study it is proved that the Asta Brata leadership positively and
significantly contributes to creativity. This indicates that the better the implementation of the
asta brata, the better the employee creativity will be. In this present study, the asta brata leadership is perceived of being good, and the employee creativity is too, as
indicated by the Casi Brata
. In this relation, the company’s leader welcomes the opinion given by hisher subordinators and appreciates every achievement achieved by hisher
subordinators. In addition, heshe always behaves pleasantly. Apart from that, the surya
brata also shows that the asta brata leadership is perceived of being good. In this case, the
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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
This present study proves that the structural empowerment positively but insignificantly contributes to innovation, meaning that the better the structural
empowerment which covers authority delegated to subordinators, the better support given by the companies, and the better access to information, the more innovative the employees
will be. As presented in the description of variables, the structural empowerment undergone by the key employees of the manufacturing UMKM in Gianyar Regency can be
classified as good. That is indicated by the support given by the companies which appreciate the attempts made and the innovative ideas given by the key employees. In
addition, opportunities are also provided to them to improve their skills through internal training and easy access to information, making them more empowered to develop their
innovative ideas in their jobs. They are empowered to innovate the process, modify the products, and to innovate the management. The structural empowerment is also shown by
giving freedom to the key employees of the companies to develop their innovative ideas
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and to design the products. They are also trusted to make the innovative attempts in their jobs. This is supported by the result of the study conducted by Kahreh et al. 2011, in
which it was evidenced that the empowerment which is viewed from autonomy positively contributes to the competitiveness of the dimension of innovation.
5.6 Impact of the Psychological Empowerment on Innovation
The psychological empowerment turns out to positively and significantly contributes to innovation, meaning that the better the psychological empowerment of the
employees, the more innovative they will be in their jobs. In this present study, the psychological empowerment is conceptualized into four cognitions; they are meaning,
competence, self-determination, and impact. As presented in the description of variables, the psychological empowerment of the key employees of the manufacturing UMKM in
Gianyar Regency can be classified as good. This is indicated by the view that the jobs done by the employees are considered important and highly meaningful to their lives. They are
also confident that they have the ability and skill needed to do their jobs. Apart from that, the psychological empowerment is also indicated by self-determination, meaning that the
key employees are provided with freedom and opportunities to decide what to do in their jobs. As well, their existence also affects where they are supposed to work. In addition,
they can also control what happens in the divisions in which they work. Such a condition of the psychological empowerment turns out to significantly
affect the innovation of the manufacturing UMKM in Gianyar Regency. In this case, innovation includes the process innovation and the management innovation. The
innovation which is made to improve the process through which the products are produced using newer tools is intended to produce the products which are acceptable to the buyer.
Innovation also includes modifying the designs of the products, the raw and supporting materials. The uniqueness of the Balinese local culture is attached to the products, making
the market interested in the products. This is done to innovate the products. The management innovation is made by implementing the more modern system in the buying
and selling activities. Email, internet, e-banking are used as an attempt to follow the technological development. In addition, innovation is also made by implementing the
computer- based administrative system in the companies’ administrative activities.
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5.7 Impact of the Asta Brata Leadership on Innovation
Based on the result of the examination of hypothesis, it was proved that the Astra
Brata positively and significantly contributes to innovation, meaning that the better the implementation of the
asta brata leadership the more innovative the key employees of the companies will be. In this present study, the
asta brata leadership is the leadership which refers to the eight essential natures of Hyang Widhi, Almighty God as a totality, making a
leader able to motivate hisher subordinators when they do their jobs. As explained in the description of variables, the
asta brata leadership implemented in the manufacturing UMKM in Gianyar Regency can be classified as good, especially if viewed from what is
referred to as Casi Brata. In this relation, the ideas and input given by the subordinators
and every achievement achieved by them is appreciated. In addition, the heads of the companies also show pleasant behaviors. Apart from that, a leadership is stated to be good
if it refers to what is called surya brata, meaning that the heads of the companies clearly
direct the subordinators where they should go. In this way, they will consciously do their responsibilities. A leadership can also be viewed from to what extent
Paca Brata – Baruna
is implemented. In this case, the heads of the companies do not mind listening to what the subordinators complain of. At the same time, they will also do their best to give solutions.
If the subordinators break the regulations already determined, then the heads will punish them as an attempt made to educate them.
Such a leadership can motivate the key employees to be more innovative. Such innovation is referred to as the process innovation, namely, the innovation which is made
by repairing the product making process to make the products acceptable to the buyers. Such innovation is also related to the product innovation; the designs are modified, the raw
materials used are new, and the products produced are really new. The result of the present study is supported by the result of the study conducted by
Reuvers et al. 2008. They explored the relationship between the transformational leadership and the innovative working behavior.
Garcia-Morales et al. 2008 also proved that the transformational leadership positively contributes to the innovative behavior. Furthermore, they stated that a
transformational leader contributes to the intrinsic motivation and stimulates creativity through intellectual stimulation. As stated by Alvest et al. 2007 that creativity is part of
innovation, and that innovation is the implementation of the outcome of creativity.
