Impact of the Psychological Empowerment on the Employee Creativity

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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. 28 In this relation, it can be identified that the characteristics of the transformational leadership is similar to those of the astra brata leadership. As affirmed by Robbins Judge 2015 that a transformational leader is more effective and motivates hisher subordinators to be creative. The transformational leadership which gives emphasis on individuals is the behavior which empowers the subordinators to develop and improve their effectiveness.

5.8 Implication

The result of the study can enrich the references which provide empirical evidences of the relationship between empowerment and leadership with creativity and innovation. An interesting finding which can be learned from the present study is that it is important to empower the key employees by giving them freedom to develop their innovative ideas in order to make them more creative and innovative. They need innovative ideas and access to information when they do their jobs. References Alves, Jorge, Maria José Marques, Irina Saur and Pedro Marques. 2007. Creativity and Innovation through Multidisciplinary and Multisectoral Cooperation. Journal compilation © 2007 Blackwell Publishing. Volume 16 Number 1. Ariasna. 2000. Kepemimpinan Hindu. Surabaya, Penerbit paramita Ayupp, Kartinah and Then Hsiao Chung . 2010. Empowerment: Hotel employees’ perspective. Journal of Industrial Engineering and Management, 33: 561-575 Chiang, Chun-Fang dan Tsung-Sheng Hsieh. 2012. The impacts of perceived organizational support and psychological empowerment on job performance: The mediating effects of organizational citizenship behavior. International Journal of Hospitality Management 31,180 –190. Dharmanegara, Ida Bagus Agung , Made Sudarma , Noermijati, Solimun. 2013. Mediation Of Tri Hita Karana Organizational Culture In Effect Of Spiritual Intelligence And Asta Brata Leadership On Employee Performance. Interdisciplinary Journal Of Contemporary Research In Business, Vol 5, No 6, October. Garcia-Morales , Victor J., Francisco Javier Llorens-Montes and, and Antonio J. Verdu- Jover. 2008. The E ffects of Transformational Leadership on Organizational Performance through Knowledge and Innovation. British Journal of Management, Vol. 19, 299 –319. Guijarro, Antonia Madrid, Domingo Garcia, and Howard Van Auken. 2009. Barriers to Innovation among Spanish Manufacturing SMEs. Journal of Small Business Management , 474, pp. 465 –488 Huei Chen Ming and Geir Kaufmann. 2008 Employee Creativity and RD: A Critical Review. Creativity And Innovation Management Journal compilation Blackwell Publishing Volume 17 Number 1.