Entrepreneurial Leadership and Innovation The Mediating Role of Knowledge Sharing (A Study on the Export-oriented Handicraft Industry in Bali)

Innovation is an alternative solution to the declining export activities of the handicraft industry in Bali. In this respect, the roles of a leader and knowledge sharing are very crucial in determining innovation success. This study aims to verify the impact of entrepreneurial leadership and knowledge sharing on innovation and analyse the mediating role of knowledge sharing in the relationship between entrepreneurial leadership and innovation. This study focusses on export-oriented firms in Bali. The population of this study is the whole of the export-oriented handicraft firms in Bali Province (42 firms). We use the saturated sampling method to determine our sample. We generate the data through the questionnaires and analyse the data by using PLS. The results demonstrate that entrepreneurial leadership positively affects innovation. Also, entrepreneurial leadership positively affects knowledge sharing, and knowledge sharing affects innovation positively. Lastly, the mediation test finds that knowledge sharing partially mediates the impact of entrepreneurial leadership on innovation. Key words: Entrepreneurial Leadership, Knowledge Sharing, Innovation, Handicraft Industry.