The Influence of Entrepreneurial Leadership on Financial Performance of Private Higher Education in Pekanbaru, Indonesia: A Conceptual Framework

Abstract

The previous research literature on the influence of entrepreneurial leadership on financial performance is mostly found in profit organizations such as companies and small and medium-sized enterprises (SMEs), and there is still little research literature that reveals the relationship between entrepreneurial leadership and financial performance of private higher education, especially in Indonesia. The financial performance of higher education is an illustration of the financial ability of higher education to meet its operational needs, especially to carry out the tridharma of higher education. This paper aims to develop and propose a conceptual framework and research model for entrepreneurial leadership on the financial performance of private higher education in Indonesia. A comprehensive review of the literature on entrepreneurial leadership and financial performance is outlined to achieve the objectives of this study. The conceptual framework model was developed to assist higher education leaders in maximizing leadership patterns, namely our vision and mission-oriented, innovative and creative, passionate and persistent, opportunity focused, risk taker and resilient, and capacity building and trust, so that they can improve financial performance. Furthermore, it was proposed to test the hypothesis of the influence of the entrepreneurial leadership variable on the financial performance of private higher education, namely by collecting primary data in the form of questionnaires at private higher education in Pekanbaru City, Indonesia.