Journal of Economics and Trade

This study explores the impact of the Asta Brata leadership style on organisational performance, emphasizing the moderating effects of adaptability and innovation. Asta Brata, rooted in traditional Javanese philosophy, encompasses eight guiding principles that influence leaders' behaviours and decision-making processes. Utilising a quantitative approach, data was collected from a diverse range of organisations across various sectors. The findings indicate that the Asta Brata leadership style affects organisational performance in significant and positive way, in other words, this study finds that ethical conduct, courage, and discipline of the leader have significant and positive influence on the organisational performance. Adaptability and innovation also play a positive and significant role on organisational performance of SMEs. This means that if the visionary leadership, emphasis on learning, and competitive intelligence and digital transformation increase, SMEs’ financial, operational, and employee performance are also improved. The relationship between Asta Brata leadership style and organisation performance is moderated positively and significantly by adaptability and innovation. It can be concluded that the Asta Brata leadership style has a positive and significant impact on organisational performance, particularly when such adaptability and innovation exist.  Furthermore, the analysis reveals that adaptability and innovation serve as critical moderators, amplifying the positive effects of Asta Brata on performance outcomes. This research contributes to leadership theory by demonstrating how cultural leadership frameworks can be instrumental in navigating contemporary business challenges, ultimately providing actionable insights for leaders seeking to improve organisational effectiveness.