Measuring Female Leadership Competencies of SMEs

Abstract

Small and medium enterprises’ (SME) success, performance, and growth are highly dependent on the competence of entrepreneurs.  Competency theory is based on studying successful leaders by researching their behavior, attitudes, and skills into measurable aspects and looking for ways to bring them together to create individuals who demonstrate superior performance. Research related to competence is motivated by the aspiration to achieve excellent performance and business success. Female leadership competencies are performances of women’s competence in leading a business. This study aims to evaluate the validity and reliability of the instrument measuring Female Leadership Competencies based on the concept of Cong & Thu (2020). The dimensions used as a reference in measuring tools consist of Strategic Visions, Operations Management, Professional Knowledge, Hands-on Experience, and Relationship Building in running a business. The respondents of this study were 100 women entrepreneurs in Batu City; the sample size was determined using the Slovin technique. This instrument was prepared using a Likert scale with five scales and Confirmatory Factor Analysis (CFA) techniques. The analysis showed that the measurement of Female Leadership Competencies was valid and reliable, with a Cronbach alpha score of 0.894. However, from the 29 items compiled, six items still need to be completed.