Munawaroh MUNAWAROH, Budi SANTOSO, Risa Ratna GUMILANG, Deny HIDAYATULLAH, Adam HERMAWAN, Sri MARHANAH, Arie GUNAWAN, Denok SUNARSI, Agus PURWANTO / Journal of Asian Finance, Economics and Business Vol 8 No 6 (2021) 0455–0463 455 455 Print ISSN: 2288-4637 / Online ISSN 2288-4645 doi:10.13106/jafeb.2021.vol8.no6.0455 The Effect of Strategic Leadership and Organization Culture on Business Performance: An Empirical Study in Indonesia Munawaroh MUNAWAROH 1 , Budi SANTOSO 2 , Risa Ratna GUMILANG 3 , Deny HIDAYATULLAH 4 , Adam HERMAWAN 5 , Sri MARHANAH 6 , Arie GUNAWAN 7 , Denok SUNARSI 8 , Agus PURWANTO 9 Received: February 20, 2021 Revised: April 20, 2021 Accepted: May 02, 2021 Abstract Competitive Strategy is defined as the long-term plan of a particular company to gain a competitive advantage over its competitors in the industry. The purpose of this study was to determine the effect of strategic leadership on competitive strategy, motivation on competitive strategy, organization culture on competitive strategy, strategic leadership on business performance, motivation on business performance, organization culture on business performance, and competitive strategy on business performance. The analytical method used in this research is structural equation modeling (SEM) to determine the causal relationship between latent variables contained in structural equations. The analysis tool used is with the help of Smart PLS. The method used in this research is quantitative, and the data collection method is by distributing questionnaires to manufacturing industry employees electronically using a simple random sampling technique. The results of the questionnaire returned were 150 respondents. Based on the data analysis, it was concluded that strategic leadership had no significant effect on competitive strategy. strategic leadership has a significant effect on business performance, organizational culture has a significant effect on business performance, organizational culture has a significant effect on competitive strategy. Motivation has a significant effect on competitive strategy, motivation has no significant effect on business performance. The competitive strategy has no significant effect on business performance. Keywords: Business Environment, Strategic Leadership, Competitive Strategy, Business Performance JEL Classification Code: M31, L22, L25, O16 1. Introduction According to Asbari (2020), the current global challenge is if a company or organization can survive in increasingly fierce competition. The leader is the main element in an organization as a policymaker and decision-maker. Leaders in an organization are required to have the ability, expertise, strategy, and skills to control and lead the organization to move on the right path. According to Astuti et al. (2020), organizational performance will not run optimally if a conducive organizational culture and continuous motivation for the performance of each individual are not built in it. Leadership factors will not have a significant effect on employee performance if the leadership patterns displayed are not in accordance with the dynamics of the organization they lead. Strategic leadership is about a leader’s ability to change people through vision and values, culture and work climate, and structures and systems. Strategic leadership 1 First Author and Corresponding Author. Lecturer, Universitas Al-Khairiyah, Cilegon, Indonesia [Postal Address: Jl. H. Enggus Arja No.1 Citangkil Kota Cilegon Banten, Indonesia] Email: nawa88munaw@gmail.com 2 Universitas Pendidikan Indonesia, Bandung, Indonesia. Email: budi@gmail.com 3 STIE Sebelas April Sumedang, Jawa Barat, Indonesia. Email: risa@gmail.com 4 Universitas Nasional, Jakarta, Indonesia. Email: deny@gmail.com 5 Universitas Pendidikan Indonesia, Bandung, Indonesia. Email: adam@gmail.com 6 Manajemen Resort Dan Leisure, Universitas Pendidikan Indonesia, Bandung, Indonesia. Email: sri@gmail.com 7 Universitas Nasional, Jakarta, Indonesia. Email: arie@gmail.com 8 Universitas Pamulang, Banten, Indonesia. Email: denok@gmail.com 9 Pelita Harapan University, Indonesia. Email: agozpor@gmail.com © Copyright: The Author(s) This is an Open Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (https://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited.