DO CREATIVE AND INNOVATIVE LEADERSHIP AFFECT PRODUCT QUALITY? EVIDENCE FROM CULINARY MSMEs

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J u r n a l A p l i k a s i M a n a j e m e n J o u r n a l o f A p p l i e d M a n a g e m e n t

V o l u m e 2 1 I s s u e 2 J u n e 2 0 2 3

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R e c e i v e d M a rc h ‘ 2 3 R e v i s e d A p r i l ‘ 2 3 M a y ‘ 2 3

A c c e p t e d M a y ‘ 2 3

DO CREATIVE AND INNOVATIVE

LEADERSHIP AFFECT PRODUCT QUALITY?

EVIDENCE FROM CULINARY MSMEs

Maria Merry Marianti Rizka Nugraha Pratikna

Fernando Cindy Keziea Muntu

Parahyangan Catholic University, Indonesia

Abstract: The creative economy actors in Bandung City are dominated by culinary MSMEs. To survive in a competitive environment, culinary MSMEs owners need to have creativity and innovation to create quality products. Sev- eral researchers have found that leadership is an important factor in business development. Applying a creative and innovative leadership style is considered suitable for the culinary business because it can encourage creative and innovative behavior in the workplace, improve product quality, and meet customer expectations. This research aims to determine how creative and innovative leadership affects product quality (food, beverages, and services). This research also examines the direct impact of each aspect of creative and innovative leadership on product quality. The population of this research refers to the culinary MSMEs of Bandung City. The sampling technique used is the convenience sampling method. The sample used in this study was 102 respondents who were employees of various culinary MSMEs in Bandung City.

Multiple linear regression analyses were used to test the proposed hypotheses.

According to the findings of the data analysis, creative and innovative leadership has a positive impact on product quality. The dimension "inspiring creativity and innovation" has been shown to positively and significantly affect product quality. Based on the analysis results, creative and innovative leadership influences 41.4% of the quality of culinary products. This research also provides valuable recommendations for culinary business owners, especially in Bandung City, to support efforts to improve the quality of their products so they can compete in a competitive environment.

Keywords: MSMEs, Creative and Innovative Leadership, Product Quality, Culinary Business

CITATION

Marianti, M. M., Pratikna, R. N., Fernando, and Muntu, C. K. 2023. Do Creative and Innovative Leadership Affect Product Quality? Evidence from Culinary MSMEs. Jurnal Aplikasi Manajemen, Volume 21, Issue 2, Pages 455–465. Malang: Universitas Brawijaya. DOI: http://dx.doi.org/10.21 776/ub.jam.2023.021.02.14.

I N D E X E D I N

D O A J - D i r e c t o r y o f O p e n A c c e s s J o u r n a l s

A C I - A S E A N C i t a t i o n I n d e x S I N T A - S c i e n c e a n d T e c h n o l o g y I n d e x

D i m e n s i o n s G o o g l e S c h o l a r R e s e a c h G a t e G a r u d a

I P I - I n d o n e s i a n P u b l i c a t i o n I n d e x

I n d o n e s i a n O N E S e a r c h

C O R R E S P O ND I N G A U T H O R

C i n d y K e z i e a M u n t u F a k u l t a s E k o n o m i ,

U n i v e r s i t a s K a t o l i k P a r a h y a n g a n B a n d u n g ,

I n d o n e s i a

E M A I L

[email protected]

OPEN ACCESS

e I S S N 2 3 0 2 - 6 3 3 2 p I S S N 1 6 9 3 - 5 2 4 1

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456 INTRODUCTION

The "Creative Economy" (Ekraf) is a new economic paradigm that relies on human resources (HR) ideas or creativity as the primary production factor in its economic activities (Munaf and Pesik, 2019). Creative Economy is one of the sectors pre- dicted to become a new source of sustained national economic power, emphasizing adding value to things through human creativity (Kemenparekraf, 2020). The creative economy is a concept where information and idea-based creativity become the main things in economic development. During the global economic slowdown, the creative economy has catalyzed Indonesia's economic growth and contributed significantly to the national GDP. The data shows that the GDP of Indonesia's creative economy has continued to increase from 2010 to 2017, as recorded in the 2017 creative economy GDP of 989 trillion rupiahs with a contribution of 7.28% to the national GDP. It shows that the creative economy in Indonesia has great potential for further development. Indonesia's creative economy consists of 16 sub-sectors, and the sub-sectors that made the most significant contribution to In- donesia's creative economy GDP in 2017 were the culinary sub-sector 41.4%, the fashion sub-sector

17.68%, and the craft sub-sector 14.9% (Kmenpa- rekraf, 2020). The culinary sub-sector has a strong potential for development because it is part of basic human needs.

MSMEs (Micro, small, and medium enter- prises) play an important role in increasing the creative economy and have become one of the main supports of the national economy. MSMEs can ab- sorb labor and improve people's welfare. MSMEs are one of the pillars of the economy in Bandung, and the culinary sector is a leading sector with the highest sales volume in one of the largest online marketplaces in Indonesia (Mutiah, 2021). Ban- dung is also known as a culinary destination city, but the culinary MSMEs in this city now face significant challenges. The data in Figure 1 shows that there has been a significant increase in the culinary MSMEs units in Bandung from 2017-2020.

The increasing number of the culinary MSMEs in Bandung has become a challenge for the business owners to survive in the competitive competition.

In addition, another challenge that needs to be fa- ced is that the people's tastes are always changing, and lifestyle trends that are constantly evolving re- quire companies to focus on innovation and creativity.

Source: Open Data Jabar (2021)

Figure 1. Culinary MSMEs in Bandung City from 2017-2020

244.006

259.103

275.134

292.157

210.000 220.000 230.000 240.000 250.000 260.000 270.000 280.000 290.000 300.000

2017 2018 2019 2020

Culinary MSMEs in Bandung City

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Creativity and innovation can drive company growth (Baker et al., 2016). The creative work generated by innovative actions forms the foundation for developing the product or service competitiveness (Bani-Melhem et al., 2018). Several factors contribute to increased individual creativity and innovation, and previous studies have reveal- ed that leadership behavior is one of the most influential variables (Jyoti and Dev, 2015; Khalili, 2017). Academics argue that the innovation of the SMEs' is linked to leadership behaviors and that leaders can increase organizational innovation (Ji- ang and Chen, 2018; Rasheed et al., 2021). Accor- ding to Han et al. (2015) research, organizations must have leaders who can provide the right environment for their employees, inspire and motivate them, and enable them to produce creative and innovative ideas.

Leadership becomes a critical issue for eve- ry company when developing a business because the leader is the person who determines a company's success or failure. Vargas (2015) on his research stated an influential and effective leader is a person who can create, develop, and commercial- ize talents who work in organizations to foster creativity and innovation. Khalili's research (2017) results show a positive and significant impact of creative and innovative leadership on individual innovative behavior in the workplace. The creative and innovative leadership is a leadership style considered appropriate to be applied in the creative industry, especially in the culinary sub-sector, because it can encourage the creative and innovative behavior in the workplace, which can improve product quality and meet customer expectations.

The leadership style of the owner or leader of a culinary company can influence the quality of culinary products. Previous research results indicate a positive impact of transformational leadership on product quality (Anderson et al., 2004).

Undeniably, employee creative and innovative behavior is essential for a business to produce the highest quality products to survive in competition. Various studies state that leadership can stimulate these behaviors. However, research on creative and innovative leadership is still very rare and needs to be developed. This study aims to develop this topic by analyzing the influence of creative and innovative leadership on product quality. This research also seeks to determine the level of crea-

tive and innovative leadership shown by culinary MSMEs in Bandung and the quality of their products. This study is expected to support efforts to increase the culinary competitiveness of MSMEs in Bandung.

LITERATURE REVIEW

Creative and Innovative Leadership

Leader behavior affects how the organization and the individuals involved lead, how the organization operates, and how the organization per- forms. In a business, creative and innovative behavior deserves consideration. Creative and innovative behavior enables a business to gain a competitive advantage, which can help the company's business continuity. Khalili founded a new leadership style model in 2017 called creative and innovative leadership, combining “transformational leadership, change-oriented leadership, innovation championship, leader-member exchange, and au- thentic leadership.”

Khalili (2017) stated that creative and innovative leadership has three dimensions. These dimensions inspire creativity and innovation, encourage shared vision, and provide individual support. Inspiring creativity and innovation refers to the behaviors of leaders that stimulate and support the employees' creativity and innovative behavior.

Encouraging shared vision alludes to the behaviors of leaders that produce, communicate, and encourage a shared vision. While providing individual support refers to the quality of relationship between leaders and their employees, along with the extent to which leaders support their employees.

The innovation is one aspect that companies must consider when dealing with fast-changing trends, including in the culinary industry. Innovati- on is creating new products or processes (Myers and Marquis, 1969). The process innovation con- tains everything that affects the production process, from the processing of raw materials to the final product, including other supporting activities (Mavondo et al., 2005). In the previous research, it was believed that various aspects of process innovation could increase the competitiveness of companies (Lefebvre and Lefebvre, 1993).

Product Quality

In the culinary business, the product produced combines food and beverages (goods) and ser-

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458 vices. Product quality is one of the critical things

that the company must consider to gain consumer interest in the products offered. The company's efforts to focus on product quality are intended to meet consumer expectations for related products.

Product quality is a product's ability to provide rel- evant results or performance beyond what the customer expects (Kotler and Keller, 2016).

Mullins et al. (2005) stated that if a company wants to keep its competitive advantage in the market, it must understand what aspects consum- ers use to differentiate its products from competitors' products. This study will measure product quality through food and beverage and service quality. There are nine quality dimensions for goods:

"performance, features, reliability, conformance, durability, serviceability, aesthetics, safety, and other perceptions" (Russel and Taylor, 2006).

In this study, the measurement of culinary quality products (food and beverages) will only use six dimensions: performance, features, reliability, conformance, aesthetics, and safety. Perform- ance refers to the important operating characteristics of a product. Features are defined as "extra"

items added to basic features. Reliability refers to the ability of a product or service to perform as expected over time. Conformance is the degree to which a product conforms to its specification. The aesthetics refers to a product's appearance, taste, or smell. In comparison, safety refers to the guar- antee that a product will not cause injury or harm to the customer. It is done based on the consideration that only these six dimensions are suitable for measuring the quality of food and beverages in culinary businesses.

Service quality is essential in the culinary industry and is commonly measured by using the SERVQUAL (Service Quality) technique by Par- asuraman et al. (1988). According to the SERV- QUAL technique, service quality has five dimensions: “tangibles, empathy, reliability, responsive- ness, and assurance.” Tangibles refer to the attrac- tiveness of physical facilities, equipment, and materials, as well as the appearance of its employees.

Empathy covers the caring and individualized at- tention a company provides to its customers. Reli- ability is defined as the company's ability to provide accurate services from the first time without making mistakes and deliver services on time. Re- sponsiveness refers to employees' willingness and

ability to assist customers' requests, inform when the services will be provided, and provide services promptly. In contrast, the assurance means that the employees are courteous and have the knowledge and skills to handle the customer inquiries or con- cerns.

HYPOTHESIS DEVELOPMENT

Inspiring Creativity and Innovation on Prod- uct Quality

The foundation of any high-performing organization is the innovative behavior of its employees (Tidd and Bessant, 2020). Inspiring creativity and innovation refers to the behaviors of leaders that stimulate and support employees’ creativity and innovative behavior. Nabil et al. (2017) research stated an optimal level of creativity and innovation is defined as the tendency of employees to generate or recognize alternative ideas or possibil- ities and turn new and imaginative ideas into real- ity. It can help the organization to achieve its goal of creating a quality product. In order to inspire and encourage creative and innovative behavior, the role of the leader becomes essential. Great leaders will encourage creative ideas that promote organizational innovation (Setiawan et al., 2021).

Then, the proposed hypothesis is as follows:

H1 : Inspiring creativity and innovation positively and significantly affects the quality of culinary MSMEs products in Bandung City.

Encouraging Shared Vision on Product Quality Encouraging shared vision refers to the behaviors of leaders that produce, communicate, and encourage a shared vision. Leaders must communicate a vision conducive to creativity through any available formal or informal communication chan- nel and constantly encourage employees (Nabil et al., 2017). Study by Mayfield and Mayfield (2016) found a positive and significant relationship between leaders' communication skills and employee innovation. Effectively communicating the organization's vision can encourage employees to give their best performance which in turn can maintain and even improve the quality of the organization's products. Then, the proposed hypothesis is as follows:

H2 : Encouraging shared vision positively and significantly affects the quality of the culinary MSMEs products in Bandung City.

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Figure 2. The Conceptual Research Framework

Providing Individual Support on Product Quality

Providing individual support refers to the quality of the relationship between the leaders and their employees and the extent to which leaders support their people. Employee support can take many forms, such as balancing the employee free- dom and responsibility and building an environment that supports innovation and creativity, which can also increase employee potential (Nabil et al., 2017). Leaders who support employees will increase their creativity, while leaders who control too muchwilljugulatethe employeecreativity(Deci etal., 1989). The research results by Oktaviani et al. (2020) showed a positive and significant effect on the relationship between leaders and employees on employee performance, which can refer to the quality of the products produced. According to social-exchange theory, positive exchanges between leaders and followers might lead to creativity and innovation because followers strive to return the favorable leader treatment by engaging in in-role and extra-role performance (Martin et al., 2016).

According to previous research conducted by Jais-

wal and Dhar (2015), personal interactions between leaders and employees create an environment that encourages employees to be more innovative than they should be. Then, the proposed hypothesis is as follows:

H3 : Providing individual support positively and significantly affects the quality of culinary MSMEs products in Bandung City.

Creative and Innovative Leadership on Prod- uct Quality

Previous studies state that transformational and change-oriented leadership theories are compatible with creative and innovative ones. Change- oriented leadership focuses on improving the organization's actions and processes to stimulate new ways of thinking and envisioning change (Rijn, 2019). Transformational leadership focuses on encouragement and intellectual stimulation to inspire, empower, and motivate the employees to improve their performance, develop self-initiative, sha- re knowledge, and develop ideas that lead to innovation (Rasheed et al., 2021).

According to Khalili's (2016) research, cre- H1

H2

H3 Creative and Innovative Leadership (X)

Inspiring Creativity and Innovation (X1)

Encouraging Shared Vision (X2)

Providing Individual Support (X3)

Product Quality (Y)

H4

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460 ative and innovative leadership (similar to change-

oriented and transformational leadership) significantly impacted individual creativity and innovative behavior in the workplace. Transformational leadership significantly and positively impacts the employee creativity and organizational innovation (Jyoti and Dev, 2015). According to the study, innovation leadership significantly improves company performance (Carmeli et al., 2010).

The employees must be innovative in their work; individual creativity creates the foundation for creativity and innovation that influences organizational performance and sustainability (Rijn, 2019). Good company performance can improve the quality of the products or services offered. In their study, Anderson et al. (2004) discovered a positive effect of transformational leadership on product quality. Transformational leadership has also significantly impacted employee service quality (Su et al., 2019). Then, the proposed hypothesis is as follows:

H4 : Creative and innovative leadership positively and significantly affects the quality of culinary MSMEs products in Bandung City.

METHOD

This research uses descriptive and quantita- tive analysis methods. Descriptive analysis is carried out by calculating the average and determin- ing the dimensions and variables studied, including specific categories, usually very low, low, medium, and high. This research was conducted for two weeks, with a population consisting of all MSMEs units engaged in the culinary field in Ban- dung. The population is 292,157, which refers to the Office of Cooperatives and MSMEs data for 2020. Due to the high population size, a non-prob- ability sampling technique with the convenience sampling method is used. One hundred two respondents who were employees of various culinary MSMEs in Bandung were obtained.

Data collection techniques were carried out through questionnaires and distributed online and offline. The questionnaire consists of two parts:

the first part is the demographic profile of the respondents, and the second part deals with the variables studied. The questionnaire was made based on the theory and the journal related to the variables used in this study. A total of 39 questionnaire

statements (Appendix) represent variables: creative and innovative leadership, adapted from research conducted by Khalili (2017) with 24 statements; and product quality (food, beverages, and services), adapted from research conducted by Russell and Taylor (2006) and Parasuraman et al. (1988), with 15 statements. Variable measurements were carried out using a numerical scale, with five choi- ces ranging from 1 (strongly disagree) to 5 (strongly agree). The validity and reliability of the data were checked after the questionnaires were collected. Research data were analyzed using multiple linear regression techniques with the Statistical Package for the Social Sciences (SPSS) software to determine how creative and innovative leadership variables influence product quality (food, beverages, and services).

RESULTS

Respondent Characteristics

This study used primary data collected through questionnaires distributed to 102 employees from various culinary MSMEs in Bandung. The respondent characteristics were 52% female and 48% male. Respondents were dominated by ages 17-25 years by 66% and ages 26-41 by 34%. For education, the percentage is dominated by high school education, with a percentage of 94% and 6% for undergraduates. Most respondents are employees with a majority of 1-5 years of service.

Descriptive Analysis

The descriptive analysis in Table 1 shows that all creative and innovative leadership variables (along with all dimensions) and product quality have an average (mean) in the high category.

The inspiring creativity and innovation and providing individual support variables have an average overall question item of 4.23. The results obtained from the majority of respondents are categorized as strongly agree. The encouraging shared vision variable has an average overall question item of 4.06. The results obtained from most respondents on this variable are also categorized as strongly agree. Likewise, the creative and innovative leadership variable has average overall question items of 4.17, and the product quality variable has average overall question items of 4.5. This variable is also categorized as strongly agree.

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Table 1. Descriptive Analysis of Variable

Code Variable Mean Category

X1 Inspiring creativity and innovation.” 4.23 High”

X2 Encouraging shared vision.” 4.06 High”

X3 Providing individual support.” 4.23 High”

X Creative and innovative leadership” 4.17 High”

Y Product Quality” 4.50 High”

Source: Processed Data (2022)

Table 2. Multiple Linear Regression Analysis Results

“Model” Β (Unstandardized Coefficients) “t” “Sig.”

X1, X2, X3 on Y

(Constant) 2.418 9.616 0 000

X1 0.278 2.845 0.005

X2 0.083 1.247 0.215

X3 0.133 1.624 0.107

X on Y

(Constant) 2.504 10.473 0.000

X 0.477 8.398 0.000

Source: SPSS Output (2022)

Hypothesis Testing

Before using a variable measuring instrument, validity, and reliability tests are carried out first. Validity demonstrates how well an instrument is designed to measure the concept in question (Sekaran and Bougie, 2013). A content validity test will be used in this study to determine the fea- sibility of the research questionnaire. The reliability test determines how unbiased the questionnaire is and ensures consistent measurements over time between instrument components. All measuring instruments used in this study were valid and reli- able, with a Corrected Item-Total Correlation value greater than 0.3 and a Cronbach's Alpha value greater than 0.7.

Multiple Linear Regression Analysis

Multiple linear regression was used for qu- antitative analysis, with the dimensions being: “inspiring creativity and innovation” (X1), “encouraging shared vision” (X2), “providing individual support” (X3), and “creative and innovative lead-

ership” (X) which is an influencing variable, and

“product quality,” which is an influenced variable (Y). The results of multiple linear regression using the SPSS program are shown in Table 2.

Based on the results of the linear regression in Table 5, it found that the X1 variable (inspiring creativity and innovation) has value of 0.278 with a significance below 0.10, which indicates that the inspiring creativity and innovation variable has a positive and significant effect on the Y (product quality) variable, so H1 is accepted. While the variables X2 (encouraging shared vision) and X3 (providing individual support) do not have a direct effect on variable Y (product quality) because they have a significant value above 0.10, then H2 and H3 are rejected. From the analysis results, we also obtained the equation Y = 2.504 + 0.477 X. It means that variable X (creative and innovative leadership) has a value of 0.477 with a significance below 0.10, which indicates that the variable creative and innovative leadership has a positive and significant effect on variable Y (product quality),

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462 and then H4 is accepted. The R-value is 0.643,

meaning a strong relationship exists between creative and innovative leadership variables and product quality. R2 value shows the number 0.414, meaning that the variation in product quality variables is 41.4% influenced by creative and innovative leadership variables.

DISCUSSION

The Effect of Inspiring Creativity and Innova- tion on Product Quality

This study examines the effect of each creative and innovative leadership dimension on product quality. Similar analyses have not been widely studied, so the availability of literature is very lim- ited, especially on creative and innovative leadership. According to the findings of this study, one of the dimensions of creative and innovative leadership, namely "inspiring creativity and innovation," has a direct and significant positive effect on product quality. It proves that when leaders encourage and support their employees' creativity and innovative behavior, the quality of their products (food, beverages, and services) improves. Amabi- le et al. (1996) discovered that leader encouragement, organizational encouragement, and work- group support positively affect creativity. That is important for an organizational leader to keep the business running during a competition that requires creativity and innovation from the organization because organizational creativity and innovation come from creativity and innovation at the individual employee level. According to Singh and Sar- kar (2012), “to successfully innovate, especially to generate new ideas and implement them, employees must be supported and encouraged by leaders.” The organizations must have a culture that accepts change and leaders who inspire employees to innovate and take on more initiatives.

The Effect of Encouraging Shared Vision on Product Quality

This study found that the encouraging shared vision variable did not directly influence product quality. It can happen because various factors motivate employees to perform best for the service and quality of the products that they produce. The success of a business depends on the knowledge, skills, creativity, and motivation of the company's employeesandpartners(AnticandBogetic,2015).

Encouraging a shared vision refers to the leader's ability to communicate and promote a shared vision to achieve company goals. Company management is responsible for educating, training, and developing the capabilities of its employees to enable direct or indirect influence on product quality, especially the quality of food products (Antic and Bogetic, 2015).

The Effect of Providing Individual Support on Product Quality

Based on the results of hypothesis testing, providing individual support did not directly affect product quality. It may be due to other factors me- diating the influence of providing individual support on product quality, one of which is trust. Chen (2011) research stated that increasing creativity in organizations requires leader support and is mode- rated by employee trust in their leaders. When employees get supportive behavior from their leaders, it will help to increase their creativity, but trust is also an important factor. Undeniably, to conti- nue to compete and create quality products, the organization needs to make ideas outside its comfort zone. It encourages employees to take risks through their creativity and innovation. Some researchers believe the interpersonal trust relationship of members to the leaders or coworkers will affect an employee's willingness, motivation, confidence, and assertiveness to take a risk (Chen, 2011).

The Effect of Creative and Innovative Leader- ship on Product Quality

This study's findings also show that creative and innovative leadership has a positive and significant impact on product quality (food and beverages as well as services) in culinary MSMEs in Bandung. This finding is consistent with previous research, which found that transformational leadership (a theory compatible with creative and innovative leadership) positively impacts the SMEs' process and product innovation (Rasheed et al., 2021). The findings of this study also support the previous research conducted by Su et al. (2019), which found that transformational leadership significantly improves employee service quality. Le- aders have the greatest impact on the climate and culture of a business by fostering a climate and culture that promotes employee creativity (Chen, 2011).

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This research found that creative and innovative leadership strongly relates to product quality variables. Adopting creative and innovative leadership can help an organization increase its employees' innovation and improve the quality of its products and services.

IMPLICATIONS

This research has implications that creative and innovative leadership is a leadership style that needs to be applied by creative economy actors, especially MSMEs entrepreneurs. In competitive business competition, MSMEs must have creativity and be able to innovate. Creativity is the key to a business's growth, and innovation allows a business to create a new markets with more potential.

MSMEs culinary needs to adapt to changing the societal trends by creating breakthroughs (innovations) that competitors have not achieved to maintain their business's existence.

Product innovation in a business arises from the creativity of all business members. The role of the leader as a determinant of the success or failure of a business needs to be a focus. Leaders must inspire and motivate their employees to think cre- atively and innovatively and create an environment that fosters this behavior. A climate where employees are given the space to innovate, an environment where employees can be heard and appre- ciated. Furthermore, leaders need to communicate the company's vision to employees precisely and clearly and lead the way toward its realization. Le- aders must also provide individual support for employees to increase the employee motivation to do their jobs as well as possible. Adopting leadership practices that support the creativity and innovation can increase performance and economic contribution in the MSMEs sector.

RECOMMENDATIONS

For further research, it is possible to explore the relationship between creative and innovative leadership and product or service quality in other creative economy sub-sectors in various cities in Indonesia. This research has several limitations that might be considered when conducting future research, including focusing only on one creative economy subsector. This study is also restricted to research samples collected exclusively from the MSMEs in Bandung City.

CONCLUSIONS

The descriptive analysis results show that all dimensions of creative and innovative leadership and product quality (food, beverages, and services) in culinary MSMEs in Bandung City are in the "high" category. The result indicates that leaders have nicely implemented creative and innovative leadership and have good product quality. The findings of this analysis can be used as a guide for businesses to maintain and even improve their performance to meet customer expectations.

Based on the multiple linear regression analysis results, it is possible to conclude that the variables "inspiring creativity and innovation" have a direct, positive, and significant effect on product quality. Leaders need to encourage and support employee creativity and innovation. Leaders can encourage employees to think "out of the box" and create a safe environment to express their creativity without worry. Results also showed that creative and innovative leadership variables positively and significantly affect product quality variables.

Product quality variables are influenced by 41.4%

of the creative and innovative leadership, and the rest are influenced by other variables not examin- ed in this study. Therefore, culinary MSMEs owners in Bandung should apply the style of "creative and innovative leadership" in their efforts to improve "product quality" (food and beverages, as well as services).

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