1. NI MADE YUDHANINGSIH - Jl. Raya Kampus Unud Jimbaran, Kuta Sel, Kabupaten Badung, Bali 80361.
2. I WAYAN GEDE SUPARTHA - Business and Economic Faculty, Udayana University, Denpasar, Bali, Indonesia.
3. I GUSTI AYU MANUATI DEWI - Business and Economic Faculty, Udayana University, Denpasar, Bali, Indonesia.
4. AGOES GANESHA RAHYUDA - Business and Economic Faculty, Udayana University, Denpasar, Bali, Indonesia.
Innovation is not only a necessity but has become a survival effort for every company. Leaders play an important role in realizing innovation in a company. It is just that not all leaders can innovate. This study examines the role of entrepreneurial selfefficacy, social capital, and leadership competencies possessed by a leader in realizing innovation in the leadership of Creative Small and Medium Industries in Bali Province. Data collection in this study used a questionnaire to 242 small industry leaders in Bali Province engaged in creative industries, namely crafts, fashion, and culinary. The quantitative data analysis in this study was performed using PLS-SEM. The results of this study indicate that leadership's social capital could drive innovation either directly or through entrepreneurial self-efficacy. Leadership competence reflected in cognitive intelligence, competencies, emotional intelligence competencies, and social intelligence competencies could influence innovation through entrepreneurial self-efficacy. Entrepreneurial self-efficacy played an important role in increasing the innovation of the leaders of the Small and Medium Industries in Bali in increasing innovation and the Indonesian Innovation index at the World level.
Innovation, Entrepreneurial Self-Efficacy, Leadership Competence, Social Capital, IKM.