Abstract: Background: This study aims to determine the direct influence of the spiritual capital dimension on improving cooperative performance which is influenced by transformational leadership Materials and Methods: the research focuses on the leadership and employees of cooperatives with a sample of 36 cooperatives, where data is collected utilizing questionnaires and interviews, and data analysis is carried out using SmartPLS Version 3.2.9 to analyze Structural Equation Modeling (SEM). Results: The results of this study confirm that Transformational Leadership has a positive and significant effect on business performance mediated by Spiritual Capital Conclusion:The dimensions that have been tested are expected to make useful contributions to academics, professionals, and business people
Keywords: Spiritual Capital; transformational leadership; business performance.
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