Building Building a Sustainable LPD Through Adaptive Leadership

Abstract

The Village Credit Institution (LPD) is a customary-based financial institution that plays a strategic role in supporting the economy of indigenous villages in Bali. However, technological advancements, shifts in community behavior, competition within the financial industry, and governance risks pose challenges to LPD sustainability. This article aims to explain the importance of adaptive leadership in ensuring LPD sustainability. An adaptive leader can adapt to environmental changes, foster innovation, strengthen governance, and preserve local cultural values. The findings indicate that adaptive leadership can enhance an organization’s ability to navigate change, strengthen community trust, improve service quality, and drive digital transformation without compromising the traditional wisdom of indigenous villages. Thus, the presence of adaptive leaders is a critical factor in ensuring the sustainability and competitiveness of LPD in the modern era.