Charismatic–Entrepreneurial Leadership as a Pathway to Economic Self-Reliance in Indonesian Pesantren

Abstract

Economic self-reliance remains a challenge for Indonesian Islamic boarding schools (pesantren), particularly those dependent on external funding. Despite their religious legitimacy and strong social networks, many pesantren struggle to translate these resources into sustainable economic activities, highlighting the need for institutional arrangements that reconcile traditional leadership with professional business management. This study examines how kyai leadership is transformed to strengthen institutional economic independence by integrating charismatic authority with entrepreneurial governance. Employing a qualitative instrumental case study, the research collected data through in-depth interviews with purposively selected participants, participant observation, and document analysis. Data were analyzed using an interactive model involving data condensation, presentation, and conclusion verification, with triangulation to enhance credibility. Findings indicate that the kyai guides economic transformation by combining spiritual legitimacy, strategic decision-making, and resource mobilization. Leadership revitalization involves delegating operational responsibilities to professional managers, mapping institutional assets, and integrating vocational education with productive enterprises. These practices foster a hybrid governance structure that maintains centralized strategic authority while decentralizing business operations, allowing managerial specialization without displacing the kyai's overarching leadership role. The findings also indicate a shift toward production-oriented activities that strengthen financial autonomy, develop students’ entrepreneurial capabilities, and encourage community participation. The study proposes a charismatic–entrepreneurial leadership framework explaining how religious authority can support institutional economic capacity. It also offers practical insights into strengthening economic governance, reducing financial dependence, and promoting the long-term sustainability of pesantren.