Value-Based Leadership in Crowdfunding Digital Startup: A Qualitative Study in iGrow and KITABISA

This study aims to identify the basic values of crowdfunding digital startup leaders at iGrow and kitabisa and also to understand how these values were created. Individual value systems are related to people's attitudes and behavior, especially in the leadership decision-making process. iGrow as an investment company for agriculture products has an orientation toward achieving profits, while kitabisa as a social movement platform has a social orientation toward helping others. This study used a qualitative approach through the in-depth interview from snowball sampling that served as the primary data. The research result proposed nine main values identified from leaders of both startup companies. The main values of iGrow leader were achievement goals, hard work, legacy, togetherness, and role models, while those of Kitabisa leader were rational, learning, hustler, genuine caring, and legacy. From the process in which these values were created, this study proposed a theory on a different path of value creation, called the value creation pathway. These research findings were only limited to the two leaders from iGrow and Kitabisa.


I. INTRODUCTION
The rapid growth of the digital industry has caused what Christensen (1995) said as a disruptive technology. Sudden changes are happening in so many industries and triggered harsh competition. On several occasions, it was also accompanied by conflicts between the digital and conventional industries. The increasing rate of the birth of innovation, globalization, and obsolete business model had made organizations face complex challenges (Hitt, 1998). The application of the internet in business, known as the digital economy, can increase productivity and efficiency (US Department of Commerce report, 1998). The Internet gives real-time and massive information that anyone can enjoy using their device. Those who manage to utilize the right information to create rapid innovation will determine the survival of the organization (Bettis and Hitt, 1995).
This ability to utilize information is what makes many millennials successful in running their business, especially in the digital startup business. This generation is often referred to as the digital natives because of their ability to use new internet-based technology (Prensky, 2001). The companies that they founded have become the new "giants" with fantastic company valuations in a relatively short period compared to the conventional business. For example, Gojek is now progressing to be the first decacorn in early 2019 from Indonesia. Decacorn is the term used in tech startup to mention a company with a valuation worth over ten million dollars. This great performance certainly cannot be distinguished from the leadership capability of the founders. Effective leadership will drive organizations or companies to achieve better results (Rosete and Ciarriochi, 2005). Jones and Olken (2005) even argued that leadership also influences the national economic growth of a country.
The leadership concept is not living in a space, where changes that occur in society have not affected this concept. Leadership lives in the society itself, adapting to its surroundings to stay fit. Maxwell (1998) mentioned that leadership is the ability to influence others. So, whenever significant changes occur in life and the organization, it will make the concept of leadership needs to be revisited to remain effective. The rapid development of digital technology has made changes in the way humans communicate and influence each other, from direct conversation into text messages, lesser private information, and other issues related to digitalization.
The ease of building a business offered by digital technology has encouraged the millennial generation to start their own business. A study conducted by Forbes magazine concluded that 62 percent of millennials want to establish their own company and 72 percent of them feel this is not just an act to reduce unemployment, but also for the national economic growth. This generation was born when the world often faced a crisis due to greed and the negative effects of industrialization. It drove them to be more prioritize passion and values rather than just money that can be obtained from high salaries. However, the data also showed that 90 percent of startups failed. Other research also shows that there is a shrinking 5 ©Center Leadership has been pointed out to be the main problem in this phenomenon. Leader's behavior is influenced by the individual values they had. Rokeach (1973) defines the value of life as a thing that determines a person's standard, causing it to have a very important role in determining life choices made by someone. As a business leader, value will be an important factor for the organization they lead. iGrow and Kitabisa.com are some of the digital startups that have succeeded in their respective fields. Using the crowdfunding business model, iGrow opens investment opportunities in agriculture, while Kitabisa raises funds for various social activities. This study aims to identify the inner values of these two digital startup leaders and see how these values formed as a way to have a deeper understanding of these values.

Sharing Economy and Digital Startup
The concept of sharing according to Benkler (2004) is the existence of reciprocal benefits based on the social behavior of the community. In the concept of sharing, there is a process of distributing property or its benefits to other parties in a limited period without having to obtain a legal permit for ownership of the property. The sharing economy allows a person or group of people to make money from ownership of their untapped assets, by sharing benefits on assets or services (The Sharing Economy, PwC, 2015). By sharing, two or more parties can enjoy benefits or share the costs to enjoy the benefit of a property (Belk, 2007).
Back then, this concept was merely a fairy tale since capitalism honors the strongest, causing a lack of trust in people and hence making it became more difficult to share something because there was no trust in it. However, with the rapid development of digital technology and information, trust was built with the system. People can trace the validity of information just by "click" on the internet. Therefore, sharing has become less utopia than before. The main concept of sharing economy is a collaborative sharing system that simplifies the ways to gain the benefit of goods or services that have not been fully utilized by the owner. Furthermore, sharing economy also grows in the hope of being able to overcome various social problems by using platform-based information technologies (Danuoriene et al., 2015). This also stimulates the transformation of real-life into a digital platform. The digital economy is composed of two aspects: e-commerce (businesses that transact using the internet or network-based systems) and the information technology industry that enables e-commerce (US Department of Commerce, 1999).
Crowdfunding is one business model born of digital economic philosophy. The crowdfunding business model seeks capital supply from the public by using the internet with certain rewards (Belleflamme, 2013). Through the internet, a digital startup, a new business that utilizes the digital platform on the internet, can easily reach people to offer their business. This fundraising orientation can be for financial gain and also other social activities.
Leadership Theory Development One of the leadership concepts that is being intensely discussed is value-based leadership (VBL). This concept believes in the goodness in humans after being corrupted by greed as a byproduct of capitalism. Many leaders were popular and admired, but later it was discovered that they had committed unethical and immoral actions in the practice of their leadership (Copeland,2014). The increasing consideration rate of the earth's sustainability also affects business organizations and leaders in decision-making. Therefore, business becomes eco-friendlier and life-oriented. Business leaders now are required to produce not only results but also sustainability for the greater good.

Values and Value-Based Leadership(VBL)
Although as vague as it seems, researchers believe that values had played a very important role in human behavior. According to Russell, the value system is a basic thought that predicts human behavior. Rokeach (1973) defines values as things that determine one's standards and have cognitive, affective, and behavioral dimensions. This causes the value system to be a moral basis and affects one's judgment about behavior that is classified as ethical and unethical. Furthermore, Schwartz (1999) defines values as desirable conditions, objects, goals, or behaviors that go beyond certain situations and are treated as normative standards for evaluating and choosing certain behaviors. Kuczmarski and Kuczmarski (1995) also mention four factors that create values: (1) family and childhood experiences, (2) conflict events that arouse self-awareness, (3) major life changes, and experiential learning, and (4) personal relationship with someone very important. In line with the statement above, Hofstede (2010) argues that culture can be learned and not inherited. Schwartz (1999) simplifies his argument that individual values can be formed through two causes. First, an environmental culture is accepted by the individual where the individual lives and interacts socially. The individual adjusts their values as a result of human nature to adapt to its environment. Meanwhile, the second cause is the individual personal experience that is unique to the individual. This experience gives a sense of meaning in individual perception.
The value-based leadership (VBL) concept considers a leader as a person that puts the baseline values for the organization and drives others to follow the values as a way of achieving success (Morris, 2000). So, every individual value of the leader will have a direct effect on its leadership.

III. Methodology
This research seeks to understand the leadership effectiveness of digital business startups by looking at the source of the leader's core values. iGrow and crowdfunding companies with different orientations. iGrow is profit-oriented, while Kitabisa is social-oriented. The two companies are the best in their respective fields. They have received several awards and investments from national and international investors. This research will identify what values are owned by the leaders of the digital startup business and how those values are formed. Understanding these values will allow us to have a better understanding of their leadership and organization performance because the value system will affect behavior and judgment.
To answer the research questions, a qualitative research method is used in this study. Because many previous studies have confirmed a positive correlation between leadership and organizational performance, this study aims to examine thoroughly and provide a detailed description of the effectiveness of the leadership that is influenced by individual values. This approach makes a critical review of the data and facts that were found in the field a key factor in this study. Thus, this study used constructive qualitative methods to find the facts of the field that is not illustrated through existing data. Qualitative methods will be used to explore and discover new variables on the effectiveness of VBL leadership through qualitative analysis that will be explored in the digital startup business concepts and value systems that strengthen VBL in each company. The sampling technique in this study is the snowball sampling technique where the respondent is obtained from previous respondents until the desired data are obtained.

IV. RESULTS AND DISCUSSION
iGrow and Kitabisa Profiles iGrow is an online investment platform in agribusiness with a crowdfunding business model. Since its establishment in 2014, iGrow has gathered more than 5,000 investors, employed 3,500 farmers, and harvested more than 1,000 acres of land. It also has a high success rate of investment at 96.21%, which makes iGrow a prominent platform for investment. In mid-2018, iGrow had received an award from the United Nations for its contribution to the strengthening of the Sustainable Development Goals (SDGs). Jay, the CEO, is an energic millennial who graduated from the University of Indonesia, majoring in Information Technology.
Meanwhile, Kitabisa is the biggest social crowdfunding platform in Indonesia. Since its establishment in 2013, Kitabisa has gathered donations of more than 500 billion rupiahs from 1.3 million people for over 18,000 social projects. This achievement also leads Timmy, the CEO of Kitabisa, to be acknowledged as one of the "30 under 30" social entrepreneurs by Forbes Asia. Timmy is a smart millennial from West Sumatra and graduated from the Faculty of Economics, University of Indonesia, in 2018 with honors. Even though Timmy did not have the competencies in digital technology like Jay, Timmy manages to build a team with over 100 employees. Both leaders are the new players in the digital age with their successful digital startup business. The preview of both organizations can be seen in fig. 1 below. From the figure above, we understand that both organizations have made a significant result and appreciated not only by the local government but also by international communities. Both organizations succeeded in the tight competition of the digital startup with their mission that serves as their business purpose, profit, and social orientation.

Identification of Individual Values of iGrow and Kitabisa Leaders
This research found that both AS and AT have five main values that determined their actions in business. These values serve as their guidance in decision-making and also contributed to the success of their business. AS values are achievement goals, hard work, legacy, togetherness, and role model. While while AT values are rational, learning, hustler, genuine caring, and legacy. These values independently influence the behavior even though they are very likely to influence each other, resulting in different behavior. These values are also grouped according to their formation process and type of motivational sources by Rokeach (1973 goals, hard work, and legacy. Whereas, the values that are obtained through the process of by chance is are togetherness and role models. For AT, values that are formed because of the process by design is are rational, learning, and hustler. While while those formed through chance processes are genuine caring and legacy. These values also partially function as the final picture and others have as operational functions. Both can move behavior but come from different places. Achievement Goals AS is known by his colleague as an ambitious man who strives the best to achieve his dreams. This value is the reason for his numerous achievements in life. In academic life, AS always received the best rank in his class and, make him an honorable honors student at the university. AS loves to win and made him enjoy competition. His wife mentions that he makes everything in daily life a competition if it is available. His colleague and self-proclaimed rival since they were undergraduate students in the university, BZ, also acknowledges AS an achiever. BZ also mentioned that this value has a significant contribution to the company that he led. AS mentioned, that this value grew in the dormitory program held by PPSDMS Nurul Fikri. In this program, he learned to manage himself to achieve his dreams. Achievement goals are included in one of the ten basic values formulated by Schwartz (1992). He defines this value as a personal success because of the competence he has according to social standards. So, Schwartz lowered this definition into two main parts: personal success and competence. AS has the competence to achieve his success that he dreamt of.

Hard Work
The reason someone works hard is different in society: life curses, vocation, social obligations, natural activities, ways to achieve a better life, or just because we are forced pressure to do it. Some of these reasons are very likely to have consequences for individuals, organizations, or also both (Porter, 2004). AS has a big dream that drives him to work hard. His wife stated that AS only has very little time for daily sleep. His work had taken most of his time. Even in a family event at the weekend, but whenever if there are duty calls, AS will put work first. This much commitment surely has its consequence in the family. His wife is having a hard time in the early life of their marriage, but she understands and supports the decision that AS made. AS basically is a family man, because, in his tight schedule, he always tries to drove drive his children to school daily. This value was inherited from AS's father who works very hard to fulfill the family needs. Therefore, this value was formed in AS through by design process with parenting habits from AS's father.
Togetherness AS values togetherness and treats his employee like family members. This value can easily be seen in bad are interactive offices. They have lunch together, play together, and work until very late that night together. Badr has a family meeting every month where every member of the family is being appreciated for their achievements and, remembered admonished for their mistakes, and talks about their thoughts of organization. Togetherness is defined by Durlach and Slater (2000) as feelings with other people in a shared place. Through this definition, it can be understood that there is a strong push from the digital startup on this value. Employees of startup businesses, who are generally dominated by millennials, are generations that not only think of professional work, they are generations without also seek meaning and want to make an impact on others (Hewlett. Et.al, 2009).
This value grew while AS was still active in the university's organization. The moment of togetherness there gives a very specific meaning in AS's life. This process happens by chance because no one in the organization planted that value in AS Role model AS try tries his very best to be a role model for everyone he leads. The sense to be a role model is what inspires AS to give high performance and inspire others. AS said, "The responsibility to be a role model that drives me to achieve high performance. Because I have to be their example in producing results. I am not the type of person who likes to give a speech to others. But rather to do first and inspire others by this action." This is in line with the concept of role model delivered by Gibson (2004), who argues that role models are cognitive constructs that are based on one's position/role in a social context. From the perceptions of people around, role modeling is a process of identifying "someone who can be emulated" (Weaver et al, 2005). AS drives himself to be a role model for his colleagues. This value strengthened on various occasions in AS's life. Therefore, this value is formed through the "by chance" process.
Legacy Both AS and AT are quite spiritual person people. AS co-founded Badr Interactive, a software house company that produces Islamic apps for free. With over 50 engineers as his employee, Badr Interactive has grown with various respected companies in Indonesia as their clients. However, AS stated that all these projects that producing produce cash flow is are dedicated to building free Islamic apps. That is the main reason why he claims that Badr Interactive is a dakwah company. Even the founders do not have any share in company ownership. AS said, that "it belongs to ummat". As a spiritual person, AS wishes to leave a legacy of good deeds as his way to achieve God's mercies mercy.
Meanwhile, AT is a modern and religious urban millennial, with his way to achieving God's mercy. When He told the reason for his less interest to show in public or on-air, "I am afraid of syahwatul kalam (the tendency to glorify ourselves to look good to others)". spiritual person, but clearly, he has a strong connection with God. He also dedicated his work and life to help others through kitabisa as his legacy.
Humans do tend to remember everything positive about themselves. Therefore, humans leave artifacts and information that can strengthen the good things they have for others (Unruh, 1983). Legacy is a meaningful and complex way by which information, values, and ownership are passed on to others (Gulotta, et.al, 2013). AS draw drew a mural painting in his office as a symbol of his dream of leaving a legacy.
AS have has the strong will to leave a good legacy because of his mentor in university, MY. MY held spiritual event every week to planted instill this value in his pupils. Therefore, this value is built-in AS through by design deliberative process. Meanwhile, AT built this value in various events in his life. He had several people in his circle that inspires him to leave a legacy in life, such as RK with Rumah Perubahan.
Rational BM, one of Kitabisa advisors, mentioned that AT as is a very rational person. "If he (AT) was trying to solve something and meet a dead end, he will work on other things that are less work to be done and create result". He did not let emotions mixed up influence his decision and action. Keeping Staying rational is very important in his field of business. Kitabisa is a social platform, with a lot of emotions included in every campaign for donations. Therefore, AT encourages those who seek his help, to follow the system in kitabisa. AT learned this value from his mentor, RK, at Rumah Perubahan. RK branded his Rumah Perubahan as a social movement, but he also gives professional assistance to companies that need his services. Acting rationally, according to Gibbard (1990), is "doing the best to do" in the context at hand. Those who act rationally think hard to produce the best choice to make at that time. Some other theories mention acting rationally as an act of fulfilling personal interests. Because it has become a common assumption that someone will be considered acting irrationally when they doing something that can harm themselves (Parfit, 1984). AT needs to keep stay rational to lead Kitabisa professionally.
Learning AT loves to learn the things that are related to his dreams. He asks RK to enroll him in a class about crowdfunding in the US before he launched Kitabisa. AS also makes curiosity (the drive to learn), one of the basic values in Kitabisa. He enjoys reading books, watching TEDx talks, and discussing with others concerning topics. AT valued learning also as a result while he was off the mentee mentorship program at Rumah Perubahan. He prefers an unstructured job with a low pay fee at Rumah Perubahan, just to learn something from RK who is known as a management guru. This was also noticed by AM who happened to be AT and AS mentor when they were university students in the University, "They (AT and AS) both have a great sense of learning way above common students. They are willing to go extra miles in terms of learning". This action is the reason why Zimmerman (1990) defined learners as someone who proactively seeks out the information they need and takes the necessary steps to master the things they are interested in. They plan, set targets, execute, and evaluate, independently to get the knowledge they need.
Hustler This terminology has recently become synonymous with the digital startup world after being used by Rei Inamoto 1 . He mentioned that digital startups must have a team of three characters: hipsters, hustlers, and hackers. These three terminologies are commonly used to describe non-positive behavior. However, in the digital startup term, this term has a positive meaning. Hustler, for example, will show behavior that willing tends to do anything to get money. However, in semantic studies, meaning cannot be separated from the context. The use of this terminology is interpreted as emotive meaning, where there are positive emotions because of value changes in the society. The millennials who commonly lead the digital startup tend to challenge the status quo and be, free, and even tend to be radical for the incumbent. Hence, this term is born. AT is doing everything that he can think of to expanding Kitabisa. He had recruited high qualified talent to his team as a way to compete with other professional companies. This value was also learned from RK while during his study at Rumah Perubahan.
Genuine Caring Kindness has been the first impression of AT that is mentioned by his colleagues. BM as the advisor at Kitabisa said that "AT has a good heart and great sense of care for others". AT preserved this value and made it the very basic value at Kitabisa. He dedicated Kitabisa to be the platform that will take misery in someone's life. He also routinely visited the campaigners and occasionally received people's gratefulness.
AT believed that there are so many good and caring people in Indonesia. He said that: "I believed in what Bung Hatta said that Indonesia was built with gotong-royong (the act to help others) as the foundation. Kitabisa lives that spirit. Here, we believe that [there are] so many good people in Indonesia. They are waiting to be connected to good deeds." At wijuka and Caldwell (2017) stated that concern ethics are one of the basic characteristics of authentic leadership. Caring ethics is defined as moral reasons derived from attention to others (Derry, 2005 being strengthened by his interactions with the user of the Kitabisa platform.

Value-Based Leadership (VBL)
The values that were identified from Jay and Timmy above had formed a leadership model that they are currently using to move other people and lead their respective companies. The values possessed by someone will resonate with the values of others who are in line with them. If these values find coherence in the group, there will be harmonization within the team that makes leadership effectiveness better (Liedtka, 1989). The idea of VBL that comes from human morality and ethics sees humans as a whole, without the tendency to mask their behavior and use this morality to move others. Jay and Timmy take inspiration from their respective journeys of life and crystallize it into the value of life, which is the main consideration in their decision-making as the leader of their respective digital startups.
From the values that have been identified, there are some typical values derived from morals and ethics that have been identified as VBL variables in previous studies, such as the togetherness value that is a derivative of the servant leadership concept offered by Greanleaf (1977). This can be seen in the figure below. He sees that someone with servant leadership abilities can facilitate the achievement of common goals by empowering and developing the abilities of all team members. There is a feeling of mutual success and every difficulty of one team member also becomes a joint difficulty.
From in-depth interviews with main respondents and observations, this study identified the main values underlying the leadership of iGrow and Kitabisa.com in making decisions for themselves and their organizations. As leaders in their respective businesses, the values that drive their judgment, will influence the way they lead and drive the company.

Value Creation Pathway
These identified values in this study, are only their main values, and thus, which it can be inferred that other values may occur but are not significantly related to the leadership effectiveness. Based on the findings, some of these values were formed through a different path. It is also confirmed that their closest environment has the most influence on the formation of these values. Some of the values were formed by design and the others were formed naturally by chance without any planned influence from external parties. Along the life journey, everybody will experience various good events that are interpreted with feelings of sadness and feelings of joy. Not all of these events will drive the birth of a value in a person. Kuczmarski and Kuczmarski (1995) emphasize that these events must be able to raise awareness of the presence of a value. The events may occur because of the design from others to flourish certain values, such as the value of honesty that has been thought to every child by their parents, or because of the natural process without the interference of others. This will result in an unexpected value result in the individuals. This study proposes that these various events create values in a different way that shows in figure 3 below. By design Deliberative values for mentioning is the process of forming the values of an individual caused by a systematic effort from the outside (externals) to present that value in a person. The process of its formation can be through an institution with a scheduled curriculum, routine daily activities, and continuous discussion process, or even through involvement in certain activities that are intentional so that the expected value is formed. These values formation processes are mostly encountered in various educational institutions, schools, dormitories, where there are various deliberately planned various kinds of learning materials and activities to instill certain values in students. Generally, this forming formation process takes place intensively over some time. This concept is in line with the argument from Kluckhohn (1951), which stated that social interaction causes individuals to feel guilty when their behavior is contrary to the social expectations it supports. So that Therefore, the individual adjusts their behavior even though it does not represent his desires in full.
Meanwhile, the value forming formation with a natural (chance) process (by chance), is usually in the form of events from life experiences that are fragmented and not simultaneously but mutually coherence coherent and strengthening to bring up a value of life in a person. According to Kuczmarski and Kuczmarski (1995), these events are in the form of conflicts that generate self-awareness. Steve Jobs, the founder of Apple Computer, popularized this process by the term "connecting the dots". This process is generally happening, but the person does not realize that this process is happening. Until at some point when the accumulation of this process has reached the culmination point, then that value will be formed when the individual tries to draw insight from the series of events (connecting the dots) from their life's journey. The value formation process through this pathway cannot be controlled in a timely and sequential manner. Events that are experienced are not even the same, but insights can be drawn for the same value.
In the two digital startup business leaders that being was studied, they manage to create a successful company in their respective fields. However, the values that drive their behavior in leading the company are different. The study discovered that there are similar values but that was formed from different paths. There was also the same intersection of events that these leaders faced, but both of them took different values from the event. The main values shared by the two digital startup business leaders are as follows: By understanding the way these values were created, this study contributes to a deeper understanding of values and their connection to predicting behavior.

Implications of research
This study has proposed a new perspective in understanding the value creation process through design deliberative and by chance processes. A new entrepreneur can re-create the important values that will help them build a successful digital startup. By understanding their values and strengthening them, a digital startup leader can achieve success.

V. CONCLUSION
From this study, it was found that the values identified from AS iGrow leaders were obtained: (1) role model, (2) togetherness, (3) hard work, (4) legacy, and (5) Achievement goals. While from AT as the leader of the Kitabisa company, namely: (1) Learning, (2) Hustler, (3) Genuine Caring, (4) Rational, and (5) Legacy. The values that exist in the leader of this digital startup business went through two processes of formation: (1) by design Deliberative process, which obtained through is a learning system from a systematic institution, and (2) by the change process in which values are formed through a natural process without the interference of others designed the events. These values were obtained through a series of events or events experienced or not unplanned events. From the correlation between values that were found and the theories that are were used as references, it is was found that the values possessed by the leader will influence the organization they lead. This is because the value will be a moral and ethical boundary, to something that is considered good and bad by the leader. So that Therefore, the decisions taken by the leader that are related to the policies of the organization they lead, will be very dependent on the personal value they have. Some of these values will influence organizational culture and vice versa, the value of the people in the organization will also be influenced by organizational culture. Values are very important for an organization and leadership because they will affect individuals and organizational performance.