Do transformational leadership traits influence Indonesian employees' digital maturity?

Abstract

The digital age has changed the way businesses operate creating uncertainty; therefore, the right kind of leader needs to step in to steer the organization during this digital disruption. The objective of this study is to examine the influence of four (4) transformational leadership traits on Indonesian employees’ digital maturity. Using a quantitative approach, data was collected through online questionnaires spread to 203 IT managers who work in food and beverage, and automotive manufacturing in Indonesia. Descriptive statistics and multiple regression analysis were used to analyze the data. The result of this study shows that idealized influence and inspirational motivation have a positive influence on digital maturity, while individualized consideration and intellectual stimulation have no significant influence on digital maturity despite the latter being perceived as the most important transformational leadership trait to support digital maturity. The study that all four leadership traits have simultaneously influence 44.6% of digital maturity in food and beverage, and automotive manufacturing. Transformative leaders provide the right leadership in transforming the organization to be digitally mature through vision, adaptive culture, and motives for growth and development.

Keywords: {'name': 'Transformational Leadership, Digital Maturity, Food And Beverage, Automotive Manufacturing, Indonesia'}

Authors & affiliations

Mario Effendy
Affiliation not supplied

Maria Jacinta Arquisola
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

Afkar, E., Syamsi, R., Tamara, D., & Furinto, A. (2020). Industry Digital Maturities during Covid-19?: Empirical Evidence from Indonesia. International Journal Supply Chain Management, October. ttps://www.researchgate.net/profile/Rusi_Syamsi/publication/355980373_Industry_Digital_Maturities_during_Covid-19_Empirical_Evidence_from_Indonesia/links/6187de0e61f09877206b5b1d/Industry-Digital-Maturities-during-Covid-19-Empirical-Evidence-from-Indones

Agarwal, B. V., Lath, V., & Mancini, M. (2017). Confronting Indonesia’s Productivity Challenge. McKinsey & Company. https://www.mckinsey.com/featured-insights/asia-pacific/confronting-indonesia-productivity-challenge

DOI: 10.1108/IMDS-01-2016-0038

DOI: 10.32924/ijbs.v4i1.108

Asikgil, B. (2011). The Effect Transformational Leadership Behavior on Organizational Culture: An Application in Pharmceutical Industry. International Review of Management and Marketing, 1(4), 65–73. https://dergipark.org.tr/en/pub/irmm/issue/32069/354978

DOI: 10.1207/s1532754xjprr1602_2

DOI: 10.1016/0090-2616(90)90061-S

DOI: 10.1145/3275116.3275122

Chan, S. W., Ang, S. F., Andleeb, N., Ahmad, M. F., & Zaman, I. (2019a). The influence of transformational leadership on organization innovation in Malaysian manufacturing industry. International Journal of Supply Chain Management, 8(2), 971–976. https://www.semanticscholar.org/paper/The-Influence-of-Transformational-Leadership-on-in-Chan-Ang/65155275467c6a1dba613efe4de1d81b5f6d2c43

Chan, S. W., Ang, S. F., Andleeb, N., Ahmad, M. F., & Zaman, I. (2019b). The Influence of Transformational Leadership on Organization Innovation in Malaysian Manufacturing Industry. International Journal of Supply Chain Management. https://www.semanticscholar.org/paper/The-Influence-of-Transformational-Leadership-on-in-Chan-Ang/65155275467c6a1dba613efe4de1d81b5f6d2c43

Chanias, S., & Hess, T. (2016). How digital are we? Maturity models for the assessment of a company’s status in the digital transformation. Management Report. https://www.semanticscholar.org/paper/How-digital-are-we-Maturity-models-for-the-of-a-in-Chanias-Hess/591c21d32fb98d52e887d50d0a8e204a284afdfa

Danailova, D. (2019). Digital Transformation: A Study on the Role of IT Capacity and Executive Sponsorship in Achieving Digital Maturity. Master Thesis, July, 1–80. https://www.researchgate.net/publication/321541018_Digital_Transformation_A_Study_on_the_Role_of_IT_Capability_and_Executive_Sponsorship_in_Achieving_Digital_Maturity

Das, K., Gryseels, M., Sudhir, P., & Tan, K. T. (2016). Unlocking Indonesia’s Digital Opportunity. McKinsey & Company, October, 1–28. https://www.mckinsey.com/~/media/McKinsey/Locations/Asia/Indonesia/Our Insights/Unlocking Indonesias digital opportunity/Unlocking_Indonesias_digital_opportunity.ashx

DOI: 10.5171/2018.340873

DOI: 10.22543/0733.132.1317

Ghozali, I. (2016). Aplikasi Analisis Multivariate dengan program SPSS. Badan Penerbit Universitas Diponegoro.

Gill, M., & VanBoskirk, S. (2016). The Digital Maturity Model 4 . 0. Forrester, 0–17. https://www.forrester.com/report/the-digital-maturity-model-40/RES131801

Hidayat, F., & Rahadi, D. (2020). Effectiveness Work Culture with Internet And Face-to-Face Applications. EasyChair Preprint. https://easychair.org/publications/preprint/XSK9

Holst, G. (2021). Transactional , Instrumental and transformational leadership?: what is more effective for an Industry 4 . 0 transformation?? University of Twente, 1–61. https://purl.utwente.nl/essays/88646

Hussain, Z. (2013). Methods For Decision-Making In Survey Questionnaires Based On Likert Scale. Journal of Asian Scientific Research, 1(3), 35–38. https://archive.aessweb.com/index.php/5003/article/view/3446%0A

Jakubik, M., & Berazhny, I. (2017). Rethinking Leadership and Its Practices in the Digital Era. Managing the Global Economy. Proceedings of the Management International Conference, Monastier Di Treviso, January, 471–483. https://ideas.repec.org/h/prp/micp17/471-483.html

Kane, B. G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2017). Digital Maturity. MIT SLOAN Management Review, 59180. https://sloanreview.mit.edu/projects/achieving-digital-maturity/

Khan, S. (2016). Leadership in the digital age – A study on the effects of digitalisation on top management leadership. Management and Organization, 54. http://urn.kb.se/resolve?urn=urn:nbn:se:su:diva-133809%0A

DOI: 10.1177/21582440211047576

McKinsey & Company. (2019). Automation and the Future of Work in Indonesia. McKinsey & Company, September, 21–28. https://www.mckinsey.com/~/media/McKinsey/Featured Insights/Asia Pacific/Automation and the future of work in Indonesia/Automation-and-the-future-of-work-in-Indonesia-vF.ashx

DOI: 10.22617/SGP200085-2

DOI: 10.33751/jhss.v5i2.3753

Pimentel, J. (2010). A note on the usage of Likert Scaling for research data analysis A note on the usage of Likert Scaling for research data analysis. USM R&D Journal, 109–112. https://www.researchgate.net/publication/331231816_A_note_on_the_usage_of_Likert_Scaling_for_research_data_analysis

DOI: 10.2991/aebmr.k.201116.045

Sainger, G. (2018). Leadership in Digital Age: A Study on the Role of Leader in this Era of Digital Transformation. International Journal on?:Leadership, 6(1), 1–6. http://www.publishingindia.com/ijl/60/leadership-in-digital-age-a-study-on-the-role-of-leader-in-this-era-of-digital-transformation/684/4784/

Sikalieh, D. (2017). The Influence of Individualized Consideration Leadership Behaviour on Employee Performance in Small and Medium Enterprises in Kenya United States International University-Africa United States International University-Africa. International Journal of Business and Social Science, 8(2), 163–173.

DOI: 10.5296/ber.v8i3.13368

Sugiyono. (2012). Business research methods. Alfabeta.

DOI: 10.53400/mimbar-sd.v8i1.30468

Tabrizi, B., Lam, E., Girard, K., & Irvin, V. (2019). Digital Transformation Is Not About Technology. Harvard Business Review. https://hbr.org/2019/03/digital-transformation-is-not-about-technology

Truter, B. (2016). Transformational Leadership Style?: The Relationship To Companies That Are Digital Leaders. Gordon Institute of Business Science, November, 1–114. https://repository.up.ac.za/handle/2263/59790

DOI: 10.4103/IJAM.IJAM_7_18

DOI: 10.1016/j.pubrev.2019.04.012