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.