Open AccessThe effect of transformational leadership climate on employee engagement during digital transformation in Indonesian banking industry
Author(s) -
Shinta Winasis,
Djumarno Djumarno,
Setyo Riyanto,
Eny Ariyanto
Publication year - 2021
Publication title -
international journal of data and network science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.296
H-Index - 7
eISSN - 2561-8156
pISSN - 2561-8148
DOI - 10.5267/j.ijdns.2021.3.001
Subject(s) - transformational leadership , business , marketing , sustainability , digital transformation , leadership style , public relations , political science , ecology , law , biology
The industrial era 4.0 requires companies to radically conduct changes related to technology. This is so that the company can follow the market's everchanging appetite and is essential to maintaining the company's sustainability. The digital transformation that occurs is fundamental, changing existing procedures and arrangements and creating a new business ecosystem. In carrying out a company transformation, it requires full support and commitment from workers. And the process needs to be conducted by competent leaders, in line with the spirit of change. In this study, the relationship between transformational leadership climate and employee engagement was measured. The research was conducted on banking service companies that have made radical changes related to technology for 2 years. The results showed that the climate created by leaders who adopt transformational leadership styles has a positive and significant effect on employee engagement. This research is a preliminary study, and has limitations, including the number of samples and types of companies studied.