ASSESSING THE HUMAN DIMENSION OF DIGITAL LEADERSHIP TO SUCCESSFUL DIGITAL TRANSFORMATION

Sarah Diba Intan; Jann Tjakraatmadja

doi:10.31955/mea.v8i3.4581

Sarah Diba Intan Institut Teknologi Bandung, Bandung
Jann Tjakraatmadja Institut Teknologi Bandung, Bandung

DOI: https://doi.org/10.31955/mea.v8i3.4581

Keywords: Leadership, Digital Leadership, Digital Leadership Competency, Digital Transformation

Abstract

All industries are experiencing significant changes due to Industry 4.0 and the upcoming Industry 5.0. These advancements will greatly impact the industry globally over the next five years. Therefore, several companies are undergoing digital transformation. Successful digital transformation relies on various factors, with leadership being crucial for setting a vision and driving change. By undertaking digital transformation, companies ensure their leaders continuously develop essential digital leadership skills. According to the assessment at PT X a state-owned enterprise in Indonesia engaged in transportation and logistics, the results indicate a gap between employees' current digital leadership competencies and the required level. This study aims to improve digital leadership competency at PT X. Objectives include identifying existing training programs, evaluating digital leadership dimensions needing improvement, and determining necessary improvements. The study uses the Digital Leadership Scale by Haroon Abbu et al. (2022), with a quantitative design involving 124 respondents. Findings show that digital leadership is part of the leadership development program, tailored to job levels from junior managers to executive presidents. The lowest scores based on assessment are in skill acquisition and courage, indicating areas for improvement. This research provides insights into digital leadership and competency improvement, crucial for successful digital transformation.

References

Abbu, H., Mugge, P., Gudergan, G., Hoeborn, G., & Kwiatkowski, A. (2022). Measuring the Human Dimensions of Digital Leadership for Successful Digital Transformation: Digital leaders can use the authors’ Digital Leadership Scale to assess their own readiness and ability to accelerate digital transformation. Research Technology Management, 65(3), 39–49. https://doi.org/10.1080/08956308.2022.2048588
Adie, B. U., Tate, M., Cho, W., & Valentine, E. (2022). Digital Leaders and Digital Leadership: A Literature Review and Research Agenda. Pacific Asia Conference on Information Systems. https://api.semanticscholar.org/CorpusID:250957509
Bisson, P., Hall, B., Mccarthy, B., & Rifai, K. (2018). Breaking away: The secrets to scaling analytics.
Boe, O., & Torgersen, G. E. (2018). Norwegian “digital border defense” and competence for the unforeseen: A grounded theory approach. Frontiers in Psychology, 9(APR). https://doi.org/10.3389/fpsyg.2018.00555
Bunjak, A., Bruch, H., & Černe, M. (2022). Context is key: The joint roles of transformational and shared leadership and management innovation in predicting employee IT innovation adoption. International Journal of Information Management, 66, 102516. https://doi.org/10.1016/j.ijinfomgt.2022.102516
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10(AUG). https://doi.org/10.3389/fpsyg.2019.01938
Davenport, T. H., & Redman, T. C. (2020, May 21). Digital Transformation Comes Down to Talent in 4 Key Areas. Harvard Business Review.
DeAraujo, M. L., Priadana, S., Paramarta, V., & Sunarsi, D. (2021). Digital leadership in business organizations: an overview. In International Journal of Educational Administration (Vol. 2, Issue 1).
DeBrusk, C. (2018, March 26). The Risk of Machine-Learning Bias (and How to Prevent It). MITSloan Management Review.
EHL Insights. (2023, July 27). Why digital leadership is a non-negotiable for future success. EHL.
Flynn, J., Mallon, D., Scolbe-William, N., Cantrell, S., & Kirby, L. (2024, February 5). The transparency paradox: Could less be more when it comes to trust? Deloitte Insights.
Gottfredson, R., & Reina, C. (2020, January 17). To Be a Great Leader, You Need the Right Mindset. Harvard Business Review.
Gozman, D., & Willcocks, L. (2019). The emerging Cloud Dilemma: Balancing innovation with cross-border privacy and outsourcing regulations. Journal of Business Research, 97, 235–256. https://doi.org/https://doi.org/10.1016/j.jbusres.2018.06.006
Hasanah, & Sunarti. (2022). HUMAN CAPITAL AS A SOURCE OF STRATEGY FOR ACHIEVING ORGANIZATIONAL PERFORMANCE. Jurnal Ilmiah MEA (Manajemen, Ekonomi, Dan Akuntansi), 6(3).
Hensellek, S. (2022). Digital Leadership. Journal of Media Management and Entrepreneurship, 2(1), 1–15. https://doi.org/10.4018/JMME.2020010104
Imran, F., Shahzad, K., Butt, A., & Kantola, J. (2020). Leadership Competencies for Digital Transformation: Evidence from Multiple Cases. Advances in Intelligent Systems and Computing, 1209 AISC, 81–87. https://doi.org/10.1007/978-3-030-50791-6_11
Kane, G. C., Philips, N. A., Copulsky, J., & Andrus, G. (2019, March 12). How Digital Leadership Is(n’t) Different. MITSloan Management Review.
McAlpin, E., Levine, M., & Plass, J. L. (2023). Comparing two whole task patient simulations for two different dental education topics. Learning and Instruction, 83, 101690. https://doi.org/https://doi.org/10.1016/j.learninstruc.2022.101690
McKinsey. (2022). Human capital at work. www.mckinsey.com/business-functions/people-
Nguyen, T., & HOOI, L. A. I. (2020). RELATIONSHIP BETWEEN LEADERSHIP STYLES, EMPLOYEE CREATIVITY AND ORGANISATIONAL INNOVATION: A PROPOSED FRAMEWORK. International Journal of Business Innovation and Research, 1, 1. https://doi.org/10.1504/IJBIR.2020.10023683
Oberer, B., & Erkollar, A. (2018). Leadership 4.0: Digital Leaders in the Age of Industry 4.0. International Journal of Organizational Leadership, 7, 404–412.
Pentland, A. " S. ". (2012). The New Science of Building Great Teams.
Prince, K. A. (2018). Digital leadership: transitioning into the digital age. https://doi.org/10.25903/5d2bdd672c0e5
Reichheld, A., & Dunlop, Am. (2023, January 24). How to Build a High-Trust Workplace. MITSloan Management Review.
Satell, G., Bhaduri, A., & McLess, T. (2023, October 6). Help Your Employees Develop the Skills They Really Need. Harvard Business Review.
Schwarzmüller, T., Brosi, P., Duman, D., & Welpe, I. M. (2018). How Does the Digital Transformation Affect Organizations? Key Themes of Change in Work Design and Leadership. Mrev Management Revue, 29(2), 114–138.
Tardieu, H., Daly, D., Esteban-Lauzán, J., Hall, J., & Miller, G. (2020). Deliberately Digital (1st ed.). Springer Cham.
Taylor, K. T. (2021). Innovators Must Be Powerful Storytellers. Research-Technology Management, 64(3), 43–47. https://doi.org/10.1080/08956308.2021.1893057
Temelkova, M., & Fornaci, M. L. (2018). SKILLS FOR DIGITAL LEADERSHIP-PREREQUISITE FOR DEVELOPING HIGH-TECH ECONOMY. International Journal of Advanced Research in Impact, 7(12). www.garph.co.uk
UNESCO. (2018, March 15). Digital skills critical for jobs and social inclusion. UNESCO.
Zeike, S., Bradbury, K., Lindert, L., & Pfaff, H. (2019). Digital leadership skills and associations with psychological well-being. International Journal of Environmental Research and Public Health, 16(14). https://doi.org/10.3390/ijerph16142628
Zhu, J., Zhang, B., Xie, M., & Cao, Q. (2022). Digital Leadership and Employee Creativity: The Role of Employee Job Crafting and Person-Organization Fit. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.827057
Zulu, S. L., & Khosrowshahi, F. (2021). A taxonomy of digital leadership in the construction industry. Construction Management and Economics, 39(7), 565–578. https://doi.org/10.1080/01446193.2021.1930080