The Role of Empowering Leadership in Facing the Era of the Digital Industrial Revolution: Literature Review

Authors

  • Dandri Widyo Universitas Diponegoro, Semarang, Indonesia
  • Muhammad Galih Indrajaya Universitas Diponegoro, Semarang, Indonesia
  • Intan Ratnawati Universitas Diponegoro, Semarang, Indonesia

Keywords:

Digital Revolution, Empowering Leadership, Industry 4.0 Technology, Employee Performance

Abstract

This research aims to explore the role of empowering leadership in facing the era of
digital revolution/industry 4.0. The problem raised is the low performance of
employees in several organizations caused by a lack of autonomy, trust, and support
from leaders in the era of the digital revolution. The dynamic increase in the
application of Industry 4.0 technology makes the orientation of organizations
towards dehumanization result in a lot of employee concerns on technology which
can lead to a loss of view of the centrality of human resources, because organization
requires employees who are adaptive in the influence of employee motivation and
work engagement. To overcome this, this study examines how empowering
leadership can increase the behavior of extra employee roles which leads to improved
performance in the era of the industrial revolution. The method used in this study is
literature review. Research findings show that empowering leadership significantly
improves employee performance. Employees who are given more autonomy and
support by leaders can show proactive behavior that ultimately increases
productivity and quality of work. The contribution of this study is to provide
empirical evidence that leadership empowerment can be an effective strategy in
improving employee performance in organizations. These findings are relevant for
leaders who want to create a more collaborative and productive work environment
in the era of the digital/Industry 4.0 revolution.

Downloads

Download data is not yet available.

References

Abuelhassan, A. E., Alharbi, S. S., Khreis, S. H. A., & Alharbi, M. M. (2024). When can

empowering leadership foster intrinsic motivation and proactive performance in the

tourism and hospitality industry? A moderated mediation model. International Journal of

Hospitality Management, 122, 103860.

Ahmed, T., Chaojun, Y., Hongjuan, Y., & Mahmood, S. (2022). The impact of empowering

leadership on job performance of higher education institutions employees: mediating role

of goal clarity and self-efficacy. Psychology Research and Behavior Management, 677-694.

Albrecht, S. L., & Andreetta, M. (2011). The influence of empowering leadership,

empowerment and engagement on affective commitment and turnover intentions in

community health service workers: Test of a model. Leadership in health services, 24(3),

-237.

Ali, M., Lei, S. H. E. N., Jie, Z. S., & Rahman, M. A. (2018). Empowering leadership and

employee performance: A mediating role of thriving at work. International Journal of Asian

Business and Information Management (IJABIM), 9(2), 1-14.

Amundsen, S., & Martinsen, Ø. L. (2014). Empowering leadership: Construct clarification,

conceptualization, and validation of a new scale. The Leadership Quarterly, 25(3), 487–511.

Arnold, J. A., Arad, S., Rhoades, J. A., & Drasgow, F. (2016). The empowering leadership

questionnaire: the construction and validation of a new scale for measuring leader

behaviors. Journal of Organizational Behavior, 21(3), 249–269.

Badjie, G., Thoyib, A., Hadiwidjojo, D., & Rofiq, A. (2019). Introducing new employee

empowerment approach: A systematic literature review. Humanities & Social Sciences

Reviews, 7 (5), 696–706.

Bamel, U., Kumar, S., Lim, W. M., Bamel, N., & Meyer, N. (2022). Managing the dark side of

digitalization in the future of work: A fuzzy TISM approach. Journal of Innovation and

Knowledge, 7(4), 100275.

Basthiani, I. A., & Pangestuti, I. R. D. (2024). The Role Green Economy in Sustainable

Development as Long-Term Environmental and Economic Stability: A

Literature. Research Horizon, 4(4), 187-196.

Blau, P. (2017). Exchange and power in social life. New York: Routledge.

Cheong, M., Yammarino, F. J., Dionne, S. D., Spain, S. M., & Tsai, C. Y. (2019). A review of

the effectiveness of empowering leadership. Leadership Quarterly, 30(1), 34–58.

Cook, K. S., Cheshire, C., Rice, E. R., & Nakagawa, S. (2013). Social exchange

theory. Handbook of social psychology, 61-88.

Cropanzano, R., Anthony, E. L., Daniels, S. R., & Hall, A. V. (2017). Social exchange theory:

A critical review with theoretical remedies. Academy of management annals, 11(1), 479-516.

Dennerlein, T., & Kirkman, B. L. (2023). The forgotten side of empowering others: How

lower social structural empowerment attenuates the effects of empowering leadership on

employee psychological empowerment and performance. Journal of Applied Psychology.

Desta, A. G., & Mulie, H. (2024). The effect of empowering leadership practices on employees

performance with the mediating role of work engagement: the case of ethio-telecom.

Cogent Business and Management, 11(1).

Dias, A. M., Carvalho, A. M., & Sampaio, P. (2022). Quality 4.0: literature review analysis,

definition and impacts of the digital transformation process on quality. International

Journal of Quality & Reliability Management, 39(6), 1312-1335.

Faulks, B., Song, Y., Waiganjo, M., Obrenovic, B., & Godinic, D. (2021). Impact of

empowering leadership, innovative work, and organizational learning readiness on

sustainable economic performance: an empirical study of companies in russia during the

COVID-19 pandemic. Sustainability (Switzerland), 13(22).

Fekrisari, M., & Kantola, J. (2024). Integrating industry 4.0 in manufacturing: overcoming

challenges and optimizing processes (case studies). The TQM Journal, 36(9), 347-370.

Fernandez-Vidal, J., Perotti, F. A., Gonzalez, R., & Gasco, J. (2022). Managing digital

transformation: The view from the top. Journal of Business Research, 152, 29-41.

Friska, R., Pramono, A. J., Susanto, H., Akbar, B., & Suwarno, S. (2023). Empirical Study of

The Effect of Career Development on Auditor Performance in Public Sector in

Indonesia. Research Horizon, 3(3), 133-150.

Gao, A., & Jiang, J. (2019). Perceived empowering leadership, harmonious passion, and

employee voice: the moderating role of job autonomy. Frontiers in psychology, 10, 1484.

Hai, S., & Park, I. J. (2024). How can promote hotel employees’ performances? Relative

importance of high-performance HR practices and the moderating role of empowering

leadership. International Journal of Hospitality Management, 119, 103706.

Haleem, A., Javaid, M., & Singh, R. P. (2024). Perspective of leadership 4.0 in the era of fourth

industrial revolution: A comprehensive view. Journal of Industrial Safety, 1(1), 100006.

Hanaysha, J. (2016). Examining the effects of employee empowerment, teamwork, and

employee training on organizational commitment. Procedia-Social and Behavioral Sciences,

, 298-306.

Helland, E., Christensen, M., & Innstrand, S. T. (2020). The relationship between

empowering leadership, work characteristics, and work engagement among academics: A

SEM mediation analysis. Scandinavian Journal of Work and Organizational Psychology, 5(1),

–13.

Hidayat, T., Nashirah, A. F., & Pangestuti, I. R. D. (2024). Analyzing the Consumer Behavior

and Implications of Sustainable Consumption Among Generation Z. Research

Horizon, 4(4), 161-176.

Imam, S., & Javed, T. (2019). Job security, organizational support and employee performance:

mediating role of employee satisfaction in medical sector of Pakistan. International Journal

Academic Research Business and Social Sciences, 9(3), 1250–1268.

Juyumaya, J. (2022). How psychological empowerment impacts task performance: The

mediation role of work engagement and moderating role of age. Frontiers in

Psychology, 13, 889936.

Kanter, R. M. (1998). Power failure in management circuits. In Healthcare Forum

Journal (Vol. 41, No. 2, pp. 44-46). Healthcare Forum.

Kim, M., & Beehr, T. A. (2020). Empowering leadership: leading people to be present through

affective organizational commitment?. The International Journal of Human Resource

Management, 31(16), 2017-2044.

Kitchenham, B. (2004). Procedures for performing systematic reviews. Keele, UK, Keele

University, 33(2004), 1-26.

Laksmita, V. A., & Perdhana, M. S. (2024). The Role of Leadership Style in Shaping Employee

Performance. Research Horizon, 4(4), 177-186.

Lorinkova, N. M., & Perry, S. J. (2017). When Is Empowerment Effective? The Role of

Leader-Leader Exchange in Empowering Leadership, Cynicism, and Time Theft. Journal

of Management, 43(5), 1631–1654.

Molm, L. D., Takahashi, N., & Peterson, G. (2000). Risk and trust in social exchange: An

experimental test of a classical proposition. American journal of sociology, 105(5), 1396-

Mowday, R. T., Steers, R. M., & Porter, L. W. (1979). The measurement of organizational

commitment. Journal of vocational behavior, 14(2), 224-247.

Mulyana, M., Din, M., Mustamin, M., Amir, A. M., Karim, F., & Betty, B. (2022). Local

government own-source revenue and general allocation funds on capital expenditure:

Economic growth as moderating variable. Arthatama, 6(1), 44-54.

Pazetto, C. F., Luiz, T. T., & Beuren, I. M. (2024). Empowering leadership for contextual

performance: serial mediation of organizational support and commitment. International

Journal of Productivity and Performance Management, 73(4), 1005–1026.

Pett, T., Haddad, G., & Nagpal, G. (2024). Does empowering leadership affect SMEs'

sustainability performance through knowledge transfer?. European Management Journal.

Qian, J., Li, X., Wang, B., Song, B., Zhang, W., Chen, M., & Qu, Y. (2018). A role theory

perspective on how and when goal-focused leadership influences employee voice behavior.

Frontiers in Psychology, 9(3), 1244.

Quyen, T. H. (2020). The relationship between green procurement practices and

organizational performance in the manufacturing industry of Vietnam. Arthatama, 4(1),

-16.

Radziwill, N. (2020). Connected, Intelligent, Automated. California: Quality Press.

Segarwati, Y., Nurhayati, N., Nurkania, T., Yuniarti, Y., & Jamaludin, M. (2022).

Implementation of supply chain management using the ERP system at XYZ Company

Indonesia. Research Horizon, 2(6), 561-567.

Singh, S., Sharma, K. K., Mittal, A., & Chand, P. K. (2022). Effect of motivating language on

employee performance: mediating role of organisational citizenship behaviour and employee engagement in the healthcare sector. Global Knowledge, Memory and

Communication.

Suprapti, S., & Suparmi, S. (2022). Improving marketing performance through business

agility and market orientation in micro, small, and medium enterprises in Semarang

City. Arthatama, 6(1), 26-43.

Wahid, R. M., & Sarfiah, S. N. (2021). Analysis of Factors Affecting the Poverty Gap Index

in Aceh Province 2017-2019. Research Horizon, 1(6), 217-228.

Wang, L., Jin, X., & Yoo, J. J. (2024). The Process of Visionary Leadership Increases

Innovative Performance among IT Industry 4.0 for SMEs for Organizational

Sustainability: Testing the Moderated Mediation Model. Sustainability (Switzerland),

(19).

Wu, L., Chuang, C. H., & Hsu, C. H. (2014). Information sharing and collaborative behaviors

in enabling supply chain performance: A social exchange perspective. International Journal

of Production Economics, 148, 122-132.

Xu, Y., & Zhang, M. (2022). The study of the impact of empowering leadership on adaptive

performance of faculties based on chain mediating. Frontiers in Psychology, 13, 938951.

Yusoff, R. B. M., Imran, A., Qureshi, M. I., & Kazi, A. G. (2016). Investigating the relationship

of employee empowerment and sustainable manufacturing performance. International

Review of Management and Marketing, 6(4), 284-290.

Zhang, C., Wang, Z., Zhou, G., Chang, F., Ma, D., Jing, Y., ... & Zhao, D. (2023). Towards

new-generation human-centric smart manufacturing in Industry 5.0: A systematic

review. Advanced Engineering Informatics, 57, 102121.

Zhen, M., & Ding, W. (2024). Empowering employees for digital transformation in

manufacturing enterprises: A case study. South African Journal of Business

Management, 55(1), 4207.

Zonnenshain, A., & Kenett, R. S. (2020). Quality 4.0—the challenging future of quality

engineering. Quality Engineering, 32(4), 614-626.

Downloads

Published

2024-12-12

How to Cite

Widyo, D. ., Indrajaya, . M. G. ., & Ratnawati, I. . (2024). The Role of Empowering Leadership in Facing the Era of the Digital Industrial Revolution: Literature Review. Research Horizon, 4(6), 345–356. Retrieved from https://lifescifi.com/journal/index.php/RH/article/view/430