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Transactional, Instrumental and transformational leadership: what is more effective for an Industry 4.0 transformation?

Holst, G.M. (2021) Transactional, Instrumental and transformational leadership: what is more effective for an Industry 4.0 transformation?

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Abstract:In this paper the relationship between Industry 4.0 and leadership is researched. Up to now, leadership is often used as a change management tool, yet Industry 4.0 adoption consists of a longer time period, therefore the role of leadership may differ. A theoretical framework is proposed which shows the relationship between the Industry 4.0 maturity level and the leadership style that is mostly used to reach said maturity level. This research consists of a mixed-methods approach: 16 leaders were interviewed about the used Industry 4.0 technologies in their organization and their leadership style. In the second phase the insights gained from the interviews were discussed with seven experts in a focus group. The data suggests that transformational and instrumental leadership are more effective for an Industry 4.0 implementation than transactional leadership. Furthermore it is suggested that there may be a relationship between the Industry 4.0 maturity level of an organization and the leadership style. The interviews suggest that transformational and instrumental leadership is used more in organizations with a higher Industry 4.0 maturity. The opposite goes for transactional leadership. The theoretical implications are that ideal leadership behaviours during an industry 4.0 transition is a combination of transformational and instrumental leadership.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/88646
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