Digital Leadership in Different Countries

*Digital Leadership - A New Leadership Style for the 21st Century*

collaborative learning environments:

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Education. 2009;**10**:265-277. DOI: 10.1177/1469787409343190

[63] Turner JR, Baker R. Team emergence leadership development and evaluation: A theoretical model using complexity theory. Journal of Information and Knowledge Management. 2017;**16**(2):1750012

Assessing problem-solving approach and group interaction. Assessment & Evaluation in Higher Education. 2010;**35**:191-208. DOI: 10.1080/02602930802691572

Active Learning in Higher

**106**

**109**

**Chapter 6**

**Abstract**

**1. Introduction**

The Digitization in the Spanish

The purpose of this chapter is to analyze the impacts of technological change in the Spanish publishing industry and see how it is adapting to the new digital environment. This work provides a deep insight into the Spanish publishing industry through the collection of available data, mainly from secondary sources of information, both public and private, and from a review of a great number of documents from different sources, grouping all the data obtained to generate a time series, allowing to glimpse the state and evolution of digitization in the Spanish publishing industry along these almost 20 years. This chapter refers to the new business models emerging from digitalization, ending with some conclusions, recommendations, and future lines of research. This chapter is not just trying to be a journey through the past, present, and future of the book industry in Spain, but it pretends being the

first step to continue investigating these and other aspects in a deeper way.

**Keywords:** digitization, publishing industry, innovation, print on demand,

the Internet, the e-book, or print on demand, among others [18, 19].

At the present time, due to new technologies and the chance of outsourcing both services and industrial processes, the possibility of publishing a book becomes increasingly achievable [19]. Digital publishing is a new mode of publishing where content is created, published, and produced using only digital technology, and

As with music [1, 2], film industry [3], and advertising [4, 5], publishing industry is living a relevant process of technological change: the transition from analog to digital formats [6–8]. As a matter of fact, it is undergoing a profound transformation as a result of the step to digital world, as much in terms of new products offering technical changes operated on processes of production and market distribution, and extended along the whole value chain [8–12]: from the very definition of what can be understood as a book to the different ways of producing and distributing it [13]. This change challenges existing business models and encourages companies to re-examine as much their product portfolios as their core competencies [14, 15]. Despite the examples of digitization in other creative industries, what is not clear for the publishing one is the model to follow in its digitalization process [7, 14, 15], notwithstanding that publishing companies will not be impervious to technical change and that, therefore, current publishing ways will be modified in future [8, 16, 17]. Specifically, many companies operating within have had to face the new challenges posed by all the innovations and technological changes associated with

business model, digital content, e-publishing, e-book, Spain

Publishing Industry

*Marta Magadán-Díaz and Jesús Rivas-García*

#### **Chapter 6**

## The Digitization in the Spanish Publishing Industry

*Marta Magadán-Díaz and Jesús Rivas-García*

#### **Abstract**

The purpose of this chapter is to analyze the impacts of technological change in the Spanish publishing industry and see how it is adapting to the new digital environment. This work provides a deep insight into the Spanish publishing industry through the collection of available data, mainly from secondary sources of information, both public and private, and from a review of a great number of documents from different sources, grouping all the data obtained to generate a time series, allowing to glimpse the state and evolution of digitization in the Spanish publishing industry along these almost 20 years. This chapter refers to the new business models emerging from digitalization, ending with some conclusions, recommendations, and future lines of research. This chapter is not just trying to be a journey through the past, present, and future of the book industry in Spain, but it pretends being the first step to continue investigating these and other aspects in a deeper way.

**Keywords:** digitization, publishing industry, innovation, print on demand, business model, digital content, e-publishing, e-book, Spain

#### **1. Introduction**

As with music [1, 2], film industry [3], and advertising [4, 5], publishing industry is living a relevant process of technological change: the transition from analog to digital formats [6–8]. As a matter of fact, it is undergoing a profound transformation as a result of the step to digital world, as much in terms of new products offering technical changes operated on processes of production and market distribution, and extended along the whole value chain [8–12]: from the very definition of what can be understood as a book to the different ways of producing and distributing it [13]. This change challenges existing business models and encourages companies to re-examine as much their product portfolios as their core competencies [14, 15]. Despite the examples of digitization in other creative industries, what is not clear for the publishing one is the model to follow in its digitalization process [7, 14, 15], notwithstanding that publishing companies will not be impervious to technical change and that, therefore, current publishing ways will be modified in future [8, 16, 17]. Specifically, many companies operating within have had to face the new challenges posed by all the innovations and technological changes associated with the Internet, the e-book, or print on demand, among others [18, 19].

At the present time, due to new technologies and the chance of outsourcing both services and industrial processes, the possibility of publishing a book becomes increasingly achievable [19]. Digital publishing is a new mode of publishing where content is created, published, and produced using only digital technology, and

digital products or services are broadcast online [20, 21]. It offers the possibility of having the content in various formats (paper book and e-book) and display modes, depending on customer's preferences [19, 22]. In short, on-demand publishing and e-books have caused, since Gutenberg and his printing press, the greatest transformation in the publishing industry [6].

Technology plays a key role in the current structure of the publishing sector. Publishers are adapting their strategies both to the new demand for digital content and the new emerging technological devices, but not leading this evolutionary process [14, 23].

Over the last 5 years, within the publishing sector, new players have emerged offering innovative solutions to aggregate and distribute the content, establishing marketing and transaction terms suited to this new framework [19]. Hence, the weight of technology equals the weight of intermediaries [24] and economic agents supporting them: Google, Amazon, and Apple are representative examples.

The Spanish publishing sector has an important weight within the so-called cultural industries, due to its return, jobs offered, and its power of growth and development from the innovations and technological changes assumed.

The Spanish publishing industry is among the most powerful in Europe, being one of the most internationally renowned [14]. Spain remains among the world's leading publishing powers, ranked as the fourth largest publishing power in the world (both in production and in turnover), followed by the United States, the United Kingdom, and Germany [14].

Among the cultural industries in Spain, the publishing sector is the one generating the greatest wealth. According to data from the [25], the annual revenues obtained in 2016 by Spanish publishing companies amounted to 2317.20 million euros and generated 12,608 direct jobs. To this figure, the indirect employment linked to the rest of the activities associated with the book chain should be added. The publishing sector is, in fact, an important source of employment: in 2015, the cultural employment in Spain, as a whole, provided 515,000 jobs, which is 2.9% of total employment in Spain. Direct employment in publishing companies increased yearly until 2008, when, as a result of the great crisis, it began to decrease until 2015, at which point a slight upward trend in job creation appeared to be confirmed.

At present, nearly 40 Spanish publishers have subsidiaries in 32 countries [14], mostly in Latin America (80%) and Europe (13.3%). On the other hand, within the ranking of the 56 most important publishers in the world by turnover, we have two Spanish groups: the Planeta group and the Santillana group, ranked 10 and 36, respectively, according to the data corresponding to 2016.

There are more than 3000 publishing companies of private capital in Spain, although the vast majority publishes less than 10 titles per year, and the sectoral structure is mainly comprised of small and medium enterprises, and where more than a quarter belongs to a business group.

The turnover of the publishing sector in the domestic market exceeds 2000 million euros and, whether one takes into account the size of the publishing companies is noted where large publishers generate 61.5% of turnover, the medium ones 25.9%, and the smallest publishers accumulate about 12.6%.

Despite technological advances and the development of electronic commerce, 52% of sales of paper books are channeled through bookshops and chains of bookstores. Only 1% is sold through the Internet. Nevertheless, the market dynamic and the emergence of the Internet have brought the sector about a direct distribution, namely toward a reduction of middlemen in supply chain or the redefinition of their roles.

**111**

**Figure 1.**

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

demand, and the new business models.

**2. Structure of the Spanish publishing sector**

publishers belongs to some business groups.

new changes.

that will be continued in future.

The main goal of this chapter is to analyze the impacts of technological changes in the Spanish publishing industry and see how it is adapting to the new digital environment. For that purpose, a descriptive study on the sectoral structure of the Spanish publishing industry is conducted to underline the paramount qualitative changes operated within it, such as the emergence of e-books, publishing on

There are very different businesses in size (both in size and in turnover), productive specialization, in terms of working conditions and the model of labor relations within the Spanish publishing sector, where it coexists from large multina-

Regarding the market share by size, it can be observed that (a) small publishing houses only represented 37% of the Spanish publishing structure in 1996, while two decades later, they accounted for 75% of the total, (b) medium publishers lost one percentage point, going from 11.7% in 1996 to 10.9% in 2016, (c) large publishers remain very stable, representing around 3%, and (d) only 26.7% of the total of

In 2017, the Spanish publishing production was developed by 3032 publishing agents. Nonetheless, during these last 20 years, the outgoing companies are much higher than the new ingoing ones. This is due to the fact that technological changes are challenging the existing business models and encourage companies to re-examine their product portfolios and their basic competencies [14, 15], which implies that many of the companies decide leaving the market not adapting to the

As shown in **Figure 1**, since 1996, there are 9% fewer publishers in Spain, a trend

**Figure 2** shows the annual evolution of the average print run per title published in Spain from 1996 to 2017 (in thousands of copies) which, as can be seen, has been progressively decreasing: in 2017, the average print run was of 2743 copies, while in

*Number of Spanish publishing companies (1996–2017). Source: own elaboration based on the data published in* 

*the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

tional groups to small companies of almost artisanal production.

*Digital Leadership - A New Leadership Style for the 21st Century*

mation in the publishing industry [6].

United Kingdom, and Germany [14].

process [14, 23].

to be confirmed.

digital products or services are broadcast online [20, 21]. It offers the possibility of having the content in various formats (paper book and e-book) and display modes, depending on customer's preferences [19, 22]. In short, on-demand publishing and e-books have caused, since Gutenberg and his printing press, the greatest transfor-

Technology plays a key role in the current structure of the publishing sector. Publishers are adapting their strategies both to the new demand for digital content and the new emerging technological devices, but not leading this evolutionary

Over the last 5 years, within the publishing sector, new players have emerged offering innovative solutions to aggregate and distribute the content, establishing marketing and transaction terms suited to this new framework [19]. Hence, the weight of technology equals the weight of intermediaries [24] and economic agents

The Spanish publishing industry is among the most powerful in Europe, being one of the most internationally renowned [14]. Spain remains among the world's leading publishing powers, ranked as the fourth largest publishing power in the world (both in production and in turnover), followed by the United States, the

Among the cultural industries in Spain, the publishing sector is the one generating the greatest wealth. According to data from the [25], the annual revenues obtained in 2016 by Spanish publishing companies amounted to 2317.20 million euros and generated 12,608 direct jobs. To this figure, the indirect employment linked to the rest of the activities associated with the book chain should be added. The publishing sector is, in fact, an important source of employment: in 2015, the cultural employment in Spain, as a whole, provided 515,000 jobs, which is 2.9% of total employment in Spain. Direct employment in publishing companies increased yearly until 2008, when, as a result of the great crisis, it began to decrease until 2015, at which point a slight upward trend in job creation appeared

At present, nearly 40 Spanish publishers have subsidiaries in 32 countries [14], mostly in Latin America (80%) and Europe (13.3%). On the other hand, within the ranking of the 56 most important publishers in the world by turnover, we have two Spanish groups: the Planeta group and the Santillana group, ranked 10 and 36,

There are more than 3000 publishing companies of private capital in Spain, although the vast majority publishes less than 10 titles per year, and the sectoral structure is mainly comprised of small and medium enterprises, and where more

The turnover of the publishing sector in the domestic market exceeds 2000 million euros and, whether one takes into account the size of the publishing companies is noted where large publishers generate 61.5% of turnover, the medium ones

Despite technological advances and the development of electronic commerce,

bookstores. Only 1% is sold through the Internet. Nevertheless, the market dynamic and the emergence of the Internet have brought the sector about a direct distribution, namely toward a reduction of middlemen in supply chain or the redefinition

52% of sales of paper books are channeled through bookshops and chains of

respectively, according to the data corresponding to 2016.

25.9%, and the smallest publishers accumulate about 12.6%.

than a quarter belongs to a business group.

supporting them: Google, Amazon, and Apple are representative examples. The Spanish publishing sector has an important weight within the so-called cultural industries, due to its return, jobs offered, and its power of growth and development from the innovations and technological changes assumed.

**110**

of their roles.

The main goal of this chapter is to analyze the impacts of technological changes in the Spanish publishing industry and see how it is adapting to the new digital environment. For that purpose, a descriptive study on the sectoral structure of the Spanish publishing industry is conducted to underline the paramount qualitative changes operated within it, such as the emergence of e-books, publishing on demand, and the new business models.

### **2. Structure of the Spanish publishing sector**

There are very different businesses in size (both in size and in turnover), productive specialization, in terms of working conditions and the model of labor relations within the Spanish publishing sector, where it coexists from large multinational groups to small companies of almost artisanal production.

Regarding the market share by size, it can be observed that (a) small publishing houses only represented 37% of the Spanish publishing structure in 1996, while two decades later, they accounted for 75% of the total, (b) medium publishers lost one percentage point, going from 11.7% in 1996 to 10.9% in 2016, (c) large publishers remain very stable, representing around 3%, and (d) only 26.7% of the total of publishers belongs to some business groups.

In 2017, the Spanish publishing production was developed by 3032 publishing agents. Nonetheless, during these last 20 years, the outgoing companies are much higher than the new ingoing ones. This is due to the fact that technological changes are challenging the existing business models and encourage companies to re-examine their product portfolios and their basic competencies [14, 15], which implies that many of the companies decide leaving the market not adapting to the new changes.

As shown in **Figure 1**, since 1996, there are 9% fewer publishers in Spain, a trend that will be continued in future.

**Figure 2** shows the annual evolution of the average print run per title published in Spain from 1996 to 2017 (in thousands of copies) which, as can be seen, has been progressively decreasing: in 2017, the average print run was of 2743 copies, while in

**Figure 1.**

*Number of Spanish publishing companies (1996–2017). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

#### **Figure 2.**

*Annual trend of the average print runs per title published in Spain (1996–2017). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

1996, it was of 6670 copies, which meant a reduction by 59% for the period considered. However, there is a circumstance that, in the Spanish publishing market, works with significantly large print runs coexisting with other ones that barely reach 1000 copies.

Analyzing the data of the Spanish ISBN agency, it should be noted that it registered, for the first time in 2000, titles in the form of Internet file, but it is from 2012 when the new technologies burst with force, with the use of new formats. Since 2010, the number of publishing companies producing in electronic format has increased by 70%. In case of Spain, the electronic publishing experienced a significant increase in recent years, mainly in the Internet archives segment. New publishers emerge exclusively devoted to digital books, while many others publish in both formats. In 2017, 87% of titles published in digital format were also published on paper, and only 13% were published solely in digital format. These figures lead to the following conclusion: there is a duality in the publishing work, due to the same title frequently published in both the formats.

**Figure 3** shows the annual evolution of the number of e-books published in Spain between 2007 and 2017. In 2017, 28,433 digital books were registered in Spain, representing almost 30% of publishing production, while in 2008, it only represented 2.4%.

The development level of the e-book market in Spain follows a similar line to that of many other countries in our environment, with the exception of the United Kingdom, the leading country behind the United States [14]. In the case of Spain, the e-publishing experienced a significant increase in recent years.

It is concluded that the Spanish publishing activity shows a series of trends taking hold in recent years. In particular, it is worth highlighting: (a) the progressive shortening of the life cycle of books in the market; (b) the existence of more titles, but also fewer copies, that is, the decrease of the average print run; (c) the decline in printing and publishing, as a result of the growing commitment to digital publishing; (d) the reduction of public and private publishers; and (e) the diminished number of copies sold.

Therefore, the appearance and popularization of e-books, reading on digital media, the emergence of self-publishing and distribution platforms, the possibility of making short print runs on demand, or the birth of exclusive e-publishing houses [6] provides the basis for a reorganization not yet completed [19].

**113**

**3.1 e-Book**

**Figure 3.**

its form [21].

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

**3. Qualitative changes in the Spanish publishing sector**

print runs, avoiding returns from bookstores and distributors [29].

integrating design and manufacturing technologies [19, 30–32].

contents have been disconnected from support [26].

the way of publishing the printed books [27].

The new environment of the Spanish publishing sector goes hand in hand with technology evolution [14]. Digital technology eliminates geographical boundaries inherent in printed publication, and the physical distribution channels associated with traditional publishing models are modified [10]. New productive processes are incorporated, leaving room for new ways of understanding the book. Finally, the

*Annual trend of the number of e-books published in Spain (2007–2017). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

However, not only innovations have taken place in the way of materializing the publishing work, that is, in the chosen support or format, but also in the production processes: the appearance of digital printing on demand (POD) is also modifying

The POD is transforming the way publishers offer paper books; that is, it is no longer necessary to print several copies from a title and wait for them to be sold: with this system, any title can be offered in a library or platform, where an order is produced, then it is printed, and sent to the client [28]. In this way, the publisher need not make a significant investment in production, reducing, in this way, the business risk. In addition, a publisher does not need to store the remaining unsold

The Spanish publishing sector could not be understood, currently, without linking both process and product innovation. On the one hand, new products are developed, such as e-books, but on the other hand, the production processes of the books are improved, both in terms of paper and electronic formats, to which new features are also added, such as augmented reality and printing on demand, thus

In a seminal sense, the book is the raw material of knowledge, culture, and information [19]. Therefore, the essence of the book would lie in its content, not in

There are multiple definitions of e-books [33, 34]. An electronic book can be considered: (a) a digitized version of a book in paper form to be viewed on a specific

**Figure 3.**

*Digital Leadership - A New Leadership Style for the 21st Century*

1996, it was of 6670 copies, which meant a reduction by 59% for the period considered. However, there is a circumstance that, in the Spanish publishing market, works with significantly large print runs coexisting with other ones that barely

*Annual trend of the average print runs per title published in Spain (1996–2017). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the* 

Analyzing the data of the Spanish ISBN agency, it should be noted that it registered, for the first time in 2000, titles in the form of Internet file, but it is from 2012 when the new technologies burst with force, with the use of new formats. Since 2010, the number of publishing companies producing in electronic format has increased by 70%. In case of Spain, the electronic publishing experienced a significant increase in recent years, mainly in the Internet archives segment. New publishers emerge exclusively devoted to digital books, while many others publish in both formats. In 2017, 87% of titles published in digital format were also published on paper, and only 13% were published solely in digital format. These figures lead to the following conclusion: there is a duality in the publishing work, due to the same

**Figure 3** shows the annual evolution of the number of e-books published in Spain between 2007 and 2017. In 2017, 28,433 digital books were registered in Spain, representing almost 30% of publishing production, while in 2008, it only represented 2.4%. The development level of the e-book market in Spain follows a similar line to that of many other countries in our environment, with the exception of the United Kingdom, the leading country behind the United States [14]. In the case of Spain,

It is concluded that the Spanish publishing activity shows a series of trends taking hold in recent years. In particular, it is worth highlighting: (a) the progressive shortening of the life cycle of books in the market; (b) the existence of more titles, but also fewer copies, that is, the decrease of the average print run; (c) the decline in printing and publishing, as a result of the growing commitment to digital publishing; (d) the reduction of public and private publishers; and (e) the diminished

Therefore, the appearance and popularization of e-books, reading on digital media, the emergence of self-publishing and distribution platforms, the possibility of making short print runs on demand, or the birth of exclusive e-publishing houses

the e-publishing experienced a significant increase in recent years.

[6] provides the basis for a reorganization not yet completed [19].

**112**

number of copies sold.

reach 1000 copies.

**Figure 2.**

*Book in Spain).*

title frequently published in both the formats.

*Annual trend of the number of e-books published in Spain (2007–2017). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

#### **3. Qualitative changes in the Spanish publishing sector**

The new environment of the Spanish publishing sector goes hand in hand with technology evolution [14]. Digital technology eliminates geographical boundaries inherent in printed publication, and the physical distribution channels associated with traditional publishing models are modified [10]. New productive processes are incorporated, leaving room for new ways of understanding the book. Finally, the contents have been disconnected from support [26].

However, not only innovations have taken place in the way of materializing the publishing work, that is, in the chosen support or format, but also in the production processes: the appearance of digital printing on demand (POD) is also modifying the way of publishing the printed books [27].

The POD is transforming the way publishers offer paper books; that is, it is no longer necessary to print several copies from a title and wait for them to be sold: with this system, any title can be offered in a library or platform, where an order is produced, then it is printed, and sent to the client [28]. In this way, the publisher need not make a significant investment in production, reducing, in this way, the business risk. In addition, a publisher does not need to store the remaining unsold print runs, avoiding returns from bookstores and distributors [29].

The Spanish publishing sector could not be understood, currently, without linking both process and product innovation. On the one hand, new products are developed, such as e-books, but on the other hand, the production processes of the books are improved, both in terms of paper and electronic formats, to which new features are also added, such as augmented reality and printing on demand, thus integrating design and manufacturing technologies [19, 30–32].

#### **3.1 e-Book**

In a seminal sense, the book is the raw material of knowledge, culture, and information [19]. Therefore, the essence of the book would lie in its content, not in its form [21].

There are multiple definitions of e-books [33, 34]. An electronic book can be considered: (a) a digitized version of a book in paper form to be viewed on a specific e-device [35], (b) any work readable on the screen [6], (c) the reading device in itself [6], and (d) any digitized file capable of being downloaded and decoded in e-devices for reading and viewing [36].

In short, an e-book is a digital file that needs two integrated elements in order to be decoded: a physical reading device—hardware—and a decoding program software—enabling to interpret the content of the file [20].

The book, as a way of communication whose traditional form has been paper, is currently at a crossroads due to the defiant and disruptive emergence from e-books, challenging the existing business models in publishing industry and promoting organizations to re-examine as much their product portfolios as their core competencies [6, 14].

Regardless of its qualities as a product, the e-book has changed both the way of reading and the way in which a reader can approach a text. In case of Spain, e-publishing experienced a significant increase in recent years, mainly in the Internet archives segment [37]. It will be with the launch of the Amazon Kindle and the Apple iPad when the distribution and commercialization of the e-book begins to develop [38, 39], suggesting that one of the constraining factors, within the digital publishing industry, was the lack of an e-reader sufficiently sophisticated to attract readers to the digital domain [20].

In addition to the product innovation boosted by e-book, in recent years, other product innovations have also been adopted [39], such as: (a) audio books and (b) "bridge" books. Regarding the improvement of the characteristics of such publishing products, the following must be highlighted: (a) the augmented reality, in both forms—printed and electronic forms, and (b) the QR codes, in printed books [19].

An audio book is the recording of the contents of a book read aloud. It can be narrated with actors and be dramatized, adding sound effects. It can also be narrated by a computer program with electronic voice. According to the global e-book report in Spanish-speaking markets, the audio book is breaking out with force and there are initiatives supporting strongly this format. According to the same report, more than 77% of the audio books available in Spanish are fiction versus 23% nonfiction [19].

A "bridge" book consists of putting together a paper book with an iPad with synchronized content. While browsing the pages of the book, the device will display additional digital contents. Augmented reality enables the instantaneous superposition of images, markers, or information generated virtually on real-world images. Through a webcam and a PC, it is possible to see 3D graphics displayed by means of computer-programmed codes or marks [19].

A QR code is a module for storing information in a dot matrix or in a twodimensional bar code. For example, QR codes can be placed on books, either on its spine, on the cover, on the back cover, or somewhere where the user can quickly identify it. In this way, it can provide complementary information: Website of the book, book trailer, synopsis, works of the author, or any other hyperlinks [19].

In any case, the weight of e-book turnover continues to be quite low—compared to the rest of the formats, but books on Law and Economic Sciences, included within the Social Sciences category and Humanities [17].

**Figure 4** shows the turnover of the Spanish e-book industry between 2009 and 2017, expressed in millions of euros, which meant an increase of approximately 2 million with respect to the figure recorded the previous year. The turnover from e-books reached 119.1 million euros in 2017, 1.8% more than in 2016. Although the turnover generated through e-books continues to rise, this does not suppose more than 5% from the total turnover of the Spanish publishing companies [40].

Despite the increasing production of e-books, its turnover continues to be a residual, it does not represent more than 5% of the total annual turnover, which is

**115**

publishers' production.

**Figure 4.**

content [14, 19].

**3.2 Publishing on demand**

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

*based on the Domestic Commerce of the book (FGEE).*

mainly channeled (79.5%) through digital platforms and distributors, like Amazon (with a share of 22.6% in 2017), Casa del Libro, Google or Apple Store, among others. **Figure 5** shows the income from the e-book sales in Spain in 2017, classified by commercial distribution platform and in thousands of euros. In that year, the turnover from e-books in the country through Amazon approached 27.04 million euros [41]. Some of the factors responsible for the low turnover of e-books in Spain are: (i) the high price of e-books, which is almost always close to or even higher than that of printed books as a consequence, mainly, of the different tax treatment between both [42], (ii) the high price of e-readers with an uncompetitive costbenefit ratio [43], (iii) the incompatibility between the different reading platforms [44], (iv) the strict control of copyright [45], (v) the existence of illegal download platforms [46], and (vi) the lack of integration between suppliers of content [47]. As in paper format, Spanish publishers export a lot of digital content: 60% of digital downloads of Spanish books are made outside Spain, mainly in Latin America and the United States, consolidating the export trend of the Spanish

*Trend of the turnover from e-book in Spain (from 2007 to 2017), in millions of euros. Source: own elaboration* 

Throughout the year 2017, 53% of e-book sales of the Spanish publishers took place in Spain, while the rest of the sales took place in Latin America (33%), the

With respect to e-book distribution, most new players come from the technology industry and have few links to the world of publishing. In short, hardware manufacturers and Internet service providers have entered the book industry and can outperform the traditional players in creating new business models for digital

The inrush of digital printing has given graphic arts workshops much more agile tools—mainly in time—to respond to new demands: short print runs, printing on demand—increasingly frequent—and personalization of copies that is modifying the way to produce the printed books [27, 48]. Publishing on demand (POD) is nothing more than applying the philosophy of Just in Time to publishing sector or, in other words, producing what is going to be sold, thus avoiding overproduction.

United States (9%), Europe (4%), and the rest of the world (1%).

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

#### **Figure 4.**

*Digital Leadership - A New Leadership Style for the 21st Century*

software—enabling to interpret the content of the file [20].

e-devices for reading and viewing [36].

core competencies [6, 14].

readers to the digital domain [20].

computer-programmed codes or marks [19].

within the Social Sciences category and Humanities [17].

nonfiction [19].

e-device [35], (b) any work readable on the screen [6], (c) the reading device in itself [6], and (d) any digitized file capable of being downloaded and decoded in

In short, an e-book is a digital file that needs two integrated elements in order to be decoded: a physical reading device—hardware—and a decoding program—

The book, as a way of communication whose traditional form has been paper,

Regardless of its qualities as a product, the e-book has changed both the way of reading and the way in which a reader can approach a text. In case of Spain, e-publishing experienced a significant increase in recent years, mainly in the Internet archives segment [37]. It will be with the launch of the Amazon Kindle and the Apple iPad when the distribution and commercialization of the e-book begins to develop [38, 39], suggesting that one of the constraining factors, within the digital publishing industry, was the lack of an e-reader sufficiently sophisticated to attract

In addition to the product innovation boosted by e-book, in recent years, other product innovations have also been adopted [39], such as: (a) audio books and (b) "bridge" books. Regarding the improvement of the characteristics of such publishing products, the following must be highlighted: (a) the augmented reality, in both forms—printed and electronic forms, and (b) the QR codes, in printed books [19]. An audio book is the recording of the contents of a book read aloud. It can be narrated with actors and be dramatized, adding sound effects. It can also be narrated by a computer program with electronic voice. According to the global e-book report in Spanish-speaking markets, the audio book is breaking out with force and there are initiatives supporting strongly this format. According to the same report, more than 77% of the audio books available in Spanish are fiction versus 23%

A "bridge" book consists of putting together a paper book with an iPad with synchronized content. While browsing the pages of the book, the device will display additional digital contents. Augmented reality enables the instantaneous superposition of images, markers, or information generated virtually on real-world images. Through a webcam and a PC, it is possible to see 3D graphics displayed by means of

A QR code is a module for storing information in a dot matrix or in a twodimensional bar code. For example, QR codes can be placed on books, either on its spine, on the cover, on the back cover, or somewhere where the user can quickly identify it. In this way, it can provide complementary information: Website of the book, book trailer, synopsis, works of the author, or any other hyperlinks [19].

to the rest of the formats, but books on Law and Economic Sciences, included

In any case, the weight of e-book turnover continues to be quite low—compared

**Figure 4** shows the turnover of the Spanish e-book industry between 2009 and 2017, expressed in millions of euros, which meant an increase of approximately 2 million with respect to the figure recorded the previous year. The turnover from e-books reached 119.1 million euros in 2017, 1.8% more than in 2016. Although the turnover generated through e-books continues to rise, this does not suppose more than 5% from the total turnover of the Spanish publishing companies [40]. Despite the increasing production of e-books, its turnover continues to be a residual, it does not represent more than 5% of the total annual turnover, which is

is currently at a crossroads due to the defiant and disruptive emergence from e-books, challenging the existing business models in publishing industry and promoting organizations to re-examine as much their product portfolios as their

**114**

*Trend of the turnover from e-book in Spain (from 2007 to 2017), in millions of euros. Source: own elaboration based on the Domestic Commerce of the book (FGEE).*

mainly channeled (79.5%) through digital platforms and distributors, like Amazon (with a share of 22.6% in 2017), Casa del Libro, Google or Apple Store, among others. **Figure 5** shows the income from the e-book sales in Spain in 2017, classified by commercial distribution platform and in thousands of euros. In that year, the turnover from e-books in the country through Amazon approached 27.04 million euros [41].

Some of the factors responsible for the low turnover of e-books in Spain are: (i) the high price of e-books, which is almost always close to or even higher than that of printed books as a consequence, mainly, of the different tax treatment between both [42], (ii) the high price of e-readers with an uncompetitive costbenefit ratio [43], (iii) the incompatibility between the different reading platforms [44], (iv) the strict control of copyright [45], (v) the existence of illegal download platforms [46], and (vi) the lack of integration between suppliers of content [47].

As in paper format, Spanish publishers export a lot of digital content: 60% of digital downloads of Spanish books are made outside Spain, mainly in Latin America and the United States, consolidating the export trend of the Spanish publishers' production.

Throughout the year 2017, 53% of e-book sales of the Spanish publishers took place in Spain, while the rest of the sales took place in Latin America (33%), the United States (9%), Europe (4%), and the rest of the world (1%).

With respect to e-book distribution, most new players come from the technology industry and have few links to the world of publishing. In short, hardware manufacturers and Internet service providers have entered the book industry and can outperform the traditional players in creating new business models for digital content [14, 19].

#### **3.2 Publishing on demand**

The inrush of digital printing has given graphic arts workshops much more agile tools—mainly in time—to respond to new demands: short print runs, printing on demand—increasingly frequent—and personalization of copies that is modifying the way to produce the printed books [27, 48]. Publishing on demand (POD) is nothing more than applying the philosophy of Just in Time to publishing sector or, in other words, producing what is going to be sold, thus avoiding overproduction.

POD is transforming the way publishers offer paper books, and as a consequence, it is no longer necessary to print several units of a title and wait for them to be sold [49], and it allows printing a book formerly shown in a virtual library, produced by an order and starting from one single copy [28]. POD eases publishers to have a title available indefinitely from a printed publishing and replenish the market in a short period of time without incurring logistic costs.

Due to this system, any title can be offered in a bookstore or platform: an order is produced, then it is printed, and sent to the client [19, 28]. So, publishers reduce their business risks and, in addition, do not need to store the remaining print run, avoiding the returning of books from bookstores and distributors [29].

**Figure 6** shows how the POD process is carried out, beginning with a publisher entering a title on the platform until it reaches the reader.

Many platforms, such as Amazon, have launched printing on demand, combining printing, distribution, and sale from their Websites anywhere in the world. POD has erased barriers to market entry and has provided a solution for small publishers to access a global market, linking to a wholesaler or retailer with the means of performing POD.

Unlike the production of very short print runs (from 50 to 100 copies), POD allows the production of a book as a specific response to a customer order, avoiding

#### **Figure 5.**

*Revenues generated by e-book sales published in Spain in 2017, classified by commercial distribution platform (in thousands of euros). Source: own elaboration based on the data published in the Panorama of the Spanish edition (Ministry of Culture and Observatory of the Book in Spain).*

**117**

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

communication technologies.

publishing sector.

demand [50].

stakeholders [51, 52].

self-publishing [14, 19].

markets and their needs [15, 53–55].

expand their product portfolio [63].

texts of some 10,000 words in digital format.

overproduction. In the same way, by facilitating reprinting "on demand," titles never get exhausted. With a model that implies to sell the copy first and then produce it (a converse process to the traditional one), any publisher can offer a title

POD represents only 0.5% of the total published on paper in Spain. This is because many publishers only use it as an alternative for the reprinting of discontinued titles. This 1:1 printing model could serve to guarantee replenishment and sale

The technological change experimented by the Spanish publishing sector gives rise to the development of new business models arising from the adaptation within their productive structures of those innovations emerging from information and

For example, Logista Books, the largest independent book distributor in Spain, has recently launched a new integrated service of POD and distribution jointly with Lantia Publishing, a leading company in the application of new technologies in the

In 2016, the Spanish Confederation of Booksellers (CEGAL) incorporates the printing on demand in its alliance with Podiprint so that bookstores throughout Spain can incorporate more than 5000 titles up to now inaccessible for them. The contracting of printing services and on-demand distribution is an increasing practice among Spanish publishers, mainly to meet the international

Every business model must be built on a logical plan to bring a product to market

Business models not only provide the logical architecture behind the production and supply of a product, but also a comprehension and response by companies to

Digitization in the publishing sector offers new ways of presenting content [19, 56] and eases new business models to be developed [21, 57–59], adopting innovations arising from information and communication technologies [60–62] in order to

There is no denying that the change in the business model exists, although the printed book remains, for the moment, the most profitable product within the portfolio of publishing products. Among the possible business models that Spanish publishing companies are currently testing, the following is highlighted: the fragmented content, the payment for consumption or content on demand, the subscription model, membership, crowdfunding, gamification, direct sales, and

The sale of fragmented content on the Internet started with music, through iTunes, which offered loose songs on the margin of the original album. This fragmentation is spreading through all the cultural industry, including the publishing one. In Spain, the Gestión 2000 label of Grupo Planeta was a pioneer in selling individual chapters of books, and Random House Mondadori created, within the Debate publishing house, a collection called "enDebate" to publish short nonfiction

Payment for consumption or content on demand is based on offering the client the possibility of paying for what is really consumed. As a result of this type of

and make profits [14]. Accordingly, companies have to innovate in their respective business models with new manners of creating and capturing value for their

**4. New business models in the Spanish publishing industry**

both on its Website and in other global distribution and sale platforms.

by drip, mainly in medium- and small-sized publishers [19].

**Figure 6.**

*The POD process. Source: own elaboration.*

#### *The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

*Digital Leadership - A New Leadership Style for the 21st Century*

market in a short period of time without incurring logistic costs.

entering a title on the platform until it reaches the reader.

performing POD.

avoiding the returning of books from bookstores and distributors [29].

POD is transforming the way publishers offer paper books, and as a consequence, it is no longer necessary to print several units of a title and wait for them to be sold [49], and it allows printing a book formerly shown in a virtual library, produced by an order and starting from one single copy [28]. POD eases publishers to have a title available indefinitely from a printed publishing and replenish the

Due to this system, any title can be offered in a bookstore or platform: an order is produced, then it is printed, and sent to the client [19, 28]. So, publishers reduce their business risks and, in addition, do not need to store the remaining print run,

**Figure 6** shows how the POD process is carried out, beginning with a publisher

Many platforms, such as Amazon, have launched printing on demand, combining printing, distribution, and sale from their Websites anywhere in the world. POD has erased barriers to market entry and has provided a solution for small publishers to access a global market, linking to a wholesaler or retailer with the means of

Unlike the production of very short print runs (from 50 to 100 copies), POD allows the production of a book as a specific response to a customer order, avoiding

*Revenues generated by e-book sales published in Spain in 2017, classified by commercial distribution platform (in thousands of euros). Source: own elaboration based on the data published in the Panorama of the Spanish* 

*edition (Ministry of Culture and Observatory of the Book in Spain).*

**116**

**Figure 6.**

*The POD process. Source: own elaboration.*

**Figure 5.**

overproduction. In the same way, by facilitating reprinting "on demand," titles never get exhausted. With a model that implies to sell the copy first and then produce it (a converse process to the traditional one), any publisher can offer a title both on its Website and in other global distribution and sale platforms.

POD represents only 0.5% of the total published on paper in Spain. This is because many publishers only use it as an alternative for the reprinting of discontinued titles. This 1:1 printing model could serve to guarantee replenishment and sale by drip, mainly in medium- and small-sized publishers [19].

The technological change experimented by the Spanish publishing sector gives rise to the development of new business models arising from the adaptation within their productive structures of those innovations emerging from information and communication technologies.

For example, Logista Books, the largest independent book distributor in Spain, has recently launched a new integrated service of POD and distribution jointly with Lantia Publishing, a leading company in the application of new technologies in the publishing sector.

In 2016, the Spanish Confederation of Booksellers (CEGAL) incorporates the printing on demand in its alliance with Podiprint so that bookstores throughout Spain can incorporate more than 5000 titles up to now inaccessible for them.

The contracting of printing services and on-demand distribution is an increasing practice among Spanish publishers, mainly to meet the international demand [50].

#### **4. New business models in the Spanish publishing industry**

Every business model must be built on a logical plan to bring a product to market and make profits [14]. Accordingly, companies have to innovate in their respective business models with new manners of creating and capturing value for their stakeholders [51, 52].

Business models not only provide the logical architecture behind the production and supply of a product, but also a comprehension and response by companies to markets and their needs [15, 53–55].

Digitization in the publishing sector offers new ways of presenting content [19, 56] and eases new business models to be developed [21, 57–59], adopting innovations arising from information and communication technologies [60–62] in order to expand their product portfolio [63].

There is no denying that the change in the business model exists, although the printed book remains, for the moment, the most profitable product within the portfolio of publishing products. Among the possible business models that Spanish publishing companies are currently testing, the following is highlighted: the fragmented content, the payment for consumption or content on demand, the subscription model, membership, crowdfunding, gamification, direct sales, and self-publishing [14, 19].

The sale of fragmented content on the Internet started with music, through iTunes, which offered loose songs on the margin of the original album. This fragmentation is spreading through all the cultural industry, including the publishing one. In Spain, the Gestión 2000 label of Grupo Planeta was a pioneer in selling individual chapters of books, and Random House Mondadori created, within the Debate publishing house, a collection called "enDebate" to publish short nonfiction texts of some 10,000 words in digital format.

Payment for consumption or content on demand is based on offering the client the possibility of paying for what is really consumed. As a result of this type of

initiatives and awareness on the existing demand—especially in nonfiction books for the consultation and acquisition of chapters or parts of it, "Slicebooks" emerged. The Planeta group has launched the Planetahipermedia.com initiative, a Website for business training through videos and short textual materials on a specific topic.

Subscription is a model adopted mainly because it entails very interesting advantages from the business point of view, including having a database with information from customers and with a fixed and preestablished income stream, which makes it possible to adapt the supply to the demand, so it is also good for business planning. The subscription models reached the publishing sector through subscriptions of legal content and technical books. Today, there are different generalist platforms in Spain offering this service to the reader such as 24Symbols and Nubico. In the Spanish digital market, the pioneer company to introduce this model was 24Symbols (10 years later, in 2011). To this, it added streaming reading from any device with access to a browser, relying on cloud computing. Although sales derived from online bookstores such as Amazon, Apple, and Kobo, among others continue to be one of the priority sale channels for Spanish publishers, sales derived from subscription platforms in 2017, especially in the United States, Germany, Spain and Mexico, are becoming more relevant for publishers, reaching 6% of total digital sales compared to 5% that represented in 2016. The sale of licenses of e-books to libraries reached 3% of the total digital sales in 2017 compared to the 2% achieved in 2016. All these figures show the consolidation of the subscription model.

Membership consists of forming a part as a member from a group or service, which implies in our analysis belonging to a group of clients that, in terms of exchange, is linked to a set of services and contents offered by a company whose affiliation may or may not entail an economic payment. Within this model, others may be included, such as payment for consumption, or, what is more usual, the subscription to certain services or contents. However, in principle, they are two different models, and although they are close, they should not be confused and should be considered separately. In the Spanish publishing world, Círculo de Lectores is the benchmark for using this business model in paper format since 1962 and continues with it when in 2010, it was acquired by Grupo Planeta. Belonging to said club has no cost, but there is an obligation to stay at least for 2 years and, during that time, acquire at least one product regardless of the value of each of the seven paper magazines received per year. In exchange for belonging to this group, users receive special offers, of up to 30% off, not only in books, but also in other services, which can be negotiated or obtained thanks to the volume of members, which currently exceeds 1 million.

The essence of crowdfunding is the financial support of the crowd (micropatronage), which allows publishing works to be addressed, regardless of conventional financing channels, in exchange for a share in the benefits or through a free or more advantageous access to the service or product from the publishing work. In Spain, the Libros.com platform has based its business on crowdfunding, so it is a publishing company that ensures quality, design, and distribution at no cost to authors.

Crowdfunding in the publishing industry opens its business models to customers, co-creating with them a value proposition [64]. The co-creation means a collaborative action between client and organization for the generation of value: (a) creating new products or services, or (b) improving the existing ones. In the publishing industry, crowdfunding is a driving force for new titles or works financially supported by a part of the market that wants to access them and, therefore, gives them a value, allowing collective financers to take an active role in the publishing process. This opening not only has the goal of getting funds for those publishing works linked to a high financial risk or that, merely, would not find the support of

**119**

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

conventional financing channels, but also that allows both publishers and authors to

It can be noted that (a) crowdfunding is used by those publishers facing publishing works exceeding their limits to obtain the necessary resources through traditional channels; (b) the most common form is the modality of rewards; (c) the impact of crowdfunding is not limited to financing, but also has global effects throughout the value chain, altering the relationships between the interested parties within the industry; (d) crowdfunding in the publishing sector appears as a halfway alternative between traditional publishing and self-publishing; (e) with crowdfunding, publishers and authors assume lower financial risks, and (f) the profile of the publishing company employing this formula might be said to be that of small

From 2012 to 2017, crowdfunding has financed publishing works in Spain of very

Within crowdfunding and during 2017, the loan platforms are the ones that have raised the most (€ 35,916,516), followed by investment platforms (€ 23,196,229), real estate (€ 23,148,200), rewards (€ 11,581,603), and donation (€ 7,808,736) [67]. After 6 years of development and consolidation of crowdfunding in Spain, some of these platforms already show leadership in their respective sectors: for example,

Established in 2010, Verkami.com emerges as the first cultural and social crowdfunding platform in Spain, aimed mainly at creators, artists, designers, and other creative collectives. Since its creation, it has financed 6484 publishing works with a success rate of 72% and has collected 32.7 million euros. Using the platform and the support services and personalized advice of Verkami, it costs up to 5% of what the publishing works collect and the maximum duration of the campaign is 40 days. In Spain, at least, two relevant crowdfunding platforms in the world of books

The Libros.com platform is, in fact, a publishing company that ensures quality, design, and distribution at no cost to authors, and therefore, completely transforms its business model by turning all operations and publishing processes around crowdfunding, offering authors a co-publishing format based on this model: the production of the book is budgeted, the investment offer is published with its corresponding rewards, and if the necessary funds are obtained, Libros.com proceeds

Another platform devoted solely to the book sector is Pentian.com. As in the previous case, it is also a publishing company that fully adopts the crowdfunding model: authors present their works, patrons support the book, making its publication possible, and all participate in the profits generated by the sales. The Pentian. com publishing model shares royalties among authors (40%), patrons (50%), and the publishers of the same name (10%). The timing of the campaign is 60 days. In this case, patrons become partners of authors, sharing benefits, but have no influence in making decisions about the content of the book or its commercial strategy. The concept of gamification deals with the use of game in a context other than solely being an entertainment—in fact, it is also called serious games—with the intention, for example, of acquiring skills and competencies in areas such as education or professional development, among others. One of the first guidelines of gamification in the publishing sector has been the development of relational marketing, which seeks to increase the active participation in business social networks

diverse nature for a value close to 400 million euros, and the trend is that, in the coming years, this financing mechanism will be used more and more. Only in 2017, crowdfunding in Spain captured resources for a value of € 101,651,284 compared to

validate such publishing works and interact with readers [65, 66].

publishing companies or one of the recent foundations [64].

€ 73,172,388, experiencing a percentage variation of 38.92% [67].

Kickstarter, Verkami, or Goteo, in the crowdfunding of rewards [67].

to the publication of the book, sharing with the author 50% royalties.

can be pointed out: Libros.com and Pentian.com.

of potential customers who browse the Internet.

#### *The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

*Digital Leadership - A New Leadership Style for the 21st Century*

initiatives and awareness on the existing demand—especially in nonfiction books for the consultation and acquisition of chapters or parts of it, "Slicebooks" emerged. The Planeta group has launched the Planetahipermedia.com initiative, a Website for business training through videos and short textual materials on a specific topic.

Subscription is a model adopted mainly because it entails very interesting advantages from the business point of view, including having a database with information from customers and with a fixed and preestablished income stream, which makes it possible to adapt the supply to the demand, so it is also good for business planning. The subscription models reached the publishing sector through subscriptions of legal content and technical books. Today, there are different generalist platforms in Spain offering this service to the reader such as 24Symbols and Nubico. In the Spanish digital market, the pioneer company to introduce this model was 24Symbols (10 years later, in 2011). To this, it added streaming reading from any device with access to a browser, relying on cloud computing. Although sales derived from online bookstores such as Amazon, Apple, and Kobo, among others continue to be one of the priority sale channels for Spanish publishers, sales derived from subscription platforms in 2017, especially in the United States, Germany, Spain and Mexico, are becoming more relevant for publishers, reaching 6% of total digital sales compared to 5% that represented in 2016. The sale of licenses of e-books to libraries reached 3% of the total digital sales in 2017 compared to the 2% achieved in 2016. All these figures show the consolidation of the subscription model.

Membership consists of forming a part as a member from a group or service, which implies in our analysis belonging to a group of clients that, in terms of exchange, is linked to a set of services and contents offered by a company whose affiliation may or may not entail an economic payment. Within this model, others may be included, such as payment for consumption, or, what is more usual, the subscription to certain services or contents. However, in principle, they are two different models, and although they are close, they should not be confused and should be considered separately. In the Spanish publishing world, Círculo de Lectores is the benchmark for using this business model in paper format since 1962 and continues with it when in 2010, it was acquired by Grupo Planeta. Belonging to said club has no cost, but there is an obligation to stay at least for 2 years and, during that time, acquire at least one product regardless of the value of each of the seven paper magazines received per year. In exchange for belonging to this group, users receive special offers, of up to 30% off, not only in books, but also in other services, which can be negotiated or obtained thanks to the volume of members, which currently

The essence of crowdfunding is the financial support of the crowd (micropatronage), which allows publishing works to be addressed, regardless of conventional financing channels, in exchange for a share in the benefits or through a free or more advantageous access to the service or product from the publishing work. In Spain, the Libros.com platform has based its business on crowdfunding, so it is a publishing company that ensures quality, design, and distribution at no cost to

Crowdfunding in the publishing industry opens its business models to customers, co-creating with them a value proposition [64]. The co-creation means a collaborative action between client and organization for the generation of value: (a) creating new products or services, or (b) improving the existing ones. In the publishing industry, crowdfunding is a driving force for new titles or works financially supported by a part of the market that wants to access them and, therefore, gives them a value, allowing collective financers to take an active role in the publishing process. This opening not only has the goal of getting funds for those publishing works linked to a high financial risk or that, merely, would not find the support of

**118**

exceeds 1 million.

authors.

conventional financing channels, but also that allows both publishers and authors to validate such publishing works and interact with readers [65, 66].

It can be noted that (a) crowdfunding is used by those publishers facing publishing works exceeding their limits to obtain the necessary resources through traditional channels; (b) the most common form is the modality of rewards; (c) the impact of crowdfunding is not limited to financing, but also has global effects throughout the value chain, altering the relationships between the interested parties within the industry; (d) crowdfunding in the publishing sector appears as a halfway alternative between traditional publishing and self-publishing; (e) with crowdfunding, publishers and authors assume lower financial risks, and (f) the profile of the publishing company employing this formula might be said to be that of small publishing companies or one of the recent foundations [64].

From 2012 to 2017, crowdfunding has financed publishing works in Spain of very diverse nature for a value close to 400 million euros, and the trend is that, in the coming years, this financing mechanism will be used more and more. Only in 2017, crowdfunding in Spain captured resources for a value of € 101,651,284 compared to € 73,172,388, experiencing a percentage variation of 38.92% [67].

Within crowdfunding and during 2017, the loan platforms are the ones that have raised the most (€ 35,916,516), followed by investment platforms (€ 23,196,229), real estate (€ 23,148,200), rewards (€ 11,581,603), and donation (€ 7,808,736) [67].

After 6 years of development and consolidation of crowdfunding in Spain, some of these platforms already show leadership in their respective sectors: for example, Kickstarter, Verkami, or Goteo, in the crowdfunding of rewards [67].

Established in 2010, Verkami.com emerges as the first cultural and social crowdfunding platform in Spain, aimed mainly at creators, artists, designers, and other creative collectives. Since its creation, it has financed 6484 publishing works with a success rate of 72% and has collected 32.7 million euros. Using the platform and the support services and personalized advice of Verkami, it costs up to 5% of what the publishing works collect and the maximum duration of the campaign is 40 days.

In Spain, at least, two relevant crowdfunding platforms in the world of books can be pointed out: Libros.com and Pentian.com.

The Libros.com platform is, in fact, a publishing company that ensures quality, design, and distribution at no cost to authors, and therefore, completely transforms its business model by turning all operations and publishing processes around crowdfunding, offering authors a co-publishing format based on this model: the production of the book is budgeted, the investment offer is published with its corresponding rewards, and if the necessary funds are obtained, Libros.com proceeds to the publication of the book, sharing with the author 50% royalties.

Another platform devoted solely to the book sector is Pentian.com. As in the previous case, it is also a publishing company that fully adopts the crowdfunding model: authors present their works, patrons support the book, making its publication possible, and all participate in the profits generated by the sales. The Pentian. com publishing model shares royalties among authors (40%), patrons (50%), and the publishers of the same name (10%). The timing of the campaign is 60 days. In this case, patrons become partners of authors, sharing benefits, but have no influence in making decisions about the content of the book or its commercial strategy.

The concept of gamification deals with the use of game in a context other than solely being an entertainment—in fact, it is also called serious games—with the intention, for example, of acquiring skills and competencies in areas such as education or professional development, among others. One of the first guidelines of gamification in the publishing sector has been the development of relational marketing, which seeks to increase the active participation in business social networks of potential customers who browse the Internet.

Direct sales continue to rise as another possible income channel that complements the traditional sales model through third parties and consists of distributing and selling products directly to consumers without any type of intermediary or distributor (B2C model). Direct sales through the Internet do not reach 1% of the turnover in the publishing companies, but it can facilitate the integration of all the B2B sale processes—which takes years for the traditional distribution channel—through their Web platforms, offering better prices and more personalized services, suggestions based on the individual history of purchases or viewing, and discounts on content related to the interests of the user, among others. The strength of direct sales lies in the direct knowledge of customers and their behavior throughout the purchase process, to which is added the possibility of analyzing their consumption patterns. In this field, Bookmobile makes it easier for publishers to create and manage stores or platforms for direct sales without the need for third parties. Within these opportunities, there are other cases, such as Pubsoft, which offers the necessary software for the management of all online content promotion and sale processes. With this platform in the cloud, publishers and authors are able to autonomously manage author accounts, load e-books, and sell directly to readers.

Publishers can become their own booksellers through their Webs, while authors can help publishers market their titles online: for example, through social networks [68].

The main channel for the distribution and sale of e-books in Spain is specific digital distribution platforms (79.5%), especially through generic commercial platforms such as Amazon, Google Play, Casa del Libro, and App store, among others, being the specific distribution platforms, the medium that condenses the highest turnover.

Direct sales from the publisher's Website gain weight and account for 19% of turnover. For its part, the sale through bookstores loses ground only representing 1.5%. Inherent in this scenario is, also, the fact that publishers lose control over content; and they can even become a link, less and less necessary if authors choose to assume the entire publication process in the new digital context [20].

In the preparation and distribution of e-books, most publishers are compelled to interact mainly with companies in the technology sector—with hardly any links to the world of publishing—to address the problems and challenges arising from technological and sociocultural changes in which they are immersed [69–71].

With regard to the reading devices for which the digital work is commercialized, according to the Internal Book Trade in Spain, the computer has lost its ground substantially with respect to previous years, decreasing by 24.9%. The results show a greater tendency toward the commercialization of contents for e-readers—31.8% of digital works have been marketed for reading on these devices and tablets (5.2%), although the sale of contents also increases for streaming reading (4.4%).

In recent years, publishers and booksellers are firmly committed to becoming a space in the world of desktop publishing, as one more line in their business. The self-publishing platforms linked to publishing houses could redefine the boundaries, so far established, between writers and aspiring ones (indie authors) in the world of books [19].

In Spain, Bubok is a pioneering platform of online self-publishing that allows publishing, publishing and selling books on demand, both in paper and digital formats. Likewise, Bubok is also an online and offline book store, as it recently opened a physical store in Madrid.

The book Country of Penguin Random House has designed a space to discover new books and authors, discuss, share tips and experiences, and learn about the publishing industry. In Spain, the same publishing group has created "I like to write," a social network for writers where, in addition to including resources for

**121**

models [19].

business models.

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

replicate the traditional chain of paper books.

tion, affecting the value chain of the publishing sector.

publishing.

**5. Conclusions**

ortho-typographical review to promotion and marketing.

subsequently, new publishing and develope promotional actions.

writers, tips or news, they offer self-publishing services ranging from design or

In March 2017, the Planeta group has launched the "Universo de las letras," a new professional desktop publishing platform that was born to serve those who wish to fulfill the dream of seeing their books published [19]. In addition, it will function as an observation platform that encourages the discovery of new authors, so those works that stand out for their dissemination will be valued for possible

Some bookstore chains have also opted for self-publishing, such as Casa del Libro through Tagus, a platform that allows users to publish their books independently, but with offering the features and quality of a traditional publishing house [19]. The most successful books at this stage are selected by Tagus in order to make,

Technological changes and innovations play a key role in the current structure of the publishing sector. Spanish publishers are fitting their publishing strategy to the new needs of digital demand and the new emerging technological devices. In these moments, the old business models coexist with the new emerging ones. However, some publishers do not adapt to technological changes or do so at a slower pace than would be desirable. Mainly, in the last 5 years, Spanish publishers have been getting digital knowledge and trying to position themselves to respond adequately to changes both in the market and to the changing technologies [19]. Nonetheless, digital products are still seen as secondary to paper books. In point of fact, the distribution systems developed around the e-book, such as the Libranda platform,

In light of the figures of the publishing sector in Spain, it can be pointed out that the development of the Internet and new technologies is modifying business models and causing organizational changes in companies within the publishing sector. Technological change modifies the way of producing the content and its distribu-

Despite the progressive evolution of the weight of the digital publishing on the global production, the proportion of titles available in digital formats is still reduced in relation to the number of titles published on paper, which may be due to: (a) lack of economic resources and specialized personnel that limits the digital publishing, (b) some risk aversion or fear of piracy, underpinning them in the predominant traditional business model of paper, (c) high uncertainty associated with technical aspects (dominant formats and processes), and (d) lack of institutional support to stimulate their digital transition and the redefinition of their respective business

The opportunities generated by the new information and communication technologies also have an impact on the urgent need to review the regulations governing the publishing markets, particularly copyright protection regulations, in order to safeguard intellectual property of the creations that are disseminated through the various channels currently available, both on paper and in electronic format. Publishing contracts will have to be reformulated to adapt them as much to the new needs as business models. Digital economy has complicated the context in which publishing companies move, which has caused a disruptive effect on them and their

Despite the distinction between process and product innovation, which is included in the literature on innovation management [72, 73], it is important to

#### *The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

writers, tips or news, they offer self-publishing services ranging from design or ortho-typographical review to promotion and marketing.

In March 2017, the Planeta group has launched the "Universo de las letras," a new professional desktop publishing platform that was born to serve those who wish to fulfill the dream of seeing their books published [19]. In addition, it will function as an observation platform that encourages the discovery of new authors, so those works that stand out for their dissemination will be valued for possible publishing.

Some bookstore chains have also opted for self-publishing, such as Casa del Libro through Tagus, a platform that allows users to publish their books independently, but with offering the features and quality of a traditional publishing house [19]. The most successful books at this stage are selected by Tagus in order to make, subsequently, new publishing and develope promotional actions.

#### **5. Conclusions**

*Digital Leadership - A New Leadership Style for the 21st Century*

sell directly to readers.

turnover.

Direct sales continue to rise as another possible income channel that complements the traditional sales model through third parties and consists of distributing and selling products directly to consumers without any type of intermediary or distributor (B2C model). Direct sales through the Internet do not reach 1% of the turnover in the publishing companies, but it can facilitate the integration of all the B2B sale processes—which takes years for the traditional distribution channel—through their Web platforms, offering better prices and more personalized services, suggestions based on the individual history of purchases or viewing, and discounts on content related to the interests of the user, among others. The strength of direct sales lies in the direct knowledge of customers and their behavior throughout the purchase process, to which is added the possibility of analyzing their consumption patterns. In this field, Bookmobile makes it easier for publishers to create and manage stores or platforms for direct sales without the need for third parties. Within these opportunities, there are other cases, such as Pubsoft, which offers the necessary software for the management of all online content promotion and sale processes. With this platform in the cloud, publishers and authors are able to autonomously manage author accounts, load e-books, and

Publishers can become their own booksellers through their Webs, while authors can help publishers market their titles online: for example, through social networks [68]. The main channel for the distribution and sale of e-books in Spain is specific digital distribution platforms (79.5%), especially through generic commercial platforms such as Amazon, Google Play, Casa del Libro, and App store, among others, being the specific distribution platforms, the medium that condenses the highest

Direct sales from the publisher's Website gain weight and account for 19% of turnover. For its part, the sale through bookstores loses ground only representing 1.5%. Inherent in this scenario is, also, the fact that publishers lose control over content; and they can even become a link, less and less necessary if authors choose

In the preparation and distribution of e-books, most publishers are compelled to interact mainly with companies in the technology sector—with hardly any links to the world of publishing—to address the problems and challenges arising from technological and sociocultural changes in which they are immersed [69–71].

With regard to the reading devices for which the digital work is commercialized, according to the Internal Book Trade in Spain, the computer has lost its ground substantially with respect to previous years, decreasing by 24.9%. The results show a greater tendency toward the commercialization of contents for e-readers—31.8% of digital works have been marketed for reading on these devices and tablets (5.2%),

In recent years, publishers and booksellers are firmly committed to becoming a space in the world of desktop publishing, as one more line in their business. The self-publishing platforms linked to publishing houses could redefine the boundaries, so far established, between writers and aspiring ones (indie authors) in the

In Spain, Bubok is a pioneering platform of online self-publishing that allows publishing, publishing and selling books on demand, both in paper and digital formats. Likewise, Bubok is also an online and offline book store, as it recently opened

The book Country of Penguin Random House has designed a space to discover new books and authors, discuss, share tips and experiences, and learn about the publishing industry. In Spain, the same publishing group has created "I like to write," a social network for writers where, in addition to including resources for

to assume the entire publication process in the new digital context [20].

although the sale of contents also increases for streaming reading (4.4%).

**120**

world of books [19].

a physical store in Madrid.

Technological changes and innovations play a key role in the current structure of the publishing sector. Spanish publishers are fitting their publishing strategy to the new needs of digital demand and the new emerging technological devices. In these moments, the old business models coexist with the new emerging ones. However, some publishers do not adapt to technological changes or do so at a slower pace than would be desirable. Mainly, in the last 5 years, Spanish publishers have been getting digital knowledge and trying to position themselves to respond adequately to changes both in the market and to the changing technologies [19]. Nonetheless, digital products are still seen as secondary to paper books. In point of fact, the distribution systems developed around the e-book, such as the Libranda platform, replicate the traditional chain of paper books.

In light of the figures of the publishing sector in Spain, it can be pointed out that the development of the Internet and new technologies is modifying business models and causing organizational changes in companies within the publishing sector. Technological change modifies the way of producing the content and its distribution, affecting the value chain of the publishing sector.

Despite the progressive evolution of the weight of the digital publishing on the global production, the proportion of titles available in digital formats is still reduced in relation to the number of titles published on paper, which may be due to: (a) lack of economic resources and specialized personnel that limits the digital publishing, (b) some risk aversion or fear of piracy, underpinning them in the predominant traditional business model of paper, (c) high uncertainty associated with technical aspects (dominant formats and processes), and (d) lack of institutional support to stimulate their digital transition and the redefinition of their respective business models [19].

The opportunities generated by the new information and communication technologies also have an impact on the urgent need to review the regulations governing the publishing markets, particularly copyright protection regulations, in order to safeguard intellectual property of the creations that are disseminated through the various channels currently available, both on paper and in electronic format. Publishing contracts will have to be reformulated to adapt them as much to the new needs as business models. Digital economy has complicated the context in which publishing companies move, which has caused a disruptive effect on them and their business models.

Despite the distinction between process and product innovation, which is included in the literature on innovation management [72, 73], it is important to have an integrated vision [74]. The current publishing sector could not be understood without connecting both processes. Frequently, innovating organizations in product must wait for the appearance of those innovations in process that allow them to advance in their better adaptation of the product or service to the requirements of the market, that is, to their potential clients. Damanpour and Gopalakrishnan [75] concluded that the adoption of both types of innovations happens in a more synchronized way, since it is difficult to separate the introduction of new products from the processes on which they are based. In this sense, publishing organizations follow this pattern.

Innovations that occurred in the Spanish publishing sector were adopted progressively and with caution by the industry in the face of reluctance derived from the observation of other sectors, such as music or film, and analysis of the experience distilled in other countries. The e-book has not just become commercially a more profitable alternative than the traditional book, but, however, none of the companies in the sector want to be left out of this innovation. Even, publishers start to emerge exclusively oriented to the production of electronic books. To these reluctance or caution of the industry, it follows an interest on the part of the authors to continue seeing his work published on paper and a clear attitude of the readers to continue betting on the traditional books instead of assuming the acquisition of a device of reading e-books. The e-book, rather than being a substitute for the traditional paper book, is being managed by publishing companies as a complement.

For the time being, Spanish publishers are focusing mostly on publishing digital versions of their paper books on digital distribution platforms, in an attempt to minimize risks by betting on positively contrasted works in the traditional business model. This strategic decision leads, at least, in the short term, technological companies, such as Apple or Google, with enough financial resources and specialized knowledge to control the distribution and sale of the digital books [41].

Despite the progressive evolution of the weight of the digital edition on the global production, the proportion of titles available in digital formats is still lower in relation to the number of titles published on paper. It may be due to: (a) lack of economic resources and specialized personnel that limit the digital publishing, (b) some aversion to risk or fear of piracy, which underpins them in the predominant traditional business model of paper book, (c) high uncertainty associated with the technical aspects (dominant formats and processes), and (d) lack of institutional support to stimulate their digital transition and the redefinition of their respective business models [14].

The potential from the new information and communication technologies also has an impact on the urgent need to review the regulations ruling the publishing markets, particularly the copyright protection ones, to safeguard intellectual property of the creations disseminated through the various channels currently available [41].

From all the analysis carried out in this study, a series of conclusions and implications for the Spanish publishing sector can be established.

Firstly, the Spanish publishing sector presents two lines of business that coexist as complementary and not as substitutes: on the one hand, the paper book and on the other, the electronic book.

Secondly, for the moment, publishers have limited themselves to making a simple change in book format: from paper to electronic form, and have not advanced or driven the development of all those possibilities that new technologies can offer as links to Websites, hyperlinks, and images, among others. It is necessary that publishers should not limit themselves to making a simple change in book format (from paper to electronic), but they should promote the development of all those possibilities that new technologies can offer, leading the digital transition in the book industry [19].

**123**

**Author details**

provided the original work is properly cited.

Marta Magadán-Díaz and Jesús Rivas-García\*

Universidad Internacional de La Rioja, Logroño, Spain

the new changes for the adequate protection of copyright.

continue exploring partial aspects in a deeper way.

\*Address all correspondence to: jesus.rivas@unir.net

*The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

that determine the real evolution of the sector [14].

Thirdly, the lack of joint digital initiatives is causing new actors outside the sector, such as Amazon, to enter the book industry and overcome the traditional actors (publishers, distributors, and bookstores) of the industry in the creation of new business models for digital content. The publishers considered have already assumed so many commercial and esthetic risks when creating new contents that they cannot face additional technical risks. As a result, publishers are reluctant to invest directly in R & D projects and prefer to adopt proven technical solutions. This process is giving rise to an involuntary dependence on external innovations

Finally, in fourth place, the development of the digital publishing will require companies to adapt to a new virtual and global commercial environment. The electronic book requires a new treatment of the content—from production to distribution—that in the digital era, it is forced by the new technologies and commercial relationships, marked, in turn, by the virtual and global sale platforms. The implications derived from the conclusions previously exposed for companies in the Spanish publishing sector are the following: (a) favoring entrepreneurship aimed at the creation of new companies in the sector that are capable of linking the technological base with creativity and knowledge; (b) rethinking its business model in the face of transformations and changes in processes and products; (c) betting definitively—together with the printing presses—for digital printing, new materials, online sales, and developing 1:1 printing; (d) rethinking their business model looking for a way to link both realities: the paper book and the digital book; they must be aware what is truly relevant, what adds value is the content, and not the medium in which that is expressed; (e) redefining the new role of distributors in the face of changes in the marketing channel; (f) joining physical and digital sales at the points of retail marketing, and (g) adapting the regulatory framework to

To conclude, it is necessary to highlight that this work is a sample from the past and present of the Spanish publishing sector, but it would involve the first step to

The following future lines of research derived from this study are pointed out: firstly, an in-depth analysis of the role of e-books in the Spanish publishing sector is proposed. Secondly, the reasons why publishers of medium and small size do not implement formulas to collaborate in the development of digital platforms must be analyzed. Thirdly, it is suggested to study the new business models arising in the Spanish publishing sector. Finally, it is needed to research the potential of the Internet as an effective export channel both for Spanish printers and publishers.

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

#### *The Digitization in the Spanish Publishing Industry DOI: http://dx.doi.org/10.5772/intechopen.86238*

*Digital Leadership - A New Leadership Style for the 21st Century*

organizations follow this pattern.

have an integrated vision [74]. The current publishing sector could not be understood without connecting both processes. Frequently, innovating organizations in product must wait for the appearance of those innovations in process that allow them to advance in their better adaptation of the product or service to the requirements of the market, that is, to their potential clients. Damanpour and Gopalakrishnan [75] concluded that the adoption of both types of innovations happens in a more synchronized way, since it is difficult to separate the introduction of new products from the processes on which they are based. In this sense, publishing

Innovations that occurred in the Spanish publishing sector were adopted progressively and with caution by the industry in the face of reluctance derived from the observation of other sectors, such as music or film, and analysis of the experience distilled in other countries. The e-book has not just become commercially a more profitable alternative than the traditional book, but, however, none of the companies in the sector want to be left out of this innovation. Even, publishers start to emerge exclusively oriented to the production of electronic books. To these reluctance or caution of the industry, it follows an interest on the part of the authors to continue seeing his work published on paper and a clear attitude of the readers to continue betting on the traditional books instead of assuming the acquisition of a device of reading e-books. The e-book, rather than being a substitute for the traditional paper book, is being managed by publishing companies as a complement. For the time being, Spanish publishers are focusing mostly on publishing digital versions of their paper books on digital distribution platforms, in an attempt to minimize risks by betting on positively contrasted works in the traditional business model. This strategic decision leads, at least, in the short term, technological companies, such as Apple or Google, with enough financial resources and specialized

knowledge to control the distribution and sale of the digital books [41].

Despite the progressive evolution of the weight of the digital edition on the global production, the proportion of titles available in digital formats is still lower in relation to the number of titles published on paper. It may be due to: (a) lack of economic resources and specialized personnel that limit the digital publishing, (b) some aversion to risk or fear of piracy, which underpins them in the predominant traditional business model of paper book, (c) high uncertainty associated with the technical aspects (dominant formats and processes), and (d) lack of institutional support to stimulate their digital transition and the redefinition of their respective business models [14]. The potential from the new information and communication technologies also

has an impact on the urgent need to review the regulations ruling the publishing markets, particularly the copyright protection ones, to safeguard intellectual property of the creations disseminated through the various channels currently

cations for the Spanish publishing sector can be established.

From all the analysis carried out in this study, a series of conclusions and impli-

Firstly, the Spanish publishing sector presents two lines of business that coexist as complementary and not as substitutes: on the one hand, the paper book and on

Secondly, for the moment, publishers have limited themselves to making a simple change in book format: from paper to electronic form, and have not advanced or driven the development of all those possibilities that new technologies can offer as links to Websites, hyperlinks, and images, among others. It is necessary that publishers should not limit themselves to making a simple change in book format (from paper to electronic), but they should promote the development of all those possibilities that new technologies can offer, leading the digital transition in

**122**

available [41].

the other, the electronic book.

the book industry [19].

Thirdly, the lack of joint digital initiatives is causing new actors outside the sector, such as Amazon, to enter the book industry and overcome the traditional actors (publishers, distributors, and bookstores) of the industry in the creation of new business models for digital content. The publishers considered have already assumed so many commercial and esthetic risks when creating new contents that they cannot face additional technical risks. As a result, publishers are reluctant to invest directly in R & D projects and prefer to adopt proven technical solutions. This process is giving rise to an involuntary dependence on external innovations that determine the real evolution of the sector [14].

Finally, in fourth place, the development of the digital publishing will require companies to adapt to a new virtual and global commercial environment. The electronic book requires a new treatment of the content—from production to distribution—that in the digital era, it is forced by the new technologies and commercial relationships, marked, in turn, by the virtual and global sale platforms.

The implications derived from the conclusions previously exposed for companies in the Spanish publishing sector are the following: (a) favoring entrepreneurship aimed at the creation of new companies in the sector that are capable of linking the technological base with creativity and knowledge; (b) rethinking its business model in the face of transformations and changes in processes and products; (c) betting definitively—together with the printing presses—for digital printing, new materials, online sales, and developing 1:1 printing; (d) rethinking their business model looking for a way to link both realities: the paper book and the digital book; they must be aware what is truly relevant, what adds value is the content, and not the medium in which that is expressed; (e) redefining the new role of distributors in the face of changes in the marketing channel; (f) joining physical and digital sales at the points of retail marketing, and (g) adapting the regulatory framework to the new changes for the adequate protection of copyright.

To conclude, it is necessary to highlight that this work is a sample from the past and present of the Spanish publishing sector, but it would involve the first step to continue exploring partial aspects in a deeper way.

The following future lines of research derived from this study are pointed out: firstly, an in-depth analysis of the role of e-books in the Spanish publishing sector is proposed. Secondly, the reasons why publishers of medium and small size do not implement formulas to collaborate in the development of digital platforms must be analyzed. Thirdly, it is suggested to study the new business models arising in the Spanish publishing sector. Finally, it is needed to research the potential of the Internet as an effective export channel both for Spanish printers and publishers.

#### **Author details**

Marta Magadán-Díaz and Jesús Rivas-García\* Universidad Internacional de La Rioja, Logroño, Spain

\*Address all correspondence to: jesus.rivas@unir.net

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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2006;**10**(3):7-38

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[60] Rayport JF, Sviokla JJ. Exploiting the virtual value chain. Harvard Business Review. 1995;**73**(6):35-51

*Digital Leadership - A New Leadership Style for the 21st Century*

[50] Dosdoce. Encuesta sobre la

Málaga: IC Editorial; 2017

Science. 2007;**18**:181-199

2006;**1**(4):191-204

Planning. 2010;**43**:247-261

[53] Morris L. Business model innovation: The strategy of business breakthroughs. International Journal of Innovation Science.

[54] McGrath RG. Business models: A discovery driven approach. Long Range

[55] Cavalcante S, Kesting P, Uhoi J. Business model dynamics and innovation. (Re)establishing the missing linkages. Management Decision. 2011;**49**(7-8):1327-1342

[56] Shatzkin M. Digital publishing in the US: Driving the industry to vertical niches? Logos. 2008;**19**(2):56-60

[57] Hoque F. E-enterprise, Business Models, Architecture and Componets. New York: Cambridge University

[58] Gordon L, Kung D, Dyck H. Strategic use of e-commerce in the transformation of the publishing industry. Communications of the International Information Management Association.

[59] Sabatier LA, Fitzelle E. Managing the progressive publishing company during market and technology transitions. Publishing Research Quarterly. 2011;**27**:220-229

Press; 2000

2008;**8**(4):65-78

Graw Hill; 2000

evolución de la distribución e impresión bajo demanda en mercados en español.

[51] Afuah A, Tucci C. Internet Business Model and Strategies. New York: Mc

[52] Zott C, Amit R. Business model design and the performance of intrepreneurial firms. Organization

[40] Observatorio de la Lectura y el Libro. Panorámica de la edición española de libros 2017. Análisis sectorial del

[41] Magadán M, Rivas J. The impact of digitization on the Spanish publishing industry. The International Journal of

[42] Magadán M, Rivas J. Fiscalidad indirecta del libro en Europa:

implicaciones y políticas. El profesional de la información. 2019;**28**(1):e280111

[43] Díaz J. ¿El año de las tabletas y los e-readers? Dispositivos de lectura para medios de comunicación. Anuario

[44] Chao CN, Fuxman L, Elifoglu IH. Electronic books impact global environment—An empirical study focus on user perspectives. Journal of Management and Strategy.

[45] Alonso J, Cordón JA. El libro electrónico y los DRMs. Anuario ThinkEPI. 2011;**5**:249-253

[46] Jonas O, Sirkeci I. Understanding determinants of illegal e-book

downloading behaviour in the UK and Germany. Transnational Marketing

[47] Chao C, Lu FV. Emergence of e-books and related managerial issues: A preliminary study. International Journal of Business, Marketing, and Decision

[48] Fabling T. Introducing remote printing into the publishing industry of a small, remote economy: The case of New Zealand [doctoral dissertation]. University of Wellington; 2017

[49] Sánchez N, Díaz Y. El sector editorial contemporáneo y las competencies profesionales. Acimed.

Journal. 2013;**6**(2):79-100

Sciences. 2011;**4**(1):117-126

libro. Madrid; 2018

the Book. 2018;**16**(2):1-18

ThinkEPI. 2010;**1**:174-179

2013;**4**(2):52-59

**126**

2005;**13**(5):1

[61] Amit R, Zott C. Value creation in e-business. Strategic Management Journal. 2001;**22**(6):493-520

[62] Porter M. Strategy and the internet. Harvard Business Review. 2001;**79**(3):62-78

[63] Rayna T, Striukova L. From rapid prototyping to home fabrication: How 3D printing is changing business model innovation. Technological Forecasting and Social Change. 2016;**102**:214-224

[64] Magadán M, Rivas J. Crowdfunding in the Spanish publishing industry. Publishing Research Quarterly. 2019;**35**(2):187-200

[65] Mollick E. The dynamics of crowdfunding: An exploratory study. Journal of Business Venturing. 2014;**29**(1):1-16

[66] Moon Y, Hwang J. Crowdfunding as an alternative means for funding sustainable appropriate technology: Acceptance determinants of backers. Sustainability. 2018;**10**(5):1456

[67] González A, Ramos J. Informe anual del crowdfunding en España 2017. Madrid; 2018

[68] Hyatt S. Judging a book by its cover: E-books, digitization and print on demand. In: Gorman G, editor. The Digital Factor in Library and Information Services. London: Facet Publishing; 2003. pp. 112-132

[69] Loebbecke C. The emergence of ebooks: Just another media industry joining the converging digital world? An explorative study on user preferences and industry structure changes. In: 38th Research Conference on Communication, Information and Internet Policy; Washington, DC:

Telecommunications Policy Research Conference. 2010

[70] Longhi C, Rochhia S. «Ceci tuera cela»? Dynamique des changements dans l'industrie du livre. Revue d'économie industrielle. 2014;**1**:121-154

[71] Protogerou A, Kontolaimou A, Caloghirou Y. Innovation in the European creative industries: A firmlevel empirical approach. Industry and Innovation. 2017;**24**(6):1-26

[72] Utterback JM, Abernathy WJ. A dynamic model of process and product innovation. Omega. 1975;**35**:639-656

[73] García R, Calantone R. A critical look at technological innovation typology and innovativeness terminology: A literature review. Journal of Product Innovation Management. 2002;**19**(2):110-132

[74] Wagner SM, Bode C. Supplier relationship-specific investments and the role of safeguards for supplier innovation sharing. Journal of Operations Management. 2014;**32**(3):65-78

[75] Damanpour F, Gopalakrishnan S. The dynamics of the adoption of product and process innovations in organizations. Journal of Management Studies. 2001;**38**(1):45-65

Chapter 7

and Qualities

useful or as a reference for further studies.

through practical experiences of some cases and places.

leadership styles, Qalb leaderships

1. Introduction

by all Muslim worldwide.

129

Ahmad Rafiki

Abstract

Islamic Leadership: Comparisons

This chapter explores the concept and principles Islamic leadership which generate qualities. These qualities differentiate the Islamic leadership with other leadership concepts. The fundamental sources of Islamic leadership and guidance for the Muslim leaders are Al-Qur'an and Hadith. The sub-topics related to the Islamic leadership elaborate all attributes (traits, skills, power, authority) needed by the leaders. This content analysis method is based on a review of literature and

other secondary data. The information in this chapter expectedly will give understanding on the importance of the Islamic leadership concept and can be

Keywords: traits and skills, power and authority, Islamic model of leadership,

Leadership is a subject that had been discussed by many groups of people particularly academician, practitioners and government officers/public servants. They were exploring the styles or approaches of leadership that can be adopted in various fields. However, finding the suitable one is not an easy task but must go

The common practices of leadership introduced by the Western scholars which are applied in most of the countries including in many Muslim countries. Somehow, the Muslim neglect the leadership theories based on the Islamic perspective which were implemented earlier by the Prophet Muhammad (PBUH) and the four main leaders called khalifa ar-rasydin who governed the countries/territories for 50 years (611–661). All people were protected, served, guided, represented and inspired by their leaders during that period. These are the best concepts and examples of Islamic leadership derived from Al-Qur'an and Hadith that must be followed particularly

Ironically, several options of Western leadership's concepts are debatable and still not proven which one is the best and sustainable leadership's construct. Some countries were adopted certain leadership's approach because they were forced to follow or they were still trying to find the suitable one. It starts with Great Man Theory (1840s), Trait Theory (1930's–1940's), Behavioural Theories (1940's– 1950's) which has related theories of The Managerial Grid Model/Leadership Grid and Role Theory, Contingency Theories (1960's), Transactional leadership Theories

(1970's) which has related theories of Leader-member Exchange (LMX),

#### Chapter 7

## Islamic Leadership: Comparisons and Qualities

Ahmad Rafiki

#### Abstract

This chapter explores the concept and principles Islamic leadership which generate qualities. These qualities differentiate the Islamic leadership with other leadership concepts. The fundamental sources of Islamic leadership and guidance for the Muslim leaders are Al-Qur'an and Hadith. The sub-topics related to the Islamic leadership elaborate all attributes (traits, skills, power, authority) needed by the leaders. This content analysis method is based on a review of literature and other secondary data. The information in this chapter expectedly will give understanding on the importance of the Islamic leadership concept and can be useful or as a reference for further studies.

Keywords: traits and skills, power and authority, Islamic model of leadership, leadership styles, Qalb leaderships

#### 1. Introduction

Leadership is a subject that had been discussed by many groups of people particularly academician, practitioners and government officers/public servants. They were exploring the styles or approaches of leadership that can be adopted in various fields. However, finding the suitable one is not an easy task but must go through practical experiences of some cases and places.

The common practices of leadership introduced by the Western scholars which are applied in most of the countries including in many Muslim countries. Somehow, the Muslim neglect the leadership theories based on the Islamic perspective which were implemented earlier by the Prophet Muhammad (PBUH) and the four main leaders called khalifa ar-rasydin who governed the countries/territories for 50 years (611–661). All people were protected, served, guided, represented and inspired by their leaders during that period. These are the best concepts and examples of Islamic leadership derived from Al-Qur'an and Hadith that must be followed particularly by all Muslim worldwide.

Ironically, several options of Western leadership's concepts are debatable and still not proven which one is the best and sustainable leadership's construct. Some countries were adopted certain leadership's approach because they were forced to follow or they were still trying to find the suitable one. It starts with Great Man Theory (1840s), Trait Theory (1930's–1940's), Behavioural Theories (1940's– 1950's) which has related theories of The Managerial Grid Model/Leadership Grid and Role Theory, Contingency Theories (1960's), Transactional leadership Theories (1970's) which has related theories of Leader-member Exchange (LMX),

Transformational Leadership Theories (1970s) which has related theories of Burns Transformational Leadership Theory, Bass Transformational Leadership Theory, and Kouzes and Posner's Leadership Participation Inventory. Studies were conducted ongoingly to examine the practicality and effectiveness of the mentioned leadership concepts in various countries.

This chapter conducts a qualitative method using content analysis based on a review of literature from academic research journals, websites, social media platforms, electronic databases (secondary data), and other relevant sources. This chapter expectedly can elaborate and compare comprehensively the comparisons and qualities of Islamic leadership and other leaderships' concepts.

> Some previous studies compared transactional and transformational leadership styles. The transactional leadership style is based on the leader's legitimate authority that is concerned with goals and outcomes, tasks, rewards and punishments. Such leadership is said to be more appropriate to stable environments and businesses. Transformational leaders, on the other hand, seek to motivate and gain the commitment of followers. This is achieved by sharing a vision, raising expectations and creating a feeling of trust so that followers will perform to a level exceeding their own expectations of what they had considered possible [9]. Below is a summary of

[10] United States • It is found that the transformational and transactional leadership styles

management and quality performance.

[12] Kuwait • It was found that both transformational and transactional leadership

transformational leadership style.

transformational leadership style. [15] Nigeria • Both transactional and transformational leadership styles have a

performance as such. [16] Slovenia • The influence of both transformational and the transactional

A summary of studies on transactional and transformational leadership styles.

styles had low ratings than the other styles. [14] Pakistan • It is found that the transformational and transactional leadership styles

as compared to that of the transformational style.

[11] United States • The transactional leadership style of the managers was more

are widely applied where both have significant impact on quality

frequently, strongly and inversely related to the employees' behavior

styles were applied in a high level, and there was no significant difference of applications between both leadership styles.

• Revealed that the transformational and contingent reward leadership

were effective on employee's performance; notwithstanding, the transactional leadership style was more significant than the

transactional leadership style, but it had a considerable effect for the

• There was no significant effect on job satisfaction under the

significant influence on the organizational performance. • The transformational leadership style had a stronger positive impact compared with that of the transactional leadership style, which represented a reasonably weaker impact on the organizational

leadership styles is strong and positive to all the four constructs (information acquisition, distribution, interpretation and organizational memory) of the organizational learning process.

[8] Oman • Islamic leadership does not rely for its legitimacy upon traditional authority,

of the sunnah and the hadith.

but rather on rational–legal systems based on unity of purpose,

acknowledgement of the one God, and the foundational example of Prophet Muhammad, whose referent and charismatic authority lives on in discussions

those studies (Table 2):

[13] United Arab of Emirates

Country Findings

Author/ Year

Table 2.

131

Author/ Year

Table 1.

Country Findings

Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

A summary of studies on leadership styles.

#### 2. Literature review

#### 2.1 Previous studies in the area of leadership styles

There are studies that discussed on the impact of leadership styles' in the organization and society. Below is a summary of those studies (Table 1):



#### Table 1.

Transformational Leadership Theories (1970s) which has related theories of Burns Transformational Leadership Theory, Bass Transformational Leadership Theory, and Kouzes and Posner's Leadership Participation Inventory. Studies were

conducted ongoingly to examine the practicality and effectiveness of the mentioned

This chapter conducts a qualitative method using content analysis based on a review of literature from academic research journals, websites, social media platforms, electronic databases (secondary data), and other relevant sources. This chapter expectedly can elaborate and compare comprehensively the comparisons

There are studies that discussed on the impact of leadership styles' in the organization and society. Below is a summary of those studies (Table 1):

but negative effect on affective commitment. [3] Malaysia • The academic librarians mostly practice the transformational leadership

leadership style as the least practiced style. [4] China • The highest score goes to transformational leadership style, followed by the

[5] Pakistan • A very high score for the transformational leadership style, ordinary and

• Leadership cannot be studied fruitfully out of context.

[7] Malaysia • It was found that academic administrators were imbued with Islamic

transformational leadership style.

the laissez-faire leadership style.

[6] Australia • Context invariably is problematic for leadership.

leadership principles.

organization.

• The transformational and laissez-faire leadership styles influenced

• Transformational and transactional leadership styles generated employees' satisfaction, and all three leadership styles of transformational, transactional and the laissez-faire leadership styles attested to give a greater effect to

• Transformational leadership style has the strongest impact on effective commitment and has a significant and positive effect on normative

• The transactional leadership style has a significant and positive effect on continuous commitment and the laissez-faire leadership style has a significant

style, followed by the laissez-faire leadership style, and the transactional

transactional leadership style, and the lowest score is the laissez-faire

average scores for the transactional leadership style and a very low score to

• The research also showed that servant-leadership approach is preferably used in conjunction with alternative transactional and transformational styles, while the revealed sources of knowledge (Quran and Sunnah) were given the

• A challenge for Islamic leadership is to reconstitute the context of the

highest priority as sources of developing leadership principles.

• A positive correlation between emotional intelligence and the

and qualities of Islamic leadership and other leaderships' concepts.

employees' additional attempts.

management effectiveness.

commitment.

leadership style.

2.1 Previous studies in the area of leadership styles

Digital Leadership - A New Leadership Style for the 21st Century

leadership concepts in various countries.

Country Findings

2. Literature review

Author/ Year

[1] United States

[2] United States

130

A summary of studies on leadership styles.

Some previous studies compared transactional and transformational leadership styles. The transactional leadership style is based on the leader's legitimate authority that is concerned with goals and outcomes, tasks, rewards and punishments. Such leadership is said to be more appropriate to stable environments and businesses. Transformational leaders, on the other hand, seek to motivate and gain the commitment of followers. This is achieved by sharing a vision, raising expectations and creating a feeling of trust so that followers will perform to a level exceeding their own expectations of what they had considered possible [9]. Below is a summary of those studies (Table 2):


Table 2.

A summary of studies on transactional and transformational leadership styles.

Furthermore, there are also some studies that compared between transactional and laissez-faire leadership styles. A study by [17] investigated on the transactional and the laissez-faire leadership styles and their impact on employees' motivation within the banking sector in Pakistan (n = 278). The descriptive and correlational studies' results have affirmed that the transactional leadership style has a positive, strong and significant association with commitment, but the motivational level was low and insignificant in the laissez-faire leadership style.

knowledge and bodily prowess, with that can lead successfully. Below are the

most suitable for final determination." (An-Nisaa' 4:59)

"O you who believe! Obey Allah, and obey the Messanger and those charged with authority among you. If you differ in anything among yourselves, refer it to Allah and the Messenger, if you have believed in Allah and the Last Day. That is best, and

Their Prophet said to them: "Allah hath appointed Talut as king over you." They said: "How can he exercise authority over us when we are better fitted than he to exercise authority, and he is not even gifted, with wealth in abundance?" He said: "Allah hath Chosen him above you, and hath gifted him abundantly with knowledge and bodily prowess: Allah Granteth His authority to whom He pleaseth. Allah careth for all, and He knoweth all things." (al-Baqarah 2: 247)

In selecting the leaders, the people must do it carefully and seriously because the leaders have to protect the religion and not play with it. The leaders in Islam are encourage to learn and understand the concept of Islamic teachings, thus they keep the interests of Islam as a priority. This is had been stated in verses of Al-Qur'an below:

"O ye who believe! take not for friends and protectors those who take your religion for a mockery or sport, - whether among those who received the Scripture before you, or among those who reject Faith; but fear ye Allah, if ye have faith (indeed)."

"But the faithful, men and women, are comrades of one another: they bid what is right and forbid what is wrong and maintain the prayer, give the zakāt, and obey Allah and His Messanger. It is they to whom Allah will soon grant His mercy.

The leaders in Islam must deliver the mandate or amanah to whom suppose receiving it and enforce the law with justice. Both outcome of amanah and justice are the most difficult duties of the leaders and with that, the people can be governed proportionately and professionally. This is had been highlighted in the verses of

"Indeed Allah commands you to deliver the trusts to their [rightful] owners, and, when you judge between people, to judge with fairness. Excellent indeed is what Allah advises you. Indeed Allah is all-hearing, all-seeing." (An-Nisaa' 4: 58)

A leader has power and authority. Both attributes are useful to influence the followers or people. A good leaders who can manage the power accordingly and authority appropriately. [35] mentioned that power is a contingent, multifaceted resource which involves the ability to influence or control others, while authority

The ultimate power is possessed by Allah Almighty, while the power of the leaders is for temporary moments which will end after certain period. The power in Islam is useful in bringing prosperity for the ummah (society) and protecting

can be characterized as the right to wield power or to influence people.

Indeed Allah is all-mighty, all-wise." (At-Taubah 9:71)

instructions from the verses of Al-Qur'an:

Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

2.2.1.2 Identification of leaders' requirements

2.2.1.3 The leader's duties and responsibilities

2.3 Leadership, power, and authority in Islam

(al-Maaidah 5: 57)

Al-Qur'an below:

133

#### 2.2 Islamic leadership

Islam is a religion that governs all matters including leadership. Leadership is an important subject that had been used to disseminate the Islamic teaching or da'wah and as the most significant instrument for the realization of an ideal society which is based on justice and compassion [18]. Both elements are interrelated and as main reference in leadership. Leaders must enforce and promote justice continuously as it is been instructed in verse of Al-Qur'an:

"Indeed Allah commands you to deliver the trusts to their [rightful] owners, and, when you judge between people, to judge with fairness. Excellent indeed is what Allah advises you. Indeed Allah is all-hearing, all-seeing." (An-Nisa' 4:58)

The basis of leadership consists of religion, moral and human sources. All the three components are based on spirit of fear to God (Allah SWT) [19]. The history of Islamic leaders give inspirations to all leaders on how they successfully lead in multiple groups of people and many territories. Leadership is about offering oneself and one's spirit [20], thus in Islam, the spirituality becomes a crucial factor in addition of psychological, technical-rational and professional factors.

There is a study by [21] on Islamic leadership which conducted in the Republic of Yemen using the concept of taqwa which operationalized to two distinct components: a spirituality with three dimensions of iman (belief), ibadah (rituals) and tawbah (repentance), and a responsibility with six dimensions of emotional control, sadaqah, forgiveness, integrity, patience and justice. With a mediating influence of the trust variable, the results show that a leaders' level of taqwa influences his/her effectiveness, where one dimension of spirituality which is belief, and three dimensions of responsibility; sadaqah, integrity and emotional control, were found to predicate business leadership effectiveness, whereas trust was found to positively influence leadership effectiveness. Moreover, trust was found to fully mediate the relationship between iman and leadership effectiveness; on the other hand, trust was found to partially mediate the relationship between responsibility and leadership effectiveness. Moreover, [22] mentioned that the quality of Islamic leadership can positively influence the attitudes of followers and bring higher levels of satisfaction, motivation, performance, positive energy and organizational loyalty, while [23] asserted that the quality of Islamic leadership serves as an important human resource that offers value for organizational performance.

Numerous articles discussed by on Islamic leadership [24–32]. Some studies have also focused on Islamic leadership from a religious point of view [27, 33, 34].

#### 2.2.1 Basic competencies of leadership

#### 2.2.1.1 Explaining on leadership

Leaders is a man to be followed and obeyed and he must refer to Al-Qur'an and Hadith as guidance before making any decisions. Moreover, Islamic stated the characteristics to become a leader, among others must be abundantly with

Furthermore, there are also some studies that compared between transactional and laissez-faire leadership styles. A study by [17] investigated on the transactional and the laissez-faire leadership styles and their impact on employees' motivation within the banking sector in Pakistan (n = 278). The descriptive and correlational studies' results have affirmed that the transactional leadership style has a positive, strong and significant association with commitment, but the motivational level was

Islam is a religion that governs all matters including leadership. Leadership is an important subject that had been used to disseminate the Islamic teaching or da'wah and as the most significant instrument for the realization of an ideal society which is based on justice and compassion [18]. Both elements are interrelated and as main reference in leadership. Leaders must enforce and promote justice continuously as it

"Indeed Allah commands you to deliver the trusts to their [rightful] owners, and, when you judge between people, to judge with fairness. Excellent indeed is what Allah advises you. Indeed Allah is all-hearing, all-seeing." (An-Nisa' 4:58)

The basis of leadership consists of religion, moral and human sources. All the three components are based on spirit of fear to God (Allah SWT) [19]. The history of Islamic leaders give inspirations to all leaders on how they successfully lead in multiple groups of people and many territories. Leadership is about offering oneself and one's spirit [20], thus in Islam, the spirituality becomes a crucial factor in

There is a study by [21] on Islamic leadership which conducted in the Republic of Yemen using the concept of taqwa which operationalized to two distinct components: a spirituality with three dimensions of iman (belief), ibadah (rituals) and tawbah (repentance), and a responsibility with six dimensions of emotional control, sadaqah, forgiveness, integrity, patience and justice. With a mediating influence of the trust variable, the results show that a leaders' level of taqwa influences his/her effectiveness, where one dimension of spirituality which is belief, and three dimensions of responsibility; sadaqah, integrity and emotional control, were found to predicate business leadership effectiveness, whereas trust was found to positively influence leadership effectiveness. Moreover, trust was found to fully mediate the relationship between iman and leadership effectiveness; on the other hand, trust was found to partially mediate the relationship between responsibility and leadership effectiveness. Moreover, [22] mentioned that the quality of Islamic leadership can positively influence the attitudes of followers and bring higher levels of satisfaction, motivation, performance, positive energy and organizational loyalty, while [23] asserted that the quality of Islamic leadership serves as an important human

Numerous articles discussed by on Islamic leadership [24–32]. Some studies have also focused on Islamic leadership from a religious point of view [27, 33, 34].

Leaders is a man to be followed and obeyed and he must refer to Al-Qur'an and

Hadith as guidance before making any decisions. Moreover, Islamic stated the characteristics to become a leader, among others must be abundantly with

addition of psychological, technical-rational and professional factors.

resource that offers value for organizational performance.

2.2.1 Basic competencies of leadership

2.2.1.1 Explaining on leadership

132

low and insignificant in the laissez-faire leadership style.

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2.2 Islamic leadership

is been instructed in verse of Al-Qur'an:

knowledge and bodily prowess, with that can lead successfully. Below are the instructions from the verses of Al-Qur'an:

"O you who believe! Obey Allah, and obey the Messanger and those charged with authority among you. If you differ in anything among yourselves, refer it to Allah and the Messenger, if you have believed in Allah and the Last Day. That is best, and most suitable for final determination." (An-Nisaa' 4:59)

Their Prophet said to them: "Allah hath appointed Talut as king over you." They said: "How can he exercise authority over us when we are better fitted than he to exercise authority, and he is not even gifted, with wealth in abundance?" He said: "Allah hath Chosen him above you, and hath gifted him abundantly with knowledge and bodily prowess: Allah Granteth His authority to whom He pleaseth. Allah careth for all, and He knoweth all things." (al-Baqarah 2: 247)

#### 2.2.1.2 Identification of leaders' requirements

In selecting the leaders, the people must do it carefully and seriously because the leaders have to protect the religion and not play with it. The leaders in Islam are encourage to learn and understand the concept of Islamic teachings, thus they keep the interests of Islam as a priority. This is had been stated in verses of Al-Qur'an below:

"O ye who believe! take not for friends and protectors those who take your religion for a mockery or sport, - whether among those who received the Scripture before you, or among those who reject Faith; but fear ye Allah, if ye have faith (indeed)." (al-Maaidah 5: 57)

"But the faithful, men and women, are comrades of one another: they bid what is right and forbid what is wrong and maintain the prayer, give the zakāt, and obey Allah and His Messanger. It is they to whom Allah will soon grant His mercy. Indeed Allah is all-mighty, all-wise." (At-Taubah 9:71)

#### 2.2.1.3 The leader's duties and responsibilities

The leaders in Islam must deliver the mandate or amanah to whom suppose receiving it and enforce the law with justice. Both outcome of amanah and justice are the most difficult duties of the leaders and with that, the people can be governed proportionately and professionally. This is had been highlighted in the verses of Al-Qur'an below:

"Indeed Allah commands you to deliver the trusts to their [rightful] owners, and, when you judge between people, to judge with fairness. Excellent indeed is what Allah advises you. Indeed Allah is all-hearing, all-seeing." (An-Nisaa' 4: 58)

#### 2.3 Leadership, power, and authority in Islam

A leader has power and authority. Both attributes are useful to influence the followers or people. A good leaders who can manage the power accordingly and authority appropriately. [35] mentioned that power is a contingent, multifaceted resource which involves the ability to influence or control others, while authority can be characterized as the right to wield power or to influence people.

The ultimate power is possessed by Allah Almighty, while the power of the leaders is for temporary moments which will end after certain period. The power in Islam is useful in bringing prosperity for the ummah (society) and protecting

people from harmness. As an example shown by the second caliphs of Islam; Umar bin Khattab, although he has dominant power in some continents but he always to take care each individual and ensure that he/she receives an adequate food or decent place to live. The power makes Umar bin Khattab more down to earth and humble person. The more power he has, the more lower he put himself in front of others or adherents. Everyone knows how strong he is, how tough he is and how sturdy he is but he will use those superiorities only for the enemy of Islam and not for his people. He never abuse his power for individual or family matters. All of these contributions of Umar bin Khattab acknowledged by the Prophet Muhammad (PBUH) particularly on how he used his power according to the Islamic teachings which then the Prophet (PBUH) told His companion that "If there is an upcoming Prophet after me, He will be Umar bin Khattab."

2.4 Leadership traits and skills

Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

texts in leadership concept.

Following up and processing

Rewarding and recognizing

Mutual consultation and unity (fraternity and brotherhood)

To be pragmatic in controversial

Enjoining the right and forbidding the evil

work

achievers

matters

Source: [18, 46–53].

135

Numerous researches of leadership emphasize on specific attributes [37–39]. Those attributes can be used to distinguish the effective and ineffective leaders [18]. Therefore, some researchers focus on social and historical relations [40, 41] and based on a relational and perceptual phenomenon [42–44] as the important con-

Ref. [45] revealed the importance of traits and qualities of leaders in Islamic thoughts. He elaborated based on the past history in the Islamic state that the

> Free from hatred and envy

promises

secrets

temper

(Fasah)

Equality (Al-Musawat)

(Al-Siyadah)

Commitment and sacrifice

Encourage the power of peace

Begin from the possible

Not listening to slanderers and backbiters

Patient (Sabr) and endurance

Relying on evidence

Enterprise (Iqdam)

Justice (Al-'Adalah) and compassion

Self-sacrifice (Tadhyah)

Not to be a dichotomous thinker

Lifelong endeavor

Gratitude and prayers

Diplomatic

Attentive A good organizer

faithful as deputies

Courage and determination Forgiving Honest Thankful

Knowledgeable (Ma'rifah) Generous Flexible Being cunning

Receptive and willing to

Superior communication Humility Leniency (Lin) Conviction (Yaqin)

Faith and belief Sovereignty

Respectable in their appearance

(honesty and trust)

Make a friend out of an

Freedom (Al-Hurriyyah)

enemy

Meanwhile, in the commercial context, [54] provided two categories of traits and qualities that a leader must have moral discipline. However, these attributes associated with moral, must be accompanied by the attributes related to the avoid-

Moreover, [54] added some attributes related to traits for a leader in achieving

Most of the above qualities and traits used to help the leaders in attaining their objectives. The qualities of the leaders in Islamic thoughts meant for nurturing healthy organizations and resulted the followers become united and faithful. The identified qualities seem to be crucial leadership traits, although not all leaders show these qualities simultaneously. In fact, the history of successive Muslim states had

ance. Below is a figure positioned the attributes (Figure 2).

an effective conduct of doing business as follows (Figure 3).

been adopted essential qualities of mercy, kindness, and justice.

Muslim leaders possess distinctive attributes as shows below:

Mentally stable Wise (wisdom) Abiding by

In control of desires Caring Able to keep

See advantage in disadvantage Turn minus into plus Eloquence

Gradualism instead of radicalism Morality and piety

Acting decisively Humble In control of his

give advice

Ability to reason or act rationally Not appointing the non-

Moreover, the authority of the Prophet (PBUH) and four caliphs comprises many aspects, not only as a leader who in charge of government administration but include religion, education, financial, sciences, agricultural, water, and economy affairs. Their authority is legitimated and monitored by Allah SWT and the adherents, means that they are responsible in this world and the here after. Authority is related to amanah which is an important element in Islamic leadership concept. One of the caliphs, Abu Bakar As-Siddiq also called al-Amin, means that a person who always hold an amanah. Although he only leads the Muslim for 2 years (632–634) but he left a legacy of proceeding the mandates of disseminating Islamic teachings in sad and bad situations after the death of the Prophet (PBUH). He is a companion and adviser to the Prophet (PBUH) who spent his life in distress and pleasure moments. He received and kept the authority accordingly till he was handed over to Umar bin Khattab. This is a good reference for Muslims leaders in their approaches, decisions and actions or called as referent authority.

As it is mentioned by [36], the Prophet (PBUH) was an extraordinary human being - spiritual leader, judge, political reformer, governor, orator and arbiter. The hadith obviously captures the struggles, triumphs, wit and humanity of the man and his charisma shines through the texts. Muslims consider the Prophet (PBUH) to be the perfect example of a human being, and the greatest of all leaders, as proved by the genuine zeal and astonishment with which adherents around the world excerpt His words and examples [18]. Below is a chart of the history of great leaders in Islam (Figure 1).

Figure 1. The history of great leaders in Islam (author's figure).

#### 2.4 Leadership traits and skills

people from harmness. As an example shown by the second caliphs of Islam; Umar bin Khattab, although he has dominant power in some continents but he always to take care each individual and ensure that he/she receives an adequate food or decent place to live. The power makes Umar bin Khattab more down to earth and humble person. The more power he has, the more lower he put himself in front of others or adherents. Everyone knows how strong he is, how tough he is and how sturdy he is but he will use those superiorities only for the enemy of Islam and not for his people. He never abuse his power for individual or family matters. All of these contributions of Umar bin Khattab acknowledged by the Prophet Muhammad (PBUH) particularly on how he used his power according to the Islamic teachings which then the Prophet (PBUH) told His companion that "If there is an upcoming

Moreover, the authority of the Prophet (PBUH) and four caliphs comprises many aspects, not only as a leader who in charge of government administration but include religion, education, financial, sciences, agricultural, water, and economy affairs. Their authority is legitimated and monitored by Allah SWT and the adherents, means that they are responsible in this world and the here after. Authority is related to amanah which is an important element in Islamic leadership concept. One of the caliphs, Abu Bakar As-Siddiq also called al-Amin, means that a person who always hold an amanah. Although he only leads the Muslim for 2 years (632–634) but he left a legacy of proceeding the mandates of disseminating Islamic teachings in sad and bad situations after the death of the Prophet (PBUH). He is a companion and adviser to the Prophet (PBUH) who spent his life in distress and pleasure moments. He received and kept the authority accordingly till he was handed over to Umar bin Khattab. This is a good reference for Muslims leaders in their approaches,

As it is mentioned by [36], the Prophet (PBUH) was an extraordinary human being - spiritual leader, judge, political reformer, governor, orator and arbiter. The hadith obviously captures the struggles, triumphs, wit and humanity of the man and his charisma shines through the texts. Muslims consider the Prophet (PBUH) to be the perfect example of a human being, and the greatest of all leaders, as proved by the genuine zeal and astonishment with which adherents around the world excerpt His words and examples [18]. Below is a chart of the history of great leaders

Prophet after me, He will be Umar bin Khattab."

Digital Leadership - A New Leadership Style for the 21st Century

decisions and actions or called as referent authority.

in Islam (Figure 1).

Figure 1.

134

The history of great leaders in Islam (author's figure).

Numerous researches of leadership emphasize on specific attributes [37–39]. Those attributes can be used to distinguish the effective and ineffective leaders [18]. Therefore, some researchers focus on social and historical relations [40, 41] and based on a relational and perceptual phenomenon [42–44] as the important contexts in leadership concept.

Ref. [45] revealed the importance of traits and qualities of leaders in Islamic thoughts. He elaborated based on the past history in the Islamic state that the Muslim leaders possess distinctive attributes as shows below:


Meanwhile, in the commercial context, [54] provided two categories of traits and qualities that a leader must have moral discipline. However, these attributes associated with moral, must be accompanied by the attributes related to the avoidance. Below is a figure positioned the attributes (Figure 2).

Moreover, [54] added some attributes related to traits for a leader in achieving an effective conduct of doing business as follows (Figure 3).

Most of the above qualities and traits used to help the leaders in attaining their objectives. The qualities of the leaders in Islamic thoughts meant for nurturing healthy organizations and resulted the followers become united and faithful. The identified qualities seem to be crucial leadership traits, although not all leaders show these qualities simultaneously. In fact, the history of successive Muslim states had been adopted essential qualities of mercy, kindness, and justice.

Personalism is related to the tendency of person in communicating with others in a friendly and warm manner. This is importantly needed to have a high value on personal relationships, reputation in the community and societal norms. Meanwhile, idealism is defined as an aspiration to attain and an infatuation with the highest possible state of existence or perfection. In idealism, absolute perfection is sought and considered to be a virtue. The interplay of personalism and idealism produces great expectations within society. Moreover, in a culture that is characterized by deeply held and widely shared beliefs and values the great expectation generates an environment conducive for positive and clear vision, involvement and cohesiveness, receptiveness and tolerance. In a weak culture where beliefs and value are not widely and deeply shared, great expectations are more likely to translate into apathy, indifference, frustration and fragmentation. Below is a figure

This Qalb leadership approach is more on the purposes of the leaders which derived from the heart. Heart is Arabic term is Qalb. The leaders in Islam must begin with a good intention (niyyah) from their heart to fulfill the responsibilities from the God (Allah SWT) and the men that appointed the leader. If the leaders lead their followers based on brain or other factors/fundamentals, it bring burden for them where they try to satisfy all expectations and requests. However, when the leaders lead with their heart, they will plan and decide based on their limitation and shortcomings. It is not easy to accomplish the mandate (amanah) which given through the trust. [56] asserted that the leadership in Islam centers on trust and amanah. It represents a psychological contract between leaders and their followers that they will try their best to guide, protect, and treat their followers justly. It revolves on doing good deeds for the sake of Allah SWT, the Muslim community

Ref. [56] added that the leadership in Islam must oriented on Al-Imamah Taklif Wa La Tashrif, means that leadership is a responsibility an not an honor, thus no leaders will not abuse their power. The leaders also should undertake or endure in whatever tasks and functions which bound with the basic principle of fulfilling the

We did indeed offer the Trust to the Heavens and the Earth and the Mountains; but they refused to undertake it, being afraid thereof: but man undertook it;—he was

trust/amanah bestowed upon mankind as vicegerent. Allah SWT says:

indeed unjust and foolish. (Al-Ahzab 33: 72)

of Islamic model of leadership (Figure 4).

Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

2.6 Qalb leadership

and humankind.

Figure 4.

137

Islamic model of leadership [55].

#### Figure 2.

The moral encouragement and avoidance for the leaders (author's figure).

Figure 3. The leaders' traits for effective conduct of doing business (author's figure).

All the leaders' qualities in Islam dedicated to serve the adherent or followers, and this is an ibadah to gain pleasure (ridha) from Allah SWT. It is true that the leaders reflect the quality of their people. One possible trigger that can create qualities among the leaders is by possession the knowledge. A qualified leader through education may have decent quality to lead the followers. They can learn the situation and handle many problems calmly especially when they always see all matters are under their responsibility that one day will be asked by the God (Allah SWT) in the here after.

#### 2.5 Islamic model of leadership

This model introduced by [18, 55] that explains two primary types of leaders. The model has four elements: personalism, idealism, great expectation and culture. Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

Personalism is related to the tendency of person in communicating with others in a friendly and warm manner. This is importantly needed to have a high value on personal relationships, reputation in the community and societal norms. Meanwhile, idealism is defined as an aspiration to attain and an infatuation with the highest possible state of existence or perfection. In idealism, absolute perfection is sought and considered to be a virtue. The interplay of personalism and idealism produces great expectations within society. Moreover, in a culture that is characterized by deeply held and widely shared beliefs and values the great expectation generates an environment conducive for positive and clear vision, involvement and cohesiveness, receptiveness and tolerance. In a weak culture where beliefs and value are not widely and deeply shared, great expectations are more likely to translate into apathy, indifference, frustration and fragmentation. Below is a figure of Islamic model of leadership (Figure 4).

#### 2.6 Qalb leadership

This Qalb leadership approach is more on the purposes of the leaders which derived from the heart. Heart is Arabic term is Qalb. The leaders in Islam must begin with a good intention (niyyah) from their heart to fulfill the responsibilities from the God (Allah SWT) and the men that appointed the leader. If the leaders lead their followers based on brain or other factors/fundamentals, it bring burden for them where they try to satisfy all expectations and requests. However, when the leaders lead with their heart, they will plan and decide based on their limitation and shortcomings. It is not easy to accomplish the mandate (amanah) which given through the trust. [56] asserted that the leadership in Islam centers on trust and amanah. It represents a psychological contract between leaders and their followers that they will try their best to guide, protect, and treat their followers justly. It revolves on doing good deeds for the sake of Allah SWT, the Muslim community and humankind.

Ref. [56] added that the leadership in Islam must oriented on Al-Imamah Taklif Wa La Tashrif, means that leadership is a responsibility an not an honor, thus no leaders will not abuse their power. The leaders also should undertake or endure in whatever tasks and functions which bound with the basic principle of fulfilling the trust/amanah bestowed upon mankind as vicegerent. Allah SWT says:

We did indeed offer the Trust to the Heavens and the Earth and the Mountains; but they refused to undertake it, being afraid thereof: but man undertook it;—he was indeed unjust and foolish. (Al-Ahzab 33: 72)

Figure 4. Islamic model of leadership [55].

All the leaders' qualities in Islam dedicated to serve the adherent or followers, and this is an ibadah to gain pleasure (ridha) from Allah SWT. It is true that the leaders reflect the quality of their people. One possible trigger that can create qualities among the leaders is by possession the knowledge. A qualified leader through education may have decent quality to lead the followers. They can learn the situation and handle many problems calmly especially when they always see all matters are under their responsibility that one day will be asked by the God (Allah

This model introduced by [18, 55] that explains two primary types of leaders. The model has four elements: personalism, idealism, great expectation and culture.

SWT) in the here after.

Figure 2.

Figure 3.

136

The moral encouragement and avoidance for the leaders (author's figure).

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The leaders' traits for effective conduct of doing business (author's figure).

2.5 Islamic model of leadership

Meanwhile, Al-Qur'ān has described the criteria of a good leader. Allah SWT said:

"And We made them leaders guiding by Our command. And We inspired to them the doing of good deeds, establishment of prayer, and giving of zakah; and they were worshippers of Us". (Al-Anbiya' 21: 73)

3. Conclusion

someone else at anytime.

Islamic Leadership: Comparisons and Qualities DOI: http://dx.doi.org/10.5772/intechopen.90151

Islamic law or shariah.

139

With the comprehensive explanations of Islamic leadership concept, the leaders

There are studies explored the comparison of the three leadership styles; transformational, transactional and laissez-faire in various countries. Some of these styles have relationship to the effectiveness of leadership in organization and some are not. Meanwhile, the Islamic leadership approach give a positive impact to the leaders, followers and the organization. It is revealed that the Islamic leadership concept is superior than other leadership concept that consist of the current and future purposes. The current purpose refers to the interests in this world, while the future purpose associated with the here after. Moreover, the Islamic leadership emphasized on establishing trust and delivering amanah which then made the people/adherents

Ref. [56] added that the leadership in Islam must oriented on Al-Imamah Taklif Wa La Tashrif. It tells that the leaders are carrying responsibilities and not an honor. Leaders should serve the people and not expecting to be treated. As the leaders, there are tasks to be completed in certain situation and time. The success of completing the tasks depends on the relationship of the leaders with men and their God (Allah SWT). Men or people will help the leaders if they are sincerely guide and lead them to the betterment. While God (Allah SWT) will always guide the leaders in their leadership based on their good intention (niyyah) and obedience to the

Islam also concern on the power and authority of the leaders. Both attributes must be used accordingly which give as much benefits to the society (ummah). The principles of Islam are strictly highlighted the use of power and authority which been shown by the Prophet (PBUH) and four caliphs (khulafa ar-rasyidin). Meanwhile, numerous researches of leadership emphasize on specific attributes [37–39, 58, 59]. Those attributes can be used to distinguish the effective and ineffective leaders [18]. [45] asserted the importance of traits and qualities of leaders in Islamic thoughts. He mentioned based on the past history in the Islamic state that the Muslim leaders possess distinctive attributes There are authors highlighted the

Moreover [55] introduced the two primary types of leaders in his model of Islamic leadership. The model has four elements: personalism, idealism, great expectation and culture, which can be adapted by particularly the Muslim leaders. Meanwhile, the basic thought of heartful leadership approach which drawn by the Imam Al-Ghazali, back 900 years ago, suggested the leaders to behave based on Justice, Wisdom, Courage, and Temperance. With these elaborations of this Islamic leadership concept, the Muslim leaders must be guided and adopted all attributes,

There are many aspects related to Islamic leadership need to be explored especially on the leaders' traits and behaviors. Meanwhile, the challenges of the leaders in this 4.0 industry era will make them more careful in planning and organizing the team and its resources. Islam should has a comprehensive guidance on capitalizing or more involvement in this era, thus every Muslim shouldn't worry about the shariah compliance on it. Muslim leaders will be asked to balance up and accommodate certain barriers to have a smooth transformation. This elaboration on qualities and comparisons of Islamic leadership can be used as a reference for all the readers.

principles and models to attain the goals in this world and the here after.

traits and skills of Islamic leaders such as [18, 46–53, 60, 61].

can be an idol, a reference or a role model that give good impression to all the followers/adherents. They are holding the amanah based on the given trust, thus do not abuse their power. They realized that the power is given temporarily to bring maslahah to the society (not only Muslim population) and will hand it over to

can support the leaders to create conductive and sustainable environment.

"When they entered upon David and he was alarmed by them? They said, "Fear not. [We are] two adversaries, one of whom has wronged the other, so judge between us with truth and do not exceed [it] and guide us to the sound path". (Sad 38: 22)

"And We made from among them leaders guiding by Our command when they were patient and [when] they were certain of Our signs". (As-Sajdah 32: 24)

"The only statement of the [true] believers when they are called to Allah and His Messenger to judge between them is that they say, "We hear and we obey." And those are the successful". (An-Nur 24: 51)

"And let the People of the Gospel judge by what Allah has revealed therein. And whoever does not judge by what Allah has revealed - then it is those who are the defiantly disobedient". (Al-Maidah 5: 47)

The responsibility of the leaders must follow the main principles or the usul al-din of Islam and not against it. This is been reminded many times by the Prophet Muhammad (PBUH) about disobedience and its grave punishment. One of these hadiths, as narrated by Imam Muslim r.a.:

He who refused obedience on a leader, disavowed the Jama'ah (the mainstream Muslims), and then died, died on Jahiliyyah. And he who fought blindly under a banner, getting angry for a prejudicial group, inviting to blind solidarity, or helped a prejudicial group and was killed then, his death was a Jahiliyyah death (n.d. Hadith no. 4892. Vol. 6. p. 20)

Thus, identifying desirable, stable, and effective behaviors of leaders are important in Islam. In today's modern era, the understanding of leadership in Islam has always be confused with the misbehaviours of Muslim leaders' themselves. Most importantly, the behaviors of leadership in Islam should also be consistent with the positive behaviors of organizational leaders that have been found on multiple observations conducted in organizations across the globe [57].

According to [53], Qalb leadership traits as relatively stable and coherent integrations of personal characteristics that are based on the correct functions of Qalb that cover the right understanding of being and actions. These characteristics are reflected by the conditions of heart which consist the components of god awareness, motives, intelligence, and understandings of being and actions, and values [57]. The Qalb leadership traits embedded in the framework of Imam Ghazali's 'On Disciplining the Soul', a specific chapter in his book 'Revival of Islamic Sciences', soul is a concept that stands on the four basic virtues. This provides the basis of important universal leader traits or wisdom, justice, courage, and temperance which provide the foundations of other effective leadership traits. Examples of the behaviors and practices of the leaders are wise decision making (wisdom), clear in direction (wisdom), articulating the right thoughts (wisdom and courage), supporting equality (justice) and establishing positive work environment (temperance and wisdom).

#### 3. Conclusion

Meanwhile, Al-Qur'ān has described the criteria of a good leader. Allah

worshippers of Us". (Al-Anbiya' 21: 73)

Digital Leadership - A New Leadership Style for the 21st Century

are the successful". (An-Nur 24: 51)

hadiths, as narrated by Imam Muslim r.a.:

Hadith no. 4892. Vol. 6. p. 20)

ance and wisdom).

138

observations conducted in organizations across the globe [57].

defiantly disobedient". (Al-Maidah 5: 47)

"And We made them leaders guiding by Our command. And We inspired to them the doing of good deeds, establishment of prayer, and giving of zakah; and they were

"When they entered upon David and he was alarmed by them? They said, "Fear not. [We are] two adversaries, one of whom has wronged the other, so judge between us with truth and do not exceed [it] and guide us to the sound path". (Sad 38: 22)

"And We made from among them leaders guiding by Our command when they were

"The only statement of the [true] believers when they are called to Allah and His Messenger to judge between them is that they say, "We hear and we obey." And those

"And let the People of the Gospel judge by what Allah has revealed therein. And whoever does not judge by what Allah has revealed - then it is those who are the

The responsibility of the leaders must follow the main principles or the usul al-din of Islam and not against it. This is been reminded many times by the Prophet Muhammad (PBUH) about disobedience and its grave punishment. One of these

He who refused obedience on a leader, disavowed the Jama'ah (the mainstream Muslims), and then died, died on Jahiliyyah. And he who fought blindly under a banner, getting angry for a prejudicial group, inviting to blind solidarity, or helped a prejudicial group and was killed then, his death was a Jahiliyyah death (n.d.

Thus, identifying desirable, stable, and effective behaviors of leaders are important in Islam. In today's modern era, the understanding of leadership in Islam has always be confused with the misbehaviours of Muslim leaders' themselves. Most importantly, the behaviors of leadership in Islam should also be consistent with the positive behaviors of organizational leaders that have been found on multiple

According to [53], Qalb leadership traits as relatively stable and coherent integrations of personal characteristics that are based on the correct functions of Qalb that cover the right understanding of being and actions. These characteristics are reflected by the conditions of heart which consist the components of god awareness, motives, intelligence, and understandings of being and actions, and values [57]. The

Qalb leadership traits embedded in the framework of Imam Ghazali's 'On

direction (wisdom), articulating the right thoughts (wisdom and courage),

Disciplining the Soul', a specific chapter in his book 'Revival of Islamic Sciences', soul is a concept that stands on the four basic virtues. This provides the basis of important universal leader traits or wisdom, justice, courage, and temperance which provide the foundations of other effective leadership traits. Examples of the behaviors and practices of the leaders are wise decision making (wisdom), clear in

supporting equality (justice) and establishing positive work environment (temper-

patient and [when] they were certain of Our signs". (As-Sajdah 32: 24)

SWT said:

With the comprehensive explanations of Islamic leadership concept, the leaders can be an idol, a reference or a role model that give good impression to all the followers/adherents. They are holding the amanah based on the given trust, thus do not abuse their power. They realized that the power is given temporarily to bring maslahah to the society (not only Muslim population) and will hand it over to someone else at anytime.

There are studies explored the comparison of the three leadership styles; transformational, transactional and laissez-faire in various countries. Some of these styles have relationship to the effectiveness of leadership in organization and some are not. Meanwhile, the Islamic leadership approach give a positive impact to the leaders, followers and the organization. It is revealed that the Islamic leadership concept is superior than other leadership concept that consist of the current and future purposes. The current purpose refers to the interests in this world, while the future purpose associated with the here after. Moreover, the Islamic leadership emphasized on establishing trust and delivering amanah which then made the people/adherents can support the leaders to create conductive and sustainable environment.

Ref. [56] added that the leadership in Islam must oriented on Al-Imamah Taklif Wa La Tashrif. It tells that the leaders are carrying responsibilities and not an honor. Leaders should serve the people and not expecting to be treated. As the leaders, there are tasks to be completed in certain situation and time. The success of completing the tasks depends on the relationship of the leaders with men and their God (Allah SWT). Men or people will help the leaders if they are sincerely guide and lead them to the betterment. While God (Allah SWT) will always guide the leaders in their leadership based on their good intention (niyyah) and obedience to the Islamic law or shariah.

Islam also concern on the power and authority of the leaders. Both attributes must be used accordingly which give as much benefits to the society (ummah). The principles of Islam are strictly highlighted the use of power and authority which been shown by the Prophet (PBUH) and four caliphs (khulafa ar-rasyidin). Meanwhile, numerous researches of leadership emphasize on specific attributes [37–39, 58, 59]. Those attributes can be used to distinguish the effective and ineffective leaders [18]. [45] asserted the importance of traits and qualities of leaders in Islamic thoughts. He mentioned based on the past history in the Islamic state that the Muslim leaders possess distinctive attributes There are authors highlighted the traits and skills of Islamic leaders such as [18, 46–53, 60, 61].

Moreover [55] introduced the two primary types of leaders in his model of Islamic leadership. The model has four elements: personalism, idealism, great expectation and culture, which can be adapted by particularly the Muslim leaders. Meanwhile, the basic thought of heartful leadership approach which drawn by the Imam Al-Ghazali, back 900 years ago, suggested the leaders to behave based on Justice, Wisdom, Courage, and Temperance. With these elaborations of this Islamic leadership concept, the Muslim leaders must be guided and adopted all attributes, principles and models to attain the goals in this world and the here after.

There are many aspects related to Islamic leadership need to be explored especially on the leaders' traits and behaviors. Meanwhile, the challenges of the leaders in this 4.0 industry era will make them more careful in planning and organizing the team and its resources. Islam should has a comprehensive guidance on capitalizing or more involvement in this era, thus every Muslim shouldn't worry about the shariah compliance on it. Muslim leaders will be asked to balance up and accommodate certain barriers to have a smooth transformation. This elaboration on qualities and comparisons of Islamic leadership can be used as a reference for all the readers.

Digital Leadership - A New Leadership Style for the 21st Century

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### Author details

Ahmad Rafiki Faculty of Economics and Business, Universitas Medan Area, Medan, Indonesia

\*Address all correspondence to: ahmadrafiki@staff.uma.ac.id

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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Author details

Faculty of Economics and Business, Universitas Medan Area, Medan, Indonesia

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

\*Address all correspondence to: ahmadrafiki@staff.uma.ac.id

Digital Leadership - A New Leadership Style for the 21st Century

provided the original work is properly cited.

Ahmad Rafiki

140

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Digital Leadership - A New Leadership Style for the 21st Century

1407&context=etd [Accessed: 18 August

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[26] Ahmad K. Leadership and work motivation from the cross cultural perspective. International Journal of Commerce and Management. 2009;

[27] Samir A. Islam and management: What can be learned? Thunderbird International Business Review. 2006; 48(1):125-139. DOI: 10.1002/tie.20089

[28] Beekun R. Character centered leadership: Muhammad (p) as an ethical

role model for CEOs. Journal of Management Development. 2012; 31(10):1003-1020. DOI: 10.1108/

[29] Sabri H. Re-examination of Hofstede's work value orientations on perceived leadership styles in Jordan. International Journal of Commerce and Management. 2012;22(3):202-218. DOI:

10.1108/10569211211260292

[30] Marbun D. Attributions and requirements of Islamic leadership. Management Research Review. 2013;

36(4):379-387. DOI: 10.1108/

01409171311314987

02621711211281799

[23] Kasturi R. Performance

Online. 2006;5(1):157-163

[24] Mellahi K, Budhwar PS.

39(6):685-691. DOI: 10.1108/

10.1177/1470595807083374

19(1):72-84. DOI: 10.1108/ 10569210910939681

00483481011075558

2019]

[16] Zagorsek H, Dimovski V, Skerlavaj M. Transactional and transformational leadership impact on organizational learning. Journal of East European Management Studies. 2009; 14(2):144-165. DOI: 10.5771/0949-6181-

[17] Chaudhry AQ, Javed H. Impact of transactional and laissez faire leadership style on motivation. International Journal of Business and Social Science.

[18] Ali AJ. Islamic perspectives on leadership: A model. International Journal of Islamic and Middle Eastern Finance and Management. 2009;2(2):

[19] Hidayat SE, Rafiki A, Aldoseri MM. Application of leadership style in government organizations: A survey in the Kingdom of Bahrain. International Journal of Islamic and Middle Eastern Finance and Management. 2017;10(4): 581-594. DOI: 10.1108/IMEFM-06-2015-

[20] Beekun R, Badawi J. The leadership

[21] Mohsen NRM. Leadership from the Qur'an Relationship between Taqwa, Trust and Business Leadership Effectiveness [Doctoral dissertation]. Malaysia: Universiti Sains; 2007

Leadership Theory and practice in K-12

University of Brigham Young [Internet]. 2005. Available at: http://scholarsarchive. byu.edu/cgi/viewcontent.cgi?article=

(Shippensburg, Pa.). 1999;16:33-38

[22] Aabed A. A study of Islamic

Islamic schools in Michigan [Unpublished doctoral thesis].

2013;5(1):30-41

2009-2-144

2012;3(7):258-264

160-180. DOI: 10.1108/ 17538390910965167

process in Islam. Proteus

0075

142

[32] Galanou A, Farrag DA. Towards the distinctive Islamic mode of leadership in business. Journal of Management Development. 2015;34(8):882-900. DOI: 10.1108/JMD-09-2014-0096

[33] Dsouli O, Khan N, Kakabadse NK. Spiritual capital: The co-evolution of an ethical framework based on Abrahamic religious values in the Islamic tradition. Journal of Management Development. 2012;31(10):1058-1076. DOI: 10.1108/ 02621711211281843

[34] Al Arkoubi K. Chapter 7: The Islamic faith: Implications for business management. In: Neal J, editor. Handbook of Faith and Spirituality in the Workplace: Emerging Research and Practice. New York, NY: Springer Science+Business Media; 2013. pp. 103-118

[35] Masoud TE. The Arabs and Islam: The troubled search for legitimacy. Daedalus. 1999;128(2):127-147. Accessed from: http://www.jstor.org/ stable/20027557

[36] Lings M. Muhammad: His Life Based on the Earliest Sources. Cambridge: The Islamic Texts Society; 2004

[37] Blau P. Critical remarks on Weber's theory of authority. American Political Science Review. 1963;57:305-315. DOI: 10.2307/1952824

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[39] Stogdill R. Handbook of Leadership: A Survey of the Literature. New York: The Free Press; 1974

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[42] Willner A. The Spellbinders Charismatic Political Leadership. New Haven, CT: Yale University Press; 1984

[43] Conger JA, Kanungo RN. Toward a behavioral theory of charismatic leadership in organizational settings. Academy of Management Review. 1987; 12(2):637-647. DOI: 10.2307/258069

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[48] Khaliq A. Management from Islamic Perspectives-Principles and Practices. Kuala Lumpur: Research Centre, IIUM; 2007b

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at Hilton Kuala Lumpur; 15-16 May; Organized by KENMS; 2007

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**145**

**Chapter 8**

**Abstract**

universities

**1. Introduction**

Digitalizing South African

Barriers and Risks

*Bethuel Sibongiseni Ngcamu*

Universities: Exploring Benefits,

University leaders in South Africa have employed various leadership styles which focus on improving employee, departmental, faculty and organizational performance. However, digital leadership style is not popular and applied by leaders in universities in South Africa despite compelling benefits associated with digital leadership in universities which include improvement in communication with the key university stakeholders, enhancing the learning and teaching process, quality research outputs, community engagement, leadership and management. The present study aims to provide an understanding of the digital leadership in relation to other seminal leadership approaches which are pertinent in universities. This study further ascertains the benefits, challenges and risks in digitalizing campuses in the epoch of the Fourth Industrial Revolution. It significantly shapes university policies on digital technology, practices and theories on leadership styles which can bring radical changes in universities. This chapter equips university leaders to harness digital leadership style benefits and capacitate university leaders on risks associated by leading with technology. Application of the digital leadership style will assist university leaders in different employment categories to digitally improve employee and organizational performance, eliminate wastage

and provide smooth communication channels and regular feedback.

conversely discouraging economic success in the country.

**Keywords:** benefits, desktop analyses, digital leadership, risks, stakeholder,

Universities in South Africa are failing to meet the needs of digital learners as academic leaders mostly follow outmoded practices, systems, business processes and educational models which are not client focussed. This situation has been exacerbated by the fact that both academic and nonacademic staff members' technological skills are neither non-existing nor obsolete, while manual and physical interaction is discouraged by the budget cuts. These universities run the further risk of being irrelevant to students, society, industry, donors and government

Hill et al. [1] opines that universities are celebrated as a vehicle for economic success through digitalization which has increased student access into these institutions of higher learning. Previously published literature by a plethora of

#### **Chapter 8**

at Hilton Kuala Lumpur; 15-16 May;

Digital Leadership - A New Leadership Style for the 21st Century

[59] Alhadhrami A, Goby VP, And Al-Ansaari Y. Women's enactment of leadership in a heavily gender-marked Islamic context: An exploration within the United Arab Emirates. International Journal of Organizational Analysis. 2018;26(4):728-747. DOI: 10.1108/IJOA-

[60] Campbell RA. Leadership

succession in early Islam: Exploring the nature and role of historical precedents. The Leadership Quarterly. 2008;19(4): 426-438. DOI: 10.1016/j.leaqua.2008.

[61] Sholikhah Z, Wang X, Li W. The role of spiritual leadership in fostering discretionary behaviors: The mediating effect of organization based self-esteem and workplace spirituality. International Journal of Law and Management. 2019; 61(1):232-249. DOI: 10.1108/IJLMA-

08-2017-1206

05.007

04-2018-0081

[50] Khan A. Islamic Leadership: A Success Model for Everyone and all Times [Internet]. 2007. Available from: http://americanchronicle.com/articles/ view/33073 [Accessed: 5 August 2019]

[51] Adnan A. A Study of Islamic Leadership Theory and Practice in K-12 Islamic School in Michigan [Internet]. 2006. Available from: http://contentdm. lib.byu.edu/ETD/image/etd1273.pdf

[Accessed: 13 August 2019]

[53] Mutalib MA, Ghani AHA.

and job autonomy of imams in peninsular Malaysia: A moderated mediation analysis. International Journal of Business and Society. 2013;

[54] Asaf M. The Islamic Way in Business Administration. Cairo: Ayen

[55] Ali A. Islamic Perspectives on Management and Organization. Cheltenham: Edward Elgar; 2005

[56] Ahmad K. Workplace Leadership, Principles from an Islamic Perspective. In International Conference of Da'wah and Islamic Management. Palace of Golden Horses Hotel: Kuala Lumpur;

[57] Mutalib MA, Ghani AA. Leadership Development Model for Religious Leaders. Institut Kefahaman Islam

[58] ElKaleh E. Leadership curricula in

management programmes. International Journal of Educational Management. 2019:33(6):1118-1147. DOI: 10.1108/

Shamis Library; 1987

Malaysia (IKIM); 2014

IJEM-10-2016-0220

UAE business and education

Sdn Bhd; 1995

14(1):17

2010

144

[52] Lukman T. The Islamic Polity and Leadership. Klang: Baron Production

Leadership traits, leadership behavior,

Organized by KENMS; 2007

## Digitalizing South African Universities: Exploring Benefits, Barriers and Risks

*Bethuel Sibongiseni Ngcamu*

#### **Abstract**

University leaders in South Africa have employed various leadership styles which focus on improving employee, departmental, faculty and organizational performance. However, digital leadership style is not popular and applied by leaders in universities in South Africa despite compelling benefits associated with digital leadership in universities which include improvement in communication with the key university stakeholders, enhancing the learning and teaching process, quality research outputs, community engagement, leadership and management. The present study aims to provide an understanding of the digital leadership in relation to other seminal leadership approaches which are pertinent in universities. This study further ascertains the benefits, challenges and risks in digitalizing campuses in the epoch of the Fourth Industrial Revolution. It significantly shapes university policies on digital technology, practices and theories on leadership styles which can bring radical changes in universities. This chapter equips university leaders to harness digital leadership style benefits and capacitate university leaders on risks associated by leading with technology. Application of the digital leadership style will assist university leaders in different employment categories to digitally improve employee and organizational performance, eliminate wastage and provide smooth communication channels and regular feedback.

**Keywords:** benefits, desktop analyses, digital leadership, risks, stakeholder, universities

#### **1. Introduction**

Universities in South Africa are failing to meet the needs of digital learners as academic leaders mostly follow outmoded practices, systems, business processes and educational models which are not client focussed. This situation has been exacerbated by the fact that both academic and nonacademic staff members' technological skills are neither non-existing nor obsolete, while manual and physical interaction is discouraged by the budget cuts. These universities run the further risk of being irrelevant to students, society, industry, donors and government conversely discouraging economic success in the country.

Hill et al. [1] opines that universities are celebrated as a vehicle for economic success through digitalization which has increased student access into these institutions of higher learning. Previously published literature by a plethora of

researchers suggests that the digitalization of universities have created inequality amongst students. For instance, [2] explored a proposal for an off-line e-learning platform that will provide a bridge for digitally unconnected students and educators to join the contemporary information- and communication technologyintensive world. The author observed that individual remote and unconnected learners encounter challenges for engaging with contemporary e-learning offerings and on ICT-intensified learning materials. The latter conundrum has been confirmed by [3] that the digital divide has narrowed with regard to one definition of access to technology by taking into consideration the binary view of the "haves" and "have not". Students in this epoch students are being perceived as "digital natives" referring to those growing up with technology in the 1980s and 1990s by a plethora of researchers [4, 5], "digital immigrants" those who were born into the digital world [4] and with a globally accepted concept as called "digital leaners" [6]. The aforementioned research literature mainly focusses on the e-learning and its challenges in universities which is not associated with the application of digital leadership in universities with an emphasis on its benefits, challenges and risks. This book chapter is therefore closing a void in the research literature by espousing benefits which is associated with digital leadership as an approach in implementing e-learning and other digital strategies in South African universities in this era of the Fourth Industrial Revolution. It further interrogates emerging digital trends, risks and mitigating strategies on universities' digitalization.

The application of the digital leadership approach is desperately needed in South African universities to improve communication amongst the key stakeholders including students: promote team work, accountability, transparency and productivity and eliminate wastage. The digital age has influenced the entire society to be reliant on technology. [7] ponders that university leaders should harness opportunities that are driven by digital technological advancements. Such digital tools have advantages as they are creating digitally driven university cultures, as well as an inspiring, engaging, relevant and transparent environment. Technological advancement reforms challenging ill-informed conceptions associated with technology, outmoded practices, systems, standardization and the status quo are needed. This technology-focussed era ensures that the university systems, business processes and practices are client (student), employee and society focussed.

In this epoch, university students are clients who pay for the service rendered and expect the return on investment and to see the value for money that has been invested. These digital learners have a set of expectations and demands which the university should meet. The digital revolution has brought new challenges and opportunities which have not been harnessed by end users in the value chain. Meanwhile, a plethora of services and core businesses has gone digital in universities including learning and teaching, research and working conditions, and rewards have changed dramatically.

What follows next is the perspective on digital leadership as a concept in relationship to other leadership styles, the Fourth Industrial Revolution and the digitalization of campuses effects, benefits, barriers and risk associated with digital leadership. This chapter concludes by providing pertinent conclusions, recommendations, limitations and advice for future researchers.

#### **2. Conceptualization of digital leadership**

Digital leadership encompasses nurturing a knowledge society and the dissemination of research aimed at influencing global policy and practice, whereas digital

**147**

**Figure 1.**

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

leadership is perceived in universities as a chance savvy which is aimed at enhancing leaders' professional practice to change and augment university culture through the utilization of technology. It also combines mind-set, behaviors and skills in order to enhance leadership to transform practices, systems and the business processes through the use of technology. The digital leadership approach which is seminal in this epoch acknowledges change as building universities to be ubiquitous, to increase connectivity, to provide open sources technology and to utilize mobile

Meanwhile, digital leadership borrows some facets of other leadership styles such as transformational. It is centered on enabling leaders to provide direction, influence subordinates and other leaders to perform better, establish internal and external relationships with stakeholders and initiate sustainable change through the access to information. Meanwhile, [8] defines "digital leadership as requiring reflection on online self-awareness and congruence, grappling with the controversy that comes with cyber civility and how to be a digital citizen prepared to inspire positive

**Figure 1** depicts the facets of digital leadership in conjunction with the features of leadership and the leadership styles that are prevalent in universities. The digital leadership is in cahoots with themes central to the concept of leadership, as well as other leadership styles, which influence employees to achieve organizational goals. However, digital leadership is unique as it provides direction, initiating sustainable change, as well as establishing relationships amongst key stakeholders. While digital leadership partly influences employees, its locus and focus are on changing the university culture by creating and sustaining a digital culture. Prevalent leadership styles in universities' goals are on behavioral change, performance, freedom of expression, knowledge acquisition and distribution and exchange of rewards, the digital leader ensures that there is a relationship of trust between students and

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

devices and personalization of data.

social change".

Leadership

Process/action

Process of influence

Achievement of derived purposes

**Leadership styles effective in universities**

**Transformation style:** To motivate in order to excel and exceed expected demands Influence innovation, creativity and coercive Work ethics Leader follow trust **Adaptive Leadership style`:** Achieve progress All employees work towards a solution through debate and creative thinking Rewards, opportunities and challenges Innovation

Behavioural change Performance Open communication Expression and different views

 **Leadership, leadership styles prevalent in universities and digital leadership**

*Digital leaders: Control and trust students Lecturers use real-world tools: Unleash creativity Passion for learning and teaching Create and sustain a digital culture: Relevant, meaningful and applicable= Skills to succeed*

Establishing direction Influencing others Initiating sustainable change Establishing relationships Anticipate changes

**Digital leadership**

University Success: Strategic mindset Cultivate university culture: Engagement and achievement Transformed construct of leadership Leader's symbolic relationship with technology Empowerment, support and embracement

Knowledge acquisition and distribution

To perform in exchange of rewards

Transactional leadership style: Efficiency and effectiveness

*Leadership, leadership styles prevalent in universities and digital leadership.*

Accomplish organisational goals Accomplishment of a common task

Maximises the efforts of others Achievement of goals

**Source: Authors**

Influence others

Process of social influence Process of social influence

#### *Digitalizing South African Universities: Exploring Benefits, Barriers and Risks DOI: http://dx.doi.org/10.5772/intechopen.86693*

leadership is perceived in universities as a chance savvy which is aimed at enhancing leaders' professional practice to change and augment university culture through the utilization of technology. It also combines mind-set, behaviors and skills in order to enhance leadership to transform practices, systems and the business processes through the use of technology. The digital leadership approach which is seminal in this epoch acknowledges change as building universities to be ubiquitous, to increase connectivity, to provide open sources technology and to utilize mobile devices and personalization of data.

Meanwhile, digital leadership borrows some facets of other leadership styles such as transformational. It is centered on enabling leaders to provide direction, influence subordinates and other leaders to perform better, establish internal and external relationships with stakeholders and initiate sustainable change through the access to information. Meanwhile, [8] defines "digital leadership as requiring reflection on online self-awareness and congruence, grappling with the controversy that comes with cyber civility and how to be a digital citizen prepared to inspire positive social change".

**Figure 1** depicts the facets of digital leadership in conjunction with the features of leadership and the leadership styles that are prevalent in universities. The digital leadership is in cahoots with themes central to the concept of leadership, as well as other leadership styles, which influence employees to achieve organizational goals. However, digital leadership is unique as it provides direction, initiating sustainable change, as well as establishing relationships amongst key stakeholders. While digital leadership partly influences employees, its locus and focus are on changing the university culture by creating and sustaining a digital culture. Prevalent leadership styles in universities' goals are on behavioral change, performance, freedom of expression, knowledge acquisition and distribution and exchange of rewards, the digital leader ensures that there is a relationship of trust between students and

**Figure 1.** *Leadership, leadership styles prevalent in universities and digital leadership.*

*Digital Leadership - A New Leadership Style for the 21st Century*

risks and mitigating strategies on universities' digitalization.

practices are client (student), employee and society focussed.

dations, limitations and advice for future researchers.

**2. Conceptualization of digital leadership**

The application of the digital leadership approach is desperately needed in South

In this epoch, university students are clients who pay for the service rendered and expect the return on investment and to see the value for money that has been invested. These digital learners have a set of expectations and demands which the university should meet. The digital revolution has brought new challenges and opportunities which have not been harnessed by end users in the value chain. Meanwhile, a plethora of services and core businesses has gone digital in universities including learning and teaching, research and working conditions, and rewards

What follows next is the perspective on digital leadership as a concept in relationship to other leadership styles, the Fourth Industrial Revolution and the digitalization of campuses effects, benefits, barriers and risk associated with digital leadership. This chapter concludes by providing pertinent conclusions, recommen-

Digital leadership encompasses nurturing a knowledge society and the dissemination of research aimed at influencing global policy and practice, whereas digital

African universities to improve communication amongst the key stakeholders including students: promote team work, accountability, transparency and productivity and eliminate wastage. The digital age has influenced the entire society to be reliant on technology. [7] ponders that university leaders should harness opportunities that are driven by digital technological advancements. Such digital tools have advantages as they are creating digitally driven university cultures, as well as an inspiring, engaging, relevant and transparent environment. Technological advancement reforms challenging ill-informed conceptions associated with technology, outmoded practices, systems, standardization and the status quo are needed. This technology-focussed era ensures that the university systems, business processes and

researchers suggests that the digitalization of universities have created inequality amongst students. For instance, [2] explored a proposal for an off-line e-learning platform that will provide a bridge for digitally unconnected students and educators to join the contemporary information- and communication technologyintensive world. The author observed that individual remote and unconnected learners encounter challenges for engaging with contemporary e-learning offerings and on ICT-intensified learning materials. The latter conundrum has been confirmed by [3] that the digital divide has narrowed with regard to one definition of access to technology by taking into consideration the binary view of the "haves" and "have not". Students in this epoch students are being perceived as "digital natives" referring to those growing up with technology in the 1980s and 1990s by a plethora of researchers [4, 5], "digital immigrants" those who were born into the digital world [4] and with a globally accepted concept as called "digital leaners" [6]. The aforementioned research literature mainly focusses on the e-learning and its challenges in universities which is not associated with the application of digital leadership in universities with an emphasis on its benefits, challenges and risks. This book chapter is therefore closing a void in the research literature by espousing benefits which is associated with digital leadership as an approach in implementing e-learning and other digital strategies in South African universities in this era of the Fourth Industrial Revolution. It further interrogates emerging digital trends,

**146**

have changed dramatically.

academics; learning and teaching are digitally led by creativity, problem-solving and novelty with employees possessing adequate skills for the university to succeed in the epoch of the Fourth Industrial Revolution.

#### **3. The fourth industrial revolution and university digitalization**

This digital period in history is triggered by the Fourth Industrial Revolution which necessitates the university system to transform in order to tap into opportunities that are brought about by this era. While the global community is driven by the Fourth Industrial Revolution with first-world countries and some leading emerging economies driving the agenda, South Africa is no exception although it is partly trapped, limited and imbibed to brick and mortar. This has been exemplified by an increase in building new universities and new campuses as well as extending the existing ones while the university funding shrinks. This epoch is characterized by a fusion of technologies which is transforming the political and economic landscape, business and society. The digital revolution has improved information and communication skills which necessitate universities to adapt to technology. A number of jobs nowadays are performed by intelligence systems which mandate academics to interrogate current curriculum, teaching strategies, philosophies and the graduate attributes which will determine the graduate profile that universities aim to produce. This era equips students to be creative with advanced skills in maths and statistics and the capability to preprocess and analyze data. Creativity and innovation are at the center stage of this revolution where graduates can create models, frameworks and designs. Furthermore, this digital revolution converges multidisciplines and makes graduates multi-skilled, entrepreneurial and employable. Students with artificial intelligence are marketable and control the world with their organizations that have the edge over their competitors as data is crucial.

#### **4. Digitalizing campuses: the triggers**

Digital technology influences and disrupts both academic and nonacademic staff members' systems, business processes and practices, as well as the pedagogy on how students learn and are taught. In South Africa, meanwhile, there is a dire need for digital technology in learning and teaching, research, community engagement, administration, management and leadership. During and in the aftermath of the broadly publicized student riots which were triggered by a plethora of movements such as the "Fees Must Fall", "Decolonized Curriculum" and "Rhodes must Fall", the need for digitalizing an academic enterprise was aroused. During the latter chaotic and turbulent period in the history of the South African universities, it was difficult for the academics to have contact with students as there were anarchy and riots on the campuses. This situation was perpetuated by the available digital tools which favored students who were economically viable and sustainable, hence, disadvantaging the "poor students" (previously disadvantaged). Universities in South Africa are exploring appropriate and user-friendly technologies (digital) which can accommodate highly diverse students with diverse economic and social backgrounds. Hence, universities are also grappling with implementing and making digital technology to the administrative staff members as they are also diverse as the majority of universities are merged and incorporated between the previously advantaged and disadvantaged institutions with unrealizable lofty goals. Furthermore, the biographical

**149**

**Figure 2.**

*A digital blueprint in universities. Source: Author.*

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

ees being digital native as compared to their old counterparts.

**5. Digital technologies and leadership in universities**

profile for the staff members is diverse in terms of age groups with younger employ-

Universities across the globe are competing for students, attracting quality staffing and funding with their clear focus to those who leverage new digital capabilities. These competitive universities are mostly internationally ranked and attract quality students, and academics have adopted new emerging business models including digital leadership. These universities have embarked on the development of digital strategies and linked them to the university strategic plans. The digitalization of the university enterprise is driven by the university leadership through their digitally

There is a multiplicity of digital technologies which form part of digital leadership including social media. Social media enhances traditional aspects of leadership in the form of management, instruction and commination which directly initiate change, thus transforming institutions. A leading player in the knowledge economy in this epoch has been the convergence of social media, mobile and the web which is called "digital". Mobile technology is necessary in universities as more than half of the world's population own technological devices such as smartphones. Due to the fact that a plethora of university-based applications of digital leadership exists, the latter leadership style cannot be escaped. **Figure 2** depicts various digital leadership applications which include student and employee's recruitment, selection and experiences. The digital leadership is considered to be output-orientated in South African universities as it is focusing on the digitally driven student recruitment and selection, as well as delivery of the learning and teaching, academic enterprise and the student life experience. The chapter draws on the experience of university leaders within student support services who have reinvented the way they engage students in view of the latest technologies. This is coupled with concerted efforts

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

orientated strategic vision (refer to **Figure 2**).

profile for the staff members is diverse in terms of age groups with younger employees being digital native as compared to their old counterparts.

### **5. Digital technologies and leadership in universities**

Universities across the globe are competing for students, attracting quality staffing and funding with their clear focus to those who leverage new digital capabilities. These competitive universities are mostly internationally ranked and attract quality students, and academics have adopted new emerging business models including digital leadership. These universities have embarked on the development of digital strategies and linked them to the university strategic plans. The digitalization of the university enterprise is driven by the university leadership through their digitally orientated strategic vision (refer to **Figure 2**).

There is a multiplicity of digital technologies which form part of digital leadership including social media. Social media enhances traditional aspects of leadership in the form of management, instruction and commination which directly initiate change, thus transforming institutions. A leading player in the knowledge economy in this epoch has been the convergence of social media, mobile and the web which is called "digital". Mobile technology is necessary in universities as more than half of the world's population own technological devices such as smartphones. Due to the fact that a plethora of university-based applications of digital leadership exists, the latter leadership style cannot be escaped. **Figure 2** depicts various digital leadership applications which include student and employee's recruitment, selection and experiences. The digital leadership is considered to be output-orientated in South African universities as it is focusing on the digitally driven student recruitment and selection, as well as delivery of the learning and teaching, academic enterprise and the student life experience. The chapter draws on the experience of university leaders within student support services who have reinvented the way they engage students in view of the latest technologies. This is coupled with concerted efforts


**Figure 2.** *A digital blueprint in universities. Source: Author.*

*Digital Leadership - A New Leadership Style for the 21st Century*

in the epoch of the Fourth Industrial Revolution.

competitors as data is crucial.

**4. Digitalizing campuses: the triggers**

academics; learning and teaching are digitally led by creativity, problem-solving and novelty with employees possessing adequate skills for the university to succeed

This digital period in history is triggered by the Fourth Industrial Revolution which necessitates the university system to transform in order to tap into opportunities that are brought about by this era. While the global community is driven by the Fourth Industrial Revolution with first-world countries and some leading emerging economies driving the agenda, South Africa is no exception although it is partly trapped, limited and imbibed to brick and mortar. This has been exemplified by an increase in building new universities and new campuses as well as extending the existing ones while the university funding shrinks. This epoch is characterized by a fusion of technologies which is transforming the political and economic landscape, business and society. The digital revolution has improved information and communication skills which necessitate universities to adapt to technology. A number of jobs nowadays are performed by intelligence systems which mandate academics to interrogate current curriculum, teaching strategies, philosophies and the graduate attributes which will determine the graduate profile that universities aim to produce. This era equips students to be creative with advanced skills in maths and statistics and the capability to preprocess and analyze data. Creativity and innovation are at the center stage of this revolution where graduates can create models, frameworks and designs. Furthermore, this digital revolution converges multidisciplines and makes graduates multi-skilled, entrepreneurial and employable. Students with artificial intelligence are marketable and control the world with their organizations that have the edge over their

Digital technology influences and disrupts both academic and nonacademic staff

members' systems, business processes and practices, as well as the pedagogy on how students learn and are taught. In South Africa, meanwhile, there is a dire need for digital technology in learning and teaching, research, community engagement, administration, management and leadership. During and in the aftermath of the broadly publicized student riots which were triggered by a plethora of movements such as the "Fees Must Fall", "Decolonized Curriculum" and "Rhodes must Fall", the need for digitalizing an academic enterprise was aroused. During the latter chaotic and turbulent period in the history of the South African universities, it was difficult for the academics to have contact with students as there were anarchy and riots on the campuses. This situation was perpetuated by the available digital tools which favored students who were economically viable and sustainable, hence, disadvantaging the "poor students" (previously disadvantaged). Universities in South Africa are exploring appropriate and user-friendly technologies (digital) which can accommodate highly diverse students with diverse economic and social backgrounds. Hence, universities are also grappling with implementing and making digital technology to the administrative staff members as they are also diverse as the majority of universities are merged and incorporated between the previously advantaged and disadvantaged institutions with unrealizable lofty goals. Furthermore, the biographical

**3. The fourth industrial revolution and university digitalization**

**148**

made by South African faculty leaders to utilize social media and the latest teaching and learning technologies to respond to student needs.

#### **6. Emerging trends in digital leadership**

South African universities have explored and implemented a plethora of digital learning platforms which have been invented by the South African EdTech companies. These digital platforms include GetSmarter, Obami and Suits and Sneakers University. Such digital platforms are intended to provide modern course content. Hence, the unavailability of the free internet or hotspots and areas with Wi-Fi and data at exorbitant prices by the mobile networks makes it impossible to utilize such platforms. Students in universities are no longer restricted to campus, school programmes, textbooks and desks as the digital revolution is infinite. The smooth application of digital tools is practical and user-friendly in geographical areas where there are accessible and reliable internet connectivity or hotspots, as well as to financially viable students.

A number of student movements in South Africa such as the "Fees Must Fall", Rhodes Must Fall" and "Decolonizing Curriculum" have influenced university academic leaders to use technology as a form of innovative teaching techniques that are underpinned by digital technologies. Some public universities have embarked on massive online open courses (MOOCs) which have attracted a number of students. Students have taken this opportunity of using such new digital tools including social media and apps. The digitalization of academia has yielded good results such as improved academic performance, employability rates, student retention and throughput and increased employees' productivity. These new and emerging technologies such as Smart mobile, wearable devices and sensors, cloud-based IT and advanced analytics have transformed the university industry. While the universities in South Africa have failed to intertwine digital technologies into their transformation agenda, and the academic enterprise is digitally inclined, universities have not yet considered the digital epoch as a major player in transforming universities during this period of contested space and political-infested institutions.

These new technologies have improved student life on campuses, residences through activities including teaching and learning, research and working on with other virtual universities and partner organizations including donors, research collaborators and investors, for instance, a "Digital Campus" which serves when students, tutors, professors and other university staff are on and off campus. Innovative teaching techniques such as flipped classrooms, distance learning experiences and hybrid teaching models have been enabled by digital technology. In the South African context, universities have invested in learning platforms such as Blackboard, Canvas or Moodle.

Universities are embarking on branding their faculties and departments in order for their clients (students) to embrace, recognize and support which is significant to the success of the digital footprint. For instance, social media has been utilized to stamp for academic departments footprints and create a brand. Students in various settings have engaged in technology-rich aspects which have changed the trajectory for both rural and urban universities. The use of social media by these universities have enhanced and effectively communicated with the community of stakeholders including business with students seeing digital footprint and resources flourishing. Digital leadership transforms a leader's way of thinking and approach on things during this turbulent period in South African universities. It further provides lecturers as leaders to have autonomy in the lecture halls and the lecturers' application

**151**

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

of concepts, seek their methodologies and technological applications and bring

Academics as leaders in their own right should adapt and rethink how to acquire, develop, transform and share knowledge in the digital era. The academic enterprise should prepare students to be digitally orientated which would increase their employability. The World Economic Forum suggests that more than 1.5 million jobs by 2020 will be digitally based. In the era of a digital economy, academics are perceived as very significant in playing leading and productive roles as they are employed to plan and prepare students for the digital economy. Major trends have emerged such as the "virtual university" which is digitalized and requires leaders with very strong information and communication technology (ICT) capabilities. [8] suggests that to have a competitive edge, collaboration, strategic partners, joint ventures and managed networks are pivotal in universities. These authors further argue that the digitalization of universities requires a leadership style that is distinctive and cooperative as opposed to the vertically integrated style seen in universities which are informed by the hierarchical structures. The traditional university is often seen as an institution with library facilities, where teaching takes place in face-to-face settings, where there are residential facilities for students who are mainly based in a particular residential area organized according to faculties. However, there is a rise in virtual organizations that encourage students to learn anywhere and at any time. This is coupled with rapid and easy access to information from different parts of the world. Institutions of higher learning have a responsibility to harness these developments for the benefit of society and the world as a whole and require leaders who are not only aware but who appreciate and value emerging

There is an acknowledgement that different eras in history produce or require a different set of leadership styles. As the world transitions from the Third Industrial Revolution to the Fourth Industrial Revolution, there is more emphasis on not just access to technology but also quality use of technology. The question that is being asked is how leaders should respond to the current challenges which include global competitiveness in a digitalized world, new technological literacies, resistance to technological changes by academics, meaningful application of technological advances in education and how to transform education by employing technology. [9] argues that "it seems a great irony that while it espouses to be a society's epicenter of new information and ideas, the education sector continues to represent a condition of stasis that has remained outside a long period of innovation within other sectors". This view underlines one of the main challenges that are faced by leaders in higher education which is to align higher education institution with the rapidly changing technological advances. Whereas the application of the digital leadership style in universities has been overlooked, **Figure 3** depicts its impact in

**Figure 3** suggests that the application of the digital leadership in universities have a multiplicity of effects which includes research knowledge dissemination and intelligence, influencing global thinking, responsiveness and sharing of good

Social media applications, including Facebook, Twitter and Instagram, are utilized in universities in South Africa by different stakeholders and are mainstreamed into daily business operations, challenging roles and responsibilities globally and without boundaries. Hence, there are deficiencies in university leaders

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

**7. Effects of digital leadership in universities**

stakeholders to a better place.

organizational models.

the university context.

practices by using digital platforms.

of concepts, seek their methodologies and technological applications and bring stakeholders to a better place.

### **7. Effects of digital leadership in universities**

*Digital Leadership - A New Leadership Style for the 21st Century*

and learning technologies to respond to student needs.

**6. Emerging trends in digital leadership**

financially viable students.

political-infested institutions.

Blackboard, Canvas or Moodle.

made by South African faculty leaders to utilize social media and the latest teaching

South African universities have explored and implemented a plethora of digital learning platforms which have been invented by the South African EdTech companies. These digital platforms include GetSmarter, Obami and Suits and Sneakers University. Such digital platforms are intended to provide modern course content. Hence, the unavailability of the free internet or hotspots and areas with Wi-Fi and data at exorbitant prices by the mobile networks makes it impossible to utilize such platforms. Students in universities are no longer restricted to campus, school programmes, textbooks and desks as the digital revolution is infinite. The smooth application of digital tools is practical and user-friendly in geographical areas where there are accessible and reliable internet connectivity or hotspots, as well as to

A number of student movements in South Africa such as the "Fees Must Fall", Rhodes Must Fall" and "Decolonizing Curriculum" have influenced university academic leaders to use technology as a form of innovative teaching techniques that are underpinned by digital technologies. Some public universities have embarked on massive online open courses (MOOCs) which have attracted a number of students. Students have taken this opportunity of using such new digital tools including social media and apps. The digitalization of academia has yielded good results such as improved academic performance, employability rates, student retention and throughput and increased employees' productivity. These new and emerging technologies such as Smart mobile, wearable devices and sensors, cloud-based IT and advanced analytics have transformed the university industry. While the universities in South Africa have failed to intertwine digital technologies into their transformation agenda, and the academic enterprise is digitally inclined, universities have not yet considered the digital epoch as a major player in transforming universities during this period of contested space and

These new technologies have improved student life on campuses, residences through activities including teaching and learning, research and working on with other virtual universities and partner organizations including donors, research collaborators and investors, for instance, a "Digital Campus" which serves when students, tutors, professors and other university staff are on and off campus. Innovative teaching techniques such as flipped classrooms, distance learning experiences and hybrid teaching models have been enabled by digital technology. In the South African context, universities have invested in learning platforms such as

Universities are embarking on branding their faculties and departments in order for their clients (students) to embrace, recognize and support which is significant to the success of the digital footprint. For instance, social media has been utilized to stamp for academic departments footprints and create a brand. Students in various settings have engaged in technology-rich aspects which have changed the trajectory for both rural and urban universities. The use of social media by these universities have enhanced and effectively communicated with the community of stakeholders including business with students seeing digital footprint and resources flourishing. Digital leadership transforms a leader's way of thinking and approach on things during this turbulent period in South African universities. It further provides lecturers as leaders to have autonomy in the lecture halls and the lecturers' application

**150**

Academics as leaders in their own right should adapt and rethink how to acquire, develop, transform and share knowledge in the digital era. The academic enterprise should prepare students to be digitally orientated which would increase their employability. The World Economic Forum suggests that more than 1.5 million jobs by 2020 will be digitally based. In the era of a digital economy, academics are perceived as very significant in playing leading and productive roles as they are employed to plan and prepare students for the digital economy. Major trends have emerged such as the "virtual university" which is digitalized and requires leaders with very strong information and communication technology (ICT) capabilities. [8] suggests that to have a competitive edge, collaboration, strategic partners, joint ventures and managed networks are pivotal in universities. These authors further argue that the digitalization of universities requires a leadership style that is distinctive and cooperative as opposed to the vertically integrated style seen in universities which are informed by the hierarchical structures. The traditional university is often seen as an institution with library facilities, where teaching takes place in face-to-face settings, where there are residential facilities for students who are mainly based in a particular residential area organized according to faculties. However, there is a rise in virtual organizations that encourage students to learn anywhere and at any time. This is coupled with rapid and easy access to information from different parts of the world. Institutions of higher learning have a responsibility to harness these developments for the benefit of society and the world as a whole and require leaders who are not only aware but who appreciate and value emerging organizational models.

There is an acknowledgement that different eras in history produce or require a different set of leadership styles. As the world transitions from the Third Industrial Revolution to the Fourth Industrial Revolution, there is more emphasis on not just access to technology but also quality use of technology. The question that is being asked is how leaders should respond to the current challenges which include global competitiveness in a digitalized world, new technological literacies, resistance to technological changes by academics, meaningful application of technological advances in education and how to transform education by employing technology. [9] argues that "it seems a great irony that while it espouses to be a society's epicenter of new information and ideas, the education sector continues to represent a condition of stasis that has remained outside a long period of innovation within other sectors". This view underlines one of the main challenges that are faced by leaders in higher education which is to align higher education institution with the rapidly changing technological advances. Whereas the application of the digital leadership style in universities has been overlooked, **Figure 3** depicts its impact in the university context.

**Figure 3** suggests that the application of the digital leadership in universities have a multiplicity of effects which includes research knowledge dissemination and intelligence, influencing global thinking, responsiveness and sharing of good practices by using digital platforms.

Social media applications, including Facebook, Twitter and Instagram, are utilized in universities in South Africa by different stakeholders and are mainstreamed into daily business operations, challenging roles and responsibilities globally and without boundaries. Hence, there are deficiencies in university leaders

**Figure 3.**

*Digital leadership impact in the university context. Source: Author.*

in transforming universities and leading change using social media. This necessitates the university leaders to be capacitated and possess digital competencies to their practices. Social media as a powerful digital instrument has an opportunity and a potential to change, transform and reform a university leader's pathway. The university leaders should have leadership capabilities and must be orientated to digital trends, emerging tools and media platforms in order to achieve their institutional vision and goals.

Furthermore, emerging digital tools and trends and social media platforms should be ingrained in leadership development programmes and practices. Meanwhile, academics have a task to assist students in universities to employ social media as instruments that educate and strengthen commitments and contribute to social change. University leaders can have a digital impact in universities in South Africa by being digitally literate. Digital literacy should be central to the leaders' daily operations in order to attain digital skills. Digital literacies can enable university leaders to master the new semiotic language for communication, to acclimatize to newly invented and emerged technologies. The digital literacy encapsulates an intersection of technical (online interfaces, applications), cognitive (critical thinking) and social–emotional (netiquette, safety) dimensions.

Moreover, digital citizenship enables university leaders to make a digital impact. The university leaders should enrol a curriculum called digital citizenship which is an extension to leadership development evolving around digital technologies. The digital citizenship dimensions include digital etiquette, communication, access, literacy, commerce, law, rights and responsibilities, health and wellness and digital security. The following competencies should be possessed by leaders in universities [10]:

**153**

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

• Digital profile should reflect a leader's true reflection.

• Resolution and mediation on cyber conflict.

ies and 83% enhanced their social lives.

**8.1 Benefits of digital leadership**

information through devices.

• Professional growth/development:

**8. Benefits and risks of digital leadership**

• False or misinterpreted information sorted and ensure that data is accurate and

• Develop personal boundaries including wellness, privacy and time management.

• Establishing online branding which is professional, strategic and diplomatic.

• Establishing a personal learning network through collaboration.

• Constructive, authentic and positive digital decision-making.

• Social media utilization for citizenship (social good).

• Leadership in the university to be integrated with digital technologies.

The latest South African Social Media Landscape Report for 2018 has shared the latest local figures for the biggest social media platforms in the country for 2016–2017. The use of Facebook increased to 16.0 million in 2017 from 13.5 million in 2016; Twitter 8.0 million (2017) from 7.7 million (2016); LinkedIn 6.1 million from 5.5 million (2016) and Instagram 3.8 million (2017) from 3.5 million (2016). The South African high-tech student in 2013 conducted a research study amongst 1425 university and college students. The research findings espoused that over 59% of students have confirmed that they were addicted to social media and 16% very addicted. A total of 85% indicated that the use of social media improved their stud-

The digital leadership is founded on very balanced pillars which are ingrained on

• Communication: providing key stakeholders with relevant and up-to-date

• Public relations: leaders to be storytellers through using free social media tools.

• Student engagement or learning: student's crucial skills are enhanced by issu-

• Problem-solving, critical thinking and analysis, connectedness globally, literacy on media, collaboration and creativity as well as communication.

management and leadership principles. These pillars include the following:

• Branding: a positive brand to be created by social media tools.

ing integrated and effective technology that is cost-effective.

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

with quality.


*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks DOI: http://dx.doi.org/10.5772/intechopen.86693*


The latest South African Social Media Landscape Report for 2018 has shared the latest local figures for the biggest social media platforms in the country for 2016–2017. The use of Facebook increased to 16.0 million in 2017 from 13.5 million in 2016; Twitter 8.0 million (2017) from 7.7 million (2016); LinkedIn 6.1 million from 5.5 million (2016) and Instagram 3.8 million (2017) from 3.5 million (2016). The South African high-tech student in 2013 conducted a research study amongst 1425 university and college students. The research findings espoused that over 59% of students have confirmed that they were addicted to social media and 16% very addicted. A total of 85% indicated that the use of social media improved their studies and 83% enhanced their social lives.

### **8. Benefits and risks of digital leadership**

#### **8.1 Benefits of digital leadership**

The digital leadership is founded on very balanced pillars which are ingrained on management and leadership principles. These pillars include the following:


*Digital Leadership - A New Leadership Style for the 21st Century*

in transforming universities and leading change using social media. This necessitates the university leaders to be capacitated and possess digital competencies to their practices. Social media as a powerful digital instrument has an opportunity and a potential to change, transform and reform a university leader's pathway. The university leaders should have leadership capabilities and must be orientated to digital trends, emerging tools and media platforms in order to achieve their institu-

**Digital leadership impact in the university context**

**Research knowledge and dissemination**

**Use digital to influence global thinking**

**Outward-orientated digital leadership**

**Visual analytics**

**Visual data dissemination**

**Research intelligence**

**Sharing good practice**

Furthermore, emerging digital tools and trends and social media platforms should be ingrained in leadership development programmes and practices.

Meanwhile, academics have a task to assist students in universities to employ social media as instruments that educate and strengthen commitments and contribute to social change. University leaders can have a digital impact in universities in South Africa by being digitally literate. Digital literacy should be central to the leaders' daily operations in order to attain digital skills. Digital literacies can enable university leaders to master the new semiotic language for communication, to acclimatize to newly invented and emerged technologies. The digital literacy encapsulates an intersection of technical (online interfaces, applications), cognitive (critical think-

Moreover, digital citizenship enables university leaders to make a digital impact. The university leaders should enrol a curriculum called digital citizenship which is an extension to leadership development evolving around digital technologies. The digital citizenship dimensions include digital etiquette, communication, access, literacy, commerce, law, rights and responsibilities, health and wellness and digital security. The following competencies should be possessed by leaders in universities [10]:

ing) and social–emotional (netiquette, safety) dimensions.

*Digital leadership impact in the university context. Source: Author.*

• Emerging/new technological/digital tools and platforms.

• Digital content analysis skills.

**152**

tional vision and goals.

**Figure 3.**


Digital leadership style's application in universities in South Africa has yielded a range of benefits to the learning and teaching, research, community engagement, management and administration. The universities subscribed to the style of leadership saw leaders and managers embrace change, demonstrate transparency, increase engagement, embrace collaboration, knowledge and resource sharing, developed international networks and dialogues and contributed to society. Digital leadership brought a myriad of benefits to universities which include, *inter alia*:


In addition to the above benefits, digital leadership enable university leaders to have access to the new and emerging digital tools and trends, research and new knowledge in the discipline.

Digital education is essential to university leaders as the country as a whole is clinging to an outmoded and fragmented education system with some unresponsive curricula at the core.

#### **9. Barriers and risks of digital leadership**

While there are widely shared benefits and opportunities of the digitalization of the university academic enterprise, there are also equal risks. For instance, by

**155**

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

digitalizing the academic enterprise could lead to fragmentation of the curriculum, as well as increasing disparities amongst students as they come from diverse socio-

The universities in South Africa mostly invest in IT systems that failed to harness the benefits and outcomes that are well-known in other sectors that are business orientated. Such failure is associated with the lack of the digitally orientated strategic vision, university capabilities, commitment and buy-in by different stakeholders to implement new technologies effectively, efficiently and economically. Furthermore, the universities de-marry university strategies and digital strategies which makes the business strategy a misfit for the digital age. To achieve sustainable change in universities is not feasible, as a plethora of key stakeholders including students and employees lack digital literacy perpetuated by absent support networks. Another hindrance is the university leadership's failure to equip themselves to adapt to the

Universities including in South Africa are failing to understand a new breed of their clients including students, partners, donors and funders. They also fail to scan the environment in order to determine the digital strengths of their competitors. This situation is worsened by the aforementioned key stakeholder's lack of clarity of vision of the effect of the digital era and their failure to respond to the distinct needs of the university. Furthermore, universities are failing to concurrently adapt and evolve from the AS-IS business processes and practices into the new digitally orientated techniques, tools and capabilities. Failure by the universities to adapt is exacerbated by aging leaders, occupying strategic positions in universities, who lack trust in digital services and cloud technologies and fear the unknown, reliability, security, risks and resilience of the new technological inventions. Both academic and nonacademic staff members fear the use of digital tools, with the older members lacking confidence and being uncomfortable and nervous about engaging in

The majority of the academic staff members are digitally illiterate in terms of knowledge, skills and competencies. They also feel disadvantaged by students who are regarded as "digital natives/indigenous" who are informed of digital transformation. The conundrum which is presented above is aggravated by inflexible policies, aging infrastructure and inexperience with working digital technologies. This conundrum further hampers initiatives taking place amongst the academic staff and students who try to use technology. Such inventions are discouraged by unreliable, unethical and ineffective IT departments at universities which are mostly underfunded. Both staff and students are not afforded an opportunity for autonomy and flexibility in applying digital technology. The staff members mostly do not use technologies, including social media, for the benefit of the university and its clients. The university clients who mostly are students are destructive towards the university and its staff members on social media platforms which discourage employees from participating in such platforms. There are also no control measures to track and discipline those who are abusing the digital tools to further their

The digital leadership as a style is found to share similar characteristics with other leadership styles although it is distinct as it is central to sustaining a "digital culture" at universities. Universities with a competitive edge to others leverage new digital capabilities in attracting both quality students and staff members. This

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

economic and geographical backgrounds.

digital era.

digital spaces.

personal vendettas.

**10. Conclusions**

#### *Digitalizing South African Universities: Exploring Benefits, Barriers and Risks DOI: http://dx.doi.org/10.5772/intechopen.86693*

digitalizing the academic enterprise could lead to fragmentation of the curriculum, as well as increasing disparities amongst students as they come from diverse socioeconomic and geographical backgrounds.

The universities in South Africa mostly invest in IT systems that failed to harness the benefits and outcomes that are well-known in other sectors that are business orientated. Such failure is associated with the lack of the digitally orientated strategic vision, university capabilities, commitment and buy-in by different stakeholders to implement new technologies effectively, efficiently and economically. Furthermore, the universities de-marry university strategies and digital strategies which makes the business strategy a misfit for the digital age. To achieve sustainable change in universities is not feasible, as a plethora of key stakeholders including students and employees lack digital literacy perpetuated by absent support networks. Another hindrance is the university leadership's failure to equip themselves to adapt to the digital era.

Universities including in South Africa are failing to understand a new breed of their clients including students, partners, donors and funders. They also fail to scan the environment in order to determine the digital strengths of their competitors. This situation is worsened by the aforementioned key stakeholder's lack of clarity of vision of the effect of the digital era and their failure to respond to the distinct needs of the university. Furthermore, universities are failing to concurrently adapt and evolve from the AS-IS business processes and practices into the new digitally orientated techniques, tools and capabilities. Failure by the universities to adapt is exacerbated by aging leaders, occupying strategic positions in universities, who lack trust in digital services and cloud technologies and fear the unknown, reliability, security, risks and resilience of the new technological inventions. Both academic and nonacademic staff members fear the use of digital tools, with the older members lacking confidence and being uncomfortable and nervous about engaging in digital spaces.

The majority of the academic staff members are digitally illiterate in terms of knowledge, skills and competencies. They also feel disadvantaged by students who are regarded as "digital natives/indigenous" who are informed of digital transformation. The conundrum which is presented above is aggravated by inflexible policies, aging infrastructure and inexperience with working digital technologies. This conundrum further hampers initiatives taking place amongst the academic staff and students who try to use technology. Such inventions are discouraged by unreliable, unethical and ineffective IT departments at universities which are mostly underfunded. Both staff and students are not afforded an opportunity for autonomy and flexibility in applying digital technology. The staff members mostly do not use technologies, including social media, for the benefit of the university and its clients. The university clients who mostly are students are destructive towards the university and its staff members on social media platforms which discourage employees from participating in such platforms. There are also no control measures to track and discipline those who are abusing the digital tools to further their personal vendettas.

#### **10. Conclusions**

The digital leadership as a style is found to share similar characteristics with other leadership styles although it is distinct as it is central to sustaining a "digital culture" at universities. Universities with a competitive edge to others leverage new digital capabilities in attracting both quality students and staff members. This

*Digital Leadership - A New Leadership Style for the 21st Century*

○ Acquisition of resources

○ Leaders forming their personal learning networks (PLN)

brought a myriad of benefits to universities which include, *inter alia*:

and appropriate utilization of technology and digital tools

○ Establish partnership with subject experts and community of practice

Digital leadership style's application in universities in South Africa has yielded a range of benefits to the learning and teaching, research, community engagement, management and administration. The universities subscribed to the style of leadership saw leaders and managers embrace change, demonstrate transparency, increase engagement, embrace collaboration, knowledge and resource sharing, developed international networks and dialogues and contributed to society. Digital leadership

• Shifts leadership to be grounded on empowerment, support and embracement

misconception of the utilization of technology including the social media and

• Leadership facets improvement by developing a vision for effective, efficient

In addition to the above benefits, digital leadership enable university leaders to have access to the new and emerging digital tools and trends, research and new

Digital education is essential to university leaders as the country as a whole is clinging to an outmoded and fragmented education system with some unresponsive

While there are widely shared benefits and opportunities of the digitalization of the university academic enterprise, there are also equal risks. For instance, by

• Leadership's mastering of the fear of the unknown, misinformation and

○ Accessibility to both tacit and explicit knowledge

○ Provide and receive continuous feedback

• Harnessing the power of digital technologies

• Leaders' preparedness to digital application

• Enhancing learning and teaching technology

• Improving communication with students

**9. Barriers and risks of digital leadership**

• Community engagement benefiting communities

• Providing a strategic mind-set

• Increased educational technology

digital devices

knowledge in the discipline.

curricula at the core.

**154**

chapter concludes by suggesting that university leaders should have digital competencies and that digital tools should be ingrained into leadership development programmes.

This chapter concludes that South African universities attract digitally native or immigrant students (or later digital learners) who demand digital channels, while leaders are digitally obsolete and illiterate. This negatively impacts on students' academic performance, as well as on their quality of life on campuses as their value for money and return on investments are not realized. This implies that academics as leaders can play a pivotal role in applying digital tools in their learning and teaching strategies with direct impacts to learners' academic performance, marketability and employability. Furthermore, digital leaders sustain a digital culture on campuses through building relationship of trust between students and academics. What is noteworthy in this book chapter are the leaders who are preaching digitalization while practices, systems, business processes and educational models are being outmoded. This implies that digital technologies are not ingrained in the university strategic plans nor centralized by senior management with the minimal chances of being cascaded to lower levels. The latter originates from the fragmented and vertical university structures which paralyzes digital movement which is influenced by the Fourth Industrial Revolution. Conversely, the social media has been observed in this book chapter to have been utilized in universities in South Africa which have transformed the university landscape by increasing students' flexibility as digital tools are infinite as well as the academic performance and retention. Moreover, academic staff members should transform the curriculum and infuse digital technologies into it with clear digitally orientated graduate attributes for all qualifications. Such radical transformation will increase student's creativity, problem-solving skills and novelty which will drastically change the country's political and economic landscape.

Furthermore, university strategic plans should be intertwined with technology and should be digitally led. This book chapter acknowledges risks associated with emerging digital tools at universities. Such risks are aggravated by a reactionary approach by university leaders to capacitate employees in all employment categories (senior, middle and junior) on how to manage risks which are brought by digital technologies on campuses. However, the risks associated with digital technologies do not supersede its benefits to students, employees, internal and external stakeholders which are immense and immeasurable. The university leaders in different employment categories should conduct a digital knowledge, skills and competencies audit to all staff members in order to identify the digital deficiencies. Universities in South Africa should develop an instrument in order to test the digital competencies for all leaders in different employment categories.

A significant limitation of this book chapter is methodological as it is not empirical which necessitates future researchers to conduct empirical studies at universities in South Africa on the student and academic staff members' perceptions and experiences on digitalization of learning, content and assessment. Furthermore, this research study is not informed by any theory which is a further limitation of this study. Future researchers should conduct empirical studies at universities on employees' readiness to apply digital tools in their daily operations.

**157**

**Author details**

Bethuel Sibongiseni Ngcamu

Walter Sisulu University, East London, South Africa

provided the original work is properly cited.

\*Address all correspondence to: ngcamuzaa@gmail.com

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks*

*DOI: http://dx.doi.org/10.5772/intechopen.86693*

*Digitalizing South African Universities: Exploring Benefits, Barriers and Risks DOI: http://dx.doi.org/10.5772/intechopen.86693*

#### **Author details**

*Digital Leadership - A New Leadership Style for the 21st Century*

programmes.

landscape.

chapter concludes by suggesting that university leaders should have digital competencies and that digital tools should be ingrained into leadership development

This chapter concludes that South African universities attract digitally native or immigrant students (or later digital learners) who demand digital channels, while leaders are digitally obsolete and illiterate. This negatively impacts on students' academic performance, as well as on their quality of life on campuses as their value for money and return on investments are not realized. This implies that academics as leaders can play a pivotal role in applying digital tools in their learning and teaching strategies with direct impacts to learners' academic performance, marketability and employability. Furthermore, digital leaders sustain a digital culture on campuses through building relationship of trust between students and academics. What is noteworthy in this book chapter are the leaders who are preaching digitalization while practices, systems, business processes and educational models are being outmoded. This implies that digital technologies are not ingrained in the university strategic plans nor centralized by senior management with the minimal chances of being cascaded to lower levels. The latter originates from the fragmented and vertical university structures which paralyzes digital movement which is influenced by the Fourth Industrial Revolution. Conversely, the social media has been observed in this book chapter to have been utilized in universities in South Africa which have transformed the university landscape by increasing students' flexibility as digital tools are infinite as well as the academic performance and retention. Moreover, academic staff members should transform the curriculum and infuse digital technologies into it with clear digitally orientated graduate attributes for all qualifications. Such radical transformation will increase student's creativity, problem-solving skills and novelty which will drastically change the country's political and economic

Furthermore, university strategic plans should be intertwined with technology and should be digitally led. This book chapter acknowledges risks associated with emerging digital tools at universities. Such risks are aggravated by a reactionary approach by university leaders to capacitate employees in all employment categories (senior, middle and junior) on how to manage risks which are brought by digital technologies on campuses. However, the risks associated with digital technologies do not supersede its benefits to students, employees, internal and external stakeholders which are immense and immeasurable. The university leaders in different employment categories should conduct a digital knowledge, skills and competencies audit to all staff members in order to identify the digital deficiencies. Universities in South Africa should develop an instrument in order to test the digital competencies

A significant limitation of this book chapter is methodological as it is not empirical which necessitates future researchers to conduct empirical studies at universities in South Africa on the student and academic staff members' perceptions and experiences on digitalization of learning, content and assessment. Furthermore, this research study is not informed by any theory which is a further limitation of this study. Future researchers should conduct empirical studies at universities on

for all leaders in different employment categories.

employees' readiness to apply digital tools in their daily operations.

**156**

Bethuel Sibongiseni Ngcamu Walter Sisulu University, East London, South Africa

\*Address all correspondence to: ngcamuzaa@gmail.com

© 2019 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

### **References**

[1] Hill C, Lawton W. Universities, the digital divide and global inequality. Journal of Higher Education Policy and Management. 2018;**40**(6):598-610

[2] Hillier M. Bridging the digital divide with an off-line e-learning and e-assessment platform. In: Open and Distance Learning Association of Australia; 2017

[3] Dolan JE. Splicing the divide: A review of research on the evolving digital divide among K–12 students. Journal of Research on Technology in Education. 2016;**48**(1):16-37

[4] Prensky M. Digital natives, digital immigrants part 1. On the Horizon. 2001;**9**(5):1-6

[5] Tapscott D. Grown up Digital. Boston: McGraw-Hill Education; 2008

[6] Gallardo-Echenique EE, Marqués-Molías L, Bullen M, Strijbos JW. Let's talk about digital learners in the digital era. The International Review of Research in Open and Distributed Learning. 2015;**16**(3)

[7] Sheninger E. Digital leadership: Changing paradigms for changing times. Corwin Press; 2019

[8] Dopson S, Ferlie E, McGivern G, Fischer MD, Mitra M, Ledger J, et al. Leadership development in Higher Education: A literature review and implications for programme redesign. Higher Education Quarterly. 2019;**73**(2):218-234

[9] Beaudoin MF. Distance education leadership in the context of digital change. Quarterly Review of Distance Education. 2015;**16**(2):33-44

[10] Ahlquist J. Trending now: Digital leadership education using social media and the social change model. Journal of Leadership Studies. 2014;**8**(2):57-60

**158**

*Digital Leadership - A New Leadership Style for the 21st Century*

[1] Hill C, Lawton W. Universities, the digital divide and global inequality. Journal of Higher Education Policy and Management. 2018;**40**(6):598-610

[2] Hillier M. Bridging the digital divide with an off-line e-learning and e-assessment platform. In: Open and Distance Learning Association of

[3] Dolan JE. Splicing the divide: A review of research on the evolving digital divide among K–12 students. Journal of Research on Technology in

[4] Prensky M. Digital natives, digital immigrants part 1. On the Horizon.

[5] Tapscott D. Grown up Digital. Boston: McGraw-Hill Education; 2008

[6] Gallardo-Echenique EE, Marqués-Molías L, Bullen M, Strijbos JW. Let's talk about digital learners in the digital era. The International Review of Research in Open and Distributed

[7] Sheninger E. Digital leadership: Changing paradigms for changing

[8] Dopson S, Ferlie E, McGivern G, Fischer MD, Mitra M, Ledger J, et al. Leadership development in Higher Education: A literature review and implications for programme redesign. Higher Education

Education. 2016;**48**(1):16-37

**References**

Australia; 2017

2001;**9**(5):1-6

Learning. 2015;**16**(3)

times. Corwin Press; 2019

Quarterly. 2019;**73**(2):218-234

Education. 2015;**16**(2):33-44

[9] Beaudoin MF. Distance education leadership in the context of digital change. Quarterly Review of Distance

[10] Ahlquist J. Trending now: Digital leadership education using social media and the social change model. Journal of Leadership Studies. 2014;**8**(2):57-60

### *Edited by Mario Franco*

Digital leadership has been seen as a phenomenon allowing competitive advantages for organizations, but some studies do not include the risks, benefits, and challenges of this type of leadership. Consequently, the objective of this book is to fill this gap by combining several studies from different perspectives. The various chapters presented here follow several approaches and applications that researchers explore in different contexts. This book intends therefore to add to the body of knowledge in leadership and digital areas. On the other hand, this work shows how digital leadership can stimulate organizational development in various countries and regions worldwide.

Published in London, UK © 2020 IntechOpen © Verne Ho / unsplash

Digital Leadership - A New Leadership Style for the 21st Century

Digital Leadership

A New Leadership Style for the 21st Century

*Edited by Mario Franco*