Leadership in Digital Era: Main Challenges

**3**

**Chapter 1**

**Abstract**

*and Fabiana Sepe*

case of the Boeing Company.

aerospace industry, Boeing

cal and managerial implications.

**2. Theoretical framework**

**1. Introduction**

Leadership in the Digital Realm:

What Are the Main Challenges?

The current book chapter examines how digital leaders cultivate opportunities and address risks in a fast-moving, digital market environment. The focal point is to understand if digital leaders are able to keep control over all mechanisms triggered by the turbulent business environment. The chapter's challenge is to verify how digital leadership works in the specific context of aerospace industry through the

As always more companies strive to develop new digital capabilities, digital leaders are making significant changes to their organisational culture and strategymaking process. These shifts cause the emergence of important questions about what means to lead a digital business. Digital leaders should articulate a vision people can share and also create the conditions that facilitate digital maturity. Given these premises, this chapter deepens the theme of digital leadership by stressing the fact that building collaboration and consensus, identifying strengths of individuals and providing meaning and purpose, together with enticing visions,

The focal point is to understand if digital leaders are able to keep control over all mechanisms triggered by the turbulent business environment. More precisely, as the digital environment makes organisational practices more visible to potential masses through employee engagement, a growing interest in relational aspects of organisational life and stakeholders' expectations for increased organisational transparency. The chapter is organised as follows. First, it starts with a literature review on the topic to after propose a theoretical framework. The chapter proceeds with the case study of the Boeing Company. Finally, the conclusions highlight the main theoreti-

In order to explore the topic of digital leadership, in the current chapter, we first clarify the meaning of digital leadership and then carry out literature review on

*Valentina Della Corte, Giovanna Del Gaudio* 

**Keywords:** digital leadership, dynamic capabilities, ambidexterity,

is necessary for organisational effectiveness in the digital realm.

#### **Chapter 1**

## Leadership in the Digital Realm: What Are the Main Challenges?

*Valentina Della Corte, Giovanna Del Gaudio and Fabiana Sepe*

#### **Abstract**

The current book chapter examines how digital leaders cultivate opportunities and address risks in a fast-moving, digital market environment. The focal point is to understand if digital leaders are able to keep control over all mechanisms triggered by the turbulent business environment. The chapter's challenge is to verify how digital leadership works in the specific context of aerospace industry through the case of the Boeing Company.

**Keywords:** digital leadership, dynamic capabilities, ambidexterity, aerospace industry, Boeing

#### **1. Introduction**

As always more companies strive to develop new digital capabilities, digital leaders are making significant changes to their organisational culture and strategymaking process. These shifts cause the emergence of important questions about what means to lead a digital business. Digital leaders should articulate a vision people can share and also create the conditions that facilitate digital maturity.

Given these premises, this chapter deepens the theme of digital leadership by stressing the fact that building collaboration and consensus, identifying strengths of individuals and providing meaning and purpose, together with enticing visions, is necessary for organisational effectiveness in the digital realm.

The focal point is to understand if digital leaders are able to keep control over all mechanisms triggered by the turbulent business environment. More precisely, as the digital environment makes organisational practices more visible to potential masses through employee engagement, a growing interest in relational aspects of organisational life and stakeholders' expectations for increased organisational transparency.

The chapter is organised as follows. First, it starts with a literature review on the topic to after propose a theoretical framework. The chapter proceeds with the case study of the Boeing Company. Finally, the conclusions highlight the main theoretical and managerial implications.

#### **2. Theoretical framework**

In order to explore the topic of digital leadership, in the current chapter, we first clarify the meaning of digital leadership and then carry out literature review on

ambidexterity and dynamic capabilities. Subsequently, we propose a theoretical framework that integrates digital leadership with the two above-mentioned streams of research.

#### **2.1 Digital leadership**

The issue of leadership has been studied under numerous perspectives and in different contexts [1].

The actual challenge in the theoretical context is characterized by the realised transaction between the static world and the digital world. This latter requires specific competences and capabilities able to enhance organisational relationships in the referring ecosystem [2]. In other words, theorising on leadership has been transforming from a modern, static leadership theory emphasising the leader-person (e.g., traits) to increased acknowledgement of the discursive resources and the organisational relationships involved in leadership practices [3].

Moreover, digital leadership refers not only to the fact to run businesses in the era of artificial intelligence but also consists in owning the right digital skills to spur the technological changes and innovation.

Digital leadership is based on specific factors [1], p. 121, such as 'organisational agility, engagement of skilled staff, leadership, support from technology partners, investment, culture, alignment of new digital technologies with existing IT, and learning from failed projects'. The main challenge is, indeed, to contextually manage and balance all these factors.

This kind of leadership also requires leadership pivotal capabilities in developing both internal and external collaboration in order to co-produce ideas and strategies for digital changes.

Digital leadership can be also considered a strategic factor that influences the well-being of internal human resources [4].

Following the thought of Zeike et al. [4], we share the holistic vision of digital leadership as an overlap between digital literacy (i.e., computer literacy, ICT literacy, digital competence and digital readiness) and digital leadership itself (i.e., digital leadership skills/capabilities/abilities).

**Table 1** encloses definitions on the topic that share the same vision conceiving digital leadership as the ability to drive digital process as well as to create the roots for digital transformation.


**5**

*Leadership in the Digital Realm: What Are the Main Challenges?*

the digital governance and build technological leadership.

support others to make the right decisions.

and the use of narratives in leadership work.

and services, etc.) based on new technological possibilities.

least, ambiguity (cause-and-effect confusion).

work well along the whole process.

line with purpose and direction.

ent technologies.

In this light, two important areas are highlighted in order to succeed with a digital transformation: leadership capabilities and the operationalization and

As for the leadership capabilities, Westerman et al. [6] refer to the ability to create a transformative digital vision, energise employees by engagement, focus on

In particular, five factors are crucial to understand how digital leaders can

1.Devolved decision making: It means that decisions are made at the appropriate level closest to the customer; in this sense, leaders have to share power and

2.Collaborative achievement: It refers to work together as a team to achieve shared outcomes; leaders should enable teams to operate effectively and to

3.Agility: It is related to always improve and adapt to changing circumstances in

4.Purpose and direction: This is strictly linked to the importance of storytelling

5.Authenticity: It is to build trust and establish a corporate reputation; in this view, leaders act with integrity and balance to build trusting relationships.

Consistent with the research carried out by Brynjolfsson and McAfee [8], the digitalization is characterised by three different drivers: (1) Exponential growth of digital technologies; (2) economies of digitization; and (3) compatibility of differ-

The pivotal technological aspects are the connection of people and things via Internet and cloud technology. An important role is played by social media platforms, which are establishing huge personnel networks; the same approach could be used with companies (social collaboration platforms). At the same time, the 'Internet of things' is setting up networks of machines, wearables, products, etc. Based on these networks, a very huge amount of data is produced. This big data can be used (in real time) for data analytics and business predictions. In order to do that, artificial intelligence is becoming more and more important. The industry 4.0 concept is at the centre of these technological aspects. In the Industry 4.0 era, manufacturing systems are able to create the so-called 'cyber twin' [9] of the physical world and make smart decisions through real-time communication and cooperation [10]. Industry 4.0 combines embedded production system technologies with intelligent production processes to pave the way for a new technological age that will transform business models. The technological developments impact on the competitive environment (new business models, new competitors, new products

As mentioned by Petry [7], the digital world can be conceived as a VUCA environment. It is an acronym that stands for volatility (frequent changes), uncertainty (lack of predictability), complexity (interdependence of different elements) and, at

All managers need to adopt their leadership style to the VUCA environment of the digital age. Nevertheless, it is important to stress out that all individuals are

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

positively impact on the firm's success:

implementation of digitalization (see **Figure 1**).

**Table 1.** *Definition of digital leadership.* *Digital Leadership - A New Leadership Style for the 21st Century*

of research.

**2.1 Digital leadership**

different contexts [1].

ship practices [3].

for digital changes.

for digital transformation.

Kai-Uwe Brock and von Wangenheim

*Definition of digital leadership.*

the technological changes and innovation.

well-being of internal human resources [4].

digital leadership skills/capabilities/abilities).

age and balance all these factors.

ambidexterity and dynamic capabilities. Subsequently, we propose a theoretical framework that integrates digital leadership with the two above-mentioned streams

The issue of leadership has been studied under numerous perspectives and in

Moreover, digital leadership refers not only to the fact to run businesses in the era of artificial intelligence but also consists in owning the right digital skills to spur

Digital leadership is based on specific factors [1], p. 121, such as 'organisational agility, engagement of skilled staff, leadership, support from technology partners, investment, culture, alignment of new digital technologies with existing IT, and learning from failed projects'. The main challenge is, indeed, to contextually man-

This kind of leadership also requires leadership pivotal capabilities in developing both internal and external collaboration in order to co-produce ideas and strategies

Digital leadership can be also considered a strategic factor that influences the

Following the thought of Zeike et al. [4], we share the holistic vision of digital

**Table 1** encloses definitions on the topic that share the same vision conceiving digital leadership as the ability to drive digital process as well as to create the roots

El Sawy 2016 Doing the right things for the strategic success of digitalization for the

Larjovuori et al. 2016 The leaders' ability to create a clear and meaningful vision for the

Zeike et al. 2019 Digitally successful companies have built strong leadership capabilities to

enterprise and its business ecosystem

digitalization process and the capability to execute strategies to actualize it

envision and drive transformation. In this context, leadership capabilities are the ways in which managers are driving change

2019 Leadership provides the transformational energy for firms to be DIGITAL and, as a consequence, successful with artificial intelligence

leadership as an overlap between digital literacy (i.e., computer literacy, ICT literacy, digital competence and digital readiness) and digital leadership itself (i.e.,

**Author/s Year Definition**

The actual challenge in the theoretical context is characterized by the realised transaction between the static world and the digital world. This latter requires specific competences and capabilities able to enhance organisational relationships in the referring ecosystem [2]. In other words, theorising on leadership has been transforming from a modern, static leadership theory emphasising the leader-person (e.g., traits) to increased acknowledgement of the discursive resources and the organisational relationships involved in leader-

**4**

**Table 1.**

In this light, two important areas are highlighted in order to succeed with a digital transformation: leadership capabilities and the operationalization and implementation of digitalization (see **Figure 1**).

As for the leadership capabilities, Westerman et al. [6] refer to the ability to create a transformative digital vision, energise employees by engagement, focus on the digital governance and build technological leadership.

In particular, five factors are crucial to understand how digital leaders can positively impact on the firm's success:


Consistent with the research carried out by Brynjolfsson and McAfee [8], the digitalization is characterised by three different drivers: (1) Exponential growth of digital technologies; (2) economies of digitization; and (3) compatibility of different technologies.

The pivotal technological aspects are the connection of people and things via Internet and cloud technology. An important role is played by social media platforms, which are establishing huge personnel networks; the same approach could be used with companies (social collaboration platforms). At the same time, the 'Internet of things' is setting up networks of machines, wearables, products, etc. Based on these networks, a very huge amount of data is produced. This big data can be used (in real time) for data analytics and business predictions. In order to do that, artificial intelligence is becoming more and more important. The industry 4.0 concept is at the centre of these technological aspects. In the Industry 4.0 era, manufacturing systems are able to create the so-called 'cyber twin' [9] of the physical world and make smart decisions through real-time communication and cooperation [10]. Industry 4.0 combines embedded production system technologies with intelligent production processes to pave the way for a new technological age that will transform business models. The technological developments impact on the competitive environment (new business models, new competitors, new products and services, etc.) based on new technological possibilities.

As mentioned by Petry [7], the digital world can be conceived as a VUCA environment. It is an acronym that stands for volatility (frequent changes), uncertainty (lack of predictability), complexity (interdependence of different elements) and, at least, ambiguity (cause-and-effect confusion).

All managers need to adopt their leadership style to the VUCA environment of the digital age. Nevertheless, it is important to stress out that all individuals are

#### **Figure 1.**

*Leadership capabilities and digitalization: Key factors and business consequences. Source: Our elaboration from ref. [7].*

overstrained in a VUCA environment. So, since it is impudent to centrally control, digital leaders need to use the collective intelligence in the company (participative leadership [11, 12]). Moreover, leaders in the digital economy need to lead openly, give and receive feedback and be open for criticism. In this sense, digital leadership is an 'open leadership'; more specifically, a successful leader typically requires some kind of ambidexterity.

#### **2.2 Ambidexterity**

Bunch of literature has up to now defined ambidexterity, both from a strategic and an organisational point of view [13, 14]. There is still a missing issue, however, which concerns the main sources of ambidexterity in an organisation and the relative relationships between these individual sources and the organisation as a whole. The key point is therefore to apply the concept within organisations, in order to see the roots and the overall set of relationships connected with ambidexterity that can have a positive impact on firm performance.

This chapter studies, in particular, strategic human resources in ambidexterity, with specific reference to the top management.

The ambidextrous enterprise can be analysed in light of the management and decision-makers capability of research, creation and appropriation of value. In literature, the ambidextrous enterprise has been frequently related to the managerial skills to counselling/direction [15, 16], organisational skills [16] and cognitive processes [18]. In particular, we refer to top management skills.

**7**

the study of [30].

**2.3 Dynamic capabilities**

*Leadership in the Digital Realm: What Are the Main Challenges?*

5.have specific diversity management skills.

of prompt results related to the project itself [13].

emphasising the distinctive traits. In fact, ambidextrous managers:

3. rapidly update their knowledge, skills and competence [19];

4.have high experiences in manage radical and unexpected changes; and

Regarding the first trait, the ambidextrous manager is able to engage in apparently conflicting opportunities, goals and needs [17]. These contradictions mainly come out with strategic and organisational dilemmas. Accordingly, the ambidextrous manager has to balance the incongruities because recognising and accepting the contradictions can be the key of the business success [18], p. 527. In such a process, according to resource-based theory [20–22], mainly focused on the analysis of strategic resources and competences, able to create sustainable competitive advantage, dynamic capabilities are a key concept [23]. They in fact represent the organisational processes through which strategic resources are used in order to face and/or create changes in the market [24], p. 1105. They mainly refer to decision

The second trait refers to the multi-tasking nature of the ambidextrous manager. Some scholars [15] define in a broader meaning contexts and actions of managers and employees that show ambidextrous skills. Moreover, the analysis of the ambidextrous manager is closely related to his explicit and tacit knowledge exploration and exploitation [25, 26]. This aspect is also related to the capabilities of these leaders to manage diversities through a shared vision [27], emphasising the 'unity-indiversity' of Dass and Parker [28]. Finally, the high experience in managing radical and unexpected changes is a distinctive trait of the ambidextrous manager, but it is the fundamental element of the ambidexterity. In fact, ambidextrous managers can be managed by both incremental and radical/revolutionary changes [14]. The relation between ambidexterity traits of project manager and the performances of the project team imply the definition of specific assessment techniques of the project success in terms of improvement of the organisational routines and of achievement

Blomquist and Muller [29] show that ambidextrous leaders' behaviours are contingent to the different project typologies, thereby underlining how the reactivity of the uncertainty management of project team activities is crucial. The different structures of the project manager ambidexterity are related to the adoption of informal social integration mechanism and of horizontal integration mechanisms linking all the organisational units involved in the project. This research result is a very relevant finding, thereby highlighting the importance of balancing both formal and informal elements in order to achieve ambidexterity in the project team management. Findings of this research have been validated in

The definition of dynamic capabilities (DCs) that seems to be the most appropriate for the subject of this paper gets inspiration from that of Zahra et al. [31] as

Mom et al. [17] identify the characteristics of the 'ambidextrous managers'

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

1. are contradictory [14, 18];

2. are multi-tasking [15, 19];

makers, at different levels.

Mom et al. [17] identify the characteristics of the 'ambidextrous managers' emphasising the distinctive traits. In fact, ambidextrous managers:

1. are contradictory [14, 18];

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

overstrained in a VUCA environment. So, since it is impudent to centrally control, digital leaders need to use the collective intelligence in the company (participative leadership [11, 12]). Moreover, leaders in the digital economy need to lead openly, give and receive feedback and be open for criticism. In this sense, digital leadership is an 'open leadership'; more specifically, a successful leader typically requires some

*Leadership capabilities and digitalization: Key factors and business consequences. Source: Our elaboration* 

Bunch of literature has up to now defined ambidexterity, both from a strategic and an organisational point of view [13, 14]. There is still a missing issue, however, which concerns the main sources of ambidexterity in an organisation and the relative relationships between these individual sources and the organisation as a whole. The key point is therefore to apply the concept within organisations, in order to see the roots and the overall set of relationships connected with ambidexterity that can

This chapter studies, in particular, strategic human resources in ambidexterity,

The ambidextrous enterprise can be analysed in light of the management and decision-makers capability of research, creation and appropriation of value. In literature, the ambidextrous enterprise has been frequently related to the managerial skills to counselling/direction [15, 16], organisational skills [16] and cognitive processes

**6**

kind of ambidexterity.

have a positive impact on firm performance.

with specific reference to the top management.

[18]. In particular, we refer to top management skills.

**2.2 Ambidexterity**

**Figure 1.**

*from ref. [7].*


Regarding the first trait, the ambidextrous manager is able to engage in apparently conflicting opportunities, goals and needs [17]. These contradictions mainly come out with strategic and organisational dilemmas. Accordingly, the ambidextrous manager has to balance the incongruities because recognising and accepting the contradictions can be the key of the business success [18], p. 527. In such a process, according to resource-based theory [20–22], mainly focused on the analysis of strategic resources and competences, able to create sustainable competitive advantage, dynamic capabilities are a key concept [23]. They in fact represent the organisational processes through which strategic resources are used in order to face and/or create changes in the market [24], p. 1105. They mainly refer to decision makers, at different levels.

The second trait refers to the multi-tasking nature of the ambidextrous manager. Some scholars [15] define in a broader meaning contexts and actions of managers and employees that show ambidextrous skills. Moreover, the analysis of the ambidextrous manager is closely related to his explicit and tacit knowledge exploration and exploitation [25, 26]. This aspect is also related to the capabilities of these leaders to manage diversities through a shared vision [27], emphasising the 'unity-indiversity' of Dass and Parker [28]. Finally, the high experience in managing radical and unexpected changes is a distinctive trait of the ambidextrous manager, but it is the fundamental element of the ambidexterity. In fact, ambidextrous managers can be managed by both incremental and radical/revolutionary changes [14]. The relation between ambidexterity traits of project manager and the performances of the project team imply the definition of specific assessment techniques of the project success in terms of improvement of the organisational routines and of achievement of prompt results related to the project itself [13].

Blomquist and Muller [29] show that ambidextrous leaders' behaviours are contingent to the different project typologies, thereby underlining how the reactivity of the uncertainty management of project team activities is crucial. The different structures of the project manager ambidexterity are related to the adoption of informal social integration mechanism and of horizontal integration mechanisms linking all the organisational units involved in the project. This research result is a very relevant finding, thereby highlighting the importance of balancing both formal and informal elements in order to achieve ambidexterity in the project team management. Findings of this research have been validated in the study of [30].

#### **2.3 Dynamic capabilities**

The definition of dynamic capabilities (DCs) that seems to be the most appropriate for the subject of this paper gets inspiration from that of Zahra et al. [31] as

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

the capabilities and competences to create and/or reconfigure firm's resources and 'in the manner envisioned and deemed appropriate by its principle decision maker'.

According to this view, in the paper, top managers' dynamic capabilities are conceived as capabilities of managing strategic resources dynamically and, more specifically, refer to:


In front of the previous literature on this topic, such dynamic capabilities refer to Collis [37]'s second, third and fourth level of capabilities, based on the creation, modification and/or extension of resource-based, as well as on 'the capability to develop the capability to develop the capability that innovates faster' (p. 148). They also refer to the first level of capabilities singled out by [38]. In any case, contrary to Ambrosini and Bowman [39], dynamic capabilities are not processes that impact on resources and on their use, just because they are dynamic: they are resources able to generate successful changes, alterations and extensions of resource based and can be subject to some changes.

However, dynamic capabilities are not sources of competitive advantage per se. In order to create value and generate competitive advantage, strategic resources have to be valuable, rare, costly or difficult to imitate and organizationally used; in the long run, however, their value may decrease and become obsolescent: it is therefore important to analyse firm's leaders' strategic capabilities of managing them properly dynamically. From this point of view, it is interesting to analyse the top managers' dynamic capabilities as well as his/her capacity of creating and sustaining them.

Considering human resource specific skills and capabilities, both in terms of initial and personal resource endowment and of capabilities in resource combination and recombination, it is important to verify: (1) if these resources and capabilities, on the other hand, are inserted in a complex set of relations and organisational procedures so to create value for the firm and (2) if the talented leader transfers knowledge and competences that are different from his/her own but are important to better manage the firm and motivate its personnel.

Top managers' dynamic capabilities are the result of their personal resource endowment and of their capability of using and bundling strategic resources dynamically, creating new organisational capabilities and favouring change through specific organisational devices.

As regards the top managers' level, some scholars ascribe the micro-level origins of value creation to the managerial ability as it plays a strategic role in identifying opportunities and reconfiguring firm's resources [40], in using DC [39, 41] and developing them [42].

**9**

**Figure 2.**

*Theoretical framework. Source: Our elaboration.*

*Leadership in the Digital Realm: What Are the Main Challenges?*

If we consider the sensing and seizing dimensions [44] richly analysed in the DC literature, it is needful to remind some studies [31, 45, 46] as they underline the importance of manager's ability, skills, experience and motivation level in the

Besides, other works [47] specify that the CEO experience (i.e., age and CEO international experience) can be considered as an important attribute able to gener-

The point is that the more these capabilities are characterised by difficult to imitate processes, especially those characterised by unique historical conditions and/or causal ambiguity, the more they could be firm specific. Others, like social complexity, depend on what they mainly refer to: if they regard the top managers' personal relations, they can be more human specific rather than firm specific; if on the contrary, they are mainly based on a complex set of relations within the organisation and between the organisation and its stakeholders then they can be more firm specific and not so much 'marketable'. Besides, in this case, the top manager himself may be less explicitly aware of his personal

Furthermore, in order to better distinguish the nature of some of the main DC of top managers, resource-based approach is applied. More specifically, in this study, strategic dynamic capabilities are considered as those that result valuable, rare, inimitable and organizationally used. Besides, with reference to the possible causes of inimitability, path dependence and causal ambiguity are considered on the one side and social complexity on the other side as different sources of inimitability. This distinction reveals to be useful in connecting top manager's DC with value creation and appropriation: some of these strategic DC, in fact, seem to be more easily embedded in the organisation, while other (especially the more socially complex) can more often and easily (even if not always) remain strictly bound to

Of course, the concept of digital leadership requires capabilities that authors synthetize in 'leadership capabilities to envision and drive transformation' [1] and capability to execute strategies to actualize it [5]. It is exactly not a thorough explanation on necessary digital leadership skills/capabilities/abilities that push towards

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

process of DC creation.

distinctive features.

the individual.

ate the DC.

Furthermore, Rindova and Kotha [43] highlight that the antecedents reside in the top management team as it is considered a key factor in the process of DC development, supported by its organisational vision.

*Leadership in the Digital Realm: What Are the Main Challenges? DOI: http://dx.doi.org/10.5772/intechopen.89856*

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

in order to capture value from innovation [32], p. 28;

continuous shedding of radicated assets; and

to better manage the firm and motivate its personnel.

development, supported by its organisational vision.

specifically, refer to:

model/s [32];

be subject to some changes.

specific organisational devices.

developing them [42].

sustaining them.

the capabilities and competences to create and/or reconfigure firm's resources and 'in the manner envisioned and deemed appropriate by its principle decision maker'. According to this view, in the paper, top managers' dynamic capabilities are conceived as capabilities of managing strategic resources dynamically and, more

1.the capacity to create, modify, significantly extend or replace its business

2.the capability of singling out 'bottlenecks and choke points' in the value chain,

3.the capabilities of encouraging change through specific organisational structures (incentives, career policies, etc.) and developing specific routines for a

4.the capabilities of developing diverse organisational capabilities [33–36];

In front of the previous literature on this topic, such dynamic capabilities refer to Collis [37]'s second, third and fourth level of capabilities, based on the creation, modification and/or extension of resource-based, as well as on 'the capability to develop the capability to develop the capability that innovates faster' (p. 148). They also refer to the first level of capabilities singled out by [38]. In any case, contrary to Ambrosini and Bowman [39], dynamic capabilities are not processes that impact on resources and on their use, just because they are dynamic: they are resources able to generate successful changes, alterations and extensions of resource based and can

However, dynamic capabilities are not sources of competitive advantage per se. In order to create value and generate competitive advantage, strategic resources have to be valuable, rare, costly or difficult to imitate and organizationally used; in the long run, however, their value may decrease and become obsolescent: it is therefore important to analyse firm's leaders' strategic capabilities of managing them properly dynamically. From this point of view, it is interesting to analyse the top managers' dynamic capabilities as well as his/her capacity of creating and

Considering human resource specific skills and capabilities, both in terms of initial and personal resource endowment and of capabilities in resource combination and recombination, it is important to verify: (1) if these resources and capabilities, on the other hand, are inserted in a complex set of relations and organisational procedures so to create value for the firm and (2) if the talented leader transfers knowledge and competences that are different from his/her own but are important

Top managers' dynamic capabilities are the result of their personal resource endowment and of their capability of using and bundling strategic resources

dynamically, creating new organisational capabilities and favouring change through

Furthermore, Rindova and Kotha [43] highlight that the antecedents reside in the top management team as it is considered a key factor in the process of DC

As regards the top managers' level, some scholars ascribe the micro-level origins of value creation to the managerial ability as it plays a strategic role in identifying opportunities and reconfiguring firm's resources [40], in using DC [39, 41] and

**8**

If we consider the sensing and seizing dimensions [44] richly analysed in the DC literature, it is needful to remind some studies [31, 45, 46] as they underline the importance of manager's ability, skills, experience and motivation level in the process of DC creation.

Besides, other works [47] specify that the CEO experience (i.e., age and CEO international experience) can be considered as an important attribute able to generate the DC.

The point is that the more these capabilities are characterised by difficult to imitate processes, especially those characterised by unique historical conditions and/or causal ambiguity, the more they could be firm specific. Others, like social complexity, depend on what they mainly refer to: if they regard the top managers' personal relations, they can be more human specific rather than firm specific; if on the contrary, they are mainly based on a complex set of relations within the organisation and between the organisation and its stakeholders then they can be more firm specific and not so much 'marketable'. Besides, in this case, the top manager himself may be less explicitly aware of his personal distinctive features.

Furthermore, in order to better distinguish the nature of some of the main DC of top managers, resource-based approach is applied. More specifically, in this study, strategic dynamic capabilities are considered as those that result valuable, rare, inimitable and organizationally used. Besides, with reference to the possible causes of inimitability, path dependence and causal ambiguity are considered on the one side and social complexity on the other side as different sources of inimitability. This distinction reveals to be useful in connecting top manager's DC with value creation and appropriation: some of these strategic DC, in fact, seem to be more easily embedded in the organisation, while other (especially the more socially complex) can more often and easily (even if not always) remain strictly bound to the individual.

Of course, the concept of digital leadership requires capabilities that authors synthetize in 'leadership capabilities to envision and drive transformation' [1] and capability to execute strategies to actualize it [5]. It is exactly not a thorough explanation on necessary digital leadership skills/capabilities/abilities that push towards

**Figure 2.** *Theoretical framework. Source: Our elaboration.*

the integration of solid bases in strategic stream of research such as ambidexterity and dynamic capabilities. The choices on these two precise streams are due to the fact that these explain and support the cases of radical and unexpected changes either to manage or favour their creation (**Figure 2**).

#### **3. The case of Boeing**

As regards the case study, the reasons for the choice of Boeing feed their roots in some key factors:


Boeing is an aerospace company, the world's largest in terms of employees (150,000), customers in more than 150 countries, annual revenue (US\$101,1 fiscal year 2018), showing an increase in year growth of 8%, delivering 806 aircrafts in 2018 [51].

The core business of the company is shaped by commercial jetliners, defence, space and security systems and service provider of support for client companies.

Bill Boeing created the company in 1916 with the clear philosophy 'build something better'. This philosophy is always actual since the company pursues innovation and changes through the continuous challenges of the aerospace industry.

Digital leadership claims the necessity of the engagement with the staff. The Executive Director in the Office of Innovation, Niky Allen, explains how the engagement is at the base of the leadership style of Boeing. Through a starting question 'how do we go from being order-takers to leading the digital conversation?', Niky Allen goads the team to work according to a bottom-up approach. This kind of engagement is based on a call through question 'why do we do things this way?' [52]. This allows to give the power to employees and to transmit the feeling of co-creation.

The company also works with external engagement. Indeed, not only the human resources are included but also external partnership. Niky Allen also explains that their competitive advantage comes from strategic alliances. Their initial question is 'How do we leverage external partnerships to bring best of breed solutions from the outside in?' [52].

The case of Boeing is interesting for the meaning of organisational agility. Traditionally, this is connected 'with the ability to rapidly adapt to market and environmental changes in a productive and cost-efficient manner' [53], p. 6, while the company shows the capacity to provoke changes being proactive rather that to adapt the market and the environmental changes. Indeed, the company focuses on the attention of leveraging its aircraft design, generating capabilities able to support in a real time and at competitive price their clients.

**11**

*Leadership in the Digital Realm: What Are the Main Challenges?*

give to our customer', (https://boeing.mediaroom.com).

runtime platform, cloud systems and hardware platforms.

to implement digital transformation inside the company.

on R&D investment here in the U.S′ [54], p. 4.

be delivered after a long period from their order.

This agile organisation allows to create customer loyalty and on-time delivery of

Actually, this agility is obtained due to the implementation of a business model that recalls the alliances with external partners as claimed in the pillar of digital

For example, in 2017, Boeing launched the project 'the Boeing HorizonX India Innovation Challenge 1.0' that consists in launching, through an open call, chal-

Just to cite one of the winning examples, the project named 'ZestIoT' is based on the idea of creating a bridge between the airport and the airplane ecosystem using Internet of Things to optimise ground handling at airports and improve on-time performance of airplanes. Another important aspect of digital leadership is learning from failed projects. For example, the company has implemented specific mandatory workshops for its engineers on problem resolutions. Indeed, Bo Bejmuk,

Digital leadership also claims the existence of alignment of new digital technologies with existing one. In this field, Boeing has established digital transformation environment (DTE) that is a digital factory including application development and

All these examples are the mirror of how top managers everyday work in order

Indeed, one of the hottest topics in this industry is the environmental sustainability that Boeing Company answers with specific strategies. For example, 787 Dreamliner uses 20% less fuel than the replaced model and the new model 777X has

The case of Boeing also shows how the overlapping between digital leadership and the deployment of ambidexterity and dynamic capabilities lead the company to

Indeed, Boeing involves highly knowledge-based activities that are vital and have a great impact on both process-level and firm-level performance. For example, best practices and R&D represent two knowledge-based activities of the company and the actual CEO, Dennis A. Muilenburg claims 'So, we ploughed a lot of those savings back into innovation and R&D. And we spend billions of dollars every year

The steady and growing attention on lead-time reduction leads to the creation and development of new approaches by the CEO and the top management since the lead time constitutes a critical aspect in the management of this kind of industry. The fact the Boeing is able to match challenges in order to reduce the time to introduce new aircraft (time to market) show high degree of dynamic capabilities. Hence, the fact the company invents in lead time and time to market shows that Boeing owns firm specific and personnel (top managers) dynamic capabilities. According to this view, top managers' ambidexterity [14] allows balance the present strategic choice with future forecasts in terms of products innovation since they will

The case also offers an overview on the creation of a digital transformation environment (DTE). Indeed, Boeing has ideated the DTE and the Chief Information Officer and Senior Vice President, Ted Colbert describes the effort as 'a game-changer for Boeing. The productivity improvements we have seen from DTE partnering with our businesses are beyond our expectations, and we are ready

been projected in order to be the most fuel-efficient twin-aisle airplane.

manager of the Boeing Space Shuttle Orbiter highlights 'I wanted additional training for our engineers so that they could better solve technical problems in a team environment. What we do every day in the shuttle program requires our best engineering effort, every day. This workshop will improve the quality of support we

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

leadership 'support from technology partners'.

quality products and services.

lenges for IT Indian start-ups.

be the world's leader.

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

either to manage or favour their creation (**Figure 2**).

**3. The case of Boeing**

some key factors:

aircrafts in 2018 [51].

outside in?' [52].

the integration of solid bases in strategic stream of research such as ambidexterity and dynamic capabilities. The choices on these two precise streams are due to the fact that these explain and support the cases of radical and unexpected changes

As regards the case study, the reasons for the choice of Boeing feed their roots in

• it is more than 100 years old and this aspect is useful in order to understand how the company balances the past with the digital transformation;

• the aerospace industry is becoming more proactive, agile and lean since new technologies, outsourcing models and service providers have sprung out helping aerospace firms in adopting more agile enterprise culture. The case of Boeing shows how digital transformation helps in being more agile. This is one

• many scholars agree on the fact that with regard to digital leadership, Boeing offers a clear example also for companies operating in other industries [48–50].

Boeing is an aerospace company, the world's largest in terms of employees (150,000), customers in more than 150 countries, annual revenue (US\$101,1 fiscal year 2018), showing an increase in year growth of 8%, delivering 806

The core business of the company is shaped by commercial jetliners, defence, space and security systems and service provider of support for client companies. Bill Boeing created the company in 1916 with the clear philosophy 'build something better'. This philosophy is always actual since the company pursues innovation

Digital leadership claims the necessity of the engagement with the staff. The Executive Director in the Office of Innovation, Niky Allen, explains how the engagement is at the base of the leadership style of Boeing. Through a starting question 'how do we go from being order-takers to leading the digital conversation?', Niky Allen goads the team to work according to a bottom-up approach. This kind of engagement is based on a call through question 'why do we do things this way?' [52]. This allows to give the power to employees and to transmit the feeling of co-creation. The company also works with external engagement. Indeed, not only the human resources are included but also external partnership. Niky Allen also explains that their competitive advantage comes from strategic alliances. Their initial question is 'How do we leverage external partnerships to bring best of breed solutions from the

The case of Boeing is interesting for the meaning of organisational agility. Traditionally, this is connected 'with the ability to rapidly adapt to market and environmental changes in a productive and cost-efficient manner' [53], p. 6, while the company shows the capacity to provoke changes being proactive rather that to adapt the market and the environmental changes. Indeed, the company focuses on the attention of leveraging its aircraft design, generating capabilities able to support

in a real time and at competitive price their clients.

and changes through the continuous challenges of the aerospace industry.

of the key factors a digital leader should possess (see also **Figure 1**);

• it is considered a pioneer in many aspects of the aerospace industry;

**10**

This agile organisation allows to create customer loyalty and on-time delivery of quality products and services.

Actually, this agility is obtained due to the implementation of a business model that recalls the alliances with external partners as claimed in the pillar of digital leadership 'support from technology partners'.

For example, in 2017, Boeing launched the project 'the Boeing HorizonX India Innovation Challenge 1.0' that consists in launching, through an open call, challenges for IT Indian start-ups.

Just to cite one of the winning examples, the project named 'ZestIoT' is based on the idea of creating a bridge between the airport and the airplane ecosystem using Internet of Things to optimise ground handling at airports and improve on-time performance of airplanes. Another important aspect of digital leadership is learning from failed projects. For example, the company has implemented specific mandatory workshops for its engineers on problem resolutions. Indeed, Bo Bejmuk, manager of the Boeing Space Shuttle Orbiter highlights 'I wanted additional training for our engineers so that they could better solve technical problems in a team environment. What we do every day in the shuttle program requires our best engineering effort, every day. This workshop will improve the quality of support we give to our customer', (https://boeing.mediaroom.com).

Digital leadership also claims the existence of alignment of new digital technologies with existing one. In this field, Boeing has established digital transformation environment (DTE) that is a digital factory including application development and runtime platform, cloud systems and hardware platforms.

All these examples are the mirror of how top managers everyday work in order to implement digital transformation inside the company.

Indeed, one of the hottest topics in this industry is the environmental sustainability that Boeing Company answers with specific strategies. For example, 787 Dreamliner uses 20% less fuel than the replaced model and the new model 777X has been projected in order to be the most fuel-efficient twin-aisle airplane.

The case of Boeing also shows how the overlapping between digital leadership and the deployment of ambidexterity and dynamic capabilities lead the company to be the world's leader.

Indeed, Boeing involves highly knowledge-based activities that are vital and have a great impact on both process-level and firm-level performance. For example, best practices and R&D represent two knowledge-based activities of the company and the actual CEO, Dennis A. Muilenburg claims 'So, we ploughed a lot of those savings back into innovation and R&D. And we spend billions of dollars every year on R&D investment here in the U.S′ [54], p. 4.

The steady and growing attention on lead-time reduction leads to the creation and development of new approaches by the CEO and the top management since the lead time constitutes a critical aspect in the management of this kind of industry. The fact the Boeing is able to match challenges in order to reduce the time to introduce new aircraft (time to market) show high degree of dynamic capabilities. Hence, the fact the company invents in lead time and time to market shows that Boeing owns firm specific and personnel (top managers) dynamic capabilities. According to this view, top managers' ambidexterity [14] allows balance the present strategic choice with future forecasts in terms of products innovation since they will be delivered after a long period from their order.

The case also offers an overview on the creation of a digital transformation environment (DTE). Indeed, Boeing has ideated the DTE and the Chief Information Officer and Senior Vice President, Ted Colbert describes the effort as 'a game-changer for Boeing. The productivity improvements we have seen from DTE partnering with our businesses are beyond our expectations, and we are ready to expand the effort'. Again, according to Nicki Allen, Vice President Boeing 2CHR Program, 'We have to create our own digital factory that we can use as an accelerant to help lead us through this transformation. Technology is literally revolutionising and changing the way that we do business. If we leverage this correctly, that's how we survive another hundred years'.

DTE is shaped by infrastructure and 4.0 technologies to build innovative services, as well as a project management office to produce innovative processes.

According to executives and top managers' vision, digital transformation is based on cultural transformation and they are investing in global talents and transforming traditional IT work-spaces to modern environment.

Indeed, digital capabilities are spread at all the organisational levels [55]:


#### **4. Conclusions and managerial implications.**

This chapter shows the complexity of the topic of digital leadership. Indeed, it uses the theoretical lens of dynamic capabilities and ambidexterity in order to enrich with solid strategic management base the theoretical framework.

The analysis has been conducted on a firm operating in aerospace industry, the Boeing Company.

The reasons for the choice of this sector as major set of analysis have to be found in the following aspects that deploy high levels of digital leadership.

Even if digital leadership is an actual burning topic [1], the history of Boeing showed the importance of leadership, the one that today we label as digital leadership. Indeed, when they claim 'since July 15, 1916, we have been making the impossible, possible', this means that digital leadership has to be constantly developed with top managers' dynamic capabilities and ambidexterity. More specifically, in this sector, knowledge absorption, knowledge creation, knowledge storage and knowledge application play a key role for their own deployment. The case of Boeing showed that best practices include mechanisms able to capture internal tacit knowledge to create new knowledge and to perform

**13**

**Author details**

*Leadership in the Digital Realm: What Are the Main Challenges?*

helping Boeing in adopting more agile enterprise culture.

Valentina Della Corte\*, Giovanna Del Gaudio and Fabiana Sepe

\*Address all correspondence to: valentina.dellacorte@unina.it

© 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,

University of Naples Federico II, Naples, Italy

provided the original work is properly cited.

day-to-day improvements. On the other hand, R&D is a function based on organisational learning where knowledge acquisition and sharing are essential

The company is proactive, agile and lean since the implementation of new technologies, outsourcing models and the right service providers have sprung out

Taylor made firms, such as the Boeing one, that operate on the basis of their customers' specific designs, and special requirements can obtain the leadership of

Managerial implications show that successful digital leaders create clear and compelling visions for the future. They focus their energies on vision, long-term goals, aligning and changing systems and developing and training others.

The main contribution of this study is the further development of the concept of digitalization connected to leadership studies. However, as digitalization is a non-reversible societal effect, changing and creating new ways of communication, further research in this area is highly suggested. The process of digitalization linked to leadership is discussed for a main reason: as individuals and businesses are fundamentally changing as Kotter [57] described in a state of transformation, the highly complex situation of leading through this digital change is therefore placed on leaders of organisations: tasked to lead in a state of constant change, into an

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

to create new innovations.

unknown digitalized future.

the market.

*Leadership in the Digital Realm: What Are the Main Challenges? DOI: http://dx.doi.org/10.5772/intechopen.89856*

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

we survive another hundred years'.

metrics [56]:

amazing'.

Boeing Company.

**4. Conclusions and managerial implications.**

avoidance of cost;

to expand the effort'. Again, according to Nicki Allen, Vice President Boeing 2CHR Program, 'We have to create our own digital factory that we can use as an accelerant to help lead us through this transformation. Technology is literally revolutionising and changing the way that we do business. If we leverage this correctly, that's how

DTE is shaped by infrastructure and 4.0 technologies to build innovative services, as well as a project management office to produce innovative processes. According to executives and top managers' vision, digital transformation is based on cultural transformation and they are investing in global talents and

Indeed, digital capabilities are spread at all the organisational levels [55]:

• through hackathons led and driven organically by BCA millennials.

• through sprints conducted in Boeing's digital transformation environment;

• Boeing measures the results of digital transformation through different

• value: At Boeing value is measured in net new revenue reduction in cost and

• productivity: The creation of DTE labs has allowed to reach between 100 and 300% more productivity from the software development teams working;

• time on tasks: The new digital environment has allowed to accelerate the time to market. As the top manager outlines: 'We look at time to market in two ways. One is how long did it take to get a minimum viable product (MVP) out? Typically, it used to take us many months or years to get a credible MVP out into production. With this overall methodology and the new environment including the infrastructure, we were able to get MVPs out somewhere between a few days ranging to no more than three to four months, which is

This chapter shows the complexity of the topic of digital leadership. Indeed, it uses the theoretical lens of dynamic capabilities and ambidexterity in order to

The analysis has been conducted on a firm operating in aerospace industry, the

The reasons for the choice of this sector as major set of analysis have to be found

Even if digital leadership is an actual burning topic [1], the history of Boeing

showed the importance of leadership, the one that today we label as digital leadership. Indeed, when they claim 'since July 15, 1916, we have been making the impossible, possible', this means that digital leadership has to be constantly developed with top managers' dynamic capabilities and ambidexterity. More specifically, in this sector, knowledge absorption, knowledge creation, knowledge storage and knowledge application play a key role for their own deployment. The case of Boeing showed that best practices include mechanisms able to capture internal tacit knowledge to create new knowledge and to perform

enrich with solid strategic management base the theoretical framework.

in the following aspects that deploy high levels of digital leadership.

transforming traditional IT work-spaces to modern environment.

**12**

day-to-day improvements. On the other hand, R&D is a function based on organisational learning where knowledge acquisition and sharing are essential to create new innovations.

The company is proactive, agile and lean since the implementation of new technologies, outsourcing models and the right service providers have sprung out helping Boeing in adopting more agile enterprise culture.

Taylor made firms, such as the Boeing one, that operate on the basis of their customers' specific designs, and special requirements can obtain the leadership of the market.

Managerial implications show that successful digital leaders create clear and compelling visions for the future. They focus their energies on vision, long-term goals, aligning and changing systems and developing and training others.

The main contribution of this study is the further development of the concept of digitalization connected to leadership studies. However, as digitalization is a non-reversible societal effect, changing and creating new ways of communication, further research in this area is highly suggested. The process of digitalization linked to leadership is discussed for a main reason: as individuals and businesses are fundamentally changing as Kotter [57] described in a state of transformation, the highly complex situation of leading through this digital change is therefore placed on leaders of organisations: tasked to lead in a state of constant change, into an unknown digitalized future.

#### **Author details**

Valentina Della Corte\*, Giovanna Del Gaudio and Fabiana Sepe University of Naples Federico II, Naples, Italy

\*Address all correspondence to: valentina.dellacorte@unina.it

© 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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[40] Augier M, Teece DJ. Dynamic capabilities and the role of managers in business strategy and economic performance. Organization Science. 2009;**20**(2):417-4188

[41] King AA, Tucci CL. Incumbent entry into new market niches: The role of experience and managerial choice in the creation of dynamic capabilities. Management Science. 2002;**48**(2):171-186

[42] Adner R, Helfat E. Corporate effects and dynamic managerial capabilities. Strategic Management Journal. 2006;**24**(10):1011-1025

[43] Rindova V, Kotha S. Continuous 'morphing': Competing through dynamic capabilities, form, and

function. Academy of Management Journal. 2001;**44**:1263-1280

[44] Teece DJ. Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal. 2007;**28**(13):1319-1350

[45] Harreld JB, O'Reilly CA, Tushman ML. Dynamic capabilities at IBM: Driving strategy into action. California Management Review. 2007;**49**:21-43

[46] Rosenbloom RS. Leadership, capabilities, and technological change: The transformation of NCR in the electronic era. Strategic Management Journal. 2000;**21**:1083-1103

[47] Rodenbach M, Brettel M. CEO experience as micro-level origin of dynamic capabilities. Management Decision. 2012;**50**(4)

[48] Andersen P, Ross JW. (2016). Transforming the LEGO group for the digital economy

[49] Denning S. Boeing's offshoring woes: Seven lessons every CEO must learn. Strategy & Leadership. 2013;**41**(3):29-35

[50] Fred Garcia H. Effective leadership response to crisis. Strategy & Leadership. 2006;**34**(1):4-10

[51] Zazulia S. Boeing Brings in \$100 Billion in 2018 Revenue, Aviation today. 2019. Available from: https://www. aviationtoday.com/2019/01/30/boeingbrings-in-100-billion-in-2018-revenue/

[52] Kelly J. Boeing and the Three Es of Digital Transformation. Learn the Strategy Used to Transform the Leading Aerospace Company for the Digital Age. 2018. Available from: https://builttoadapt.io/

**17**

*Leadership in the Digital Realm: What Are the Main Challenges?*

*DOI: http://dx.doi.org/10.5772/intechopen.89856*

boeing-and-the-three-es-of-digitaltransformation-cc730490fff0 [Accessed: July 10, 2019]

[53] Capgemini. Agile Organization. 2017. Available from: https://www. capgemini.com/consulting-de/

wp-content/uploads/sites/32/2017/08/ cc\_agile\_organization\_pov\_20170508.

[54] Muilenburg. The Economic Club of Washington D.C. 2018. Available from: https://www.economicclub. org/sites/default/files/transcripts/ Dennis\_Muilenburg\_Edited\_Transcript.

[55] High P. Boeing's CIO Wins Forbes CIO Innovation Award By Developing The Digital Flight Deck, Forbes. 2019. Available from: https://www.forbes. com/sites/peterhigh/2018/04/16/ boeings-cio-wins-forbes-cio-

innovation-award-by-developing-thedigital-flight-deck/#7d1b2db37e6a

[56] Ismail N. Boeing's Digital Transformation… It's Cultural, Information Age. 2018. Available from: https://www.information-age. com/boeings-digital-transformation-

[57] Kotter J. Leading change, Harvard Business School press, Boston, MA. Management Review.

cultural-123476508/

1996;**61**(4):110-134

pdf [Accessed: 10 July 2019]

pdf

*Leadership in the Digital Realm: What Are the Main Challenges? DOI: http://dx.doi.org/10.5772/intechopen.89856*

boeing-and-the-three-es-of-digitaltransformation-cc730490fff0 [Accessed: July 10, 2019]

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

function. Academy of Management

[44] Teece DJ. Explicating dynamic capabilities: The nature and microfoundations of (sustainable)

Journal. 2001;**44**:1263-1280

enterprise performance. Strategic Management Journal.

2007;**28**(13):1319-1350

2007;**49**:21-43

[45] Harreld JB, O'Reilly CA, Tushman ML. Dynamic capabilities at IBM: Driving strategy into action. California Management Review.

[46] Rosenbloom RS. Leadership, capabilities, and technological change: The transformation of NCR in the electronic era. Strategic Management

[47] Rodenbach M, Brettel M. CEO experience as micro-level origin of dynamic capabilities. Management

[48] Andersen P, Ross JW. (2016). Transforming the LEGO group for the

[49] Denning S. Boeing's offshoring

[50] Fred Garcia H. Effective leadership

[51] Zazulia S. Boeing Brings in \$100 Billion in 2018 Revenue, Aviation today. 2019. Available from: https://www. aviationtoday.com/2019/01/30/boeingbrings-in-100-billion-in-2018-revenue/

[52] Kelly J. Boeing and the Three Es of Digital Transformation. Learn the Strategy Used to Transform the Leading Aerospace Company for the Digital Age. 2018. Available from: https://builttoadapt.io/

woes: Seven lessons every CEO must learn. Strategy & Leadership. 2013;**41**(3):29-35

response to crisis. Strategy & Leadership. 2006;**34**(1):4-10

Journal. 2000;**21**:1083-1103

Decision. 2012;**50**(4)

digital economy

advantage: A competency-based perspective. Academy of Management

[35] Lepak DP, Snell SA. The human resource architecture: Toward a theory of human capital allocation and

[36] Lopez-Cabrales A, Valle R, Herrero I. The contribution of core employees to organizational capabilities

and efficiency. Human Resource Management. 2006;**45**(1):81-109

[37] Collis DJ. Research note: How valuable are organizational capabilities?

[38] Winter SG. Understanding dynamic capabilities. Strategic Management Journal. 2003;**24**(10):991-995

[39] Ambrosini V, Bowman C. What are dynamic capabilities and are they useful construct in strategic management. International Journal of Management

Strategic Management Journal.

Reviews. 2009;**11**(1):29-49

2009;**20**(2):417-4188

2002;**48**(2):171-186

2006;**24**(10):1011-1025

[40] Augier M, Teece DJ. Dynamic capabilities and the role of managers in business strategy and economic performance. Organization Science.

[41] King AA, Tucci CL. Incumbent entry into new market niches: The role of experience and managerial choice in the creation of dynamic capabilities. Management Science.

[42] Adner R, Helfat E. Corporate effects and dynamic managerial capabilities. Strategic Management Journal.

[43] Rindova V, Kotha S. Continuous 'morphing': Competing through dynamic capabilities, form, and

development. Academy of Management

Review. 1994;**19**(4)

Review. 1999;**24**

1994;**15**:143-152

**16**

[53] Capgemini. Agile Organization. 2017. Available from: https://www. capgemini.com/consulting-de/ wp-content/uploads/sites/32/2017/08/ cc\_agile\_organization\_pov\_20170508. pdf

[54] Muilenburg. The Economic Club of Washington D.C. 2018. Available from: https://www.economicclub. org/sites/default/files/transcripts/ Dennis\_Muilenburg\_Edited\_Transcript. pdf [Accessed: 10 July 2019]

[55] High P. Boeing's CIO Wins Forbes CIO Innovation Award By Developing The Digital Flight Deck, Forbes. 2019. Available from: https://www.forbes. com/sites/peterhigh/2018/04/16/ boeings-cio-wins-forbes-cioinnovation-award-by-developing-thedigital-flight-deck/#7d1b2db37e6a

[56] Ismail N. Boeing's Digital Transformation… It's Cultural, Information Age. 2018. Available from: https://www.information-age. com/boeings-digital-transformationcultural-123476508/

[57] Kotter J. Leading change, Harvard Business School press, Boston, MA. Management Review. 1996;**61**(4):110-134

**19**

**Chapter 2**

**Abstract**

ship styles within a SW context.

advanced information technologies

**1. Introduction**

Leadership for Digital

*Daniele Binci and Francesco Scafarto*

Ambidextrous Approach

Working: Towards a Contextual

This chapter focuses on Smart Working (SW) adoption and its related leadership styles. We particularly aim at understanding how SW adoption requires an ambidextrous approach based both on directive and empowering leadership. Our theoretical framework, particularly, contextualizes the leadership approach by highlighting that within such blended context (off-site and on-site working mode), leadership should be ambidextrous, according to the specific working mode and, therefore, according to the opposite related dynamics, such as autonomy vs. control or task vs. objectives focus. The model, moreover, focuses on the importance of enabling an approach that implies new relational skills (or new combination of such skills) both for the leaders and the workers that, regarding their remote or physically approach, should evaluate to be more or less directive (or empowering). However, other contingencies should be analysed in order to have a deeper view for a successful SW adoption. Leaders and followers, therefore, need to be cognizant and aware about such contingent approach that claims for their flexibility and variety of behaviors, and they should develop, accordingly, a related behavioral repertoire. This contribution, by proposing a more complete and complex approach for SW adoption based on ambidextrous leadership, offers an original point of view that highlights the importance of balancing both directive and empowering leader-

**Keywords:** ambidexterity, directive leadership, empowering, smart working,

Nowadays organizations are continuously changing their business models due to a dynamic environment dominated by growing competition, new regulation and rapid technology evolution [1–3]. Digital technologies, such as cloud services and mobile devices, affect organizational work design [4] and enable constant connection to workplace [5–6]. Together with institutional change (i.e. normative issues) technologies have been allowing a disruptive scenario, by enabling the emergence of new business model, organizational forms and business processes, including social and working life. Digital Working, the possibility to work in a more flexible way in space (where work gets done) and time (when and how long workers engage in work-related tasks) dimensions [7–8] represents an example of such innovation. However, Digital Working adoption, and in general Digital Transformation, can

#### **Chapter 2**

## Leadership for Digital Working: Towards a Contextual Ambidextrous Approach

*Daniele Binci and Francesco Scafarto*

#### **Abstract**

This chapter focuses on Smart Working (SW) adoption and its related leadership styles. We particularly aim at understanding how SW adoption requires an ambidextrous approach based both on directive and empowering leadership. Our theoretical framework, particularly, contextualizes the leadership approach by highlighting that within such blended context (off-site and on-site working mode), leadership should be ambidextrous, according to the specific working mode and, therefore, according to the opposite related dynamics, such as autonomy vs. control or task vs. objectives focus. The model, moreover, focuses on the importance of enabling an approach that implies new relational skills (or new combination of such skills) both for the leaders and the workers that, regarding their remote or physically approach, should evaluate to be more or less directive (or empowering). However, other contingencies should be analysed in order to have a deeper view for a successful SW adoption. Leaders and followers, therefore, need to be cognizant and aware about such contingent approach that claims for their flexibility and variety of behaviors, and they should develop, accordingly, a related behavioral repertoire. This contribution, by proposing a more complete and complex approach for SW adoption based on ambidextrous leadership, offers an original point of view that highlights the importance of balancing both directive and empowering leadership styles within a SW context.

**Keywords:** ambidexterity, directive leadership, empowering, smart working, advanced information technologies

#### **1. Introduction**

Nowadays organizations are continuously changing their business models due to a dynamic environment dominated by growing competition, new regulation and rapid technology evolution [1–3]. Digital technologies, such as cloud services and mobile devices, affect organizational work design [4] and enable constant connection to workplace [5–6]. Together with institutional change (i.e. normative issues) technologies have been allowing a disruptive scenario, by enabling the emergence of new business model, organizational forms and business processes, including social and working life. Digital Working, the possibility to work in a more flexible way in space (where work gets done) and time (when and how long workers engage in work-related tasks) dimensions [7–8] represents an example of such innovation. However, Digital Working adoption, and in general Digital Transformation, can

radically improve organizational performance [9], if macro-level changes actively interact with micro-level change [10–12] by reframing the cultural assumptions of organizations [13].

Among such assumptions, effective leadership is one of the main drivers for Digital Working adoption, as it is based on completely different employers-employees relationships, where employees' autonomy, trust and result-oriented activities are more important than control and task-focused behaviors. Accordingly, in the case of Smart Working (SW), a specific mode of Digital Working, an autonomous relationship between leader and worker is required, as tasks are usually performed away from the office. Since they cannot always interact in a face-to-face mode, they should compensate such physical distance by building trust, transparency and the reciprocal belief of honesty and effort towards organizational objectives [14]. However, SW context is not always characterized by off-site working as it is conceived as a blended approach which coexists also to the traditional, face-to-face, way of working.

Within a SW context, in fact, workers freely choose (according with specific individual agreement) on-site and off-site mode schedule for the working week. This peculiarity impacts on different organizational variables, namely, structure, processes and skills, and particularly it requires a set of leadership approaches that varies according to the modes in which workers decide to perform. Different implications derive from such peculiarity. By starting from such peculiar characteristic, the aim of this contribution is to understand more about leadership in SW context and, particularly, what leadership style should be applied for SW adoption. Our contribution is structured as follow.

We first describe the concept of Digital Working (and more specifically, of SW) and the main variables related to its implementation, namely, advanced information technologies (AITs), normative issues and cultural variables. Then, in-line with the study aim, we focus on specific cultural issues (particularly, leadership styles) relevant for its implementation. We describe two recognized leadership styles especially within a contingent perspective literature [15–17], namely, directive and empowering leadership. We specifically highlight how, for SW-oriented context (i.e. characterized by remote working and discretion about spaces, time and working tools choice), it is important to enable an ambidextrous approach to leadership according to working modes. This implies new relational skills both for the leaders and for the workers, which, regarding to their remote or physically approach, should improve organizational performance.

#### **2. Smart working: a flexible approach to work**

For the aim of this contribution we consider a specific, blended-type of Digital Working, also known as Smart Working. SW is a particular type of Digital Working, different from teleworking and remote working, as the former is usually configured as a mode of working outside the workplace through computer-based technology tools, by simply transferring the office work (and its scheduling and timing) to the home, while the latter can generally be executed without the mediation processes of digital technologies (AITs) and generally distant from office premises.

Conversely, SW offers the possibility to work with flexibility in the space–time dimension throughout the mediation and support of AITs (i.e. group support system, cloud services or collaborative tools) [3]. However, it can be designed only for certain tasks that are not particularly depending on the organization physical premises: for instance, it is not applicable for medical or manufacturing units, while it is more adoptable for service-oriented organizations. The specific features of

**21**

**Figure 1.**

*Main variables of SW adoption.*

normative push.

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

ees will probably increase their intrinsic motivation [20].

**2.1 Macro-level change: technological and institutional issues**

SW provide organizations and workers with different advantages [3, 18]. The most important, by the organizations side, is the increase in productivity and organizational effectiveness. Such benefits are, at least in theory, related to the explicit responsibility towards individual and team job outcomes, due to more autonomy and less worker distraction: the off-site mode intensifies work for lacking of interruptions and makes it more liquid by offering the possibility to choose working during break as well as in the evening. SW helps organizations to develop a stronger goal orientation, which asks for more attention to goal setting and goal implementation [19]. These characteristics push organizations towards an organizational result-driven culture and, consequently, to a performance management approach. Moreover, from the individual side, SW mainly promotes people well-being (i.e. work-life balance and job satisfaction) due to the flexibility in working conditions enabled by the possibility to carry out tasks outside the company premises [18], with less time and budget spent on travel. Moreover, related to such factor, employ-

SW is very attractive for organizations, especially for the focus on goal orientation, organizational (and individual) KPIs and effective results. However, the adoption of SW without an integrated approach that considers the redesigning of business processes, as well as the reframing of cultural assumptions, is not sufficient to improve organizational performance (**Figure 1**). The literature is quite clear about the approach that should enable a digital transformation approach [7, 10] and, therefore, also the SW implementation. It does not happen automatically but requires a change management approach that involves a combination of hard (AITs) and soft (culture and leadership) variables that often require also a

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

#### *Leadership for Digital Working: Towards a Contextual Ambidextrous Approach DOI: http://dx.doi.org/10.5772/intechopen.90370*

SW provide organizations and workers with different advantages [3, 18]. The most important, by the organizations side, is the increase in productivity and organizational effectiveness. Such benefits are, at least in theory, related to the explicit responsibility towards individual and team job outcomes, due to more autonomy and less worker distraction: the off-site mode intensifies work for lacking of interruptions and makes it more liquid by offering the possibility to choose working during break as well as in the evening. SW helps organizations to develop a stronger goal orientation, which asks for more attention to goal setting and goal implementation [19]. These characteristics push organizations towards an organizational result-driven culture and, consequently, to a performance management approach. Moreover, from the individual side, SW mainly promotes people well-being (i.e. work-life balance and job satisfaction) due to the flexibility in working conditions enabled by the possibility to carry out tasks outside the company premises [18], with less time and budget spent on travel. Moreover, related to such factor, employees will probably increase their intrinsic motivation [20].

#### **2.1 Macro-level change: technological and institutional issues**

SW is very attractive for organizations, especially for the focus on goal orientation, organizational (and individual) KPIs and effective results. However, the adoption of SW without an integrated approach that considers the redesigning of business processes, as well as the reframing of cultural assumptions, is not sufficient to improve organizational performance (**Figure 1**). The literature is quite clear about the approach that should enable a digital transformation approach [7, 10] and, therefore, also the SW implementation. It does not happen automatically but requires a change management approach that involves a combination of hard (AITs) and soft (culture and leadership) variables that often require also a normative push.

**Figure 1.** *Main variables of SW adoption.*

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

organizations [13].

way of working.

contribution is structured as follow.

should improve organizational performance.

**2. Smart working: a flexible approach to work**

radically improve organizational performance [9], if macro-level changes actively interact with micro-level change [10–12] by reframing the cultural assumptions of

Among such assumptions, effective leadership is one of the main drivers for Digital Working adoption, as it is based on completely different employers-employees relationships, where employees' autonomy, trust and result-oriented activities are more important than control and task-focused behaviors. Accordingly, in the case of Smart Working (SW), a specific mode of Digital Working, an autonomous relationship between leader and worker is required, as tasks are usually performed away from the office. Since they cannot always interact in a face-to-face mode, they should compensate such physical distance by building trust, transparency and the reciprocal belief of honesty and effort towards organizational objectives [14]. However, SW context is not always characterized by off-site working as it is conceived as a blended approach which coexists also to the traditional, face-to-face,

Within a SW context, in fact, workers freely choose (according with specific individual agreement) on-site and off-site mode schedule for the working week. This peculiarity impacts on different organizational variables, namely, structure, processes and skills, and particularly it requires a set of leadership approaches that varies according to the modes in which workers decide to perform. Different implications derive from such peculiarity. By starting from such peculiar characteristic, the aim of this contribution is to understand more about leadership in SW context and, particularly, what leadership style should be applied for SW adoption. Our

We first describe the concept of Digital Working (and more specifically, of SW) and the main variables related to its implementation, namely, advanced information technologies (AITs), normative issues and cultural variables. Then, in-line with the study aim, we focus on specific cultural issues (particularly, leadership styles) relevant for its implementation. We describe two recognized leadership styles especially within a contingent perspective literature [15–17], namely, directive and empowering leadership. We specifically highlight how, for SW-oriented context (i.e. characterized by remote working and discretion about spaces, time and working tools choice), it is important to enable an ambidextrous approach to leadership according to working modes. This implies new relational skills both for the leaders and for the workers, which, regarding to their remote or physically approach,

For the aim of this contribution we consider a specific, blended-type of Digital Working, also known as Smart Working. SW is a particular type of Digital Working, different from teleworking and remote working, as the former is usually configured as a mode of working outside the workplace through computer-based technology tools, by simply transferring the office work (and its scheduling and timing) to the home, while the latter can generally be executed without the mediation processes of

Conversely, SW offers the possibility to work with flexibility in the space–time

dimension throughout the mediation and support of AITs (i.e. group support system, cloud services or collaborative tools) [3]. However, it can be designed only for certain tasks that are not particularly depending on the organization physical premises: for instance, it is not applicable for medical or manufacturing units, while it is more adoptable for service-oriented organizations. The specific features of

digital technologies (AITs) and generally distant from office premises.

**20**

AITs should be reciprocally adapted to the requirements of the organization, namely, its basic assumptions, values and artifacts [13, 21]. According to sociotechnical systems principles and business process reengineering orientation to process measurement and radical changing through AITs [22], SW should be considered more than a technological transformation, as the introduction of AITs and the redesigning of business processes are a balanced and cross-disciplinary field for achieving strategic objectives [23]. Therefore, when organizations launch a digital transformation programme by implementing SW, they should redesign the overall working processes and workflows, by integrating technological issues within normative opportunities and cultural mind-set reframe, such as team interaction mechanisms [24], like relationship between leaders and followers, with a major focus on trust and on result-oriented behaviors. Only by the simultaneous implementation of AITs, legal issues and cultural reframe, workers can really benefit from SW advantages, like increased job meaning and autonomy as well as responsibility [25].

#### *2.1.1 Technological issues*

From a technological point of view, companies should design space for optimizing the work performance and use AITs (i.e. cloud services or smartphone App), for the dematerialization of the workplace. AITs should enable the paperless perspective adoption, like document-sharing digital platforms for performing and using digital information accessible at anytime from anywhere via digital and mobile devices. The concept of bring your own device (BYOD) describes how, for certain type of jobs, workers can perform far away from physical offices by only using their own digital device as tablet, smartphone or personal computer connected to a private or public network [3]. As a consequence of technology adoption, workers are always connected the office that is accessible anytime and anywhere.

#### *2.1.2 Legal issues*

Legal issues are fundamental drivers for SW diffusion and adoption especially for the public sector. For example, in the Italian context, SW (also called agile work) has been introduced by the Law no. 81/17, with the aim of increasing organizational productivity and enabling better work-life balance both in the private and in the public sectors. According to the Law no. 81/17, different aspects of SW are regulated, particularly:


**23**

and contingencies.

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

Smart Working initiatives. In the PA, however, as many as 60% of organizations with agile work projects found stimulus after the Law adoption, and only 40% had

In order to make SW effective, organizations should redefine their culture and redesign responsibilities deriving from the work relationship, particularly how managers and employees communicate with each other [27]. Cultural behaviors are, indeed, factors that have unique potential to promote or inhibit major changes in organizations. In fact, flexibility enabled by the opportunity to determine when and how (with which tools) to work is balanced by workers' responsibility and empowerment, mediated by motivational mechanisms that allow for self- and organization

Within the cultural variables, we particularly consider leadership as an enabling process for the SW. Leadership is generally defined as the ability to influence others to actualization or achievement of a set of goals and objectives [16]. Despite different typologies of leadership proposed in the literature [16, 28–30], we consider a contingent perspective [15–16, 31–32] for examining the conditions under which

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

**2.2 Micro-level change: organizational features**

*2.2.1 Leadership for smart working: a contingent perspective*

directive and empowering leadership.

task vs. objectives focus.

each leadership approach to SW implementation is most effective.

We categorize such behaviors as empowering leadership style.

According to such perspective, our basic assumption is that there is no a single best approach for the leader-follower relationships, but its effectiveness basically depends on the context [33]. We particularly use situational leadership theory within SW context by considering an ambidextrous approach [34–36]. Ambidexterity, a concept and framework initially proposed by Duncan [37], and then largely developed and applied [35, 38–41], is the ability to balance, in an integrated way, explorative and exploitative behaviors [42–43] carried out by the individuals or teams for organizations' survival and effectiveness. The use of ambidextrous approach suggests a paradoxical use of different leader behaviors to produce sustainable team performance [44]. According to Rosing et al. [34], we use the ambidexterity concept by focusing on two representative leadership styles:

They are specifically appropriate for dealing with blended working, characterized by the need for managing opposite dynamics such as autonomy vs. control or

Particularly, contextual ambidexterity leadership has been described through the concept of close (exploitative) and open (explorative) behaviors [34]. The former is typically associated to the set of leader behaviors that includes setting guidelines, monitoring task accomplishment and taking corrective action. We consider such behaviors as directive leadership style. The latter is typically associated with behaviors that encourage people to independent thinking (think out of the rules) and acting (to do things differently) by experimenting breaking of routines and rule and supporting efforts to challenge established approaches and status quo.

In the following sections, we describe directive and empowering leadership styles by highlighting that, for the blended characteristics of SW context (off-site and on-site working mode), there is no best way for leadership. Instead, we claim for a more contextual ambidextrous approach in which rules and autonomy as well as control and trust alternates each other according to the specific working mode

foreseen it before [26].

improvement.

However, in Italy, for example, 1 year after the adoption of the Law no. 81/17, its effects are much more evident in the public sector than in the private sector. In 2018, 82% of large companies had already introduced or thought to introduce

Smart Working initiatives. In the PA, however, as many as 60% of organizations with agile work projects found stimulus after the Law adoption, and only 40% had foreseen it before [26].

#### **2.2 Micro-level change: organizational features**

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

*2.1.1 Technological issues*

*2.1.2 Legal issues*

regulated, particularly:

working schedules.

result oriented.

AITs should be reciprocally adapted to the requirements of the organization, namely, its basic assumptions, values and artifacts [13, 21]. According to sociotechnical systems principles and business process reengineering orientation to process measurement and radical changing through AITs [22], SW should be considered more than a technological transformation, as the introduction of AITs and the redesigning of business processes are a balanced and cross-disciplinary field for achieving strategic objectives [23]. Therefore, when organizations launch a digital transformation programme by implementing SW, they should redesign the overall working processes and workflows, by integrating technological issues within normative opportunities and cultural mind-set reframe, such as team interaction mechanisms [24], like relationship between leaders and followers, with a major focus on trust and on result-oriented behaviors. Only by the simultaneous implementation of AITs, legal issues and cultural reframe, workers can really benefit from SW advantages, like increased job meaning and autonomy as well as responsibility [25].

From a technological point of view, companies should design space for optimizing the work performance and use AITs (i.e. cloud services or smartphone App), for the dematerialization of the workplace. AITs should enable the paperless perspective adoption, like document-sharing digital platforms for performing and using digital information accessible at anytime from anywhere via digital and mobile devices. The concept of bring your own device (BYOD) describes how, for certain type of jobs, workers can perform far away from physical offices by only using their own digital device as tablet, smartphone or personal computer connected to a private or public network [3]. As a consequence of technology adoption, workers

Legal issues are fundamental drivers for SW diffusion and adoption especially for the public sector. For example, in the Italian context, SW (also called agile work) has been introduced by the Law no. 81/17, with the aim of increasing organizational productivity and enabling better work-life balance both in the private and in the public sectors. According to the Law no. 81/17, different aspects of SW are

• Workers' obligations: related to the possibility of performing outside the company's premises according to an adaptation of working hours within formal organizational rules limits, legal regulations restrictions and organization

• Workers' rights: i.e. the regulation of use (when and how) of computers and mobile devices as well as the right to disconnection in order to enable the

• Organizational issues: i.e. SW enables organizations to be more sustainable and competitive according to a way of working that should be more flexible and

However, in Italy, for example, 1 year after the adoption of the Law no. 81/17, its effects are much more evident in the public sector than in the private sector. In 2018, 82% of large companies had already introduced or thought to introduce

reconciliation of working, private and family life.

are always connected the office that is accessible anytime and anywhere.

**22**

In order to make SW effective, organizations should redefine their culture and redesign responsibilities deriving from the work relationship, particularly how managers and employees communicate with each other [27]. Cultural behaviors are, indeed, factors that have unique potential to promote or inhibit major changes in organizations. In fact, flexibility enabled by the opportunity to determine when and how (with which tools) to work is balanced by workers' responsibility and empowerment, mediated by motivational mechanisms that allow for self- and organization improvement.

#### *2.2.1 Leadership for smart working: a contingent perspective*

Within the cultural variables, we particularly consider leadership as an enabling process for the SW. Leadership is generally defined as the ability to influence others to actualization or achievement of a set of goals and objectives [16]. Despite different typologies of leadership proposed in the literature [16, 28–30], we consider a contingent perspective [15–16, 31–32] for examining the conditions under which each leadership approach to SW implementation is most effective.

According to such perspective, our basic assumption is that there is no a single best approach for the leader-follower relationships, but its effectiveness basically depends on the context [33]. We particularly use situational leadership theory within SW context by considering an ambidextrous approach [34–36]. Ambidexterity, a concept and framework initially proposed by Duncan [37], and then largely developed and applied [35, 38–41], is the ability to balance, in an integrated way, explorative and exploitative behaviors [42–43] carried out by the individuals or teams for organizations' survival and effectiveness. The use of ambidextrous approach suggests a paradoxical use of different leader behaviors to produce sustainable team performance [44]. According to Rosing et al. [34], we use the ambidexterity concept by focusing on two representative leadership styles: directive and empowering leadership.

They are specifically appropriate for dealing with blended working, characterized by the need for managing opposite dynamics such as autonomy vs. control or task vs. objectives focus.

Particularly, contextual ambidexterity leadership has been described through the concept of close (exploitative) and open (explorative) behaviors [34]. The former is typically associated to the set of leader behaviors that includes setting guidelines, monitoring task accomplishment and taking corrective action. We consider such behaviors as directive leadership style. The latter is typically associated with behaviors that encourage people to independent thinking (think out of the rules) and acting (to do things differently) by experimenting breaking of routines and rule and supporting efforts to challenge established approaches and status quo. We categorize such behaviors as empowering leadership style.

In the following sections, we describe directive and empowering leadership styles by highlighting that, for the blended characteristics of SW context (off-site and on-site working mode), there is no best way for leadership. Instead, we claim for a more contextual ambidextrous approach in which rules and autonomy as well as control and trust alternates each other according to the specific working mode and contingencies.

#### *2.2.2 Directive and empowering leadership: towards an ambidextrous approach*

Directive leadership is usually adopted on large organizations characterized by formal processes, procedures and rules that are used for controlling employees' productivity and behaviors. According to literature, directive leadership is effective for these organizational typologies in which rule, hierarchy and control are standard methods for managing people: they act as explicit coordination mechanism for followers, in which autonomy, trust and decision-making capabilities are substituted by the leaders' instructions, commands and control. Within such context leaders usually give followers specific directions and detailed instructions about task execution, by pushing them on performing task requirements according to formal rules and procedures [28]. Directive leadership is mainly top-down, as it relies primarily on position power that excludes followers' participation into the decision-making process. It is associated with task-focused direction, expressed through leader instructions, orders and goal setting process. The strong tendency to control of subordinate actions with close supervision, task planning and scheduling [29, 45] and punishment [46, 47] aims to influence followers' behaviour by ensuring that they follow procedures.

While directive leadership focuses upon external and top-down control of people, structure and rules, empowering leadership relies on internal control, self-direction, culture and values [20, 28]. According to the concept of empowerment, defined as an "extent to which leaders enhance autonomy, control, selfmanagement, and confidence in their teams" [48], p. 541, leaders encourage the development of followers by lacking direct supervision and more responsibilitytaking culture [29] through independent decisions, thinking and acting*.* The main assumption is that followers can perform tasks better in autonomous way [49], as empowerment intrinsically motivates workers [20]. The enabled relationship between leaders and empowered followers is, in fact, characterized by delegation, mutual trust, consensus and equal responsibility, thanks to bottom-up flow of communications and shared decision-making*.*

Despite the clear concept boundaries and differences between directive and empowering leadership styles, there is no consensus in literature about the effectiveness superiority of one style over another. Leadership effectiveness seems, in fact, context-dependent.

Directive leadership has been found be useful for the trauma centre, where employees have to follow orders and instructions that leaders formulate, especially where severity was high or when the team was inexperienced, while empowering leadership was more effective when trauma severity was low and when team experience was high [17]. Similar to such perspective, other studies found that empowerment is most appropriate when tasks are not urgent but innovative (if subordinates have the appropriate skills) [16]. Other studies show how directive leadership is useful for improving confidence and motivation to participate in technologysupported teams by reducing role ambiguity [50]. Further, directive leadership is positively related to performance within more structured tasks or problems [51], while empowering leadership is effective for less-structured tasks by allowing employees to generate more solution for problems [52].

However, related to environment stability, heterogeneous teams within stable environments may view directive leadership as unnecessary and prefer instead a participative decision-making process [53]. Under such situations directive leadership may cause unnecessary conflict [53]. Increasingly, directive style is appropriate for subordinates with an external locus of control [54] and may be also necessary in heterogeneous teams when the environment is dynamic, in order to bring together

**25**

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

the diverse team views for dealing with problems [53]. Finally, operating in online contexts, the structure and goal setting associated with directive leadership is likely more important than empowerment, especially during the early stages of online

Given such context-dependent effectiveness of leadership styles, we adopt a contingent perspective: there is no a best way for managing people, but effective leaders should exhibit behavioral flexibility, namely, they need to display a variety

Despite academic literature and professionals suggesting for an effective SW implementation, a transition towards more empowering behaviors [3, 7, 57], there is no evidences related to a more comprehensive approach for such transition. However, we think that SW adoption could also be facilitated by the directive leadership approach. In this conceptual contribution, we try to fill this gap by following a contingent view of leadership, based on directive and empowering styles. It suggests that SW adoption requires both leadership styles. According to SW mode, in fact, employees alternate, during the working week, both on-premise and off-site

Our framework focuses on a more contingent idea about leadership for blended working, by highlighting that within a SW context, according to the general idea that one type of leadership will be effective in one situation, but a different type of leadership will be effective in another situation, leadership should be ambidextrous. Particularly, our model considers four main quadrants based on the combination of different gradients of directive and empowering leadership in order to describe how, for a blended working context, not only an empowering leadership style is necessary (according to a work typology that is flexible and liquid), but also an ambidextrous style based both on directive and empowering leadership. In fact, a SW adoption implies a blended mode of working, where the same employees, or teams, perform their tasks in a blended fashion (off- and on-site) according to

Therefore, leadership should be developed accordingly: it sometimes coexists with the traditional way of working, in which rules, procedures and leader instructions, typical of directive leadership, are necessary and sufficient for leading the workers, while during periods of off-site working, where face-to-face approach and visual control are excluded, it is necessary to set a leadership approach based on followers' autonomy and trust, typical of empowering leadership. This peculiarity requires a set of leadership approach that varies according to the modes in which workers decide to perform. Therefore, different scenarios derive from such peculiarity. We describe such scenarios on the theoretical framework on **Figure 2**.

Within this quadrant there is mainly a situation where leadership is not effectively exercised, due to a lack of the possibility of exercising organizational power. These situations fall into the case of autonomous jobs and individual entrepreneurs that make autonomous decisions for their organizations and companies. This quadrant can be considered as a transition quadrant, especially if the entrepreneur

decides to grow, by opening the quadrant II or quadrant III scenario.

**3. A framework for flexible working: contextual ambidextrous** 

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

of leadership styles depending on the situation [56].

working, by requiring different leadership styles.

group interactions [55].

**leadership**

working schedule.

**3.1 Quadrant I**

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach DOI: http://dx.doi.org/10.5772/intechopen.90370*

the diverse team views for dealing with problems [53]. Finally, operating in online contexts, the structure and goal setting associated with directive leadership is likely more important than empowerment, especially during the early stages of online group interactions [55].

Given such context-dependent effectiveness of leadership styles, we adopt a contingent perspective: there is no a best way for managing people, but effective leaders should exhibit behavioral flexibility, namely, they need to display a variety of leadership styles depending on the situation [56].

#### **3. A framework for flexible working: contextual ambidextrous leadership**

Despite academic literature and professionals suggesting for an effective SW implementation, a transition towards more empowering behaviors [3, 7, 57], there is no evidences related to a more comprehensive approach for such transition. However, we think that SW adoption could also be facilitated by the directive leadership approach. In this conceptual contribution, we try to fill this gap by following a contingent view of leadership, based on directive and empowering styles. It suggests that SW adoption requires both leadership styles. According to SW mode, in fact, employees alternate, during the working week, both on-premise and off-site working, by requiring different leadership styles.

Our framework focuses on a more contingent idea about leadership for blended working, by highlighting that within a SW context, according to the general idea that one type of leadership will be effective in one situation, but a different type of leadership will be effective in another situation, leadership should be ambidextrous.

Particularly, our model considers four main quadrants based on the combination of different gradients of directive and empowering leadership in order to describe how, for a blended working context, not only an empowering leadership style is necessary (according to a work typology that is flexible and liquid), but also an ambidextrous style based both on directive and empowering leadership. In fact, a SW adoption implies a blended mode of working, where the same employees, or teams, perform their tasks in a blended fashion (off- and on-site) according to working schedule.

Therefore, leadership should be developed accordingly: it sometimes coexists with the traditional way of working, in which rules, procedures and leader instructions, typical of directive leadership, are necessary and sufficient for leading the workers, while during periods of off-site working, where face-to-face approach and visual control are excluded, it is necessary to set a leadership approach based on followers' autonomy and trust, typical of empowering leadership. This peculiarity requires a set of leadership approach that varies according to the modes in which workers decide to perform. Therefore, different scenarios derive from such peculiarity. We describe such scenarios on the theoretical framework on **Figure 2**.

#### **3.1 Quadrant I**

Within this quadrant there is mainly a situation where leadership is not effectively exercised, due to a lack of the possibility of exercising organizational power. These situations fall into the case of autonomous jobs and individual entrepreneurs that make autonomous decisions for their organizations and companies. This quadrant can be considered as a transition quadrant, especially if the entrepreneur decides to grow, by opening the quadrant II or quadrant III scenario.

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

ing that they follow procedures.

munications and shared decision-making*.*

employees to generate more solution for problems [52].

fact, context-dependent.

*2.2.2 Directive and empowering leadership: towards an ambidextrous approach*

Directive leadership is usually adopted on large organizations characterized by formal processes, procedures and rules that are used for controlling employees' productivity and behaviors. According to literature, directive leadership is effective for these organizational typologies in which rule, hierarchy and control are standard methods for managing people: they act as explicit coordination mechanism for followers, in which autonomy, trust and decision-making capabilities are substituted by the leaders' instructions, commands and control. Within such context leaders usually give followers specific directions and detailed instructions about task execution, by pushing them on performing task requirements according to formal rules and procedures [28]. Directive leadership is mainly top-down, as it relies primarily on position power that excludes followers' participation into the decision-making process. It is associated with task-focused direction, expressed through leader instructions, orders and goal setting process. The strong tendency to control of subordinate actions with close supervision, task planning and scheduling [29, 45] and punishment [46, 47] aims to influence followers' behaviour by ensur-

While directive leadership focuses upon external and top-down control of people, structure and rules, empowering leadership relies on internal control, self-direction, culture and values [20, 28]. According to the concept of empowerment, defined as an "extent to which leaders enhance autonomy, control, selfmanagement, and confidence in their teams" [48], p. 541, leaders encourage the development of followers by lacking direct supervision and more responsibilitytaking culture [29] through independent decisions, thinking and acting*.* The main assumption is that followers can perform tasks better in autonomous way [49], as empowerment intrinsically motivates workers [20]. The enabled relationship between leaders and empowered followers is, in fact, characterized by delegation, mutual trust, consensus and equal responsibility, thanks to bottom-up flow of com-

Despite the clear concept boundaries and differences between directive and empowering leadership styles, there is no consensus in literature about the effectiveness superiority of one style over another. Leadership effectiveness seems, in

Directive leadership has been found be useful for the trauma centre, where employees have to follow orders and instructions that leaders formulate, especially where severity was high or when the team was inexperienced, while empowering leadership was more effective when trauma severity was low and when team experience was high [17]. Similar to such perspective, other studies found that empowerment is most appropriate when tasks are not urgent but innovative (if subordinates have the appropriate skills) [16]. Other studies show how directive leadership is useful for improving confidence and motivation to participate in technologysupported teams by reducing role ambiguity [50]. Further, directive leadership is positively related to performance within more structured tasks or problems [51], while empowering leadership is effective for less-structured tasks by allowing

However, related to environment stability, heterogeneous teams within stable environments may view directive leadership as unnecessary and prefer instead a participative decision-making process [53]. Under such situations directive leadership may cause unnecessary conflict [53]. Increasingly, directive style is appropriate for subordinates with an external locus of control [54] and may be also necessary in heterogeneous teams when the environment is dynamic, in order to bring together

**24**

**Figure 2.** *Theoretical framework about leadership styles.*

#### **3.2 Quadrant II**

Under quadrant II falls the directive leadership styles, typical of large and bureaucratic companies, characterized by routines' implementation, procedures and standardized behaviors. Under this situation leadership should be predominantly hierarchical in order to align followers to leaders' directives/instructions and organizational routines and to assure reliability and regularities of operations.

Moreover, such organizations use procedures and rules for control of employees' productivity and behaviour. According to literature, directive leadership is effective for these organizational typologies in which rule, hierarchy and control are useful mechanism for managing people, as directive leadership configures a strong situation for which there are uniform expectancies regarding appropriate followers' behaviour [58] in which productivity and behaviors are strictly controlled. The strong tendency to control of subordinate actions with close supervision, task planning and scheduling [29, 45] and punishment [46–47] aims to influence followers' behaviour by ensuring that they follow procedures.

Typical examples of organizations with directive leadership style are healthcare organizations, public administrations and public utilities but also large enterprises. The complexity of such organizations and their size usually require highly standardized and vertical decision-making procedures and mechanisms.

Within such organizations usually directive leadership is mainly top-down, as it relies primarily on position power that excludes followers' participation into the decision-making process which is the traditional coordination mechanism.

Such organizations have also spaces for a more flexible management in regard to emergencies or change in management projects, i.e. agile oriented. In fact, in case of emergencies or unforeseen, leadership should switch from a directive mode to an empowering one [32]. However, these switching processes are contingencies in

**27**

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

which leadership styles alternate themselves in order to match the specific situation,

Research states that empowerment is appropriate for flexible, decentralized and less formalized organizations, where participation and autonomy on performing

Accordingly, under quadrant III falls empowering leadership, typical of more flexible organizations, usually represented by small size companies and start-ups. Such situations are characterized for high level of flexibility and are defined as weaker than those of quadrant II, for the lack of expectations for appropriate

Leaders, in such situations, have more fluid boundaries than larger and stable organizations structures and have more discretion and less bureaucracy to deal with. Empowering allows the team to participate to decision-making and take ownership of the provided solutions for improving productivity and achieve more effec-

Empowerment is a style of leadership that predominantly characterizes the small work groups where the tendency is towards the resolution and management of emerging problems that do not require a high level of standardization, but rather operational flexibility even beyond the role to enable everyone to find the right

Symmetrically to what happened to quadrant II, also within such quadrant organizations are more rigid. Therefore, a structured approach, typical of directive leadership styles, may be required. Start-ups or flexible organizations that decide to grow need to be more structured, with more rules, procedures and hierarchy. Also in this case, like quadrant II, organizations need to follow a sequence from empow-

While in quadrant II and quadrant III there are basically static styles of leadership, which can, however, change over time according to the specific situation of the organization, for example, a bureaucratic organization whose typical style is directive that wants to become agile or that it is managing an emergency or a small organization (where the style is typically empowering) that wants to grow should leave room for a more directive one where rules of procedure and hierarchy can guarantee the stability path linked to the growth of the company, the quadrant IV combines the two styles of leadership within the same context. Under quadrant IV fall the digital changing organizations, particularly large companies that exploit high potential of innovative projects by digitally transforming their core processes, like SW adoption. In large companies SW phenomenon is widespread, and its impact is increasingly evident and pervasive. This is, for example, what emerges in the Italian context from the survey of the Politecnico of Milano Report on Smart Working [26]: 56% of large companies surveyed (on a sample of 183 large companies, with more than 250 employees) have implemented SW projects; 16% of them are in the testing phase and are developing pilot projects that generally last about 6 months and involves about 14% of the employees; 44% of the companies are extending the participation to a wider audience; and the remaining 40% of companies' projects

have taken off and involved all those who can be included in the initiative.

Under this quadrant leadership styles are completely different from the previous ones: it embraces contexts that need both the directive and empowering behaviors

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

which is usually an ordinary one.

**3.3 Quadrant III**

tasks is emphasized.

behaviors [58].

**3.4 Quadrant IV**

tive and efficient results.

solution to a certain task, activity or routine.

ering leadership style to a more directive one.

which leadership styles alternate themselves in order to match the specific situation, which is usually an ordinary one.

#### **3.3 Quadrant III**

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

Under quadrant II falls the directive leadership styles, typical of large and bureaucratic companies, characterized by routines' implementation, procedures and standardized behaviors. Under this situation leadership should be predominantly hierarchical in order to align followers to leaders' directives/instructions and organizational routines and to assure reliability and regularities of operations.

behaviour by ensuring that they follow procedures.

dardized and vertical decision-making procedures and mechanisms.

decision-making process which is the traditional coordination mechanism.

Moreover, such organizations use procedures and rules for control of employees' productivity and behaviour. According to literature, directive leadership is effective for these organizational typologies in which rule, hierarchy and control are useful mechanism for managing people, as directive leadership configures a strong situation for which there are uniform expectancies regarding appropriate followers' behaviour [58] in which productivity and behaviors are strictly controlled. The strong tendency to control of subordinate actions with close supervision, task planning and scheduling [29, 45] and punishment [46–47] aims to influence followers'

Typical examples of organizations with directive leadership style are healthcare organizations, public administrations and public utilities but also large enterprises. The complexity of such organizations and their size usually require highly stan-

Within such organizations usually directive leadership is mainly top-down, as it relies primarily on position power that excludes followers' participation into the

Such organizations have also spaces for a more flexible management in regard to emergencies or change in management projects, i.e. agile oriented. In fact, in case of emergencies or unforeseen, leadership should switch from a directive mode to an empowering one [32]. However, these switching processes are contingencies in

**26**

**3.2 Quadrant II**

*Theoretical framework about leadership styles.*

**Figure 2.**

Research states that empowerment is appropriate for flexible, decentralized and less formalized organizations, where participation and autonomy on performing tasks is emphasized.

Accordingly, under quadrant III falls empowering leadership, typical of more flexible organizations, usually represented by small size companies and start-ups. Such situations are characterized for high level of flexibility and are defined as weaker than those of quadrant II, for the lack of expectations for appropriate behaviors [58].

Leaders, in such situations, have more fluid boundaries than larger and stable organizations structures and have more discretion and less bureaucracy to deal with.

Empowering allows the team to participate to decision-making and take ownership of the provided solutions for improving productivity and achieve more effective and efficient results.

Empowerment is a style of leadership that predominantly characterizes the small work groups where the tendency is towards the resolution and management of emerging problems that do not require a high level of standardization, but rather operational flexibility even beyond the role to enable everyone to find the right solution to a certain task, activity or routine.

Symmetrically to what happened to quadrant II, also within such quadrant organizations are more rigid. Therefore, a structured approach, typical of directive leadership styles, may be required. Start-ups or flexible organizations that decide to grow need to be more structured, with more rules, procedures and hierarchy. Also in this case, like quadrant II, organizations need to follow a sequence from empowering leadership style to a more directive one.

#### **3.4 Quadrant IV**

While in quadrant II and quadrant III there are basically static styles of leadership, which can, however, change over time according to the specific situation of the organization, for example, a bureaucratic organization whose typical style is directive that wants to become agile or that it is managing an emergency or a small organization (where the style is typically empowering) that wants to grow should leave room for a more directive one where rules of procedure and hierarchy can guarantee the stability path linked to the growth of the company, the quadrant IV combines the two styles of leadership within the same context. Under quadrant IV fall the digital changing organizations, particularly large companies that exploit high potential of innovative projects by digitally transforming their core processes, like SW adoption. In large companies SW phenomenon is widespread, and its impact is increasingly evident and pervasive. This is, for example, what emerges in the Italian context from the survey of the Politecnico of Milano Report on Smart Working [26]: 56% of large companies surveyed (on a sample of 183 large companies, with more than 250 employees) have implemented SW projects; 16% of them are in the testing phase and are developing pilot projects that generally last about 6 months and involves about 14% of the employees; 44% of the companies are extending the participation to a wider audience; and the remaining 40% of companies' projects have taken off and involved all those who can be included in the initiative.

Under this quadrant leadership styles are completely different from the previous ones: it embraces contexts that need both the directive and empowering behaviors

in order to match continuously the requirement for the complex nature of SW processes. Leaders should enable (together with workers) a mixed approach oriented to autonomy, by leveraging on trust and result orientation, as well as to hierarchy, by setting rules, procedures and formal control. Therefore, within such quadrant, we claim the need for a more contextual ambidextrous leadership.

Smart Workers are, in fact, peculiar workers that, according to working schedule, perform both in a traditional bureaucratic way (on premises, as under quadrant I), where directive leadership is most effective, and in a more flexible mode according to an autonomous and trust-oriented context (on a more empowered setting, similar to quadrant II).

Contextual ambidextrous leadership balances the two opposite leadership requirements for blended working at the same time: close (exploitative) and open (explorative) behaviors. The blended peculiarity of SW conceived by definition for off-site (online) and on-site (offline) working needs different, sometimes opposite, leadership styles, namely, a contextual ambidextrous approach.

Leaders and followers (blue and white collars) should behave accordingly: when workers perform on-site, leaders and followers should adapt themselves to a strong situation, by interacting with a directive and task-based leadership, as tasks are monitored day by day, with a lacking of attention to final results, autonomy and trust, in a fashion typical of quadrant II.

Conversely, when workers switch to an off-site mode, both leaders and followers should adapt their approach to an empowering style based on autonomy, trust and result orientation, through the support of collaborative and mobile technologies, by performing as digital workers, in a more flexible fashion typical of the quadrant III.

The importance to enable an ambidextrous approach, therefore, implies new relational skills (or the combination of actual skills in a different and innovative way) both for the leaders and for the workers that, regarding their remote or physical approach, should be able to switch from directive to empowering and finally improve organizational performance.

Leaders and employees should be able to manage a repertoire of behaviors, namely, be hierarchical and directive (from the point of view of the manager); be able to follow rules and instructions (from the point of view of the follower); be able to empower by giving autonomy, trust and checking for final results (from the point of view of the manager); and be able to receive responsibility for results and work autonomously (from the point of view of the follower). The situation that falls under this quadrant is very different from the previous ones.

In this case, when team members work on-site, they usually have to exploit in order to get the job done. Thus, their team leader needs to support them in doing so with directive behaviors. Conversely, when team members work off-site, the context changes completely. They are far away from the colleagues and from their leader. They should accomplish task, as in the previous situation, but can encounter problems (systems and application that do not work, software that are not updated), or should decide about important issues without the possibility of having the real-time opinion of their boss or colleagues.

Therefore, they need to be supported also into an empowerment approach, for starting to explore ways to handle these issues by developing new solutions or better ideas without specific instructions or rules. Accordingly, the leader should change his/her style by displaying opening behaviors to encourage team members to complete job autonomously, search for new solutions, to think in different ways and to risk by going beyond existing schemas.

According to literature [34], this case claims for continuous switching between different styles and different situations that are not organized sequentially, but in a rather complex and unpredictably fashion.

**29**

and liquid approach.

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

directive and empowering, depending on the situation [56].

between directive and leadership style is continuous.

directive and empowering styles.

directive and empowering relationships, in a quite paradoxical fashion.

Building on contingent view of leadership or situational perspective, in which leadership and its effectiveness are dependent upon the context [32], our contribution aims at understanding more about which leadership styles should operate within a Digital Working context. It particularly offers an original point of view related to the role of contextual ambidextrous leadership for Smart Working adoption, in which blended working (on-site and off-site) requires an ambidextrous approach, namely, directive and empowering leadership. According to existing literature, which emphasizes the importance of empowerment flexibility and agility for digital transition [3, 7, 57], we propose a more complete and complex approach by highlighting also the importance of structure and rigidity typical of directive leadership. We particularly claim for an ambidextrous approach by refocusing, besides the empowering leadership style, also the importance of structure, command and control of the directive style. Effective leaders, therefore, should exhibit behavioral flexibility, namely, they need to display a variety of leadership styles,

Our findings particularly suggest new directions for research about leadership within digital changing organizations towards more dynamic aspects of leadership styles, including the contextual ambidexterity approach [35], and the related "switching" process, from directive and empowering, and vice versa, within the same context of Smart Working adoption. Our study underlines the importance of complementing empowering leadership with directive one, with a finer-grained look at the contextual capacity for leaders and followers to manage reciprocally

The first theoretical implication is related to leadership for Digital Changing Organizations (i.e. SW oriented), which requires more than empowering, flexible

Particularly, flexibility and liquidity, in the case of SW adoption, should be related to the theoretical concept of the ambidextrous theory [38, 41] and ambidextrous capacity, the capacity for leaders to delegate people as well as to direct them with regard to the specific situation in which the Smart Worker is going through. Ambidextrous leadership means, in this sense, the possibility for the teams to work both in directive and empowering fashion, by asking them to continuously adapt to such changes within the context in which they are working in. According to existing literature [15, 16], we claim that for SW approach there is no the best leadership style (i.e. empowering style) but a best leadership approach, as the leader (and followers) should be able to switch their behaviors according to the specific working mode they are dealing with. Studies about ambidextrous leadership [34] have advanced the understanding of open (empowering) and close (directive) leadership styles. Accordingly, we further extend such insights within a SW context, which, differently from an innovation project (that ends with the innovation implementation), requires a contextual ambidextrous approach in which the switching process

The second theoretical implication is a consequence of the first one and is related to how managing the transition towards the ambidextrous leadership. Particularly, it requires, for SW context, a change management process in which leadership should be considered as continuously adapting to the context. This means that within SW context, change management, from the leadership point of view, is more than a planned approach [59]: it should be a permanent process in which organization and teams search endlessly for the most adapt solution for achieving effectiveness: a continuous search for the most effective combination of

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

**4. Theoretical and practical implications**

#### **4. Theoretical and practical implications**

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

similar to quadrant II).

trust, in a fashion typical of quadrant II.

improve organizational performance.

claim the need for a more contextual ambidextrous leadership.

leadership styles, namely, a contextual ambidextrous approach.

under this quadrant is very different from the previous ones.

the real-time opinion of their boss or colleagues.

to risk by going beyond existing schemas.

rather complex and unpredictably fashion.

in order to match continuously the requirement for the complex nature of SW processes. Leaders should enable (together with workers) a mixed approach oriented to autonomy, by leveraging on trust and result orientation, as well as to hierarchy, by setting rules, procedures and formal control. Therefore, within such quadrant, we

Smart Workers are, in fact, peculiar workers that, according to working schedule, perform both in a traditional bureaucratic way (on premises, as under quadrant I), where directive leadership is most effective, and in a more flexible mode according to an autonomous and trust-oriented context (on a more empowered setting,

Contextual ambidextrous leadership balances the two opposite leadership requirements for blended working at the same time: close (exploitative) and open (explorative) behaviors. The blended peculiarity of SW conceived by definition for off-site (online) and on-site (offline) working needs different, sometimes opposite,

Leaders and followers (blue and white collars) should behave accordingly: when workers perform on-site, leaders and followers should adapt themselves to a strong situation, by interacting with a directive and task-based leadership, as tasks are monitored day by day, with a lacking of attention to final results, autonomy and

Conversely, when workers switch to an off-site mode, both leaders and followers should adapt their approach to an empowering style based on autonomy, trust and result orientation, through the support of collaborative and mobile technologies, by performing as digital workers, in a more flexible fashion typical of the quadrant III. The importance to enable an ambidextrous approach, therefore, implies new relational skills (or the combination of actual skills in a different and innovative way) both for the leaders and for the workers that, regarding their remote or physical approach, should be able to switch from directive to empowering and finally

Leaders and employees should be able to manage a repertoire of behaviors, namely, be hierarchical and directive (from the point of view of the manager); be able to follow rules and instructions (from the point of view of the follower); be able to empower by giving autonomy, trust and checking for final results (from the point of view of the manager); and be able to receive responsibility for results and work autonomously (from the point of view of the follower). The situation that falls

In this case, when team members work on-site, they usually have to exploit in order to get the job done. Thus, their team leader needs to support them in doing so with directive behaviors. Conversely, when team members work off-site, the context changes completely. They are far away from the colleagues and from their leader. They should accomplish task, as in the previous situation, but can encounter problems (systems and application that do not work, software that are not updated), or should decide about important issues without the possibility of having

Therefore, they need to be supported also into an empowerment approach, for starting to explore ways to handle these issues by developing new solutions or better ideas without specific instructions or rules. Accordingly, the leader should change his/her style by displaying opening behaviors to encourage team members to complete job autonomously, search for new solutions, to think in different ways and

According to literature [34], this case claims for continuous switching between different styles and different situations that are not organized sequentially, but in a

**28**

Building on contingent view of leadership or situational perspective, in which leadership and its effectiveness are dependent upon the context [32], our contribution aims at understanding more about which leadership styles should operate within a Digital Working context. It particularly offers an original point of view related to the role of contextual ambidextrous leadership for Smart Working adoption, in which blended working (on-site and off-site) requires an ambidextrous approach, namely, directive and empowering leadership. According to existing literature, which emphasizes the importance of empowerment flexibility and agility for digital transition [3, 7, 57], we propose a more complete and complex approach by highlighting also the importance of structure and rigidity typical of directive leadership. We particularly claim for an ambidextrous approach by refocusing, besides the empowering leadership style, also the importance of structure, command and control of the directive style. Effective leaders, therefore, should exhibit behavioral flexibility, namely, they need to display a variety of leadership styles, directive and empowering, depending on the situation [56].

Our findings particularly suggest new directions for research about leadership within digital changing organizations towards more dynamic aspects of leadership styles, including the contextual ambidexterity approach [35], and the related "switching" process, from directive and empowering, and vice versa, within the same context of Smart Working adoption. Our study underlines the importance of complementing empowering leadership with directive one, with a finer-grained look at the contextual capacity for leaders and followers to manage reciprocally directive and empowering relationships, in a quite paradoxical fashion.

The first theoretical implication is related to leadership for Digital Changing Organizations (i.e. SW oriented), which requires more than empowering, flexible and liquid approach.

Particularly, flexibility and liquidity, in the case of SW adoption, should be related to the theoretical concept of the ambidextrous theory [38, 41] and ambidextrous capacity, the capacity for leaders to delegate people as well as to direct them with regard to the specific situation in which the Smart Worker is going through. Ambidextrous leadership means, in this sense, the possibility for the teams to work both in directive and empowering fashion, by asking them to continuously adapt to such changes within the context in which they are working in. According to existing literature [15, 16], we claim that for SW approach there is no the best leadership style (i.e. empowering style) but a best leadership approach, as the leader (and followers) should be able to switch their behaviors according to the specific working mode they are dealing with. Studies about ambidextrous leadership [34] have advanced the understanding of open (empowering) and close (directive) leadership styles. Accordingly, we further extend such insights within a SW context, which, differently from an innovation project (that ends with the innovation implementation), requires a contextual ambidextrous approach in which the switching process between directive and leadership style is continuous.

The second theoretical implication is a consequence of the first one and is related to how managing the transition towards the ambidextrous leadership. Particularly, it requires, for SW context, a change management process in which leadership should be considered as continuously adapting to the context. This means that within SW context, change management, from the leadership point of view, is more than a planned approach [59]: it should be a permanent process in which organization and teams search endlessly for the most adapt solution for achieving effectiveness: a continuous search for the most effective combination of directive and empowering styles.

Therefore, within a Smart Working context, there is a different perspective that changes from how to sustain the transition from "directive" to "empowering" to an approach focused on how to sustain both "directive and empowering" styles. By analyzing the IV quadrant of our framework, we highlight the interesting idea of an interwoven process of changing in which complexity, more than linearity, leads the transition to an ambidextrous approach.

Our contribution has practical implications as well. Particularly, we suggest that an effective ambidextrous leadership requires, from a practical point of view, the development of an adequate mind-set, mainly throughout training on ambidextrous strategic mind-set that calls for both exploratory and exploitative behaviors. Leaders must internalize, transfer and reinforce ambidextrous ways of thinking and working by encouraging followers to accept different behaviors not as improvisation or lack of vision but as an overall strategy that considers the necessity of being adaptive, directive and empowering, depending on the specific context.

#### **5. Conclusion**

Our contribution aims at understanding more about which leadership styles should operate within a Digital Working context.

In Section 1 we have contextualized the concept of Digital Working, and more specifically the concept of SW, by distinguish it from other innovative ways of working, like teleworking and remote working.

In Section 2 we have described the main variables related to SW implementation, namely, AITs, legal issues and cultural variables. According to literature, we have highlighted how, conceptually, the effectiveness of SW adoption mainly depends on the simultaneous implementation of such variables. Particularly we have described AITs as enabling tools that allow organizations to efficiency and effectiveness (SubSection 2.1) and legal issues as enabling factors for digital innovation (SubSection 2.2). Moreover, as described in SubSection 2.2, we have focused on how SW adoption can radically improve organizational performance, only if macro-level changes, by interacting with micro-level change, reframe organizational cultural assumptions, like leadership approach.

Within the Sub-subSection 2.2.1, we set our basic assumption of situational approach of leadership for analyzing our research problem and focusing particularly on the ambidextrous perspective for managing SW contexts, namely, the simultaneous and paradoxical application of opposite behaviors: close (exploitative) behaviors, similar to directive leadership, as it includes setting guidelines, monitoring task accomplishment and taking corrective action, and open (explorative) behaviors similar to empowering leadership, as it includes independent thinking, the breaking of routines and supporting attempts to challenge established approaches.

In the Sub-subSection 2.2.2, we have described the peculiarities of directive leadership, more top-down, control-oriented and task-focused, as well as of empowering leadership more focused on workers autonomy, self-leadership and performance oriented. We have also highlighted that despite the clear concept boundaries between directive and empowering leadership, there is no consensus in literature about the effectiveness superiority of one style over another, which seems more context-dependent, as results from some research evidences that we have reported about the contingency effectiveness of directive and empowering leadership.

Therefore, in Section 3, we extended the reasoning about contingent leadership by building, presenting and describing our conceptual framework.

**31**

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

working mode and, therefore, the opposite related dynamics such as autonomy

Particularly, we have highlighted the importance to enable an ambidextrous approach that implies new relational skills (or the combination of such skills) both for the leaders and for the workers that, regarding their remote or physically approach, should improve organizational performance. Therefore, leaders and employees should be able to manage a repertoire of behaviors, namely, be hierarchical and directive (from the point of view of the manager); be able to follow rules and instructions (from the point of view of the follower); be able to empower by giving autonomy, trust and checking for final results (from the point of view of the manager); and be able to receive responsibility for results and work autonomously (from the point of view of the follower). In fact, the ambidexterity approach should be applied not only regarding the way in which workers decide to perform: the leader and followers should also evaluate the more or less directive (or empowering) behaviors not only regarding off-site or on-site mode but also other important variables related to the Smart Workers. We propose, as examples, the following:

1.Digital skills: Digital skilled workers need less directive behaviors than workers less confident on AITs platform; the latter needs to be more directed and

2.Workers' age: SW represents a quasi "natural" way of working for digital natives that have grown up on digital age, while it is something of unusual for traditional workers that should adapt to the innovativeness of the AITs that

3.Organizational size: SW represents a digital transformation issue mainly for big and medium size companies, which often redesign their process according to more effective and cost-saving organization (i.e. premises, equipment and electricity). Such organizations are typically hierarchical with a lot of proce-

4.Life cycle of the SW project implementation: During the initial phase of a SW project, organizations usually need more explorative oriented behaviors that empowerment can enable (experimentation, search and risk taking), while during the mature phase, they need exploitative behaviors, more oriented to

Future research should look at such further specific SW contingencies in order to deepen the understanding about the effectiveness of ambidextrous leadership.

controlled when they perform on the digital environment.

are, nowadays, the most part of the organization population.

the exploitation of the actual procedures and rules.

dures and organizational levels.

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

control or task objectives focus.

Such model highlights how, under a SW blended context (off-site and on-site working mode), leadership should be ambidextrous according to the specific

#### *Leadership for Digital Working: Towards a Contextual Ambidextrous Approach DOI: http://dx.doi.org/10.5772/intechopen.90370*

working mode and, therefore, the opposite related dynamics such as autonomy control or task objectives focus.

Particularly, we have highlighted the importance to enable an ambidextrous approach that implies new relational skills (or the combination of such skills) both for the leaders and for the workers that, regarding their remote or physically approach, should improve organizational performance. Therefore, leaders and employees should be able to manage a repertoire of behaviors, namely, be hierarchical and directive (from the point of view of the manager); be able to follow rules and instructions (from the point of view of the follower); be able to empower by giving autonomy, trust and checking for final results (from the point of view of the manager); and be able to receive responsibility for results and work autonomously (from the point of view of the follower). In fact, the ambidexterity approach should be applied not only regarding the way in which workers decide to perform: the leader and followers should also evaluate the more or less directive (or empowering) behaviors not only regarding off-site or on-site mode but also other important variables related to the Smart Workers. We propose, as examples, the following:


Future research should look at such further specific SW contingencies in order to deepen the understanding about the effectiveness of ambidextrous leadership.

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

transition to an ambidextrous approach.

should operate within a Digital Working context.

working, like teleworking and remote working.

tional cultural assumptions, like leadership approach.

**5. Conclusion**

Therefore, within a Smart Working context, there is a different perspective that changes from how to sustain the transition from "directive" to "empowering" to an approach focused on how to sustain both "directive and empowering" styles. By analyzing the IV quadrant of our framework, we highlight the interesting idea of an interwoven process of changing in which complexity, more than linearity, leads the

Our contribution has practical implications as well. Particularly, we suggest that an effective ambidextrous leadership requires, from a practical point of view, the development of an adequate mind-set, mainly throughout training on ambidextrous strategic mind-set that calls for both exploratory and exploitative behaviors. Leaders must internalize, transfer and reinforce ambidextrous ways of thinking and working by encouraging followers to accept different behaviors not as improvisation or lack of vision but as an overall strategy that considers the necessity of being

adaptive, directive and empowering, depending on the specific context.

Our contribution aims at understanding more about which leadership styles

In Section 1 we have contextualized the concept of Digital Working, and more specifically the concept of SW, by distinguish it from other innovative ways of

In Section 2 we have described the main variables related to SW implementation, namely, AITs, legal issues and cultural variables. According to literature, we have highlighted how, conceptually, the effectiveness of SW adoption mainly depends on the simultaneous implementation of such variables. Particularly we have described AITs as enabling tools that allow organizations to efficiency and effectiveness (SubSection 2.1) and legal issues as enabling factors for digital innovation (SubSection 2.2). Moreover, as described in SubSection 2.2, we have focused on how SW adoption can radically improve organizational performance, only if macro-level changes, by interacting with micro-level change, reframe organiza-

Within the Sub-subSection 2.2.1, we set our basic assumption of situational approach of leadership for analyzing our research problem and focusing particularly on the ambidextrous perspective for managing SW contexts, namely, the simultaneous and paradoxical application of opposite behaviors: close (exploitative) behaviors, similar to directive leadership, as it includes setting guidelines, monitoring task accomplishment and taking corrective action, and open (explorative) behaviors similar to empowering leadership, as it includes independent thinking, the breaking

In the Sub-subSection 2.2.2, we have described the peculiarities of directive leadership, more top-down, control-oriented and task-focused, as well as of empowering leadership more focused on workers autonomy, self-leadership and performance

Therefore, in Section 3, we extended the reasoning about contingent leadership

Such model highlights how, under a SW blended context (off-site and on-site working mode), leadership should be ambidextrous according to the specific

of routines and supporting attempts to challenge established approaches.

oriented. We have also highlighted that despite the clear concept boundaries between directive and empowering leadership, there is no consensus in literature about the effectiveness superiority of one style over another, which seems more context-dependent, as results from some research evidences that we have reported about the contingency effectiveness of directive and empowering leadership.

by building, presenting and describing our conceptual framework.

**30**

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

#### **Author details**

Daniele Binci\* and Francesco Scafarto University of Rome "Tor Vergata", Rome, Italy

\*Address all correspondence to: daniele.binci@uniroma2.it

© 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.

**33**

*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

Consulting and MIT Sloan Management. Cambridge, MA, Paris; 2011. Available from: https://www.capgemini.com/ wp-content/uploads/2017/07 (Accessed:

[10] Davenport TH. Process Innovation:

[11] Harmon P. Business Process Change: A Business Process Management Guide for Managers and Process Professionals. San Francisco, CA, USA: Morgan

[12] Hammer M, Champy J. Reengineering

the Corporation: A Manifesto for Business Revolution. New York: Harper

[13] Schein E. Organizational Culture and Leadership. San Francisco, CA:

[14] Bligh MC, Pearce CL, Kohles JC. The

[15] Lorinkova NM, Pearsall MJ, Sims HP Jr. Examining the differential longitudinal performance of directive versus empowering leadership in teams. Academy of Management Journal.

[16] Sims HP, Faraj S, Yun S. When should a leader be directive or empowering? How to develop your own situational theory of leadership. Business Horizons. 2009;**52**(2):149-158

[17] Yun S, Faraj S, Sims JHP. Contingent leadership and effectiveness of trauma resuscitation teams. Journal of Applied Psychology. 2005;**90**(6):1288-1296

importance of self- and shared leadership in team based knowledge work. Journal of Managerial Psychology.

Reengineering Work Through Information Technology. Boston: Harvard Business School Press Books;

15 December 2017)

Kaufmann; 2019

Paperbacks; 1993

Jossey-Bass; 2004

2006;**21**(4):296-318

2013;**56**(2):573-596

1993

*DOI: http://dx.doi.org/10.5772/intechopen.90370*

[1] Bonfour A. Digital Futures, Digital Transformation From Lean Production to Acceluction. Switzerland: Springer

transformation: Creating new business models where digital meets physical. USA: IBM Institute for Business Value;

Rymkevich O, Senatori I, Solinas G. Working in Digital and Smart Organizations: Legal, Economic and Organizational Perspectives on the Digitalization of Labour Relations. Switzerland: Palgrave Macmillan; 2018

[4] Barley SR. Why the internet makes buying a car less loathsome: How technologies change role relations. Academy of Management Discoveries.

[6] Parker SK. Beyond motivation: Job and work design for development, health, ambidexterity, and more. Annual Review of Psychology.

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[9] Capgemini Consulting and MIT Sloan Management 2011. Digital Transformation: A Road map for Billion – Dollar Organizations. Capgemini

[5] Schwarzmuller T, Brosi P, Duman D, Welpe IM. How does the digital transformation affect organizations? Key themes of change in work design and leadership. Management Revue.

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*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach DOI: http://dx.doi.org/10.5772/intechopen.90370*

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

**32**

**Author details**

Daniele Binci\* and Francesco Scafarto

University of Rome "Tor Vergata", Rome, Italy

provided the original work is properly cited.

\*Address all correspondence to: daniele.binci@uniroma2.it

© 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,

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*Leadership for Digital Working: Towards a Contextual Ambidextrous Approach*

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

[28] Pearce CL, Sims HP Jr, Cox JF, Ball G, Schnell E, Smith KA, et al. Transactors, transformers and beyond. Journal of Management Development.

[29] Pearce CL, Conger JA. Shared Leadership: Reframing the Hows and Whys of Leadership. Thousand Oaks,

[30] Perry ML, Pearce CL, Sims HP Jr. Empowered selling teams: How shared leadership can contribute to selling team outcomes. Journal of Personal Selling & Sales Management.

[31] Pearce CL, Manz CC, Sims HP Jr. The roles of vertical and shared leadership in the enactment of executive corruption: Implications for research and practice. The Leadership Quarterly.

2003;**22**(4):273-307

CA: Sage; 2004

1999;**19**(3):35-51

2008;**19**(3):353-359

2009;**20**(6):897-919

2006;**51**(4):590-621

2004;**45**(4):47-55

2011;**53**(4):5-22

[32] Hannah ST, Uhl-Bien M,

Avolio BJ, Cavarretta FL. A framework for examining leadership in extreme contexts. Leadership Quarterly.

[33] Klein KJ, Ziegert JC, Knight AP, Yan X. Dynamic delegation: Shared, hierarchical, and deindividualized leadership in extreme action teams. Administrative Science Quarterly.

[34] Rosing K, Frese M, Bausch A. Explaining the heterogeneity of the leadership-innovation relationship: Ambidextrous leadership. Leadership

Quarterly. 2011;**22**(5):956-974

[35] Birkinshaw J, Gibson C. Building ambidexterity into an organization. MIT Sloan Management Review.

[36] O'Reilly CA III, Tushman ML. Organizational ambidexterity in action: How managers explore and exploit. California Management Review.

[18] Moreira Dias J. Smart working-81 dialogues between Portugal and Italy. Labour & Law Issues. 2017;**3**(2):41-60

Developments in Goal Setting and Task Performance. New York: Routledge;

[20] Gannon D, Boguszak A. Douglas McGregor's theory X and theory Y. CRIS-Bulletin of the Centre for Research and Interdisciplinary Study.

[21] Valenduc G, Vendramin P. Work in the Digital Economy: Sorting the Old from the New. Brussels: European Trade

[22] Davenport TH, Stoddard DB. Reengineering: Business change of mythic proportions? MIS Quarterly.

[23] Dumas M, La Rosa M, Mendling J, Reijers, HA. Fundamentals of Business Process Management. Berlin: Springer-

[24] Hansen MB, Nørup I. Leading the implementation of ICT innovations. Public Administration Review.

[25] Hackman JR, Oldham GR. Motivation through the design of work: Test of a theory. Organizational Behavior and Human Performance.

[26] Osservatori Digital Innovation. 2019. Available from: http://www.

[27] Torre T, Sarti D. Into smart work practices: Which challenges for the HR department? In: Working in Digital and Smart Organizations: Legal, Economic and Organizational Perspectives on the Digitalization of Labour Relations. Switzerland: Palgrave Macmillan; 2018.

[19] Locke EA, Latham G. New

2013

2013;**7**(2):85-93

Union Institute; 2016

1994;**18**(2):121-127

Verlag; Vol. 1. 2013

2017;**77**(6):851-860

1976;**16**(2):250-279

osservatori.net

**34**

pp. 249-275

[38] O'Reilly CA III, Tushman ML. Organizational ambidexterity: Past, present, and future. The Academy of Management Perspectives. 2013;**27**(4):324-338

[39] Gibson CB, Birkinshaw J. The antecedents, consequences, and mediating role of organizational ambidexterity. Academy of Management Journal. 2004;**47**(2):209-226

[40] Lubatkin MH, Simsek YL, Veiga JF. Ambidexterity and performance in small- to medium-sized firms: The pivotal role of TMT behavioral integration. Journal of Management. 2006;**32**(5):1-27

[41] March JG. Exploration and exploitation in organizational learning. Organization Science. 1991;**2**(1):71-87

[42] Benner MJ, Tushman ML. Reflections on the 2013 decade award "exploitation, exploration, and process management: The productivity dilemma revisited" ten years later. Academy of Management Review. 2015;**40**(4):497-514

[43] Raisch S, Birkinshaw J. Organizational ambidexterity: Antecedents, outcomes, and moderators. Journal of Management. 2008;**34**(3):375-409

[44] Denison DR, Hooijberg R, Quinn RE. Paradox and performance: Toward a theory of behavioral complexity in managerial leadership. Organization Science. 1995;**6**(5):524-540

[45] Euwema MC, Wendt H, van Emmerik H. Leadership styles and group organizational citizenship behavior across cultures. Journal of Organizational Behavior. 2007;**28**(8):1035-1057

[46] Burke CS, Stagl KC, Klein C, Goodwin GF, Salas E, Halpin SM. What type of leadership behaviors are functional in teams? A metaanalysis. Leadership Quarterly. 2006;**17**(3):288-307

[47] DeRue DS, Barnes CM, Morgeson FP. Understanding the motivational contingencies of team leadership. Small Group Research. 2010;**41**(5):621-651

[48] Chen G, Sharma PN, Edinger SK, Shapiro DL, Farh J-L. Motivating and demotivating forces in teams: Cross-level influences of empowering leadership and relationship conflict. Journal of Applied Psychology. 2011;**96**(3):541

[49] Kossek EE, Ollier-Malaterre A, Lee MD, Pichler S, Hall DT. Line managers' rationales for professionals' reduced-load work in embracing and ambivalent organizations. Human Resource Management. 2016;**55**(1):143-171

[50] Kahai SS, Sosik JJ, Avolio BJ. Effects of participative and directive leadership in electronic groups. Group & Organization Management. 2004;**29**(1):67-105

[51] Carte T, Chidambaram L, Becker A. Emergent leadership in self-managed virtual teams. Group Decision & Negotiation. 2006;**15**(4):323-343

[52] Kahai SS, Sosik JJ, Avolio BJ. Effects of leadership style and problem structure on work group process and outcomes in an electronic meeting system environment. Personnel Psychology. 1997;**50**(1):121-146

Chapter 3

Abstract

1. Introduction

37

Modern Era

Competitive Advantage

Leadership in the Ultra

Tjiptogoro Dinarjo Soehari and Iffah Budiningsih

Keywords: human capital, managerial, entrepreneurial, leadership

It goes without saying that our environment is constantly changing. In today's twenty-first century, the changes are unpredictable resulting in a situation where adaptive institutions (those who perceive changes as a necessity) are the ones to survive and compete. One of the examples is the case of Nokia that the fall of Nokia is caused by the failure of its leader to accept changes in the market preference towards Android phones. The twenty-first century is regarded as a global leadership century where a notion of limitless border among nations, countries, and people should be comprehended. This provides the opportunities for everyone to become a leader and to work across the varied skills and cultures. The era of the rapid, yet disruptive world demands a new leadership style with managerial abilities that proactively manages the changes and takes the advantage over the opportunities. This type is the combination of managerial and entrepreneurial leadership.

The environment in the ultra modern era is changing rapidly and the business competition is very sharp, so there is a need for a new leadership style. Company leaders' need have good managerial and entrepreneurial skills, namely proactively managing change to benefit from opportunities arised. The leader is to have the best quality of leadership to lead and continue to adapt to the dynamics of environmental and market developments. They are supported by prime human capital to take advantage of their organizations. An ultra modern era leadership style with managerial abilities that proactively manages the changes and takes advantage of opportunities is mean managerial leadership. Entrepreneurial leadership is a person who has the quality to lead and constantly adapt to the changing environment and market to take advantage of his organization, and the concept of entrepreneurial leadership synergizes with managerial leadership that has been applied and developed in various business institutions and nonprofit organizations. Key factors in implementing human capital are people and skills, creating value for the organization—people as assets, remuneration, training, development and empowerment, and career development to promote the success of the performance of an organization or company.

[53] Hmieleski KM, Ensley MD. A contextual examination of new venture performance: Entrepreneur leadership behavior, top management team heterogeneity, and environmental dynamism. Journal of Organizational Behavior. 2007;**28**(7):865-889

[54] Senior B, Fleming J. Organizational Change. UK: Pearson Education; 2006

[55] Avolio BJ, Sosik JJ, Kahai SS, Baker B. E-leadership: Re-examining transformations in leadership source and transmission. The Leadership Quarterly. 2014;**25**(1):105-131

[56] Yukl G. Leadership in Organizations. Upper Saddle River, NJ: Prentice-Hall; 2010

[57] McEwan AM. Smart Working: Creating the Next Wave. London: Routledge; 2016

[58] Ensley MD, Hmieleski KM, Pearce CL. The importance of vertical and shared leadership within new venture top management teams: Implications for the performance of startups. Leadership Quarterly. 2006;**17**(3):217-231

[59] Burnes B. Complexity theories and organizational change. International Journal of Management Reviews. 2005;**7**(2):73-90

#### Chapter 3

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

[53] Hmieleski KM, Ensley MD. A contextual examination of new venture performance: Entrepreneur leadership behavior, top management team heterogeneity, and environmental dynamism. Journal of Organizational

Behavior. 2007;**28**(7):865-889

[55] Avolio BJ, Sosik JJ, Kahai SS, Baker B. E-leadership: Re-examining transformations in leadership source and transmission. The Leadership Quarterly. 2014;**25**(1):105-131

[56] Yukl G. Leadership in

Prentice-Hall; 2010

Routledge; 2016

2006;**17**(3):217-231

2005;**7**(2):73-90

[54] Senior B, Fleming J. Organizational Change. UK: Pearson Education; 2006

Organizations. Upper Saddle River, NJ:

[57] McEwan AM. Smart Working: Creating the Next Wave. London:

[58] Ensley MD, Hmieleski KM, Pearce CL. The importance of vertical and shared leadership within new venture top management teams: Implications for the performance of startups. Leadership Quarterly.

[59] Burnes B. Complexity theories and organizational change. International Journal of Management Reviews.

**36**

## Competitive Advantage Leadership in the Ultra Modern Era

Tjiptogoro Dinarjo Soehari and Iffah Budiningsih

#### Abstract

The environment in the ultra modern era is changing rapidly and the business competition is very sharp, so there is a need for a new leadership style. Company leaders' need have good managerial and entrepreneurial skills, namely proactively managing change to benefit from opportunities arised. The leader is to have the best quality of leadership to lead and continue to adapt to the dynamics of environmental and market developments. They are supported by prime human capital to take advantage of their organizations. An ultra modern era leadership style with managerial abilities that proactively manages the changes and takes advantage of opportunities is mean managerial leadership. Entrepreneurial leadership is a person who has the quality to lead and constantly adapt to the changing environment and market to take advantage of his organization, and the concept of entrepreneurial leadership synergizes with managerial leadership that has been applied and developed in various business institutions and nonprofit organizations. Key factors in implementing human capital are people and skills, creating value for the organization—people as assets, remuneration, training, development and empowerment, and career development to promote the success of the performance of an organization or company.

Keywords: human capital, managerial, entrepreneurial, leadership

#### 1. Introduction

It goes without saying that our environment is constantly changing. In today's twenty-first century, the changes are unpredictable resulting in a situation where adaptive institutions (those who perceive changes as a necessity) are the ones to survive and compete. One of the examples is the case of Nokia that the fall of Nokia is caused by the failure of its leader to accept changes in the market preference towards Android phones. The twenty-first century is regarded as a global leadership century where a notion of limitless border among nations, countries, and people should be comprehended. This provides the opportunities for everyone to become a leader and to work across the varied skills and cultures. The era of the rapid, yet disruptive world demands a new leadership style with managerial abilities that proactively manages the changes and takes the advantage over the opportunities. This type is the combination of managerial and entrepreneurial leadership.

In [1], a new leadership approach, i.e., entrepreneurial, is necessary for today's dynamic and competitive environment (including market atmosphere). This is to enhance the performance of an institution as well as its capacity to adapt and to take the advantages over the opportunities to manage its sustainability. Entrepreneurial leadership is expected to be applicable in a hypercompetitive and disruptive environment. Entrepreneurial leadership refers to an individual possessing the quality to lead and continuously adapt with the ever-changing development of the environment and market in order to take the advantages for his or her organization. Recently, the concept of entrepreneurial leadership complements the idea of managerial leadership that has been implemented and developed in several business institutions and nonprofit organizations.

• the factor of compensation is not significantly contributes on the employees

Another research in [5] conducted research on human capital in private company. It is aimed at exploring the extent to which the variable of training (X1) and competence (X2) contributes to the employee performance. The results of the

• the contribution of competence, compensation, and career towards the

performance of employees is 73.8%; on addition, 27.2% is influenced by other

• the factors of training and competence simultaneously significantly contribute

• the factor of competence (X2) contributes to the employee performance the

performance of the organization in today's global era. This can be done by:

leader, and organization staffs in the digital era;

ensure the conduct of quality workshop;

mentorship, and coaching;

and industry;

39

The result of the aforementioned studies can serve as reference in enhancing the

a. designing training programs in enhancing the performance of the leader and all member of the organization. The focuses of this program are as follows:

• designing workshops to meet the demand of the tasks and condition of the

• promoting an environment that supports the utilization of technology to

• ensuring a professional training transfer, this signifies that the mode of the training is not only in a traditional face-to-face mode. In the digital era, it is necessary to develop once experience and knowledge by exchanging ideas between organization leaders, the leaders with staff. This should be carried on a regular basis and continuously in the workplace. Furthermore, the format of the development program can take form in digital training,

• designing skill equivalency programs for the leaders and organization staffs through competency tests based on the needs of the standard of education

b. competency development programs can also be implemented to enhance the

• improve the empathy of an individual towards his or her career, which

• raise the initiative of leaders and organization staffs to maintain their performance and to carry out their duties without even being ordered;

• implementing technology for the assessment of employees; and

performance of the leaders and staffs. The programs are able to:

drives the person to perform to their maximum capacity;

performance.

research are:

factors;

to the employee performance; and

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

most in comparison to the variable of training.

The above phenomenon emphasizes the idea of the necessity for organizational management, where several of its employees have double position, i.e., as a manager and as an entrepreneur leader. With being said, organization leaders are urged to possess "prime" managerial and entrepreneurial abilities as a strategic element for the success of the organization. The aim of this book is to provide insight and the key concepts grounding from several studies on leadership. This book discusses programs and activities that are able to improve the managerial and entrepreneurial leadership, and maintain the quality of these two styles of leadership in sync and continuously.

#### 2. Human capital

Human capital, in an institution or a company, serves as the most strategic resource. In [2], human capital refers to the way of dominating and developing knowledge, skill, ability, capacity, and innovation in an organization. Furthermore, in [3], the key factors in the implementation of human capital comprise of people and skill, create value for the organization—people as assets, remuneration, training, development, and career progression to promote the success of the performance of the organization or company. In [4], the interrelation between human and performance is reflected by the career opportunities and satisfying rate. These two aspects are central to the series of particular model for optimum performance.

Research in [2] issues the roles of human capital strategic, i.e., competence, compensation, and career, towards the performance of employees. The purpose of this research is to explore the extent to which the three independent variables, i.e., competence (X1), compensation (X2), and career (X3), influence the dependent variable, i.e., employee performance (Y). The result of those research is found:


Competitive Advantage Leadership in the Ultra Modern Era DOI: http://dx.doi.org/10.5772/intechopen.90080

In [1], a new leadership approach, i.e., entrepreneurial, is necessary for today's dynamic and competitive environment (including market atmosphere). This is to enhance the performance of an institution as well as its capacity to adapt and to take the advantages over the opportunities to manage its sustainability. Entrepreneurial leadership is expected to be applicable in a hypercompetitive and disruptive environment. Entrepreneurial leadership refers to an individual possessing the quality to lead and continuously adapt with the ever-changing development of the environment and market in order to take the advantages for his or her organization. Recently, the concept of entrepreneurial leadership complements the idea of managerial leadership that has been implemented and developed in several business

The above phenomenon emphasizes the idea of the necessity for organizational management, where several of its employees have double position, i.e., as a manager and as an entrepreneur leader. With being said, organization leaders are urged to possess "prime" managerial and entrepreneurial abilities as a strategic element for the success of the organization. The aim of this book is to provide insight and the key concepts grounding from several studies on leadership. This book discusses programs and activities that are able to improve the managerial and entrepreneurial leadership, and maintain the quality of these two styles of leadership in sync and

Human capital, in an institution or a company, serves as the most strategic resource. In [2], human capital refers to the way of dominating and developing knowledge, skill, ability, capacity, and innovation in an organization. Furthermore, in [3], the key factors in the implementation of human capital comprise of people and skill, create value for the organization—people as assets, remuneration, training, development, and career progression to promote the success of the performance of the organization or company. In [4], the interrelation between human and performance is reflected by the career opportunities and satisfying rate. These two aspects are central to the series of particular model for optimum performance. Research in [2] issues the roles of human capital strategic, i.e., competence, compensation, and career, towards the performance of employees. The purpose of this research is to explore the extent to which the three independent variables, i.e., competence (X1), compensation (X2), and career (X3), influence the dependent variable, i.e., employee performance (Y). The result of those research is found:

• the contribution of competence, compensation, and career towards the performance of employees is 57.5%. In addition, the percentage of 42.5% is

• the factor of competence (X1), compensation (X2), and career (X3)

simultaneously significantly contribute to the employee performance (Y);

• the factor of competence (X1) significantly contributes to the employees' performance the most in comparison to the variable of compensation and

• it is revealed that the factor of career (X3) is the second variable that significantly contributes the most on the employee performance; and

institutions and nonprofit organizations.

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

influenced by other factors;

career;

38

continuously.

2. Human capital

• the factor of compensation is not significantly contributes on the employees performance.

Another research in [5] conducted research on human capital in private company. It is aimed at exploring the extent to which the variable of training (X1) and competence (X2) contributes to the employee performance. The results of the research are:


The result of the aforementioned studies can serve as reference in enhancing the performance of the organization in today's global era. This can be done by:

	- designing workshops to meet the demand of the tasks and condition of the leader, and organization staffs in the digital era;
	- promoting an environment that supports the utilization of technology to ensure the conduct of quality workshop;
	- ensuring a professional training transfer, this signifies that the mode of the training is not only in a traditional face-to-face mode. In the digital era, it is necessary to develop once experience and knowledge by exchanging ideas between organization leaders, the leaders with staff. This should be carried on a regular basis and continuously in the workplace. Furthermore, the format of the development program can take form in digital training, mentorship, and coaching;
	- designing skill equivalency programs for the leaders and organization staffs through competency tests based on the needs of the standard of education and industry;
	- implementing technology for the assessment of employees; and
	- improve the empathy of an individual towards his or her career, which drives the person to perform to their maximum capacity;
	- raise the initiative of leaders and organization staffs to maintain their performance and to carry out their duties without even being ordered;

• promote a sense of providing sincere service continuously for the users;

• improving the effectiveness of career development by facilitating the development of an individual's work performance and achievement in

• enhancing career development programs by integrated, transparent, and

The result of the research on the aspects of human capital above represents the efforts in developing the ability of human resources, i.e., employees of an institution. The efforts are, by nature, managerial attempts that are mandatory for a leader to manage to increase the competitiveness of the institution in a globalized era.

The character of leadership in the future is different from the quality of leader-

ship before. The most notable trait is the way the leaders uses their power to empower their subordinates; this term is well-known as empowering and enabling [6]. The importance of empowering and enabling concept reflects the changes from the idea of managing knowledge, and people were not integrated to managing people with knowledge to be integrated. In enforcing characteristic of leadership based on the above concept, and in [6], it mentions several abilities that should be

possessed by the leader of an organization in this competitive era, such as:

• abilities to determine and formulate built shared vision of the organization;

subordinates, e.g., integrating the potential of the subordinates in coordinating

• abilities to cope with conflicts in a fair and calm manner (acknowledge and test

dynamics and complexity outside the institutional system of the organization;

• abilities to determine coordination pattern between fellow leaders and

• possessing broad knowledge to determine a better policy based on the

• encourage a challenging atmosphere to the employees in promoting

• abilities to design a concept of a complex issues and conceptualize it into innovation and grounding for the learning in an organization (conceptualize,

Generally, the term leadership is defined as an individual with the capability to mobilize, synchronize, and lead a group and to express ideas in which other people accept it. A leader is central to promoting changes and is responsible for directing every works and dealing with obstacles to ensure the clarity of the vision of an institution. Another obligation of a leader is to conceptualize an organizational climate that promotes the independence of the employees and, at the same time, the employees aware of their responsibility. In [7], the leadership is closely related to the ability to motivate and influence subordinates, and a successful leader is the one who is able to direct and influence subordinates. Furthermore, a leader with this

innovation, creativity, and risk-taking attitude; and

objective career development of the employees and institution.

attaining career goals, and

DOI: http://dx.doi.org/10.5772/intechopen.90080

Competitive Advantage Leadership in the Ultra Modern Era

a multiple task-focused team;

inspire, learning, and action).

mental models);

41

3. Leadership

	- increasing remuneration to the leaders and organization employees for their position and contribution in attaining the goals of the organization;
	- increasing monthly allowance for the aforementioned staffs. The allowance is given based on the performance of the staffs;
	- providing incentives for all the organization staffs as an award for their maximum performance;
	- increasing indirect compensation by providing specific programs, i.e., health and life insurances for the employees; and
	- maximizing the benefits of the pension fund as compensation from the organization to its retirement.
	- enhancing the effectiveness of human resources career planning in organization. This focuses on the identification of the career path for the advancement of the leaders and employees;
	- maximizing the effectiveness of individual career planning focusing on the responsibility of the individual for his or her career;

The result of the research on the aspects of human capital above represents the efforts in developing the ability of human resources, i.e., employees of an institution. The efforts are, by nature, managerial attempts that are mandatory for a leader to manage to increase the competitiveness of the institution in a globalized era.

#### 3. Leadership

• promote a sense of providing sincere service continuously for the users;

• improve the effectiveness of personal competencies, i.e., integrity and good behavior according to the codes of conducts or principles of morality;

• improve the abilities in implementing the principles of human resources

• improve the ability to express ideas to the employees and leaders in dealing with issues, such as the provision of legal assistance, health insurance, and

• improve one's initiative by providing spaces and opportunities for leader

c. compensation development programs in enhancing the performance of the

• increasing remuneration to the leaders and organization employees for their position and contribution in attaining the goals of the organization;

• increasing monthly allowance for the aforementioned staffs. The allowance

• providing incentives for all the organization staffs as an award for their

• increasing indirect compensation by providing specific programs, i.e.,

• maximizing the benefits of the pension fund as compensation from the

d. career development programs in enhancing the performance of the

• enhancing the effectiveness of human resources career planning in organization. This focuses on the identification of the career path for the

• maximizing the effectiveness of individual career planning focusing on the

• promote a situation that integrates the core value of honesty and

• improve the interpersonal understanding to cooperate with other

management to contribute to the success of the organization;

daily need services (cooperation of the employees);

and staffs to express their ideas in every event; and

is given based on the performance of the staffs;

health and life insurances for the employees; and

advancement of the leaders and employees;

responsibility of the individual for his or her career;

• improve the ability to manage interaction with customers and other organization in providing quality services to ensure the success of the

organizations on the basis mutual trust;

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

organization;

responsibility.

organization staffs are as follows:

maximum performance;

organization to its retirement.

organization staffs be able to:

40

The character of leadership in the future is different from the quality of leadership before. The most notable trait is the way the leaders uses their power to empower their subordinates; this term is well-known as empowering and enabling [6]. The importance of empowering and enabling concept reflects the changes from the idea of managing knowledge, and people were not integrated to managing people with knowledge to be integrated. In enforcing characteristic of leadership based on the above concept, and in [6], it mentions several abilities that should be possessed by the leader of an organization in this competitive era, such as:


Generally, the term leadership is defined as an individual with the capability to mobilize, synchronize, and lead a group and to express ideas in which other people accept it. A leader is central to promoting changes and is responsible for directing every works and dealing with obstacles to ensure the clarity of the vision of an institution. Another obligation of a leader is to conceptualize an organizational climate that promotes the independence of the employees and, at the same time, the employees aware of their responsibility. In [7], the leadership is closely related to the ability to motivate and influence subordinates, and a successful leader is the one who is able to direct and influence subordinates. Furthermore, a leader with this

quality is able to carry out his or her managerial roles based on the pre-determined goals. According to [8], a good leader possesses several characteristics as follows:

responsible not only for his or her superior and for the success of the organization, but also for the internal problem of the institution. This encompasses the responsibility for developing and guiding human resources through training and development. From the external factor, a leader is responsible for the social aspect of a society or public accountability. The basic leadership theory discusses two factors, i.e.

Research on two aforementioned factors is more suitable than the theory. However, the theory of leadership is also intriguing as it helps to define and to formulate some issues in several studies. Some literature on leadership reveals that the theories of leadership are influenced by research in [10] the background of famous people that implement inheritance-based leadership. Further studies point out that every member of a society has different intelligence, energy, and moral power. The

In the further development, some theorists develop a view of the emergence of great leaders as a product of time, space, and temporal situation. In [7], two devel-

a. the quality of a leader and leadership that is determined by a situation of a

b. the quality of an individual in coping with a momentary situation is a product

of successful leadership that previously addressed a similar issue.

Two theories, i.e., trait theory and situational theory explain leadership as an effect of a single authority and power. The interactive effect between individual and situational factors seems to receive little attention. With that being said, exploring

a. the characteristics of effective, intellectual, and individual behaviors; and

b. the specific condition of an individual in the implementation of leadership.

Another opinion [10] asserts that aspects which should be focused on in order to

b. conceiving that a leader should pay attention to his or her subordinates as

d. institutional correlation which should involve leader and subordinates.

The above opinions can be categorized as a personal-situational theory of leadership. This is because the view discusses not only the present situation but also the interaction among individuals or between leaders and their groups. A theory of leadership that is developed according to the above three theories is interactionexpectation theory. This theory develops the role of leadership by referring to three

a. characteristics and motives of a leader as an ordinary person;

c. a leader should play his or her leadership roles; and

a. factors involving in the conceptualization of a leader and

b. characteristics base of leadership.

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

individual is also lead by a superior person.

the concept of leadership should encompass:

understand the concept of leadership are:

they follow the leader;

43

oped hypotheses of leadership are:

group; and


The tendency of future leadership heads towards teaching organization in which it functions to anticipate changes and diverse knowledge, skill, and ability of human capital and to enhance the performance of an institution. The success of an institution in the competitive, globalized era is determined by the momentum of the institution to change or adapt with its business or industrial environment. The above discussion shows that the competence of leadership is central to the efforts of the organization in achieving competitiveness and gaining an advantage in this globalized era. A leader is urged to be responsible for directing every attempt in coping with issues and ensuring the clarity of the vision. Another obligation of a leader is to conceptualize an organizational climate that promotes the independence of the employees and, at the same time, the employees aware of their responsibility.

One of the most notable achievements of modern sociology of leadership is the development of role theory. Every member of society, according to this theory, has a certain position and plays a certain role. This indicates that leadership is viewed as an aspect of role of differentiation. Furthermore, this signifies that leadership is defined as an interaction between an individual with his or her members of the group. Ideologically, a leader or a manager has some characteristics, i.e., strong, persistent, and having broad knowledge, that outweigh other people [9]. Although leaders are few in numbers, their contribution is central to the success of attaining the goal of their organization. The vision of a leader is determined from the direction of the organization. Even though a leader is not the only contributing factors to the success of an organization, its absence results in the organization being static and has no clear target.

In the history of human civilization, the sustainability of an organization is a dynamic movement that is determined by a small group of people as who manage the organization. It can be said that the advancement of people comes from a few numbers of people with a specialty that eager to be a pioneer, creator, and expert in an organization. This group of people is leaders, and this fact signifies that leadership is a key to good management. In carrying out leadership duties, a leader is

#### Competitive Advantage Leadership in the Ultra Modern Era DOI: http://dx.doi.org/10.5772/intechopen.90080

responsible not only for his or her superior and for the success of the organization, but also for the internal problem of the institution. This encompasses the responsibility for developing and guiding human resources through training and development. From the external factor, a leader is responsible for the social aspect of a society or public accountability. The basic leadership theory discusses two factors, i.e.


quality is able to carry out his or her managerial roles based on the pre-determined goals. According to [8], a good leader possesses several characteristics as follows:

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

a. balanced responsibility: the term balance in this topic refers to the balance between the responsibility of a person for works and subordinates;

b. positive role model: role model encompasses the responsibility, behavior, and achievement that people expect to be possessed by a person with a certain position. In other words, a leader must be a good role model for his or her

c. good communication skill: a good leader should be able to express is or her ideas concisely and clearly. The way the leader communicates must be done

subordinates. This is considered as an art of using the authorities of the leader to direct and change the perspective of the subordinates towards a particular

The tendency of future leadership heads towards teaching organization in which it functions to anticipate changes and diverse knowledge, skill, and ability of human capital and to enhance the performance of an institution. The success of an institution in the competitive, globalized era is determined by the momentum of the institution to change or adapt with its business or industrial environment. The above discussion shows that the competence of leadership is central to the efforts of the organization in achieving competitiveness and gaining an advantage in this globalized era. A leader is urged to be responsible for directing every attempt in coping with issues and ensuring the clarity of the vision. Another obligation of a leader is to conceptualize an organizational climate that promotes the independence of the employees and, at the same time, the employees aware of their responsibility. One of the most notable achievements of modern sociology of leadership is the development of role theory. Every member of society, according to this theory, has a certain position and plays a certain role. This indicates that leadership is viewed as an aspect of role of differentiation. Furthermore, this signifies that leadership is defined as an interaction between an individual with his or her members of the group. Ideologically, a leader or a manager has some characteristics, i.e., strong, persistent, and having broad knowledge, that outweigh other people [9]. Although leaders are few in numbers, their contribution is central to the success of attaining the goal of their organization. The vision of a leader is determined from the direction of the organization. Even though a leader is not the only contributing factors to the success of an organization, its absence results in the organization being static

In the history of human civilization, the sustainability of an organization is a dynamic movement that is determined by a small group of people as who manage the organization. It can be said that the advancement of people comes from a few numbers of people with a specialty that eager to be a pioneer, creator, and expert in an organization. This group of people is leaders, and this fact signifies that leadership is a key to good management. In carrying out leadership duties, a leader is

d. positive influencer: a good leader positively influences his or her

e. convincing: a successful leader is able to take advantage of his or her communication skill to convince the others and direct them to fulfill their

subordinates;

in an appropriate manner;

point of view; and

responsibilities.

and has no clear target.

42

Research on two aforementioned factors is more suitable than the theory. However, the theory of leadership is also intriguing as it helps to define and to formulate some issues in several studies. Some literature on leadership reveals that the theories of leadership are influenced by research in [10] the background of famous people that implement inheritance-based leadership. Further studies point out that every member of a society has different intelligence, energy, and moral power. The individual is also lead by a superior person.

In the further development, some theorists develop a view of the emergence of great leaders as a product of time, space, and temporal situation. In [7], two developed hypotheses of leadership are:


Two theories, i.e., trait theory and situational theory explain leadership as an effect of a single authority and power. The interactive effect between individual and situational factors seems to receive little attention. With that being said, exploring the concept of leadership should encompass:


Another opinion [10] asserts that aspects which should be focused on in order to understand the concept of leadership are:


The above opinions can be categorized as a personal-situational theory of leadership. This is because the view discusses not only the present situation but also the interaction among individuals or between leaders and their groups. A theory of leadership that is developed according to the above three theories is interactionexpectation theory. This theory develops the role of leadership by referring to three

basic variables, i.e., attitude, interaction, and sentiment. It is assumed that an increase in the frequency of interaction and participation is closely related with the increase in sentiment or feeling of happiness and the clarity of norm of groups. The higher the position of an individual, the more appropriate the activities with the norm of groups. In addition, the interaction is more distributed, and more groups of members are convinced to interact.

4. Managerial leadership

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

related to managerial activities.

following ways:

organization;

instruction, and contract);

• in the site observations.

45

• planned and/or unplanned meetings; and

attention.

Managerial leadership is an important role demanded of managers due to their managerial works (technical works). In [12], typical activity patterns of managerial works are the people as the responsible managerial party working in a long period and often bringing the project at home. Their mind continually finds and analyzes new information. This is an automatic process, and they are always reminded to finish it under any circumstances. They keep receiving requests of information, assistance, briefing, and authority from the subordinates, co-workers, leaders, and other people excluded in the organization. This managerial activity is different from general perceptions that consider a manager is only making plans, arranging activities, and then waiting for an exception of normal operations that need much

Manager activities are varied, yet it is often interrupted because of the high activity frequency and intensity so that talks are unfinished, and significant activities are interspersed with unimportant ones, requiring a quick change of feeling. A considerable number of managers are very reactive instead of being proactive. Most of their time is spent by carefully analyzing the problems of the organization/ business as well as developing plans to deal with it. The remaining time is used to read letters or documents, handle administrative works, read reports from subordinates, write reports/memos, read journals or technical publications, and news

In [12], it claims that general manager network frequently reaches hundreds of

people, either the internal or the external parties of the organization. Network interaction is necessary for information needs inside or outside the organization, which later affect the manager performance and career. The ability to develop network and cooperation is essential to support changes and innovations that can be successfully carried out. Developing network in organizations is performed with the

• having a talk with the people in formal or informal occasions in them

• joining a group of community leaders, advisory board, and social club; and

• being active in conducting and attending several conferences, workshops, seminars, trade and industry exhibitions, profession association forum,

The managers should constantly build networks. They constantly interact and

• written sources (disposition, memo, recording, letter, report, written order/

In performing interaction and communication, the main choice of the managers is by using "oral communication"; via telephone and face-to-face meeting to obtain

• serving a particular committee, stakeholder, and task force;

education forum, science and technology, and others.

communicate to gain information from different sources, such as:

A study in [11] reports that to support corruption eradication in an organization, a managerial leader should possess several qualities such as smart, sociable, confident, honest, trustworthy and responsible, encouraging members to perform and obtain optimal satisfaction, expressing thoughts concisely, passionate, valuing morality, focusing on internal supervision, anticipatory followed by good corporate governance, and not developing centralized leadership. A managerial, centralistic leader is a person who prioritizes forcing which impacts on legal aspects, such as:


The above research results serve as a guideline institutions or organization in improving its competitiveness. This is also to help the implementation of corruption prevention/eradication, i.e., prioritizing the organizational culture and the implementation of strict "organizational ethics" in an organization. A managerial organization leader is obliged to implement clean and good corporate governance in relation to the implementation of organizational culture and ethics. The following are some organization ethics that should be improved:


#### 4. Managerial leadership

basic variables, i.e., attitude, interaction, and sentiment. It is assumed that an increase in the frequency of interaction and participation is closely related with the increase in sentiment or feeling of happiness and the clarity of norm of groups. The higher the position of an individual, the more appropriate the activities with the norm of groups. In addition, the interaction is more distributed, and more groups of

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

A study in [11] reports that to support corruption eradication in an organization, a managerial leader should possess several qualities such as smart, sociable, confident, honest, trustworthy and responsible, encouraging members to perform and obtain optimal satisfaction, expressing thoughts concisely, passionate, valuing morality, focusing on internal supervision, anticipatory followed by good corporate governance, and not developing centralized leadership. A managerial, centralistic leader is a person who prioritizes forcing which impacts on legal aspects, such as:

a. vague rules and conditions where it cause ambiguous results for every

c. over-early investigation, fact-discovery, and conclusion-making which are

The above research results serve as a guideline institutions or organization in improving its competitiveness. This is also to help the implementation of corruption prevention/eradication, i.e., prioritizing the organizational culture and the implementation of strict "organizational ethics" in an organization. A managerial organization leader is obliged to implement clean and good corporate governance in relation to the implementation of organizational culture and ethics. The following

d. vague law procedures, subjective perspective on a case, and lack of

a. every human resource in an organization must follow his or her job

b. employees in all work units of an organization should implement their jobs based on a certain analysis. The employees are also demanded to pay attention

c. employees in all work units of an organization should ensure transparent and responsible processes and the management and provision of facilities;

d. all leaders in every work unit should consider the impact or the outcome of the improvement of organization performance in every decision-making process; and

e. all leaders in every work unit are encouraged to implement empowering and enabling approach in organizing the operational works. The examples of these approaches are mentoring, coaching, team learning (learning with others), or

team working. These are carried out together with fellow leaders or

employees or between the leaders and the employees.

violation committed by all members of organization;

b. inconsistent implementation of sanctions for violations;

susceptible to biased verdict and law implementation;

members are convinced to interact.

credibility; and

e. lack of law justice and equality.

to the details of the works;

44

are some organization ethics that should be improved:

description accurately and respond it immediately;

Managerial leadership is an important role demanded of managers due to their managerial works (technical works). In [12], typical activity patterns of managerial works are the people as the responsible managerial party working in a long period and often bringing the project at home. Their mind continually finds and analyzes new information. This is an automatic process, and they are always reminded to finish it under any circumstances. They keep receiving requests of information, assistance, briefing, and authority from the subordinates, co-workers, leaders, and other people excluded in the organization. This managerial activity is different from general perceptions that consider a manager is only making plans, arranging activities, and then waiting for an exception of normal operations that need much attention.

Manager activities are varied, yet it is often interrupted because of the high activity frequency and intensity so that talks are unfinished, and significant activities are interspersed with unimportant ones, requiring a quick change of feeling. A considerable number of managers are very reactive instead of being proactive. Most of their time is spent by carefully analyzing the problems of the organization/ business as well as developing plans to deal with it. The remaining time is used to read letters or documents, handle administrative works, read reports from subordinates, write reports/memos, read journals or technical publications, and news related to managerial activities.

In [12], it claims that general manager network frequently reaches hundreds of people, either the internal or the external parties of the organization. Network interaction is necessary for information needs inside or outside the organization, which later affect the manager performance and career. The ability to develop network and cooperation is essential to support changes and innovations that can be successfully carried out. Developing network in organizations is performed with the following ways:


The managers should constantly build networks. They constantly interact and communicate to gain information from different sources, such as:


In performing interaction and communication, the main choice of the managers is by using "oral communication"; via telephone and face-to-face meeting to obtain information exchanges and efforts to influence people. Managers prefer current information, which is from face-to-face contact with the ones who have information access, including those outside the managers' work sub-unit. Rumors are new information on the latest event and development; written reports, meanwhile, are summary-like information of the old event. New and detailed information helps a manager; information gained from facts, opinions, gossips, behaviors towards interests, and things related to him as a manager. Oral communication gives an effect, i.e., strengthened by intonation, movement, expression, and other nonverbal communication. Managers, in oral communication, also needs jokes and discusses job-unrelated topics, such as sports, arts, hobbies, and the like. Moreover, social activity and informal communication be able to facilitate them to develop and maintain the effectiveness of the strategic network relationship.

goals based on long-term plans; and supporting and developing operation

c. making decisions—decision forms: making a business decision with no doubt in an unstructured situation; provide deviation authority towards procedures of unusual cases or new conditions excluded in the rules/

d. monitoring indicators—monitoring forms: internal strengths/weaknesses; external opportunities/threats; performance indicators; company's finances and properties; market conditions; economic, social, cultural, and political

e. controlling—controlling forms: work plans; budget plans; completion schedules of production/work along with goods and services distribution; productivity; goods and services quality; and operations effectiveness;

f. responding issues: response forms towards issues: responding to complaints; communicating to advance relationship and cooperation; negotiating; promoting to build and maintain the image of universities and products; and

g. coordinating—coordination forms: coordinating and communicating with other work units of the internal organization in which managers do not have direct control; fulfilling the set work plans related to other work units of the internal or external organizations; overcoming problems to achieve goals and performances; fostering work relationship with strategic partners; and resolving conflicts among important individuals due to the misunderstanding

h. consulting—consultation forms: technological development in particular organization that influence universities activities and performances;

consultant; and giving solutions of another party's problems; and

arranging detailed (complete, accurate, secure, and easy-to-find

b. leaders' roles: the roles as a leader include: being responsible for the functions of sub-units that are integrated to be a system to carry out the duties to reach organization goals; present guidelines to the subordinates; motivating the subordinates to make an achievement; and creating a

administration, archive, and documentation).

conducive condition for the well-running duties;

i. administrating—administration forms: basic administrative activities; availability of information about the procedures and practices of work implementation; analyzing essential information for the organization; and

In general, there are 10 manager roles to be applied in institution/organization:

a. formal leaders' roles: managerial roles for a formal leader are by performing particular legal and social duties (signing letters, contracts/MOU, and official permits); leading the meeting and ceremonial events; and participating in

introducing new technology and techniques; acting as an expert; acting as a

circumstances; security defense; and technology;

developing and maintaining trust from all parties;

policies and procedures;

DOI: http://dx.doi.org/10.5772/intechopen.90080

Competitive Advantage Leadership in the Ultra Modern Era

in executing the work;

ceremonies and rituals;

47

procedures;

Managers, in decision-making, normally need supports and authorities from various parties, hierarchy levels, and organization sub-units. For this reason, they should consult with the subordinates, co-workers, and leaders regarding the vital decision to be taken. Every person can be the initiator of the decision-making that it does not only depend on people who make the last option among action alternatives. Some parties, managers, and functional specialists oftentimes disagree with the solution of the issues that will be decided due to different perspectives, assumptions, values, impacts, and consequences. In addition, decision-making is a complicated process that it takes months to years as a result of interruptions, issues deflected by the opponents, crisis, or it is returned to the initiators to be fixed based on critics and suggestions also note that strategic decisions which have impact on the organizations/institutions can be performed, depending on the influencing ability, the initiators persistence, and relative authority of the people who are responsible for the decision-making. Managerial decisions are not always on a large-scale, complex, having a big change, and going through a long political process that spends a lot of time; this rarely happens to managerial problems. Most managerial problems that should quickly be decided are related to: operations; work plans; giving authority by utilizing funds for office stationery and equipment purchases; wage increase for the employees; and work achievement allowance. This decision has its solution and low risk, and the decision-maker should consult with some people as well as should immediately make the decision due to the critical deadline; although this decision is not too important, it still needs the adequate technical capability, quick risk analysis, and action. A delay in decision-making, which is considered less significant as they want to get more information, will provide a negative impact on the operations of the organizations and their managers.

The most strategic decisions are made outside the process of formal planning and are formulated in a gradual, flexible, and intuitive manner. Besides, executive leaders set a strategy to reach general work goals and plans so that it is still possible to accept suggestions. The strategy is then perfected and becomes an agreement in the organization to be socialized and implemented in accordance with the situation and condition of each work unit. In [13], it mentions nine duties to be in a managerial position, as follows:


information exchanges and efforts to influence people. Managers prefer current information, which is from face-to-face contact with the ones who have information access, including those outside the managers' work sub-unit. Rumors are new information on the latest event and development; written reports, meanwhile, are summary-like information of the old event. New and detailed information helps a manager; information gained from facts, opinions, gossips, behaviors towards interests, and things related to him as a manager. Oral communication gives an effect, i.e., strengthened by intonation, movement, expression, and other nonverbal communication. Managers, in oral communication, also needs jokes and discusses job-unrelated topics, such as sports, arts, hobbies, and the like. Moreover, social activity and informal communication be able to facilitate them to develop and

Managers, in decision-making, normally need supports and authorities from various parties, hierarchy levels, and organization sub-units. For this reason, they should consult with the subordinates, co-workers, and leaders regarding the vital decision to be taken. Every person can be the initiator of the decision-making that it does not only depend on people who make the last option among action alternatives. Some parties, managers, and functional specialists oftentimes disagree with the solution of the issues that will be decided due to different perspectives,

assumptions, values, impacts, and consequences. In addition, decision-making is a complicated process that it takes months to years as a result of interruptions, issues deflected by the opponents, crisis, or it is returned to the initiators to be fixed based on critics and suggestions also note that strategic decisions which have impact on the organizations/institutions can be performed, depending on the influencing ability, the initiators persistence, and relative authority of the people who are responsible for the decision-making. Managerial decisions are not always on a large-scale, complex, having a big change, and going through a long political process that spends a lot of time; this rarely happens to managerial problems. Most managerial problems that should quickly be decided are related to: operations; work plans; giving authority by utilizing funds for office stationery and equipment purchases; wage increase for the employees; and work achievement allowance. This decision has its solution and low risk, and the decision-maker should consult with some people as well as should immediately make the decision due to the critical deadline; although this decision is not too important, it still needs the adequate technical capability, quick risk analysis, and action. A delay in decision-making, which is considered less significant as they want to get more information, will provide a negative impact on the operations of the organizations and their

The most strategic decisions are made outside the process of formal planning and are formulated in a gradual, flexible, and intuitive manner. Besides, executive leaders set a strategy to reach general work goals and plans so that it is still possible to accept suggestions. The strategy is then perfected and becomes an agreement in the organization to be socialized and implemented in accordance with the situation and condition of each work unit. In [13], it mentions nine duties to be in a manage-

performances, analyze strengths and weaknesses, give training, develop

a. supervising: working together with the subordinates to improve

b. planning and organizing: formulating short-term plan; project implementation, budget plan; evaluating organizational structures; determining resources allocation and use; arranging short-term operation

skills, plan works, and establish work achievements;

maintain the effectiveness of the strategic network relationship.

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

managers.

46

rial position, as follows:

goals based on long-term plans; and supporting and developing operation policies and procedures;


In general, there are 10 manager roles to be applied in institution/organization:


c. connector: the roles of a connector are establishing and maintaining network relationship with individuals or groups outside the managers work unit, either in the internal or external organization; the nature of the connector's roles (composing a new contract/MOU; giving assistance as a basic aspect to help each other if needed);

businessman, CEOs of business and industry. Around the year of 2000, the concept of entrepreneurial leaders emerges because of the increase of business dynamics which then comes up as an identification of entrepreneurial personalities and characteristics, followed by entrepreneurial education; then, contemporary works on entrepreneurial motivation arise. A new leadership type is required, i.e., business leadership to encounter the increased competitiveness and uncertainty in this dynamic market [1]. Such a type of leadership is "entrepreneurial leaders." Does

In [14], it defines entrepreneurial leadership as an ability to take risks, have innovations, focus on duties, bear personal responsibilities, and have economic orientations; this presents the initial definition of entrepreneurial leadership. He argues that leadership quality is more than just being an administrator or manager. As such, this implies that leaders regulate the company with energy, confidence, persistence, and learning ability. In era before digital, the interesting question about entrepreneurial leadership as a new paradigm. People in this era of intense competition correlate entrepreneurs with leadership functions, i.e., should provide visions to develop products, services, and new organizations. A leader should also be entrepreneurial; they also opine that entrepreneurial leadership is associated with concept and idea, and it is frequently related to nonorganizational issues. Conversely, entrepreneurial leadership tends to have characteristics, e.g., tending to be individual-behaved, visionary, problem-solver, decision-maker, risk-taker, and

In [15], the concept of entrepreneurial leadership is clarified and the empirical measure of significant factors to build up entrepreneurial leadership is developed. Here are the definitions of entrepreneurial leadership that have several characteristics: creating visionary scenarios; motivating and playing the cast of characters for discovery; and exploitation of strategic values creation in an organizational environment. Entrepreneurial leaders can learn and develop knowledge, and in [16], it is believed that "the ability to develop, share, and improve knowledge will replace asset ownership and control as the main source of competitive excellence." Entrepreneurial leaders can increase their knowledge and promptly share it with their organizations. Fast learning and its sharing enable the entrepreneurial leaders and their organizations to get better quality than other organizations. In [1], the entrepreneurial leaders should always cope with a sudden change as well as understand that the dynamic market condition requires them to move beyond the increase that provides the value added (incremental). In the dynamic market, entrepreneurial changes need a realtime knowledge generation and strategic experiments, facilitating all organizations to identify opportunities and create a momentum to manage those opportunities. Entrepreneurial leaders understand the implication of resources and competences. A strategic implementation in a competition demands the entrepreneurial leaders to develop a unique combination between resources and competencies/abilities, which are defined as the main competence that creates competitive excellence in the market. In [16], it is also noted that leader's ability to develop and exploit their "main competence" will give significant results for the success level of the company.

According to [17], entrepreneurial leadership competencies are defined a special

leadership ability required to successfully leading competitive and challenging activities, vital things that show up in the success of entrepreneurial activities, either in a new business or organization. Nevertheless, in [18], there is not a sufficient information about the process of entrepreneurial learning and where people learn these entrepreneurial leadership competencies. Moreover, as explained in [19], it might hope that the process of entrepreneurial learning is improved by the availability of a role model (example), private network expansion and

strengthening, and temporary internship.

49

entrepreneurial leadership exist?

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

strategic initiative-taker.


#### 5. Entrepreneurial leadership

The dynamics of businesses/industries lately have an impact on the strategic behaviors of organization leaders, including university leaders. Uncertainty and rapidity of changes in science and technology affect the behavior changes of

c. connector: the roles of a connector are establishing and maintaining network relationship with individuals or groups outside the managers work unit, either in the internal or external organization; the nature of the connector's roles (composing a new contract/MOU; giving assistance as a basic aspect to

d. observer: the roles as an observer constantly find information, such as reading reports and memos; attending a meeting and briefing; doing an observation; disseminating vertical and horizontal information; analyzing information to get business opportunities and threats; and conducting an

information internalization that is considered significant;

e. disseminator: the roles as a disseminator included: developing and

f. spokesperson: the roles as a spokesperson are formulating important

g. entrepreneur: the roles as an entrepreneur are as follows: initiating and

and delegating to the subordinates as in line with their ability;

integrating strategic achievements of the resource; and

designing changes; utilizing opportunities for the importance of business that supports organization; developing new products; developing new equipment; re-organizing formal structures; supervising the changes and improvements;

h. person who addresses problems: handling unexpected and sudden crisis, for instance: conflicts among the subordinates; losing a good and potential subordinate; fire/accidents; natural disasters; riots; strikes; and subordinate

i. Allocator of resources: the roles as a resource allocator are allocating money, personnel, materials, equipment, facilities, and services; and controlling developing controlling strategies, coordinating resources activities, and

j. negotiator: the roles as a negotiator are as follows: making a commitment; involving in several negotiations (contract between organization's employees and management); subordinates demand; contract with customers and suppliers; giving special/important works to a good and potential staff; and

The dynamics of businesses/industries lately have an impact on the strategic behaviors of organization leaders, including university leaders. Uncertainty and rapidity of changes in science and technology affect the behavior changes of

maintaining special access towards information sources inside or outside the organization; and forwarding vertical or horizontal information that is

information to be delivered; delivering a statement about information values to parties outside the work unit of the internal and external organizations; following the procedures (middle-level and lower-level managers should report to their leaders; chief executives should report to their leaders or the owners); lobbying when dealing with the leaders and outside parties; and mastering actual knowledge regarding organization and its environment;

help each other if needed);

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

considered necessary;

apathy (hopeless);

other ad hoc negotiations.

5. Entrepreneurial leadership

48

businessman, CEOs of business and industry. Around the year of 2000, the concept of entrepreneurial leaders emerges because of the increase of business dynamics which then comes up as an identification of entrepreneurial personalities and characteristics, followed by entrepreneurial education; then, contemporary works on entrepreneurial motivation arise. A new leadership type is required, i.e., business leadership to encounter the increased competitiveness and uncertainty in this dynamic market [1]. Such a type of leadership is "entrepreneurial leaders." Does entrepreneurial leadership exist?

In [14], it defines entrepreneurial leadership as an ability to take risks, have innovations, focus on duties, bear personal responsibilities, and have economic orientations; this presents the initial definition of entrepreneurial leadership. He argues that leadership quality is more than just being an administrator or manager. As such, this implies that leaders regulate the company with energy, confidence, persistence, and learning ability. In era before digital, the interesting question about entrepreneurial leadership as a new paradigm. People in this era of intense competition correlate entrepreneurs with leadership functions, i.e., should provide visions to develop products, services, and new organizations. A leader should also be entrepreneurial; they also opine that entrepreneurial leadership is associated with concept and idea, and it is frequently related to nonorganizational issues. Conversely, entrepreneurial leadership tends to have characteristics, e.g., tending to be individual-behaved, visionary, problem-solver, decision-maker, risk-taker, and strategic initiative-taker.

In [15], the concept of entrepreneurial leadership is clarified and the empirical measure of significant factors to build up entrepreneurial leadership is developed. Here are the definitions of entrepreneurial leadership that have several characteristics: creating visionary scenarios; motivating and playing the cast of characters for discovery; and exploitation of strategic values creation in an organizational environment. Entrepreneurial leaders can learn and develop knowledge, and in [16], it is believed that "the ability to develop, share, and improve knowledge will replace asset ownership and control as the main source of competitive excellence." Entrepreneurial leaders can increase their knowledge and promptly share it with their organizations. Fast learning and its sharing enable the entrepreneurial leaders and their organizations to get better quality than other organizations. In [1], the entrepreneurial leaders should always cope with a sudden change as well as understand that the dynamic market condition requires them to move beyond the increase that provides the value added (incremental). In the dynamic market, entrepreneurial changes need a realtime knowledge generation and strategic experiments, facilitating all organizations to identify opportunities and create a momentum to manage those opportunities. Entrepreneurial leaders understand the implication of resources and competences. A strategic implementation in a competition demands the entrepreneurial leaders to develop a unique combination between resources and competencies/abilities, which are defined as the main competence that creates competitive excellence in the market. In [16], it is also noted that leader's ability to develop and exploit their "main competence" will give significant results for the success level of the company.

According to [17], entrepreneurial leadership competencies are defined a special leadership ability required to successfully leading competitive and challenging activities, vital things that show up in the success of entrepreneurial activities, either in a new business or organization. Nevertheless, in [18], there is not a sufficient information about the process of entrepreneurial learning and where people learn these entrepreneurial leadership competencies. Moreover, as explained in [19], it might hope that the process of entrepreneurial learning is improved by the availability of a role model (example), private network expansion and strengthening, and temporary internship.

On that ground, a clear description of "entrepreneurial leaders" refers to people who have an appropriate "entrepreneurial" approach and ability to keep oneself taking part in the development of a rapidly changing situation or market as well as to exploit opportunities to get benefits for the organization faster than others. The presentation of this concept introduction causes some organizations to try to develop concepts in the business area. In [20], it specifically indicates entrepreneurial leadership as an entrepreneurship research field that is ignored, and in [21], it identifies a missing link in traditional entrepreneurship education, which makes it not conducive to leadership learning. In learning contemporary entrepreneurship, the recurring concept is that "entrepreneurship is interdisciplinary." The world is now experiencing an entrepreneurial revolution, which is more intense than an industrial revolution in the twentieth century.

unit requires leadership in entrepreneurship. This condition often emerges issues in strict competition along with rapid communication and information technology

In [27], it is argued that entrepreneurial leadership is one's ability in the process of collective briefing that has an effect on mutual willingness to always invent or create new ideas by giving motivation to be oriented towards the future to look for opportunities, developing changes, directing to be results/achievements-oriented, taking risks, and being persistent. This indicates that entrepreneurial leadership and creativity are variables that cannot be ignored as the dominant factors to predict the level of innovative behavior of product producers in a company. By referring in [28], the innovative behavior of product/service producers has become a fundamental aspect to realize an optimal performance achievement in business activities. This is because such behavior plays a crucial role in improving their product competitiveness as well as encouraging them to do more different things, even within limitations. Hence, the innovative behavior of product producers will try to use their limitations by optimizing new ideas to create new, different, more useful, and more valuable products/services. The results of those study provide further implications that human resources (employees) who are innovative and responsive to the advancement of science and technology must be prepared earlier through educational institutions/schools (early childhood education/kindergarten, elementary schools, junior and senior high schools, and universities). These institutions play a strategic role and cannot be set aside in forming and preparing innovative and responsive behavior of the young generation towards the advancement of science and technology through the character development of entrepreneurial leadership and creativity in the curriculum (hidden curriculum) and noncurriculum (extra-

In [29], higher education institution plays a crucial role and is very potential to educate and prepare the next generation of entrepreneurs leadership in a country, and the key to the success of entrepreneurship leadership development among students (young generation) is that the higher education institution should do the

1.encouraging students to take active and independence activities, by having a hand on experience in entrepreneurship, such as establishing a business while studying through start-up capital program facilitated by higher education

2. facilitating them to have an internship in companies that partners with the

seminars, workshops, focus group discussion (FGD), etc.

a. move the organization and its job descriptions effectively;

b. able to analyze tasks and operational details;

3.business mentoring by various entrepreneurs facilitated by university through

Competitive advantage leadership is leadership that has managerial and entrepreneurial abilities supported by human capital (Figure 1). The foundations of

advancement. Many company units are collapsed lately.

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

curricular).

following things:

institution/university;

6. Competitive advantage leadership

leadership that must be possessed are:

university; and

51

The concept of leadership in entrepreneurship is a combination of two words: leadership and entrepreneurship. Therefore, one can contextualize that leadership in entrepreneurship involves gist in both concepts. In [22], it brings up the facts that entrepreneurship is a process of creating something different from others through:


In this case, entrepreneurship is related to the invention or creation of new ideas that are different from others. An entrepreneur should have the characteristics of confidence, results-oriented, risk-taking, leadership, originality, and futureoriented [23]. By referring to the definitions of entrepreneurship and the characteristics of an entrepreneur, entrepreneurship is a process of inventing or creating new products/services, indicated by the behavior of willing to make time, providing financial capital or risk and psychological/social risks, receiving compensation, and having the satisfaction and personal freedom.

Leadership is generally an ability to mobilize, harmonize, activate groups, and deliver ideas to make other people understand, acknowledge, and follow him as a leader. In [24], leadership qualities include being intelligent, sociable, confident, truthful, trustworthy and responsible, persistent, good at expressing thoughts, and having high moral standards. In [25], the leadership refers to the process of the collective briefing that is impactful on mutual willingness to carry out the desired business to achieve the common goals. Furthermore, in [26], the indicators of entrepreneurial leadership are the high ability to motivate, the ability to influence other people, set direction, have a good communication skill, develop changes, address strategic resources, encourage people to be competitive, and good at finding opportunities. Entrepreneurial leadership is leadership characters that are strongly correlated with once concepts and ideas in driving his business to arrive at optimal results (profits). Those concepts and ideas include visions and missions, decisionmaking, applied strategies, and the like. Leadership characters in entrepreneurship raise inspiration and motivation for employees and business partners to gain business opportunities, in addition to the managerial direction that becomes their competencies to be a role model in entrepreneurship civilization. Thus, each business

#### Competitive Advantage Leadership in the Ultra Modern Era DOI: http://dx.doi.org/10.5772/intechopen.90080

On that ground, a clear description of "entrepreneurial leaders" refers to people who have an appropriate "entrepreneurial" approach and ability to keep oneself taking part in the development of a rapidly changing situation or market as well as to exploit opportunities to get benefits for the organization faster than others. The presentation of this concept introduction causes some organizations to try to develop concepts in the business area. In [20], it specifically indicates entrepreneurial leadership as an entrepreneurship research field that is ignored, and in [21], it identifies a missing link in traditional entrepreneurship education, which makes it not conducive to leadership learning. In learning contemporary entrepreneurship, the recurring concept is that "entrepreneurship is interdisciplinary." The world is now experiencing an entrepreneurial revolution, which is more intense than an

The concept of leadership in entrepreneurship is a combination of two words: leadership and entrepreneurship. Therefore, one can contextualize that leadership in entrepreneurship involves gist in both concepts. In [22], it brings up the facts that entrepreneurship is a process of creating something different from others

• provision of financial capital and risk along with psychological and social risks;

In this case, entrepreneurship is related to the invention or creation of new ideas that are different from others. An entrepreneur should have the characteristics of confidence, results-oriented, risk-taking, leadership, originality, and futureoriented [23]. By referring to the definitions of entrepreneurship and the characteristics of an entrepreneur, entrepreneurship is a process of inventing or creating new products/services, indicated by the behavior of willing to make time, providing financial capital or risk and psychological/social risks, receiving compensation, and

Leadership is generally an ability to mobilize, harmonize, activate groups, and deliver ideas to make other people understand, acknowledge, and follow him as a leader. In [24], leadership qualities include being intelligent, sociable, confident, truthful, trustworthy and responsible, persistent, good at expressing thoughts, and having high moral standards. In [25], the leadership refers to the process of the collective briefing that is impactful on mutual willingness to carry out the desired business to achieve the common goals. Furthermore, in [26], the indicators of entrepreneurial leadership are the high ability to motivate, the ability to influence other people, set direction, have a good communication skill, develop changes, address strategic resources, encourage people to be competitive, and good at finding opportunities. Entrepreneurial leadership is leadership characters that are strongly correlated with once concepts and ideas in driving his business to arrive at optimal results (profits). Those concepts and ideas include visions and missions, decisionmaking, applied strategies, and the like. Leadership characters in entrepreneurship raise inspiration and motivation for employees and business partners to gain business opportunities, in addition to the managerial direction that becomes their competencies to be a role model in entrepreneurship civilization. Thus, each business

industrial revolution in the twentieth century.

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

having the satisfaction and personal freedom.

through:

50

• time use;

• compensation receipt;

• satisfaction; and

• personal freedom.

unit requires leadership in entrepreneurship. This condition often emerges issues in strict competition along with rapid communication and information technology advancement. Many company units are collapsed lately.

In [27], it is argued that entrepreneurial leadership is one's ability in the process of collective briefing that has an effect on mutual willingness to always invent or create new ideas by giving motivation to be oriented towards the future to look for opportunities, developing changes, directing to be results/achievements-oriented, taking risks, and being persistent. This indicates that entrepreneurial leadership and creativity are variables that cannot be ignored as the dominant factors to predict the level of innovative behavior of product producers in a company. By referring in [28], the innovative behavior of product/service producers has become a fundamental aspect to realize an optimal performance achievement in business activities. This is because such behavior plays a crucial role in improving their product competitiveness as well as encouraging them to do more different things, even within limitations. Hence, the innovative behavior of product producers will try to use their limitations by optimizing new ideas to create new, different, more useful, and more valuable products/services. The results of those study provide further implications that human resources (employees) who are innovative and responsive to the advancement of science and technology must be prepared earlier through educational institutions/schools (early childhood education/kindergarten, elementary schools, junior and senior high schools, and universities). These institutions play a strategic role and cannot be set aside in forming and preparing innovative and responsive behavior of the young generation towards the advancement of science and technology through the character development of entrepreneurial leadership and creativity in the curriculum (hidden curriculum) and noncurriculum (extracurricular).

In [29], higher education institution plays a crucial role and is very potential to educate and prepare the next generation of entrepreneurs leadership in a country, and the key to the success of entrepreneurship leadership development among students (young generation) is that the higher education institution should do the following things:


#### 6. Competitive advantage leadership

Competitive advantage leadership is leadership that has managerial and entrepreneurial abilities supported by human capital (Figure 1). The foundations of leadership that must be possessed are:


c. having the ability to inspire and motivate employees and business partners to

obtain opportunities and, at the same time, utilize these business

d. the ability to communicate and use IT to support business operations.

Four important factors of human capital are used to support basic leadership, managerial leadership, and entrepreneurial leadership so as to create business com-

\* and Iffah Budiningsih<sup>2</sup>

© 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,

opportunities to achieve business goals; and

Competitive Advantage Leadership in the Ultra Modern Era

DOI: http://dx.doi.org/10.5772/intechopen.90080

The important factors of human capital are:

a. competence;

d. compensation.

petitive advantage.

Author details

53

Tjiptogoro Dinarjo Soehari<sup>1</sup>

1 Mercu Buana University, Jakarta, Indonesia

provided the original work is properly cited.

2 As-Syafi'iyah Islamic University, Jakarta, Indonesia

\*Address all correspondence to: tjiptogd@yahoo.com

b. training and development;

c. organization and career path; and


These basic leadership abilities must be followed by managerial and entrepreneurial abilities, while the managerial abilities that must be possessed are: supervising; planning; organizing; making-decision; monitoring indicator; controlling; response issues; coordinating; consulting; and administrating. While the entrepreneurial abilities that must be possessed are:


Figure 1. Competitive advantage leadership architecture (by Soehari TD, 2019).


The important factors of human capital are:

a. competence;

c. carry out tasks openly and responsibly;

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

monitoring; and

efficiently;

Figure 1.

52

Competitive advantage leadership architecture (by Soehari TD, 2019).

neurial abilities that must be possessed are:

operational facilities effectively and efficiently;

on the performance of the organization and its members;

g. always provide couching and counseling to his subordinates.

d. mastering facility management so to be able to provide organizational

e. ability to make appropriate decisions by anticipating the impact of decisions

f. always empower the organization and its personnel and carry out continuous

These basic leadership abilities must be followed by managerial and entrepreneurial abilities, while the managerial abilities that must be possessed are: supervising; planning; organizing; making-decision; monitoring indicator; controlling; response issues; coordinating; consulting; and administrating. While the entrepre-

a. having strong concepts and ideas, and able to move business effectively and

b. having a vision and mission that is supported by the ability to make appropriate decisions and ability to implement the outlined strategy;


Four important factors of human capital are used to support basic leadership, managerial leadership, and entrepreneurial leadership so as to create business competitive advantage.

### Author details

Tjiptogoro Dinarjo Soehari<sup>1</sup> \* and Iffah Budiningsih<sup>2</sup>


<sup>© 2020</sup> 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] McGrath RG, MacMillan IC. The Entrepreneurial Mindset. Boston: MA Harvard Business School Press; 2000. 380 p. Available from: https://www. amazon.com/Entrepreneurial-Mindset-Continuously-Opportunity-Uncertainty/dp/0875848346

[2] Soehari TD, Budiningsih I, Bakdi. Performance improvement through human capital strategic for civil servant. International Journal of Applied Business and Economic Research. 2017; 15(24):551-568. Available from: http:// serialsjournals.com/abstract/57747\_40.pdf

[3] Scarborough H, Elias J. Evaluating Human Capital. London: CIPD; 2002. Available from: https://digital.library. adelaide.edu.au/dspace/handle/2440/ 40588

[4] Purcell J, Kinnie N, Hutchinson S, Rayton B, Swart J. People and Performance: How People Management Impacts on Organizational Performance. London: CIPD; 2003

[5] Soehari TD, Budiningsih I, Havidz A, Hastuti A. Strategic factors of human capital for employee performance improvement. International Journal of Economic Research. 2017;14(13):49-67. Available from: http://serialsjournals.c om/abstract/49654\_5.pdf

[6] Prawiradilaga DS, Chaerumen UA. Module Hyper Content: Performance Technology. Prenadamedia Group: Jakarta; 2018. 246 p

[7] Barret R. The New Leadership Paradigm: A Respond to Global Leadership. 2011. 7 p. Available from: https://myctt.valuescentre.com/sites/ default/files/uploads/2011-01-21/A% 20Response%20to%20the%20Global% 20Leadership%20Crisis.pdf

[8] Fairholm MR. Leadership end organizational strategy. The Innovation Journal: The Public Sector Innovation Journal. 2009;14(1):1-12. Available from: http://www.innovation.cc/aboutus/tic\_annual2011 report6publn3june 2013.pdf

[15] Gupta V, MacMillan IC.

rep1&type=pdf

6\_257-275.pdf

Entrepreneurial leadership developing a cross-cultural construct. In: Proceedings from the Academy of Management Science, Colorado. 2002. Available from: http://citeseerx.ist.psu.Edu/viewdoc/ download?doi=10.1.1.458.3681&rep=

DOI: http://dx.doi.org/10.5772/intechopen.90080

Competitive Advantage Leadership in the Ultra Modern Era

from: https://books.google.co.id/books/ about/ Entrepreneurship.tml?id= HvIhNAEACAAJ&redir\_esc=y

[23] Alma B. Entrepreneurship. Revision ed. Bandung: Alfabeta; 2006. 254 p.

ISBN:979-8433-35-0

2007

[24] Robbins SP, Judge TA. Organizational Behavior. Twelfth Edition. Pearson International Edition. New Jersey: Pearson Education, Inc.;

[25] Yukl GA. Leadership in Organizations. PT Prenhallindo:

[26] Karmarkar Y, Chabra M, Deshpande A. Entrepreneurial leadership style(s). Annual Research Journal of Symbiosis for Management Studies. 2014;2(1):161. Available from: https://www.scmspune.ac.in/chapter/

Jakarta; 1998. 658 p

pdf/Chapter%2013.pdf

1537-1514/2018.09.002

[27] Budiningsih I, Soehari TD,

Leonard J. Dominant factors influence the behavior to produce innovative products. China-USA Business Review. 2018;17(9):453-461. DOI: 10.17265/

[28] Carmeli A, Spreitzer GM. Trust, connectivity, and thriving: Implication for innovative behavior at work. Journal of Creative Behavior. 2009;43:3. DOI: 10.1002/j.2162-6057.2009.tb01313.x

[29] Budiningsih I, Masduki A,

Sekamto H. Model of strengthening the entrepreneurship character through entrepreneurship commitment. GATR Journal of Business & Economics Review. 2018;3(2):28-34. Available from: http://gatrenterprise.com/

GATRJournals/pdf\_files/JBER%20Vol% 203(2)/1.Iffah%20Budiningsih.pdf

[16] Ireland RD, Hitt MA. Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy of Management Executive. 1999;13(1):43-57. DOI: 10.5465/AME.1999.1567311

[17] Yang CW. The relationships among leadership styles, entrepreneurial orientation, and business performance. Managing Global Transitions. 2008; 6(3):257-275. Available from: http:// www.fm-kp.si/zalozba/ISSN/1581-6311/

[18] Kempster SJ, Cope J. Learning to Lead in the entrepreneurial context. Journal of Entrepreneurial Behavior and

Research. 2010;16(6):5-34. DOI: 10.1108/13552551011020054

[19] Gorman G, Hanlon D, King W. Some research perspectives on

10.1177/ 0266242697153004

[22] Hisrich RD, Michael PP.

55

[20] Antonakis J, Autio E.

Entrepreneurship education. Enterprise education and education for small business management: A ten years literature review. International Small Business Journal. 1997;15:56-77. DOI:

Entrepreneurship and Leadership. In: Baum JR, Rese M, Baron R, editors. The Psychology of Entrepreneurship. London: Routledge; 2007. 141 p

[21] Bagheri A, Pihie Z. Entrepreneurial leadership learning: In search for missing links. PRO. 2010;7c:470-479. DOI: 10.1016/j.sbspro.2010.10.064

Entrepreneurship. New York: McGraw Hill Education; 1995. 650 p. Available

[9] Jomorrodian A. New approach to strategic planning the impact of leadership and culture on plan implementation via the three Cs: Cooperation, collaboration, and coordination. In: Proceeding of ASBBS; February 2011. Vol. 8. Las Vegas: ASBBS; 2011. p. 1. Available from: https://pdfs.Semanticscholar.org/f090/ 114a0671c03477ec37357036394d0717 14f8.pdf

[10] Wanasika I, Howell J, Littrell RF, Dorfman PW. Managerial leadership and culture in sub-Saharan Africa. Journal of World Business. 2011;46: 234-241. DOI: 1016/j.jwb.2010.11.004

[11] Soehari TD, Budiningsih I, Fransisca HR, Hapsi A. Corruption prevention and deterrence through strategic human resources management approach. International Journal of Application or Innovation in Engineering & Management (IJAEM). 2017;6(1):22-34. Available from: http:// www.ijaiem.org/Volume6Issue1/ IJAIEM-2017-01-09-5.pdf

[12] Yukl GA. Leadership in Organizations. England: Pearson Education Limited; 2013. 524 p. ISBN: 978-0-273-76566-0

[13] Yukl GA. Leadership in Organizations, Edition of Indonesia. Albany: State University of New York; 2007. 526 p. ISBN: 979-683-462-6

[14] Lippitt GL. Entrepreneurial leadership: A performing art. The Journal of Creative Behavior. 1987; 21(3):264-270. DOI: 10.1002/ j.2162-6057.1987.tb00483.x

Competitive Advantage Leadership in the Ultra Modern Era DOI: http://dx.doi.org/10.5772/intechopen.90080

[15] Gupta V, MacMillan IC. Entrepreneurial leadership developing a cross-cultural construct. In: Proceedings from the Academy of Management Science, Colorado. 2002. Available from: http://citeseerx.ist.psu.Edu/viewdoc/ download?doi=10.1.1.458.3681&rep= rep1&type=pdf

References

40588

[1] McGrath RG, MacMillan IC. The Entrepreneurial Mindset. Boston: MA Harvard Business School Press; 2000. 380 p. Available from: https://www. amazon.com/Entrepreneurial-Mindset-Continuously-Opportunity-

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

Journal: The Public Sector Innovation Journal. 2009;14(1):1-12. Available from: http://www.innovation.cc/aboutus/tic\_annual2011 report6publn3june

[9] Jomorrodian A. New approach to strategic planning the impact of leadership and culture on plan implementation via the three Cs: Cooperation, collaboration, and coordination. In: Proceeding of ASBBS; February 2011. Vol. 8. Las Vegas: ASBBS; 2011. p. 1. Available from: https://pdfs.Semanticscholar.org/f090/ 114a0671c03477ec37357036394d0717

[10] Wanasika I, Howell J, Littrell RF, Dorfman PW. Managerial leadership and culture in sub-Saharan Africa. Journal of World Business. 2011;46: 234-241. DOI: 1016/j.jwb.2010.11.004

Engineering & Management (IJAEM). 2017;6(1):22-34. Available from: http:// www.ijaiem.org/Volume6Issue1/ IJAIEM-2017-01-09-5.pdf

[11] Soehari TD, Budiningsih I, Fransisca HR, Hapsi A. Corruption prevention and deterrence through strategic human resources management approach. International Journal of Application or Innovation in

[12] Yukl GA. Leadership in Organizations. England: Pearson Education Limited; 2013. 524 p. ISBN:

[13] Yukl GA. Leadership in

Organizations, Edition of Indonesia. Albany: State University of New York; 2007. 526 p. ISBN: 979-683-462-6

[14] Lippitt GL. Entrepreneurial leadership: A performing art. The Journal of Creative Behavior. 1987; 21(3):264-270. DOI: 10.1002/ j.2162-6057.1987.tb00483.x

978-0-273-76566-0

2013.pdf

14f8.pdf

[2] Soehari TD, Budiningsih I, Bakdi. Performance improvement through human capital strategic for civil servant.

[3] Scarborough H, Elias J. Evaluating Human Capital. London: CIPD; 2002. Available from: https://digital.library. adelaide.edu.au/dspace/handle/2440/

[4] Purcell J, Kinnie N, Hutchinson S,

Performance: How People Management Impacts on Organizational Performance.

[5] Soehari TD, Budiningsih I, Havidz A, Hastuti A. Strategic factors of human capital for employee performance improvement. International Journal of Economic Research. 2017;14(13):49-67. Available from: http://serialsjournals.c

[6] Prawiradilaga DS, Chaerumen UA. Module Hyper Content: Performance Technology. Prenadamedia Group:

[7] Barret R. The New Leadership Paradigm: A Respond to Global Leadership. 2011. 7 p. Available from: https://myctt.valuescentre.com/sites/ default/files/uploads/2011-01-21/A% 20Response%20to%20the%20Global%

20Leadership%20Crisis.pdf

54

[8] Fairholm MR. Leadership end organizational strategy. The Innovation

Rayton B, Swart J. People and

London: CIPD; 2003

om/abstract/49654\_5.pdf

Jakarta; 2018. 246 p

International Journal of Applied Business and Economic Research. 2017; 15(24):551-568. Available from: http:// serialsjournals.com/abstract/57747\_40.pdf

Uncertainty/dp/0875848346

[16] Ireland RD, Hitt MA. Achieving and maintaining strategic competitiveness in the 21st century: The role of strategic leadership. Academy of Management Executive. 1999;13(1):43-57. DOI: 10.5465/AME.1999.1567311

[17] Yang CW. The relationships among leadership styles, entrepreneurial orientation, and business performance. Managing Global Transitions. 2008; 6(3):257-275. Available from: http:// www.fm-kp.si/zalozba/ISSN/1581-6311/ 6\_257-275.pdf

[18] Kempster SJ, Cope J. Learning to Lead in the entrepreneurial context. Journal of Entrepreneurial Behavior and Research. 2010;16(6):5-34. DOI: 10.1108/13552551011020054

[19] Gorman G, Hanlon D, King W. Some research perspectives on Entrepreneurship education. Enterprise education and education for small business management: A ten years literature review. International Small Business Journal. 1997;15:56-77. DOI: 10.1177/ 0266242697153004

[20] Antonakis J, Autio E. Entrepreneurship and Leadership. In: Baum JR, Rese M, Baron R, editors. The Psychology of Entrepreneurship. London: Routledge; 2007. 141 p

[21] Bagheri A, Pihie Z. Entrepreneurial leadership learning: In search for missing links. PRO. 2010;7c:470-479. DOI: 10.1016/j.sbspro.2010.10.064

[22] Hisrich RD, Michael PP. Entrepreneurship. New York: McGraw Hill Education; 1995. 650 p. Available

from: https://books.google.co.id/books/ about/ Entrepreneurship.tml?id= HvIhNAEACAAJ&redir\_esc=y

[23] Alma B. Entrepreneurship. Revision ed. Bandung: Alfabeta; 2006. 254 p. ISBN:979-8433-35-0

[24] Robbins SP, Judge TA. Organizational Behavior. Twelfth Edition. Pearson International Edition. New Jersey: Pearson Education, Inc.; 2007

[25] Yukl GA. Leadership in Organizations. PT Prenhallindo: Jakarta; 1998. 658 p

[26] Karmarkar Y, Chabra M, Deshpande A. Entrepreneurial leadership style(s). Annual Research Journal of Symbiosis for Management Studies. 2014;2(1):161. Available from: https://www.scmspune.ac.in/chapter/ pdf/Chapter%2013.pdf

[27] Budiningsih I, Soehari TD, Leonard J. Dominant factors influence the behavior to produce innovative products. China-USA Business Review. 2018;17(9):453-461. DOI: 10.17265/ 1537-1514/2018.09.002

[28] Carmeli A, Spreitzer GM. Trust, connectivity, and thriving: Implication for innovative behavior at work. Journal of Creative Behavior. 2009;43:3. DOI: 10.1002/j.2162-6057.2009.tb01313.x

[29] Budiningsih I, Masduki A, Sekamto H. Model of strengthening the entrepreneurship character through entrepreneurship commitment. GATR Journal of Business & Economics Review. 2018;3(2):28-34. Available from: http://gatrenterprise.com/ GATRJournals/pdf\_files/JBER%20Vol% 203(2)/1.Iffah%20Budiningsih.pdf

**57**

Section 2

Digital Leadership:

Theoretical and Practical

Applications

### Section 2
