3. Transformational Leadership in a Digital Era

Drawing on Brashers’ (2001) theory of communication and uncertainty management, the study reported in this chapter examines the role of transformational leadership (TFL) in employees’ uncertainty management process in the context of DX and its impact on their appraisal of DX, self-efficacy, and job performance. The study examined the hypotheses regarding the complex interplay between these factors with the data collected over four waves from 873 employee–supervisor dyads in Japan. Structural equation modeling analyses have revealed that: (a) uncertainty is negatively associated with employees’ appraisal of DX, self-efficacy, and job performance; (b) TFL is positively associated with these factors; and, moreover, (c) TFL moderates the impact of uncertainty on appraisal and self-efficacy. Simple-slope analyses indicate that, when one’s direct supervisor exhibits low TFL behaviors, uncertainty is significantly negatively associated with their appraisal and self-efficacy; conversely, in the high-TFL condition, the adverse impact of uncertainty diminishes. These findings highlight the pivotal role of transformational leadership in shaping positive appraisals and self-efficacy among organizational members, thereby enhancing their job performance in the face of DX-driven uncertainty. Theoretical and practical implications of the obtained findings are discussed with reference to the relevant literature.