Digital Transformation Requires More Than Technology
The rapid adoption of digital technology is changing how companies operate and how managers lead their employees. In manufacturing, digital transformation can improve efficiency, but technology alone does not guarantee better workplace performance.
The researchers from Universitas Muhammadiyah Malang describe e-leadership as a combination of transformational leadership and the use of digital technology. Effective digital leaders are expected to build trust, communicate ideas through digital channels, encourage employees to adapt to technological change, and motivate teams to achieve organizational goals.
The issue is particularly relevant when employees have different levels of technological capability. The UMM researchers noted that some technology-oriented leaders may still face difficulties implementing digital systems when employees lack sufficient competence. At the same time, the pressure to master new technology can become an additional burden for workers if organizational support is inadequate.
Study Involved 105 Employees
Robbie and Hilmi used a quantitative research design based on questionnaire responses from 105 employees working at four companies in Greater Malang. The companies were PT Jaya Etika Beton, PT Loka Fiber Indonesia, PT Indotama Seraya Artha, and CV Lumos Agro Karya.
Respondents were selected using specific criteria. They had to have at least two years of work experience, use Excel VBA technology in their work, and work for companies that were partners of UMM. The researchers analyzed employees' perceptions of four main areas: digital leadership, technological competence, corporate ethical values, and employee performance.
The respondents were predominantly male, with 75 men representing 71 percent of the sample and 30 women representing 29 percent. The largest age group was employees aged 33–42, accounting for 44 percent of respondents. More than half of the respondents, or 55 percent, had worked for six to 10 years.
The researchers used statistical modeling to examine whether the three workplace factors—digital leadership, technological competence, and corporate ethical values—were associated with employee performance.
Employees Rated Digital Leadership Positively
Before examining the relationships between the variables, the researchers measured how employees perceived each factor.
Digital leadership received an average score of 423, placing it in the “good” category. This indicates that employees generally viewed their leaders as positive examples of technology-oriented work behavior and believed their leaders encouraged employees to follow digital working practices.
Technological competence received an average score of 439, categorized as “competent.” Employees generally felt capable of using technology to support their work and expressed an interest in continuing to develop their technological abilities.
Corporate ethical values received an average score of 434, categorized as “good,” while employee performance recorded an average score of 438, categorized as “high.” The researchers interpreted the latter result as an indication that employees generally considered themselves productive and able to complete their work within established timeframes.
Digital Leadership Shows the Strongest Statistical Relationship
The clearest finding came from the relationship between digital leadership and employee performance.
The hypothesis-testing results reported a path coefficient of 0.836 for the relationship between e-leadership and employee performance. The statistical test produced a t-statistic of 10.496 and a p-value of 0.000, meeting the study's threshold for statistical significance.
In practical terms, the result suggests that employees who perceive their leaders as effective digital leaders tend to report stronger workplace performance.
Robbie and Hilmi explain that engaged employees are more likely to become motivated in using technology, take greater responsibility for their work, and pay closer attention to quality and task completion. In their interpretation, effective digital leadership can encourage employees to understand digital components of their jobs and produce better and faster results.
“Effective digital leadership enhances work outcomes,” the researchers conclude in discussing the broader implications of their findings.
Technology Competence and Ethics Produce More Complex Results
The study also examined technological competence and corporate ethical values. However, the statistical results reported in the hypothesis-testing table do not show statistically significant relationships with employee performance at the 5 percent threshold.
Technological competence recorded a coefficient of -0.235, a t-statistic of 1.931, and a p-value of 0.054. Corporate ethical values recorded a coefficient of 0.249, a t-statistic of 1.684, and a p-value of 0.093. Both p-values are above 0.05.
Implications for Manufacturing Companies
The findings suggest that digital transformation should be accompanied by leadership development. Companies introducing new digital systems may need leaders who can not only understand technology but also communicate change effectively, motivate employees, and provide an example of responsible technology use.
The research also points to the importance of continuous employee development. Robbie and Hilmi recommend strengthening technological capabilities through training, education, and other employee-development programs so workers can adapt to changing digital systems.
For manufacturing businesses, the lesson is straightforward: investing in digital tools should go hand in hand with investing in people and leadership. Technology can become more effective when employees understand how to use it and leaders are capable of guiding the transition.
Author Profiles
R. Iqbal Robbie is affiliated with Universitas Muhammadiyah Malang (UMM), East Java, Indonesia, and serves as the corresponding author of the article. The paper identifies his research affiliation with UMM and lists his contact as iqbal_robbie@umm.ac.id. The article itself does not specify his academic degree or provide a detailed professional profile.
Luqman Dzul Hilmi is also affiliated with Universitas Muhammadiyah Malang. The article does not state his academic degree or provide a separate detailed field-of-expertise profile.
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