Achieving an agile organisation in an Indonesian telecommunications company: investigation on leadership impact and mediation variables

Abstract

Purpose Agility is an important characteristic that every organisation requires in today’s competitive digital era. Telecommunications companies in Indonesia face various types of competition, both from the same industry and new models. This study aims to identify the agility level of telecommunications companies in Indonesia. It also examines the effect of leadership style directly and indirectly through the mediation of employee readiness, innovation culture, technology capability and organisational structure. Design/methodology/approach This study used a non-probability sampling technique. The macroprocess was used to identify and measure the direct and indirect effects. The results are based on survey data collected from a telecommunications company in Indonesia with a total of 1,073 employees. Findings The results of this study showed that an adaptive leadership style has a direct and significant positive effect on the organisational agility level. Employee readiness, innovation culture, technological capability and organisational structure function as mediators between adaptive leadership style and agility. Practical implications This study could contribute to the development of programs to ignite and boost organisational agility. Organisations are recommended to conduct periodic evaluations to measure agility levels and amend their programs accordingly. Originality/value Adaptive leadership style was used, which expresses the leader’s deep concern for employee needs and organisational achievement. This leader will most likely positively impact employees and favourably influence the organisation (technology, structure, innovation and agility).

Readiness for organizational change: the effects of individual and organizational factors

“…The study emphasizes that both organizational factors and individual factors affect the readiness for organizational change (Wanberg and Banas, 2000;Judge et al, 1999). Its findings highlight that each of the eight factors, namely experience of change, trust in management, social relationships at workplace, commitment towards organization, organizational support, participation in decision-making, leadership and communication system, independently have a significant effect on readiness for organizational change (Goksoy, 2012;Rafferty and Simons, 2006;Hanpachern et al, 1998;Madsen et al, 2005;Susanty et al, 2022). It can also be concluded that experience of change, commitment towards organization and participation in decision making are more pertinent than other factors that affect readiness for organizational change (Armenakis et al, 1993;Eby et al, 2000).…”

The role of talent development on business performance in Islamic rural banks

“…Digitalization helps companies in customizing products as per customer needs, changing business values and increasing focus to meet customer expectations for product quality and service standards (Xiu et al, 2017;Tsou and Chen, 2021). However, digitalization is also pushing people in organizations to change faster, which promotes the urgency for digital readiness (Tabrizi et al, 2019;Jun et al, 2021;Susanty et al, 2022). The help of talent development leads to the development of a lot of positive attitudes within the employee, such as an increase in motivation (Panda and Sahoo, 2015;Sheel and Nath, 2019).…”

“…The roots of a firm's innovative capability may be derived from talent development processes. As employees' knowledge, skills and competencies are maximized and developed, they add value to the firm by possessing the capacity to yield innovative ideas, which may lead to new and improved products and services (Dibrell et al, 2014;Susanty et al, 2022). Based on these arguments, the suggested hypothesis is: H3: Talent Development has a positive and significant impact toward Innovativeness.…”

“…Firms with the higher level of employee' digital readiness will enjoy more options among digital tools and are thus likely to attain a higher level of productivity (Jun et al, 2021). Digital readiness refers to a perception of the positive consequences that are caused by digitalization (Laurenza et al, 2018;Susanty et al, 2022). A greater digital readiness in a firm, increasing the likelihood of a firm to devote resources, such as financial resources, human resources, and R&D resources, to adopt digital technology (Moldabekova et al, 2021).…”

“…Success is increasingly a function of a firm's ability to develop and to deploy resources in an innovative way (Dibrell et al, 2014;Flannelly et al, 2014). Firms rely on innovativeness as a key valueenhancing activity, which transforms the benefits of innovation processes into increased financial performance (Susanty et al, 2022). Innovativeness allows firms to enhance their competitive posture through the development and delivery of innovative products and services (Hult et al, 2004;Dibrell et al, 2014).…”