Role of remote transformational leadership on service performance: evidence in Indonesia

Abstract

AbstractThis study examined and analysed the role of remote transformational leadership in business strategy consensus by considering the contingency of competitive intensity and organisational learning culture. The population of this study are owners or service managers of start-up business companies in the provinces of DIY and East Java. The sampling technique used was a purposive sampling method with a sample size of 231 managers. The data was collected through the distribution of questionnaires and interviews with several key service managers who represent their companies. Euclidean Distance Simple Regression and Euclidean Distance Simple Regression Moderation were used as the statistical processing tools. The results of this study proved a fit between each business strategy typology with each contingency variable examined in this study. It was also found that transformational leadership could strengthen the relationship pattern. The contingency approach is crucial because situations and conditions between organisations may vary depending on the company’s internal (organisational learning culture) and external (competitive intensity) environment, especially in the era of the Covid-19 pandemic. Contingency fit in the organisational strategy needs to be assessed so that the service performance can be improved and sustainable in the long term. This situation and condition will improve when strengthened by the role of remote transformational leadership.