The impact of effective leadership style, employee readiness, and moderation of job level on organization agility: Case study in public telecommunication company in Indonesia

Abstract

Agility becomes an imperative requirement for any organization. It is considered to be a great tool to achieve competitive advantages and add positive value either for them or their shareholders. Especially in today's business environment, which is characterized by increasing demands, more changes, and complexity. This is mostly true for business with a communication, information, and technological background. Our study investigated the role of effective leaders and the employee's readiness in shaping the organization agility. Also, we study the moderation effect of job level in the relationship. We collected the data using an online questionnaire distributed to the chosen business area (Regional Division II) and obtained 584 useable responses in two months. Our sample consists of various job levels from the lowest to the highest. We applied multiple regression using Macro Process and SPSS to analyze the data. The effective leadership style proved to have positive and significant impact on an organization's agility, and employee readiness played a significant role as mediator. The moderated mediation effect is also significant since there are no zero values in the confidence interval. However, the moderator (job level) only has an influence on the link between the employee readiness and organization agility. Regarding the conditional indirect effect it was found to be significant in the lower, average, and higher job levels. Business practices and academics need to understand that the level of agility in many organizations needs to be upgraded. Uncertain and turbulent situations need agile organizations, thus managers need to focus on important factors that drive the agility. This research provides evidence that effective leadership and employee readiness can help to create agile organizations.