The Role of Digital Leadership in the Impact of Industry 4.0 on Company Performance

Abstract

Purpose- This study focuses on the Impact of Industry 4.0 and Digital Leadership on Company Performance. At the same time, it is aimed to understand the current levels of the companies in the research group in Industry 4.0 and Digitalization applications. Design/methodology/approach- The data collected from the employees of 137 industrial establishments in ISO500 operating in Turkey through an online survey application were used. Findings- As a result of correlation and regression analyzes using SPSS v28 program in the analysis of the data, it was seen that there was a positive relationship between Industry 4.0 and Digital Leadership (r=0.546), between Digital Leadership and Company Performance (r=0.587), and between Industry 4.0 and Company Performance (r=0.555). Industry 4.0 Digital Leadership explains 29.8% (R2=0.298) and Company Performance 30.8% (R2=0.308). Digital Leadership; It is seen that it explains the Company Performance by 34.4% (R2=0.344), that is, Digital Leadership has a positive and significant effect on Company Performance. In addition, the partial mediating role of Digital Leadership in the Effect of Industry 4.0 on Company Performance has been determined. On the other hand, it has been determined that the highest usage rate in digital applications used is ERP (71.7%) and CRM (65.1%), while Big Data and Analytics (49.2%) and Cyber Security (43.8%) are used in Industry 4.0 applications. Discussion- It is a necessity for leaders and companies to adapt to the environment where technology and digitalization are developing so rapidly. However, in the age of Industry 4.0, the ability of companies to compete with their competitors in the market is directly proportional to their tendency to change and transformation. It is clear that in this rapidly changing world, different leaders, management styles, thinking systems, human skills and competencies, ways of doing business, better productivity and sustainability are needed. It is expected that the results obtained will contribute to the literature.