Transformational Leadership and Organizational Resilience in the Era of Industry 5.0: The Mediating Role of Knowledge Management Capability and Employee Innovative Behavior
Aug 2026· Journal of Intelligent Decision Making and Information Science· 0 citations· 40 references
Abstract
The transition toward Industry 5.0 has fundamentally reshaped organizational priorities by emphasizing human-centricity, sustainability, resilience, and intelligent collaboration between advanced technologies and human capabilities. Within this context, transformational leadership has emerged as a strategic driver of organizational adaptability and long-term competitiveness. This study investigates the direct and indirect effects of transformational leadership on organizational resilience by examining the mediating roles of knowledge management capability and employee innovative behavior. A quantitative research design was employed using a survey of employees from organizations undergoing digital transformation across multiple industrial sectors. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both measurement and structural models. The findings reveal that transformational leadership significantly enhances knowledge management capability, stimulates employee innovative behavior, and directly strengthens organizational resilience. Knowledge management capability also exerts a significant positive influence on employee innovative behavior and organizational resilience, confirming its strategic role in facilitating organizational learning and adaptive capacity. Furthermore, employee innovative behavior significantly contributes to organizational resilience by enabling continuous improvement, creative problem-solving, and organizational flexibility. Mediation analysis demonstrates that knowledge management capability and employee innovative behavior partially mediate the relationship between transformational leadership and organizational resilience, indicating that leadership effectiveness is reinforced through organizational knowledge processes and innovation-oriented employee behavior. These findings contribute to the growing Industry 5.0 literature by integrating leadership, knowledge management, innovation, and resilience into a comprehensive conceptual framework. The study offers practical implications for managers seeking to develop resilient organizations by fostering transformational leadership, strengthening knowledge management systems, and encouraging employee innovation to achieve sustainable organizational performance in increasingly dynamic and digitally driven business environments.
It is shown that sustainable organizational performance can be achieved when digital leadership is effectively translated into agile employee behavior, and empirical evidence that sustainable organizational performance can be achieved when digital leadership is effectively translated into agile employee behavior is provided.
Syarifuddin Syarifuddin, M. L. Siraj, Fahrian Arsyam Gultom et al.· Economics & business journal...· 0 citations
The findings reveal that digital leadership positively influences both innovative work behavior and organizational performance, and digital transformation capability strengthens the positive effect of digital leadership on organizational performance.
Vikash Mandal, Indu Nath Jha, Aditi Kaushik et al.· Strategy & Leadership· 0 citations
This study investigates the impact of Industry 4.0 technologies on sustainable performance within the Chinese industrial context. Specifically, it examines the mediating roles of adaptive capabilities, organizational innovativeness, and organizational resilience, alongside the moderating role of managerial cognition, within an integrated conceptual framework grounded in the resource‐based view (RBV) and dynamic capability theory (DCT). A quantitative cross‐sectional survey design was employed, collecting data from 356 managers and executives across Chinese manufacturing and technology‐intensive firms. Structured questionnaires utilizing validated scales from prior literature were administered, achieving a response rate of 29.7%. Data were analysed using partial least squares structural equation modelling (PLS‐SEM) via ADANCO 2.3. All seven hypothesized relationships were empirically supported. Industry 4.0 technologies positively influenced adaptive capabilities and organizational innovativeness, both of which strengthened organizational resilience, which subsequently enhanced sustainable performance. Two serial mediation pathways were confirmed, and managerial cognition significantly moderated the technology‐capability relationships. This study makes an original contribution by integrating serial mediation and moderation within a unified Industry 4.0 resilience framework, specifically contextualized within Chinese industrial firms. The findings offer actionable guidance for managers and policymakers seeking to leverage digital technologies to build organizational resilience and achieve long‐term sustainable performance.
The results showed a statistically significant positive effect of digital leadership on organizational agility, with a strong mediating role of knowledge sharing in enhancing this effect.
Abed Hashoosh· International Journal for Sc...· 0 citations
The rapid advancement of digital technologies has transformed organizational operations and increased the strategic importance of human resource management in fostering workforce adaptability and performance. This study investigates the influence of innovative HR strategies and digital HR technologies on sustainable employee performance through the mediating role of employee readiness and the moderating role of organizational support culture. Drawing on the Resource-Based View, Human Capital Theory, and Social Exchange Theory, the study develops an integrated framework explaining how HR innovation contributes to employee performance in digitally transforming workplaces. A quantitative research design was adopted using a secondary dataset comprising 368 employee responses obtained from Mendeley Data. The proposed model was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that innovative HR strategies and digital HR technologies positively influence employee readiness, which in turn significantly enhances sustainable employee performance. The results further reveal that employee readiness serves as a key mediating mechanism linking HR innovation and performance outcomes. Additionally, organizational support culture strengthens the positive relationship between employee readiness and employee performance. These findings highlight the importance of integrating strategic HR practices, digital HR technologies, and supportive organizational cultures to improve workforce adaptability and sustain performance in dynamic business environments. The study contributes to the strategic HRM and digital transformation literature by providing empirical evidence on the mechanisms through which HR innovation drives sustainable employee performance in the digital era.
Alok Kumar Bhargava, Gurpreet Attal, Rahul Malhotra et al.· The Journal of Theoretical A...· 0 citations
The increasing pace of digitalization has made digital transformation a critical strategic priority for small and medium-sized enterprises (SMEs), particularly in developing economies. This study examines the effects of Digital Transformation Leadership (DTL) on Business Model Innovation (BMI) and Firm Performance (FP), while investigating the moderating role of Organizational Agility (OA). Data were collected from 500 employees working in Pakistani SMEs and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that Digital Transformation Leadership has significant positive effects on Organizational Agility, Business Model Innovation, and Firm Performance. However, Organizational Agility does not significantly moderate the relationships between Digital Transformation Leadership and either Business Model Innovation or Firm Performance. The structural model demonstrates satisfactory explanatory and predictive capability, confirming the strategic importance of Digital Transformation Leadership in enhancing organizational innovation and performance. This study contributes to the literature by providing empirical evidence from an emerging economy and by demonstrating that Organizational Agility functions as an important organizational capability but does not strengthen the effects of Digital Transformation Leadership on Business Model Innovation or Firm Performance. The findings suggest that managers should prioritize leadership capabilities and digital transformation initiatives while simultaneously developing complementary organizational capabilities beyond agility to maximize digital transformation outcomes. The study also provides practical implications for policymakers seeking to strengthen SMEs' digital competitiveness through investments in digital infrastructure, digital skills, and innovation support programs.
M. B. Hossain, Mujib Ur Rahman, A. Nurbatsin et al.· Decision Making Advances· 0 citations
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