ANALYZING THE INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE ENGAGEMENT IN DIGITAL ECONOMY

Authors

  • Fang LIU Maejo University International College, Maejo University, Thailand
  • Sutthikarn KHONG-KHAI Maejo University International College, Maejo University, Thailand
  • Winitra LEELAPATTANA Maejo University International College, Maejo University, Thailand
  • Chin-Fa TSAI Department of Business Administration, National Chiayi University, Taiwan

DOI:

https://doi.org/10.14456/aamr.2024.20

Keywords:

Leadership Style, Employee Engagement, Organizational Commitment, Psychological Ownership

Abstract

This study investigates the impact of leadership styles on employee engagement in the digital economy, focusing on employees in Guangxi, China. Utilizing structural equation modeling to analyze data from 358 respondents, the research examines the effects of transactional and transformational leadership on engagement, with organizational commitment and psychological ownership as mediators. Results indicate a significant positive impact of leadership style on employee engagement, organizational commitment, and psychological ownership. Leadership style directly predicts employee engagement (β = 0.80, p < .001), while also influencing engagement indirectly through organizational commitment (β = 0.25, p < .001) and psychological ownership (β = 0.39, p < .001). These findings underscore the importance of leadership style in enhancing engagement within the digital economy, highlighting the mediating roles of organizational commitment and psychological ownership. This study contributes to the literature by elucidating the mechanisms through which leadership influences engagement in digital contexts, offering insights for leaders to foster a more committed and psychologically invested workforce.

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Published

2024-05-31

How to Cite

LIU, F., KHONG-KHAI, S., LEELAPATTANA, W., & TSAI, C.-F. (2024). ANALYZING THE INFLUENCE OF LEADERSHIP STYLE ON EMPLOYEE ENGAGEMENT IN DIGITAL ECONOMY. Asian Administration and Management Review, 7(2), 31–44. https://doi.org/10.14456/aamr.2024.20