THE INFLUENCE OF TRANSFORMATIONAL LEADERSHIP ON EMPLOYEE MOTIVATION DURING INDIA’S DIGITAL TRANSFORMATION TOWARD ECONOMY 4.0

The digital transformation of workplaces, automation and
new technologies have been changing the work environments in
organizations in India greatly, as it builds towards Economy 4.0.
Transformational leadership in this context is now important in
maintaining employee motivation and interest. This paper will explore
the effect of the transformational style of leadership behaviours, which
include idealized influence, inspirational motivation, intellectual
stimulation, and individualized consideration as ways of motivating
employees to overcome technological disruptions. The study applies
Structural Equation Modeling (SEM) and Chi-Square tests to examine
the relationships between leadership style, motivation, and moderating
factors of digital transformation using 200 employees working in the IT
and technology-enabled industries to obtain its quantitative results.
Results show that transformational leadership has a positive influence
on employee motivation through reducing technological anxiety,
promoting flexibility, and enhancing trust in digital transitions. The
study has indicated that human-centric leadership is vital in helping
with workforce resilience in the Indian economic 4.0 journey. There are
also implications on policy, management and future preparedness.