Cuadernos de Economía

ISSN : 0210-0266
Untitled-43

The Role of Leadership Style and Behaviour and Organizational Commitment on Industrialization in Indonesia

  • Faisal Marzuki , Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta (UPNVJ), RS Fatmawati No. 1 Pd. Labu, Jakarta, Indonesia
  • Guntur Saragih , Faculty of Economics and Business, Universitas Pembangunan Nasional Veteran Jakarta (UPNVJ), RS Fatmawati No. 1 Pd. Labu, Jakarta

Keywords:

Transactional Leadership Style, Transformational Leadership Style, Leadership Behaviour, Industrialization..

Abstract

The imperative for global industrialization has arisen in response to the pronounced escalation in population and the influential role of leadership styles and behaviours in fostering industrial growth. This imperative underscore the significance attributed to this phenomenon by both researchers and policymakers. Accordingly, this study delves into an exploration of the effects of transactional leadership style, transformational leadership style, and leadership behaviour on the process of industrialization within the context of Indonesia. Furthermore, the research investigates the moderating influence of organizational commitment on the relationships between transactional leadership style, transformational leadership style, leadership behaviour, and industrialization in the Indonesian context. Data for this research were procured from senior industry leaders in Indonesia through the administration of questionnaires. The study employed the SPSS-AMOS statistical tool to analyse the interconnections among the variables under consideration. The findings revealed a positive correlation between transactional leadership style, transformational leadership style, leadership behaviour, and industrialization in Indonesia. Additionally, the study disclosed that organizational commitment plays a significant moderating role in the relationships between transactional leadership style, transformational leadership style, leadership behaviour, and industrialization in the Indonesian industrial landscape. The implications of these findings offer valuable insights to both researchers and policymakers, providing guidelines for enhancing industrialization through the strategic application of effective leadership styles and behaviours.