Unappreciated channel of manufacturing productivity under industry 4.0: leadership values and capabilities

Official URL: https://dx.doi.org/10.1016/j.jbusres.2023.113900

This article investigates the impact of individual leadership values and capabilities on productivity outcomes in a contemporary manufacturing setting of Industry 4.0. Values are antecedents to individual leadership capabilities, yet little is known about the fundamental value-capability mechanism in developing distinctive leadership capabilities. This study attempts to address the gap in the extant literature. We examine a sample of 622 leaders to observe their impact on previously unidentified channels of productivity improvement in the new industrial environment. The findings confirm that individual leadership values strongly influence leadership capability. However, the study illustrates that it is the type of values and capabilities that are paramount to encouraging effective productivity. The scholarship offers insights into how the technology and effective leadership outcomes can be operationalized to maximize productivity in an Industry 4.0 environment.