The Role of Transformational Leadership in Improving Team Performance in the Digital Business Era

Abstract

The digital business environment has experienced rapid growth driven by technological transformation and evolving work practices, which require teams to be adaptive, collaborative, and innovative. Transformational leadership has become a crucial factor in enhancing team performance, yet empirical studies on its effect on team productivity and collaboration in digital contexts remain limited. This study aims to analyze the influence of transformational leadership on team performance in organizations operating in the digital business era. This study uses a quantitative approach with a verificative paradigm. The research population consists of employees working in digital startups, tech-based student organizations, and creative ventures in Indonesia, totaling 50 respondents. Data were collected using a questionnaire with a 1–5 Likert scale measuring transformational leadership through dimensions of idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration, while team performance was measured through productivity, collaboration, and innovation. Data analysis was performed using simple linear regression with the help of SPSS 25. The results indicate that transformational leadership has a positive and significant effect on team performance, demonstrating that higher levels of transformational leadership correspond to improved productivity, collaboration, and innovation in digital teams. This study suggests that organizations prioritize the development of transformational leadership practices to enhance team effectiveness in the digital business era.