Building organizational resilience through digitalization and transformational leadership: Evidence from an Indonesian herbal industry

Muhammad Syafi’i A. Basalamah; H. M. Said; Mursalim Laekkeng; Ramlawati

doi:10.31893/multiscience.2026539

Keywords:

transformational leadership

digitalization

organizational capabilities

organizational resilience

dynamic capabilities

Abstract

The rapid acceleration of digital transformation and the turbulence of business environments increasingly demand that organizations strengthen their resilience. This study investigates the effects of transformational leadership and digitalization on organizational resilience, with organizational capabilities serving as a mediating construct. Drawing on the dynamic capabilities perspective, the study anticipates that transformational leadership has both direct and indirect impacts on resilience, while digitalization primarily influences resilience through organizational capabilities. The research was conducted at PT Sarigading Pusaka Kalimantan, a herbal-based enterprise in South Kalimantan, Indonesia. A quantitative approach was employed using data from 200 permanent employees across production, marketing, finance, R&D, and HR divisions. Respondents were selected using Slovin’s formula, and data were analyzed with Structural Equation Modeling–Partial Least Squares (SEM-PLS) through SmartPLS software. Bootstrapping with 5,000 resamples, together with the Variance Accounted For (VAF) index and bootstrapped confidence intervals, was used to assess indirect effects and mediation strength. The findings reveal that both transformational leadership and digitalization significantly enhance organizational capabilities. Furthermore, organizational capabilities serve as a critical mechanism for building resilience. Transformational leadership shows a direct and significant effect on resilience, while digitalization exerts an indirect effect through full mediation by organizational capabilities. These results highlight the strategic importance of leadership and digitalization in shaping resilience, though through different pathways. The study contributes theoretically by reinforcing the dynamic capabilities framework and practically by offering insights for organizations, especially local enterprises, to enhance resilience in the digital era.
References
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

How to cite

Basalamah, M. S. A., Said, H. M., Laekkeng, M., & Ramlawati. (2026). Building organizational resilience through digitalization and transformational leadership: Evidence from an Indonesian herbal industry. Multidisciplinary Science Journal, 8(8), 2026539. https://doi.org/10.31893/multiscience.2026539

[1] Avolio, B. J., & Bass, B. M. (1988). Transformational leadership, charisma, and beyond. In J. G. Hunt, B. R. Baliga, H. P. Dachler, & C. A. Schriesheim (Eds.), Emerging leadership vistas (pp. 29–49). Lexington Books.

[2] Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

[3] Bass, B. M., & Riggio, R. E. (2006). Transformational leadership (2nd ed.). Lawrence Erlbaum Associates Publishers.

[4] Bass, B. M., Avolio, B. J., Jung, D. I., & Berson, Y. (2003). Predicting unit performance by assessing transformational and transactional leadership. Journal of Applied Psychology, 88(2), 207–218.

[5] Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & company.

[6] Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.

[7] Custom Market Insights. (2024). Indonesia herbal medicine market size, share & forecast 2024–2033. Custom Market Insights.

[8] https://www.custommarketinsights.com/report/indonesia-herbal-medicine-market/

[9] Duchek, S. (2020). Organizational resilience: a capability-based conceptualization. Business Research, 13(1), 215–246.

[10] Ferdinand, A. (2002). Structural equation modeling in management research. Fakultas Ekonomi UNDIP: Semarang.

[11] Gärtner, C. (2019). 5 Digital Leadership als Umgang mit Dilemmata. Digital Leadership: Erfolgreiches Führen in Zeiten …. https://books.google.com/books?hl=en&lr=&id=IDidDwAAQBAJ&oi=fnd&pg=PA169&dq=digital+leadership&ots=OKugO9nRGH&sig=_vdos79H_Q53VEYLJZyO3gvqem0

[12] Ghozali, I. (2011). Aplikasi Analisis Multivariate Dengan Program SPSS. Universitas Diponegoro.

[13] Grant, R. M. (2009). Organizational Capability as. Knowledge and Strategy, 133.

[14] Hair, J. F., Money, A. H., Samouel, P., & Page, M. (2007). Research methods for business. Education+ Training.

[15] Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203

[16] Hair, J., Black, W., Babin, B. J., & Anderson, R. E. (2009). Multivariate data analysis. Prentice Hall.

[17] Helfat, C. E., & Peteraf, M. A. (2015). Managerial cognitive capabilities and the microfoundations of dynamic capabilities. Strategic Management Journal, 36(6), 831–850.

[18] Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review.

[19] Khan, S., & Ali, M. (2025). Exploring the Impact of Servant Leadership on Innovative Work Behavior: The Mediating Role of Perceived Organizational Support. International Journal of Organizational Leadership, 14(2). https://doi.org/10.33844/ijol.2024.60515

[20] Lengnick-Hall, C. A., Beck, T. E., & Lengnick-Hall, M. L. (2011). Developing a capacity for organizational resilience through strategic human resource management. Human Resource Management Review, 21(3), 243–255.

[21] Liu, Yanzhe & Guo, Minrui & Han, Zhongyi & Gavurová, Beáta & Bresciani, Stefano & Wang, Tao. (2023). Effects of digital orientation on organizational resilience: a dynamic capabilities perspective. Journal of Manufacturing Technology Management. 35. https://doi.org/10.1108/JMTM-06-2023-0224 .

[22] Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business …. https://www.sciencedirect.com/science/article/pii/S0148296320306871

[23] McKnight, D. H., Liu, P., & Pentland, B. T. (2020). Trust change in information technology products. Journal of Management Information Systems, 37(4), 1015–1046.

[24] Murdifin, I., Nasir, M., Ashoer, M., & Syahnur, M. H. (2021). Determination of Internet Banking Customer Satisfaction-Study at SOE Bank in Indonesia. Jurnal Minds: Manajemen Ide Dan Inspirasi, 8(1), 127–140.

[25] Northouse, P. G. (2014). Introduction to leadership: Concepts and practice. Sage.

[26] Northouse, P. G. (2025). Leadership: Theory and practice. Sage publications.

[27] Phapros. (2023). Laporan Tahunan Terintegrasi 2023. https://www.phapros.co.id/cfind/source/files/report/annual-report/laporan tahunan terintegrasi 2023.pdf

[28] Podsakoff, P. M., MacKenzie, S. B., Moorman, R. H., & Fetter, R. (1990). Transformational leader behaviors and their effects on followers’ trust in leader, satisfaction, and organizational citizenship behaviors. The Leadership Quarterly, 1(2), 107–142. https://doi.org/10.1016/1048-9843(90)90009-7

[29] Ramlawati, R., Bahari, A. F., & Syahnur, M. H. (2022). Company’s Performance as Measured by the Application of Big Data Analysis Capabilities for Customers. Jurnal Minds: Manajemen Ide Dan Inspirasi, 9(1), 109–126. https://doi.org/10.24252/minds.v9i1.27637

[30] Republika. (2023). Industri jamu nasional semakin kompetitif di tengah tren kesehatan alami. Republika.co.id.

[31] https://www.republika.co.id/

[32] Ruslan, S. U., Basalamah, M. S. I. A., & Amra, W. (2023). Pengaruh Komptensi Dan Gaya Kepemimpinan Terhadap Kinerja Karyawan Pada Pt. Fajar Graha Pena Makassar. Center of Economic Students Journal, 6(4), 398-414. https://doi.org/10.56750/csej.v6i4.765

[33] Safri, S., Amang, B., & Selong, A. (2024). Pengaruh Inovasi Layanan, Kondisi Keuangan, dan Literasi Pajak terhadap Kepatuhan Wajib Pajak di Kota Makassar. Economics and Digital Business Review, 5(1), 542–557.

[34] Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial Least Squares Structural Equation Modeling. Handbook of Market Research, 1–47. https://doi.org/10.1007/978-3-319-05542-8_15-2

[35] Sørensen, C., De Reuver, M., & Basole, R. C. (2015). Mobile platforms and ecosystems. In Journal of Information technology (Vol. 30, Issue 3, pp. 195–197). SAGE Publications Sage UK: London, England.

[36] St Sukmawati, S., & Setini, M. (2024). Adoption of information systems in OCB in the pandemic era mediates personality relationships, organisational culture, and employee performance. Int. J. Intellectual Property Management, 14(1).

[37] Sutcliffe, K. M., & Vogus, T. J. (2003). Organizing for resilience. Positive organizational scholarship: foundations of a new discipline. Positive Organizational Scholarship: Foundations of a New Discipline. Berrett-Koehler.

[38] Syahmi, A., Mas’ud, M., Junaid, A., & Manulusi, M. R. (2023). Moderasi Locus Of Control: Penerapan E-Commerce Terhadap Produktivitas Penjualan Pada Umkm Di Makassar. Economics and Digital Business Review, 4(2), 276–281.

[39] Teece, D. J. (2007). Explicating dynamic capabilities: The nature and microfoundations of (sustainable) enterprise performance. Strategic Management Journal, 28(13), 1319–1350. https://doi.org/10.1002/smj.640

[40] Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49.

[41] Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

[42] Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing Digital Transformation. https://doi.org/10.4324/9781003008637-4

[43] Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Press.

Abstract

References

How to cite