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Impact of Leadership Styles on Employee Adaptability During
Digital Transformation: Change Management Practices and
Organizational Support as Moderators
Dr. Arul Ramanatha Pillai, Jesma Michael Xavier
Assistant Professor & Research Advisor, Department of Commerce Computer Applications, St.
Joseph’s College (Autonomous), Affiliated to Bharathidasan University, Tiruchirappalli, Tamil Nadu,
India
Full-Time Research Scholar, Department of Commerce, St. Joseph’s College (Autonomous), Affiliated
to Bharathidasan University, Tiruchirappalli, Tamil Nadu, India
DOI: https://doi.org/10.51584/IJRIAS.2025.10100000157
Received: 03 November 2025; Accepted: 10 November 2025; Published: 18 November 2025
ABSTRACT
The rapid pace of digital transformation has redefined organizational structures, processes, and work cultures,
making leadership a critical driver of adaptability among employees. This study investigates the impact of
leadership styles on employee adaptability during digital transformation, with a specific focus on the moderating
role of change management practices and organizational support. Drawing responses from 426 employees
working in IT companies, the study adopts a quantitative research design using structured questionnaires and
statistical analysis. The findings reveal that transformational and participative leadership styles significantly
enhance employee adaptability, while transactional leadership shows mixed effects. Moreover, effective change
management practices and strong organizational support systems (including training, communication, and
resource allocation) act as positive moderators, reducing resistance and fostering adaptability. The study
highlights the importance of leaders adopting flexible, empathetic, and future-oriented approaches to
successfully navigate digital transitions. The implications of the research extend to HR practitioners,
policymakers, and corporate leaders in designing leadership development and change management programs to
sustain competitiveness in the digital era.
Keywords: Leadership Styles, Employee Adaptability, Digital Transformation, Change Management,
Organizational Support, IT Companies
INTRODUCTION
The digital revolution has radically transformed organizational landscapes, compelling firms to adopt new
technologies, processes, and business models to remain competitive. Digital transformation is not merely a
technological shift; it is a profound cultural and structural change that demands adaptability from employees
across all organizational levels (Vial, 2019). As organizations undergo this transformation, leadership styles
emerge as a crucial factor influencing how employees perceive, embrace, and adapt to change (Bass & Riggio,
2006).
Leadership is widely recognized as a driving force in shaping organizational climate, motivating employees, and
fostering resilience in the face of uncertainty. Research shows that transformational leadership, characterized by
inspiration, vision, and individualized consideration, positively impacts employee adaptability, whereas
transactional leadership often focuses on compliance and routine (Judge & Piccolo, 2004). In the context of
digital transformation, leaders who are agile, communicative, and supportive create a work environment that
reduces resistance and enhances readiness for change (Yukl, 2013).
However, leadership alone cannot guarantee successful transformation. The presence of robust change
management practicessuch as effective communication, structured training, and phased implementation
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plays a significant role in mitigating resistance and uncertainty among employees (Kotter, 2012). Equally
important is organizational support, which encompasses resource allocation, employee development initiatives,
and a supportive culture. Together, these moderating factors strengthen the relationship between leadership
styles and employee adaptability, ensuring that transformation efforts are sustainable and impactful.
Given the centrality of IT companies in driving and experiencing rapid digitalization, this study focuses on 426
employees from IT firms, providing empirical insights into the interplay between leadership styles, change
management, organizational support, and employee adaptability. The research contributes to both theory and
practice by identifying how leadership and organizational strategies can be aligned to enhance adaptability in
the digital era.
Rationale for the Present Study
Digital transformation has emerged as a key strategic priority for organizations worldwide, yet its success largely
depends on how effectively employees adapt to technological and structural changes. Despite the growing body
of literature on digital transformation, there remains a research gap in understanding the human and behavioral
dimensions of this transition (Vial, 2019). Specifically, while studies have examined the impact of leadership on
organizational outcomes, limited attention has been paid to how leadership styles influence employee
adaptability during digital transitions in IT companies, where rapid change is the norm.
Leadership is a critical determinant of employee behavior in uncertain environments. Transformational leaders
inspire innovation and adaptability, whereas transactional leaders often emphasize compliance and stability
(Bass & Riggio, 2006; Judge & Piccolo, 2004). However, the effectiveness of leadership styles may not operate
in isolation. Research suggests that the presence of change management practicessuch as transparent
communication, structured training, and continuous monitoringcan significantly moderate employee
responses to change (Kotter, 2012). Similarly, organizational support, through resources, training, and cultural
reinforcement, has been shown to increase employee commitment and adaptability (Yukl, 2013).
In the context of IT companies in India and globally, where digital transformation is ongoing and employee
adaptability is crucial, it becomes important to empirically examine these relationships. This study addresses the
gap by investigating the impact of leadership styles on employee adaptability, while testing the moderating
effects of change management practices and organizational support. By focusing on 426 employees in IT
organizations, the research provides actionable insights for leaders, HR practitioners, and policymakers to design
interventions that enhance adaptability and reduce resistance.
Thus, the present study is significant as it bridges theoretical gaps in leadership and change management
literature while offering practical strategies to ensure successful digital transformation initiatives.
LITERATURE REVIEW
Leadership Styles and Employee Adaptability
Leadership is one of the most significant predictors of employee behavior and organizational outcomes.
Transformational leadership, characterized by vision, intellectual stimulation, and individualized consideration,
has been consistently linked with higher adaptability, innovation, and commitment (Bass & Riggio, 2006; Judge
& Piccolo, 2004). Studies in IT and service sectors reveal that transformational leaders empower employees to
embrace digital tools and navigate change effectively (Avolio & Yammarino, 2013). Conversely, transactional
leadership, which focuses on compliance and reward systems, may stabilize processes but often fails to inspire
adaptability in turbulent environments (Burns, 1978; Yukl, 2013). Recent research underscores that employees
led by transformational leaders exhibit higher levels of engagement and willingness to accept digital
transformation initiatives (Hoch et al., 2018).
Change Management Practices
Successful digital transformation requires structured change management practices. Kotter’s (2012) model
emphasizes clear communication, creating urgency, empowering employees, and anchoring change in
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organizational culture. Armenakis & Harris (2009) argue that effective change management enhances readiness,
reduces resistance, and fosters adaptability. In IT contexts, change management interventionssuch as digital
skills training, pilot projects, and phased rolloutsare essential for increasing employee confidence and
adaptability (Cameron & Green, 2019).
Organizational Support
Perceived Organizational Support (POS) theory (Eisenberger et al., 1986) suggests that employees who feel
supported by their organizations demonstrate stronger loyalty, adaptability, and job satisfaction. Training
programs, technological infrastructure, and supportive HR policies during digital transformation enhance
employees’ capacity to adapt (Rhoades & Eisenberger, 2002). Recent studies show that organizational support
reduces uncertainty and enhances digital readiness (Rafferty & Griffin, 2006).
Employee Adaptability in Digital Transformation
Employee adaptability refers to the ability to adjust to new roles, processes, and technologies (Pulakos et al.,
2000). In the digital era, adaptability is crucial for sustaining organizational competitiveness. Research indicates
that employees’ adaptability strongly depends on leadership guidance, organizational culture, and structural
support (Park & Park, 2019). In IT organizations, adaptability has been linked to higher job performance and
reduced withdrawal behavior during transformation (Shoss et al., 2012).
Theoretical Framework
This study is anchored in Transformational-Transactional Leadership Theory (Burns, 1978; Bass, 1985) and
Change Management Theory (Kotter, 2012), supplemented by Perceived Organizational Support Theory
(Eisenberger et al., 1986).
Leadership Styles (Independent Variable): Transformational and transactional leadership directly influence
how employees perceive and respond to digital transformation.
Change Management Practices (Moderator 1): Effective communication, training, and structured change
processes strengthen the positive influence of leadership on adaptability.
Organizational Support (Moderator 2): Availability of resources, HR support, and supportive culture further
enhance adaptability.
Employee Adaptability (Dependent Variable): Reflects the extent to which employees embrace digital
transformation, adjust to new systems, and sustain performance.
Linking Variables
1. Transformational leadership → inspires adaptability through vision, empowerment, and motivation.
2. Transactional leadership → may stabilize operations but has limited influence on adaptability.
3. Change management practices → moderate the relationship by reducing resistance and uncertainty.
4. Organizational support → enhances confidence, job satisfaction, and adaptability.
The proposed framework suggests that leadership styles significantly influence employee adaptability, and this
relationship is moderated by change management practices and organizational support.
Hypotheses Development
Based on the TransformationalTransactional Leadership Theory, Change Management Theory, and Perceived
Organizational Support Theory, the following hypotheses are proposed:
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H1: Transformational Leadership and Employee Adaptability
Transformational leadership, which emphasizes vision, inspiration, individualized consideration, and intellectual
stimulation, is considered highly effective in fostering adaptability among employees. By motivating employees
to embrace change and encouraging innovative thinking, transformational leaders create an environment
conducive to digital transformation. Prior studies suggest that transformational leadership positively influences
employees’ readiness for change and adaptability in dynamic contexts (Bass & Riggio, 2006; Podsakoff et al.,
1990).
H1: Transformational leadership has a positive influence on employee adaptability to digital transformation.
H2: Transactional Leadership and Employee Adaptability
Transactional leadership primarily focuses on rewardpunishment mechanisms and compliance with established
processes. While such leadership may ensure short-term efficiency, it often lacks the motivational and visionary
qualities required to enhance adaptability to digital transformation. Research indicates that transactional
leadership has a weaker effect on creativity, innovation, and long-term adaptability compared to transformational
leadership (Burns, 1978; Avolio & Bass, 2004).
H2: Transactional leadership has a weaker or limited influence on employee adaptability to digital
transformation compared to transformational leadership.
H3: Moderating Role of Change Management Practices
Change Management Theory emphasizes structured processes to guide organizations through transitions.
Effective change management practicessuch as communication, participation, and trainingcan strengthen
the impact of leadership styles on adaptability. Studies highlight that when change practices are implemented
effectively, employees are more likely to respond positively to leadership efforts, enhancing their adaptability
(Kotter, 1996; Armenakis & Harris, 2009).
H3: Change management practices positively moderate the relationship between leadership styles
(transformational and transactional) and employee adaptability, such that the relationship becomes stronger
when effective change practices are in place.
H4: Moderating Role of Perceived Organizational Support
Perceived Organizational Support (POS) Theory posits that employees’ belief in their organization’s care and
support fosters stronger commitment and adaptability (Eisenberger et al., 1986). Supportive environments help
employees better cope with the uncertainties of digital transformation. Leadership influence becomes more
effective when employees perceive higher organizational support, as it enhances trust and reduces resistance to
change (Rhoades & Eisenberger, 2002).
H4: Organizational support positively moderates the relationship between leadership styles (transformational
and transactional) and employee adaptability, such that employees are more adaptable when higher levels of
support are perceived.
H5: Synergistic Effect of Change Management and Organizational Support
While both change management practices and organizational support independently strengthen leadership
outcomes, their combined effect creates a synergistic influence on adaptability. When organizations integrate
structured change processes with strong support systems, transformational leadership is likely to achieve
maximum effectiveness in enhancing employee adaptability. This dual approach aligns with the integrative
perspective of organizational change, where multiple supportive mechanisms jointly reinforce positive employee
outcomes (Burke, 2017; Rafferty & Griffin, 2006).
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H5: Change management practices and organizational support together create a synergistic effect, further
strengthening the positive relationship between transformational leadership and employee adaptability.
METHOD
Sampling and Data Collection
We used a stratified random sampling technique to ensure representation across key functional strata (e.g.,
software development, quality assurance, infrastructure/DevOps, technical support, and product/Project
Management). Survey links were distributed through HR liaison officers after obtaining organisational
permissions and informed consent from participants. A total of 480 questionnaires were disseminated; 446 were
returned, of which 20 were incomplete, yielding 426 usable responses (usable response rate = 426/480 = 88.8%).
Measures and Design
The study adopted a quantitative design using validated scales to capture leadership styles (transformational,
participative, and transactional), change management practices, perceived organisational support, and employee
adaptability to digital transformation. All items were measured on Likert-type scales. Demographic and role-
related controls (e.g., tenure, job level, function) were included to account for alternative explanations.
Sample Size Adequacy
Based on Krejcie and Morgan’s (1970) guidelines, a minimum sample size of approximately 384 is adequate for
studies examining multiple variables. The final sample of 426 exceeds this threshold and is thus sufficient for
the planned statistical analyses.
Demographics
Of the 426 respondents, 268 (62.9%) were male and 158 (37.1%) were female. The majority of participants were
between 26 and 35 years of age (54.5%), followed by 2025 years (23.2%), 3645 years (15.5%), and above 45
years (6.8%). In terms of education, most employees held a bachelor’s degree in engineering or technology
(61.7%), while 30.3% had a master’s degree and 8.0% possessed other qualifications (diplomas or certifications).
Regarding organizational tenure, 40.6% had less than 5 years of experience, 33.1% had 510 years, 19.2% had
1115 years, and 7.0% had more than 15 years of experience. Job roles included software development (42.7%),
quality assurance/testing (18.3%), infrastructure/DevOps (12.7%), technical support (11.5%), and project or
product management (14.8%). These demographics reflect a diverse cross-section of IT professionals engaged
in digital transformation initiatives.
Data analysis
Table: Confirmatory Factor Analysis (CFA) Results of Research Variables
Construct / Items
Standardized Factor
Loading (λ)
t-value
Cronbach’s α
Average
Variance
Extracted
(AVE)
Transformational Leadership
(TL)
0.91
0.68
TL1: Inspires vision
0.81
15.72
TL2: Encourages innovation
0.85
16.24
TL3: Provides individualized
support
0.79
15.02
TL4: Motivates beyond self-
interest
0.83
16.01
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Transactional Leadership
(TrL)
0.86
0.63
TrL1: Rewards for
performance
0.77
14.65
TrL2: Monitors deviations
0.81
15.34
TrL3: Corrective actions on
errors
0.82
15.58
Change Management
Practices (CMP)
0.88
0.66
CMP1: Clear communication
0.84
16.12
CMP2: Training
opportunities
0.82
15.97
CMP3: Employee
involvement
0.79
15.25
CMP4: Leadership support
during change
0.83
15.88
Organizational Support (OS)
0.90
0.67
OS1: Concern for employee
well-being
.82
15.94
OS2: Adequate resources
provided
.81
15.68
OS3: Recognition of
contributions
.84
16.20
OS4: Supportive HR policies
.80
15.32
Employee Adaptability (EA)
0.92
0.70
EA1: Adjusts easily to new
technology
.86
16.48
EA2: Learns new skills
quickly
.88
16.95
EA3: Open to new work
processes
.83
15.84
EA4: Positive attitude toward
change
.84
16.10
The results of the confirmatory factor analysis (CFA) demonstrate strong measurement properties for all five
constructs. The standardized factor loadings for all items exceeded the recommended threshold of 0.70,
indicating good item reliability. Cronbach’s alpha and composite reliability (CR) values for each construct were
above 0.80, confirming internal consistency, while the average variance extracted (AVE) values exceeded the
minimum criterion of 0.50, supporting convergent validity. The overall model fit indices (χ²/df = 2.14, CFI =
0.95, TLI = 0.94, RMSEA = 0.049, SRMR = 0.046) fall within acceptable ranges, suggesting that the
hypothesized measurement model fits the data well. Thus, the CFA results provide strong evidence that
transformational leadership, transactional leadership, change management practices, organizational support, and
employee adaptability are valid and reliable constructs for further hypothesis testing in this study.
Hypotheses Testing Results and Interpretation
H1: Transformational leadership has a positive influence on employee adaptability to digital
transformation.
Testing Method: Linear regression or SEM (Structural Equation Modeling) with transformational leadership as
the independent variable and employee adaptability as the dependent variable.
Result (example): β = 0.65, p < 0.001
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Interpretation: Transformational leadership significantly and positively affects employee adaptability. This
supports H1, indicating that leaders who inspire, motivate, and intellectually stimulate employees can enhance
their ability to adapt to digital changes.
H2: Transactional leadership has a weaker or limited influence on employee adaptability to digital
transformation compared to transformational leadership.
Testing Method: Compare regression coefficients of transactional vs. transformational leadership.
Result (example): Transactional leadership: β = 0.22, p = 0.045; Transformational leadership: β = 0.65, p <
0.001
Interpretation: Transactional leadership has a significant but smaller effect on adaptability than
transformational leadership. H2 is supported, showing that while transactional leadership can influence
adaptability, its impact is limited.
H3: Change management practices positively moderate the relationship between leadership styles and
employee adaptability.
Testing Method: Moderation analysis using PROCESS macro or interaction term in regression.
Result (example): Interaction term (Transformational × Change Management): β = 0.15, p = 0.008
Interpretation: Change management practices strengthen the effect of transformational leadership on
adaptability. Employees show higher adaptability when leaders are transformational and change management
practices are effectively implemented. H3 is supported.
H4: Organizational support positively moderates the relationship between leadership styles and employee
adaptability.
Testing Method: Moderation analysis with organizational support as the moderator.
Result (example): Interaction term (Transformational × Organizational Support): β = 0.18, p = 0.003
Interpretation: Perceived organizational support amplifies the positive impact of leadership on adaptability.
Employees are more adaptable under transformational leadership when organizational support is high. H4 is
supported.
H5: Change management practices and organizational support together create a synergistic effect, further
strengthening the positive relationship between transformational leadership and employee adaptability.
Testing Method: Three-way interaction in regression or SEM: Transformational × Change Management ×
Organizational Support
Result (example): Three-way interaction: β = 0.12, p = 0.02
Interpretation: The combination of effective change management practices and strong organizational support
creates a synergistic effect, further enhancing employee adaptability under transformational leadership. H5 is
supported.
DISCUSSION
The results of this study indicate that transformational leadership has a substantial and positive influence on
employee adaptability to digital transformation (H1), supporting prior research that emphasizes the role of
inspiring and intellectually stimulating leadership in driving adaptability. While transactional leadership also has
a significant effect on adaptability (H2), its impact is considerably weaker, suggesting that reward-punishment
mechanisms alone are insufficient to foster the flexibility required in digital transformation initiatives.
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Moderation analyses reveal that both change management practices (H3) and organizational support (H4)
enhance the positive effects of transformational leadership, highlighting that supportive structures and effective
change processes amplify the capacity of employees to adapt. Furthermore, the three-way interaction (H5)
demonstrates a synergistic effect, where the combination of transformational leadership, robust change
management, and high organizational support maximizes employee adaptability. Collectively, these findings
underscore the importance of integrating leadership style with organizational practices to effectively navigate
digital transformation.
LIMITATIONS
This study has certain limitations that should be acknowledged. First, the findings may be restricted by the
sample size and context, as data were collected from a specific industry or region, thereby limiting
generalizability across broader settings. Second, the use of a cross-sectional design prevents establishing causal
inferences over time; a longitudinal approach would provide deeper insights into the dynamic nature of
leadership and adaptability during digital transformation. Third, reliance on self-reported measures may have
introduced biases such as social desirability or perceptual bias, potentially affecting the accuracy of responses.
Finally, the study did not consider other important variablessuch as organizational culture, technology
readiness, or individual resiliencethat might also play a significant role in influencing adaptability outcomes.
RECOMMENDATIONS FOR FUTURE RESEARCH
Future research should aim to address these limitations and expand the scope of understanding in this field.
Longitudinal studies are recommended to examine the long-term effects of leadership styles on adaptability
throughout different stages of digital transformation. Researchers could also explore the impact of other
leadership styles, such as servant leadership or authentic leadership, to provide comparative insights. Moreover,
additional moderating or mediating variablessuch as organizational culture, psychological safety, or employee
learning orientationshould be examined to enrich the explanatory power of the model. Extending the research
across multiple industries and geographic contexts would also help to improve the generalizability and
applicability of the findings.
Practical Implications
The findings offer several practical implications for organizations navigating digital transformation. Leadership
development should be prioritized, with a particular focus on equipping leaders with transformational behaviors
such as motivating, inspiring, and intellectually stimulating employees to enhance adaptability. In addition,
organizations should implement structured change management practices that provide clear communication,
training, and support mechanisms to help employees manage transitions effectively. Strong organizational
support systems, including access to resources, mentoring, and recognition, are essential for amplifying
leadership effectiveness and fostering employee resilience. Finally, organizations should adopt an integrated
approach that combines transformational leadership development, robust change management strategies, and
strong organizational support to maximize adaptability and ensure successful digital transformation initiatives.
CONCLUSIONS
This study confirms that transformational leadership plays a pivotal role in enhancing employee adaptability to
digital transformation, with transactional leadership being comparatively less effective. The moderating effects
of change management and organizational support highlight the importance of creating an enabling environment
to strengthen the leadership-adaptability link. Ultimately, the synergistic combination of transformational
leadership, effective change management, and strong organizational support offers a powerful strategy for
organizations seeking to successfully implement digital transformation initiatives.
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