INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

The Rise of the Gig Economy and Its Implications for Organizational

Structures and Leadership

Ahmad Faiz Mohd Ezanee¹, *Nomahaza Mahadi², Siti Azreen Habeeb Rahuman²

Hospital Sultanah Bahiyah

²Azman Hashim International Business School (AHIBS), Universiti Teknologi Malaysia

*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.91100463

Received: 04 December 2025; Accepted: 10 December 2025; Published: 18 December 2025

ABSTRACT

The gig economy is changing the way organisations work, and the shift is becoming too significant to ignore.

This paper explores how the rise of flexible and independent work arrangements is reshaping leadership

approaches and traditional organisational structures. The discussion looks at how technology, worker

expectations, and market demands have opened the door for project-based work that gives people more freedom

but also brings new challenges for businesses. Using Self Determination Theory as a guide, the paper highlights

how autonomy, competence, and a sense of connection are important in keeping gig workers motivated,

especially when they operate with limited security and little attachment to one employer. The review of recent

literature shows a mix of opportunities and concerns. There is potential for organisations to gain more agility

and access to specialised skills, but there are also issues linked to regulation, wellbeing, and fair treatment. This

paper concludes that organisations need to adapt by rethinking leadership styles, strengthening collaboration

between mixed workforces, and investing in continuous learning for everyone involved. Those willing to adjust

and embrace the reality of gig work will be better prepared for the future of employment.

Keywords: Gig economy, organisational structure, leadership, worker motivation, flexible work arrangements

INTRODUCTION

The gig economy's growth is changing the face of traditional work, with profound effects on leadership,

organisational culture, and management education (Caza, 2020; Thomas, 2022). Globalisation, technology, and

changing labour demands are some of the causes causing this change (Agrawal, 2022; Scully-Russ, 2020).

Therefore, further study is required to comprehend how the gig economy affects several facets of employment,

such as dedication, job satisfaction, and human resource development.

The structure of the workplace has undergone seismic alterations from what began as little waves of change.

There are now more options available to both employers and employees for providing value to the market. It is

only a question of time if you have not personally noticed these changes.

Although the phrases "gig economy" and "sharing economy" are frequently used synonymously and have

quickly entered common business discourse, they differ greatly from one another in several aspects. In the gig

economy, the emphasis is on work related flexibility. Utilising an asset to start a job is common in the sharing

economy. Two prime examples include renting out a house or room for a brief period or utilising a car for delivery

or other transportation services.

The traditional "organization man" function that served as the basis for most of the modern theory and practice

is gradually disappearing from the roles of managers and subordinates (Barley et al., 2017; Whyte, 1956). The

complexity of the "gig" category, which encompasses several jobs, independent contracting, temporary labour,

and many other types of employment interactions, further complicates our understanding efforts (Keith et al.,

2019). Since the primary characteristic of gig labour is not having a typical job, each gig experience is different

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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue XI November 2025

(Spreitzer et al., 2017), and each one has its own set of advantages and disadvantages (Ashford et al., 2018). As

others have previously noted, basic research is necessary to advance existing management theory (Ashford et al.,

2018; Best, 2017; Bucher et al., 2019; Duggan et al., 2019; Kaine & Josserand, 2019). Employment law is

lagging behind (Bimman, 2019; Gonzales, 2019). For instance, as noted by Ashford et al. (2018), the majority

of structural changes associated with gig work, such as increased autonomy, instability, uncertainty, transience,

and separation, have a significant impact on people's sense of self, sense of security, sense of agency, and

interpersonal relationships (Bellesia et al., 2019).

The purpose of this paper is to investigate how leadership and organisational structures are being reshaped by

the rise of gig-based labour, focusing on both the opportunities and challenges emerging from flexible,

technology-mediated work arrangements. In extending this purpose, the review examines how gig work

reconfigures organisational design, redistributes managerial authority, and alters expectations placed on leaders

managing fluid, nontraditional workforces. It also draws on Self-Determination Theory to understand how

autonomy, competence, and relational attachment shape motivation and continuity among gig workers who

navigate unstable, high-autonomy employment systems with limited organisational belonging. In doing so, the

paper evaluates the shift from fixed hierarchies to hybrid workforce models, considers how leadership styles

must adapt to sustain commitment and performance, and interrogates the psychological conditions underpinning

engagement and well-being in modern gig-enabled employment.

Theory Overview

One theory that best relates to the topic of the rise of the gig economy and its implications for organizational

structures and leadership is the Self-Determination Theory (SDT) by Edward L. Deci and Richard M. Ryan

(Ryan and Deci, 2000). Self-Determination Theory emphasizes people's internal drive as well as their

fundamental psychological demands on competence, relatedness, and autonomy. SDT may assist in the

explanation of how businesses might promote the motivation and wellbeing of gig workers in the setting of the

gig economy, wherein individuals have more freedom and influence over their working conditions.

SDT can aid in the explanation of how businesses might promote the motivation and wellbeing of gig workers

in the setting of the gig economy, wherein individuals have more freedom and influence over their working

conditions.

Firstly, SDT is emphasize on autonomy. In the gig economy, employees have a great deal of freedom when it

comes to selecting their projects, creating their own timetables, and picking their workspace. By giving gig

workers, the freedom to decide for themselves and encouraging a sense of control and ownership over their work,

organisations that uphold SDT values may empower these individuals.

Secondly, SDT is emphasize on competency. SDT focuses a strong emphasis on how crucial it is for people to

feel capable and productive at work. By offering chances for skill development, training, and feedback to

improve performance and self-assurance, employers may boost the competency of gig workers.

Thirdly, SDT is emphasize on sense of relatedness. Even while gig work may appear isolating, companies can

help gig workers feel more connected by encouraging a positive work environment, assisting team members in

communicating and working together, and providing chances for networking and social interaction.

Considering the gig economy's changing dynamics, Self-Determination Theory provides insightful guidance on

how businesses may create work environments, leadership styles, and organizational structures that promote gig

workers' intrinsic motivation and well-being. Although SDT offers insightful information, it does not cover each

component of the gig economy. For instance, it does not specifically address the difficulties that many gig

workers confront in terms of job security and benefits. It's crucial to consider other elements when examining

worker motivation in the gig economy, such as financial strain and economic reality. All things considered, SDT

provides a useful foundation for comprehending employee engagement and motivation in the context of the gig

economy. Businesses could create a more appealing and effective work environment for gig workers by

concentrating on meeting their psychological requirements. This rising workforce segment can be served by

these initiatives.

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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

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LITERATURE REVIEW

Research on the gig economy has expanded rapidly, driven by intersecting debates on technological disruption,

labour flexibility, economic precarity, regulatory ambiguity and shifting cultural expectations of work. Digital

platforms remain the principal accelerator of these transformations, as advances in mobile applications and

online marketplaces allow labour to be transacted globally and instantaneously, forming what has been labelled

the “platform,” “on-demand,” or “gig” economy (Minifie and Wiltshire, 2016; OECD, 2019; Prudential, 2018).

Within this mediated infrastructure, work is no longer anchored in continuous employment but organised through

task-specific assignments, algorithmic matching and customer-driven scoring systems (US Bureau of Labour

Statistics, 2018). This shift foreshadows the motivational volatility and relational detachment explored in the

Discussion, where autonomy, competence and relatedness are no longer institutionally guaranteed but

structurally conditional.

Flexibility remains the dominant attraction for both workers and organisations. Gig workers value self-

determined scheduling, while firms benefit from reduced fixed labour commitments and rapid talent scaling. Yet,

this autonomy is regularly undercut by irregular hours, income instability and extended availability demands

that intrude on sleep patterns, family arrangements and psychological well-being (Tucker and Folkard, 2012).

As later examined through Self-Determination Theory, the tension between volitional autonomy and economic

vulnerability becomes central to explaining why intrinsic motivation weakens despite nominal freedom.

Autonomy in gig work thus diverges from traditional motivational theory: reduced managerial oversight coexists

with intensified platform dependency.

Economic pressures further shape gig participation. Many workers enter platform labour not as a lifestyle

preference but as a strategic response to financial uncertainty, underemployment or wage stagnation. While firms

leverage global skill access, workers experience emotional turbulence—oscillating between independence and

insecurity—which is highly documented across creative freelancers, rideshare drivers and independent

contractors (Malin and Chandler, 2017; Butler and Stoyanova Russell, 2018; Petriglieri et al., 2019; Grandey

and Gabriel, 2015). This emotional oscillation aligns with SDT’s claim that competence without stability and

autonomy without security fails to produce sustained engagement. The gig model therefore heightens

adaptability while diluting identity continuity.

Regulation remains one of the most destabilising domains. Employment classification—whether workers are

categorized as employees or independent contractors—determines access to social insurance, benefits, legal

safeguards and collective bargaining (Donovan, Bradley, and Shimabukuro, 2016). Labelling workers as

contractors enables cost flexibility but displaces relational belonging, structured development and welfare

entitlements, reinforcing the relational deficit highlighted in the Discussion. Calls for portable benefits, platform

accountability and taxation clarity reflect not only economic justice but the psychological need for predictable

security, conditions SDT identifies as essential for sustained motivation rather than episodic participation.

From an organisational lens, the gig model has become both a cost strategy and a governance experiment. Firms

increasingly deploy dual labour systems, combining core full-time employees with contingent digital labour

pools to achieve agility and scale. Emerging arrangements—worker cooperatives, platform unions, modular

training ecosystems—anticipate the distributed leadership, adaptive coordination and e-leadership competencies

required in hybrid workforce systems (Tug, 2023). These models confirm the structural turn discussed later:

organisational identity is no longer contained within hierarchical boundaries but diffused across platform-

mediated contributors who lack conventional organisational membership yet fulfil critical operational functions.

Boundaries between gig and full-time roles thus blur, producing new expectations of leadership presence without

physical proximity, cultural reinforcement without co-location and motivation without traditional belonging.

Taken collectively, the literature demonstrates that the gig economy is not merely a labour alternative but a

systemic realignment of work, authority and identity. While it promises autonomy, mobility and organisational

agility, it simultaneously intensifies structural inequities, motivational fragility and relational thinning. This

intersection sets the foundation for the paper’s Discussion, where SDT’s psychological conditions and

contemporary leadership frameworks become essential to explaining why gig work remains economically

efficient yet motivationally unstable and organisationally unanchored.

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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)

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METHODOLOGY / REVIEW APPROACH

This paper adopts a structured literature review approach in which relevant studies were located through Google

Scholar, Emerald, ScienceDirect and Scopus, reflecting both multidisciplinary breadth and indexed publication

quality. Searches were conducted using key terms including “gig economy,” “platform work,” “digital labour,”

“hybrid workforce,” and “algorithmic management,” covering the period 2015–2024 to capture the accelerated

expansion of technology-mediated flexible work systems. Only peer-reviewed journal articles and reputable

institutional reports were included, while dissertations, non-refereed commentary pieces and non-indexed

materials were excluded to ensure scholarly rigour. The selected literature was then synthesised through thematic

mapping to identify conceptual intersections between organisational restructuring, leadership adaptation and

worker motivation, with specific attention to how Self-Determination Theory explains gig workers’ experiences

of autonomy, competence and relatedness within precarious yet flexible employment settings.

DISCUSSION

The accelerating expansion of the gig economy requires organisations to reconsider not only how work is

structured but how motivation, authority and belonging are sustained when labour is decentralised, digitally

mediated and individually fragmented. Self-Determination Theory provides a critical interpretive lens for this

shift because the gig model disrupts the three psychological conditions which are, autonomy, competence and

relatedness, that underpin intrinsic motivation and long-term work commitment.

Gig work is commonly framed as autonomy-enhancing, yet SDT clarifies that this autonomy is conditional rather

than sovereign. Workers choose when to log in, but their earning stability is governed by platform algorithms,

dynamic pricing, customer ratings and constantly shifting task allocation systems. The outcome is apparent

independence under economic insecurity. Autonomy therefore becomes transactional: flexibility enables

scheduling control, but the absence of guaranteed income, portable benefits and predictable task flow steadily

erodes the sense of volitional agency that SDT identifies as the foundation of self-directed motivation.

Competence follows a similar paradox. Gig workers continuously acquire platform-specific know-how, micro-

interaction skills and digital customer management abilities, yet these capabilities remain fragmented across

assignments, applications and industries. Competence grows in tactical bursts rather than holistic progression,

creating what may be described as functional capability without identity consolidation. Without organisational

mentorship, structured development pathways or leadership-driven reinforcement, skill acquisition is episodic

rather than developmental, weakening the motivational payoff SDT associates with mastery.

Relatedness is the most structurally compromised SDT pillar. Platform environments replace collegial

interaction with numerical visibility such as, ratings, completion scores, customer reviews and algorithmic

matching functions. Work becomes a sequence of transactions rather than relational exchanges, and workers

engage more with platforms than with people. Limited social contact, absence of supervisor dialogue and

negligible peer community create relational detachment, reducing affective belonging, psychological safety and

long-term loyalty. In this sense, gig work redefines labour participation as performance without interpersonal

anchoring.

This psychological restructuring is inseparable from the organisational transformation occurring simultaneously.

The rise of gig labour signals not just labour flexibility but an architectural shift from vertically integrated

hierarchies to hybrid, networked workforce ecosystems where permanent and contingent workers interact

without traditional boundaries. Project-based models, digital task allocation, algorithmic management systems

and flatter structures reduce managerial proximity, requiring new leadership competencies and governance forms.

Leadership responses must therefore transition beyond classical supervision. Adaptive leadership becomes

essential because leaders must navigate fluctuating workforce composition, temporal project cycles and uneven

worker commitment. Transformational leadership, previously tied to internal culture-building, must evolve to

inspire discretionary effort among contributors who are organisationally peripheral yet operationally central.

Distributed leadership is increasingly relevant as authority and task ownership are dispersed through platforms

rather than imposed through fixed line-management roles. Finally, e-leadership emerges as a dominant

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requirement: communication, monitoring, feedback and culture transmission now occur through digital systems

rather than physical managerial presence.

Algorithmic management intensifies these leadership challenges by transferring supervisory functions like, task

allocation, performance monitoring, behavioural nudges, from human managers to platform logic. Leadership,

therefore, becomes interpretive rather than directive, focused on enabling inclusion, negotiating fairness,

supporting wellbeing and stabilising motivation rather than commanding physical teams. What organisations

gain in agility, they risk losing in continuity, identity formation and psychological attachment.

Taken together, SDT and contemporary leadership theory demonstrate that the future of organisational

effectiveness will depend not merely on digital efficiency but on moral and motivational stewardship. If gig

workers are to remain productive contributors, organisational systems must reconstruct autonomy as stability

rather than exposure, competence as cumulative rather than episodic, and relatedness as meaningful connection

rather than platform-mediated anonymity. Where leadership shifts from control to facilitation and structures shift

from hierarchy to collaborative ecosystems, the gig economy may evolve from precarious flexibility into

sustainable participation.

CONCLUSION

The rise of the gig economy signifies not merely a shift in employment patterns but a structural and psychological

redefinition of work, calling for a re-examination of leadership, organisational design and motivation

frameworks. Situated within Self-Determination Theory, this paper underscores that autonomy in platform-

mediated labour, while appearing liberating, is often entangled with volatile remuneration cycles and algorithmic

unpredictability; competence development remains incremental yet fragmented, and relatedness is structurally

weakened through digitalised transactional systems rather than collegial interaction. These findings deepen

theoretical understanding by moving SDT from a peripheral explanatory model to a central diagnostic

mechanism that illustrates how motivational fragility is embedded in gig work’s architecture rather than in

individual preference. Leadership implications also extend theory beyond traditional hierarchical assumptions,

as adaptive leadership, distributed authority, transformational engagement and e-leadership competencies

become essential to sustain belonging and performance within hybrid labour ecosystems.

Despite expanding scholarship, notable gaps remain. Empirical evidence on emerging gig economies in regions

such as Southeast Asia, Sub-Saharan Africa and Latin America is limited, particularly where informal

employment, religious norms and state welfare constraints interact with platform work. Equally, research has yet

to fully interrogate hybrid workforce functioning: how full-time and gig contributors coexist in digitally

governed structures, how identity and equity tensions unfold, and how leadership distributes recognition to

workers who are operationally central yet institutionally peripheral. Moreover, gig work’s psychological toll—

loneliness, exhaustion, uncertainty, identity diffusion and digital surveillance—remains insufficiently measured

through longitudinal and cross-industry comparisons, preventing a fuller understanding of motivation decline

and mental health consequences within algorithmically managed labour markets. These gaps point toward future

research directions that must integrate SDT’s intrinsic needs with structural-economic conditions to explain not

only motivational activation but motivational depletion.

Practical implications are equally pressing. Organisations must invest in stable earning models, transparent task

allocation logic and developmental support rather than assuming flexibility itself guarantees motivation. Human

resource leaders must extend inclusion practices, learning access and feedback channels to independent workers

rather than restricting professional growth to payroll employees. Algorithmic scoring and customer evaluation

should be redesigned with fairness, appeals mechanisms and data visibility, recognising that ratings shape

identity security and not merely service efficiency. Finally, policy makers need to advance benefit portability,

social protection access, taxation clarity and platform accountability so that workforce fluidity does not

rationalise insecurity as choice.

Taken together, the gig economy’s future will depend less on technological acceleration than on the ethical and

psychological reforms that accompany it. If organisations and policy systems can reconstitute autonomy as

assured rather than exposed, competence as cumulative rather than episodic and relatedness as relational rather

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than algorithmically symbolic, gig work can mature from precarious participation into sustainable engagement.

Until then, leadership will need to act not as a mechanism of oversight but as a stabilising presence that anchors

identity, wellbeing and motivation amid an employment system increasingly defined by transience, data-driven

supervision and decentralised belonging.

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