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Leadership Styles, High-Involvement Human Resource Management Practices, and Individual Employee Performance in Small and Medium Enterprises in the Digital Era

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  • Afriyadi Cahyadi

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, H-2100 Gödöllő, Hungary
    Faculty of Economics, Sriwijaya University, Indralaya 30662, Indonesia)

  • Taufiq Marwa

    (Faculty of Economics, Sriwijaya University, Indralaya 30662, Indonesia)

  • István Hágen

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, H-2100 Gödöllő, Hungary)

  • Mohammed Nuru Siraj

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, H-2100 Gödöllő, Hungary)

  • Parama Santati

    (Faculty of Economics, Sriwijaya University, Indralaya 30662, Indonesia)

  • József Poór

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, H-2100 Gödöllő, Hungary
    Department of Management, Faculty of Economics and Informatics, J. Selye University, UI. Hradná 21, 94501 Komárno, Slovakia)

  • Katalin Szabó

    (Doctoral School of Economics and Regional Sciences, Hungarian University of Agriculture and Life Sciences, H-2100 Gödöllő, Hungary)

Abstract

This research investigates the positive relationship between leadership styles, high-involvement human resource management practices, and individual employee performance. In this study, we adopt servant, shared, and empowering leadership to explain leadership styles in the digital era. We propose four hypotheses and design a research framework to be analyzed. We develop a self-report questionnaire and distribute it online to three hundred targeted respondents, and collect two hundred and seventy-six complete responses from November 2021 to January 2022. This research applies a quantitative method, using structural equation modeling run by SPSS and AMOS. The results reveal well-distributed data, and all the indicators of the three variables are valid and reliable. The use of CFA confirms the indicators’ validity and reliability. The GoF analysis ensures that the research model is feasible for SMEs. The hypothesis analysis shows the acceptance of H1 and H3, but the rejection of H2 and H4. Leadership styles positively affect individual employee performance and high-involvement human resource management practices in SMEs operating in Lubuklinggau. High-involvement human resource management is not a mediator of the relationship between leadership styles and individual employee performance.

Suggested Citation

  • Afriyadi Cahyadi & Taufiq Marwa & István Hágen & Mohammed Nuru Siraj & Parama Santati & József Poór & Katalin Szabó, 2022. "Leadership Styles, High-Involvement Human Resource Management Practices, and Individual Employee Performance in Small and Medium Enterprises in the Digital Era," Economies, MDPI, vol. 10(7), pages 1-18, July.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:7:p:162-:d:856119
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    References listed on IDEAS

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    1. DEACONU Sorin-Constantin & TEIUSAN Sorin-Ciprian, 2021. "A Bibliometric Analysis For Global Research Trends On Digital Economy," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 73(Special), pages 312-337, December.
    2. Anna T. Falentina & Budy P. Resosudarmo & Danang Darmawan & Eny Sulistyaningrum, 2021. "Digitalisation and the Performance of Micro and Small Enterprises in Yogyakarta, Indonesia," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 57(3), pages 343-369, September.
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    Cited by:

    1. Guifang Wang & Zuraina Dato Mansor & Yee Choy Leong, 2024. "Unlocking digital performance: exploring the mediating role of employee competitive attitudes, behaviors, and dynamic capabilities in Chinese SMEs under high-involvement human resource management prac," Journal of Innovation and Entrepreneurship, Springer, vol. 13(1), pages 1-27, December.
    2. Galvão Meirinhos & António Cardoso & Maria Neves & Rui Silva & Reiville Rêgo, 2023. "Leadership Styles, Motivation, Communication and Reward Systems in Business Performance," JRFM, MDPI, vol. 16(2), pages 1-30, January.
    3. Le-Le Wang & Lan-Xia Zhang & Bin Ju, 2023. "Sustainable Vitality and Learning: The Connotation, Scale, and Heterogeneity of Dualistic Psychological Thriving at Work," Sustainability, MDPI, vol. 15(14), pages 1-14, July.

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