IDEAS home Printed from https://ideas.repec.org/a/wsi/afexxx/v17y2022i03ns2010495222500233.html
   My bibliography  Save this article

The Impacts Of Data-Driven Leadership In Ir4.0 Adoption On Firm Performance In Malaysia

Author

Listed:
  • CHAR-LEE LOK

    (School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia)

  • SHU-FEN CHUAH

    (School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia†Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, 21030 Kuala Terengganu, Malaysia)

  • CHEE-WOOI HOOY

    (School of Management, Universiti Sains Malaysia, 11800 USM Penang, Malaysia)

Abstract

The primary purpose of this study is to develop a novel framework to explain the effects of data-driven leadership in IR4.0 adoption on firm performance. We proposed four dimensions for the data-driven leadership: (1) the experience of key personnel with IR4.0 adoption, (2) the appointment of a chief information officer (CIO), (3) the establishment of a technology committee, and (4) the acquisition of technology. This study includes 943 public-listed firms traded on Bursa Malaysia from 2015 to 2019. Using the random effects model (REM), our study shows that data-driven leadership in IR4.0 adoption, particularly the appointment of a CIO and the acquisition of technology, is positively associated with Tobin’s Q and market-to-book value of the firms. Subsample analysis reveals that data-driven leadership has greater significant positive impacts on firm performance in manufacturing-related firms. Further analysis also provides evidence that CEO duality and CEO age negatively affect the role of CIO in manufacturing firms. In contrast, CEO age and founder CEO negatively affect the role of key personnel fitted with IR4.0 experience in nonmanufacturing firms. However, founder CEO in nonmanufacturing-related firms which incorporated IR4.0 technology into the business could significantly improve firm performance. Lastly, there is a noticeable drop in performance when the boards are busy. Our study provides recommendations to both industry and government IR4.0 policy and contributes to leadership literature scholarly, particularly in the data-driven leadership viewpoint in both manufacturing- and nonmanufacturing-related sectors in the era of IR4.0.

Suggested Citation

  • Char-Lee Lok & Shu-Fen Chuah & Chee-Wooi Hooy, 2022. "The Impacts Of Data-Driven Leadership In Ir4.0 Adoption On Firm Performance In Malaysia," Annals of Financial Economics (AFE), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 1-36, September.
    • Handle: RePEc:wsi:afexxx:v:17:y:2022:i:03:n:s2010495222500233
    DOI: 10.1142/S2010495222500233
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S2010495222500233
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S2010495222500233?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:afexxx:v:17:y:2022:i:03:n:s2010495222500233. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/afe/afe.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.