Organizational Climate and Strategic Leadership in Industry 4.0

Organizational Climate and Strategic Leadership in Industry 4.0

Semra Tetik, Bülent Akkaya
DOI: 10.4018/978-1-7998-6537-7.ch011
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Abstract

Strategic leadership and organizational climate have been made more important by the Industry 4.0 revolution. Strategic leadership and organizational climate enable businesses to adapt easily to rapidly changing environmental conditions and innovations for sustainability. Therefore, the role of strategic leaders is important in creating an organizational climate to manage and implement strategic changes and also in the preparation and implementation of roadmap to design the future of the business in Industry 4. 0. This study aims to discuss the strategic leadership skills in creating the organizational climate in Industry 4.0. The authors found that there is a relationship between organizational climate and strategic leaders' skills in Industry 4.0. Understanding the relationship between the skills of strategic leaders and organizational climate is essential to uncovering the critical links to firm performance to get competitive advantage in Industry 4.0. Strategic leadership is a key interpreter of how climate of the organization links to the wider systems and requires leadership systems.
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Introduction

Businesses that would like to have competitive advantage in rapidly changing environmental conditions need effective leaders. The presence of effective leaders in businesses always increases the chances of success for businesses. In this context, business need leaders who can adapt to the Industry 4.0 and create the necessary flexibility to adapt to the changes dues to environmental conditions. Moreover, they can create an achievable future for the business by having a vision and can increase the motivation of employees by thinking strategically. These leaders are called strategic leaders in literature. Strategic leader is the leader who determines the mission and vision of the organization. Strategic leader can make strategic changes for the future and provide competitive advantage. The strategic leader is considered to have an important role in creating a positive organizational climate that can affect employees' motivation and commitment. By creating a positive environment organization can ensure that internal relations continue safely. It can contribute to improve the performance of the organizations. Furthermore, it can also make it easier for organizations to adapt the changes in competitive environment due to Industry 4.0. Therefore, organizations need strategic leader to reach their goals, to maximize their profit and value, to overcome chaos, turbulent and incomprehensible situations. Increasing speed, complexity and complexity with Industry 4.0 almost make strategic leadership imperative. Strategic leader can make strategic changes for the future and provide competitive advantage within the scope of Industry 4.0.

There is technology for Industry 4.0, which is expected to provide added value in industrial production. With the integration of information and operation technologies, it will be possible to manufacture products that will offer practical solutions to every part of daily life. To achieve their goals, organizations need strategic thinking, planning and implementation. This can be achieved by organizational climate with this strategic change and to fulfill the requirements of the new smart system occurred by Industry 4.0. All these processes can be effectively managed by a strategic leadership skills and behaviors. In this study, Industry 4.0, strategic leadership and organizational climate are related in perspective of Industry 4.0. The fact that there is no study evaluating these concepts together in the literature reveals the originality and importance of the subject. Therefore, this study will make an important contribution to the literature.

We begin by defining Industry 4.0. Following the structure of the Industry 4.0, we first examine strategic leadership and characteristics of strategic leaders focusing on changes in the environment and implications for strategic leadership responsibilities. After describing the levels, we propose organizational climate and its dimensions. Finally, we discuss the implications for research and management in perspective of Industry 4.0, strategic leadership and organizational climate.

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