Keywords : Index

Fourth Industrial Leadership Index (4IRLI) for Manufacturing Companies in Malaysia

Salina Daud; Wan Noordiana Wan Hanafi; Jegatheesan Rajadurai; Nurhidayah Mohamed Othman

International Journal of Organizational Leadership, 2021, Volume 10, Issue 4, Pages 421-439
DOI: 10.33844/ijol.2021.60607

Industry 4.0 affects all business areas as companies need both virtual and physical structures to enable collaboration between machines, devices, and people, as well as rapid adaptation along the value chain. A strong leader will help the smooth execution of Industry 4.0. This study aims to capture the indicators that will assist in designing the Fourth Industrial Leadership Index (4IRLI) in the manufacturing sector. The data collection for this study includes a focus group discussion, in-depth interview, an expert opinion interview, and a survey. Based on experts’ comments and recommendations, the questionnaire was modified to remove vague statements, redundant terms and improve the flow and structure of the questions. The Partial Least Square (PLS) approach is used to analyse the collected data. The Complexity Leadership theory is used as an underlying theory in the study. This study will produce a 4IRLI for manufacturing companies highly involved with the industrial revolution. In doing so, this study will be supporting government initiatives to transform the manufacturing industry into Industry 4.0. This is in line with the United Nations’ Sustainable Development Goals, which aim to build resilient infrastructure, promote sustainable industrialisation, foster innovation, and ensure sustainable consumption and production patterns.