Leadership matters in crisis-induced digital transformation: how to lead service employees effectively during the COVID-19 pandemic
Abstract
Purpose: The COVID-19 pandemic has, besides the health concerns, caused an unprecedented social and economic crisis that has particularly hit service industries hard. Due to extensive safety measures, many service employees have to work remotely to keep service businesses running. With limited literature on leadership and virtual work in the service context, this paper aims to report on leadership effectiveness regarding employees' work performance in virtual settings brought on by the COVID-19 pandemic. Design/methodology/approach: Drawing on the input–process–outcome (IPO) framework, this research investigates the effectiveness of leadership on service employees' work performance mediated by work-related tension, autonomy, and group cohesiveness. Furthermore, this study explores moderating effects of the service provider's digital maturity. To test the derived model, the authors collected survey data from 206 service employees who, due to the COVID-19 pandemic, unexpectedly had to transform to a virtual work environment. The authors analyzed the data using partial least squares structural equation modeling (PLS-SEM). Findings: The results indicated that it took task- and relation-oriented leadership behavior to maintain service employees' work performance in a virtual environment during crisis situations. Further, results indicated mediating effects of service employees' individual job autonomy and team cohesiveness; surprisingly, work-related tension did not impact employees' work performance. Results offered service businesses guidance on how to effectively lead in times of crisis when service employees predominantly work in virtual environments. Originality/value: This is the first empirical study to show how leadership affects service employees' work performance in a virtual work environment during crisis times. Thus, the study contributes to the scarce literature on the impact of leadership in service firms that have to operate in such a setting.
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Leadership can influence technostress indirectly by altering individual resources such as autonomy, workaholism, and recovery.
“For instance, by altering individual resources like autonomy (Bartsch et al. 2021;Dolce et al. 2020), workaholism (Molino et al. 2019), and recovery (Dolce et al. 2020).”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. 2021
Enabling leadership has a positive impact on team cohesiveness.
“Enabling leadership has a reducing impact on teamwork tension and a positive impact on job autonomy and team cohesiveness but does not significantly affect individual work tension for followers working mostly in virtual work settings.Managing leadership has a significant negative effect on autonomy”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. (2021)
Enabling leadership has a positive impact on job autonomy.
“Enabling leadership has a reducing impact on teamwork tension and a positive impact on job autonomy and team cohesiveness but does not significantly affect individual work tension for followers working mostly in virtual work settings.Managing leadership has a significant negative effect on autonomy”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. (2021)
Enabling leadership has a reducing impact on teamwork tension.
“Enabling leadership has a reducing impact on teamwork tension and a positive impact on job autonomy and team cohesiveness but does not significantly affect individual work tension for followers working mostly in virtual work settings.Managing leadership has a significant negative effect on autonomy”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. (2021)
Enabling leadership does not significantly affect individual work tension for followers working mostly in virtual work settings.
“Enabling leadership has a reducing impact on teamwork tension and a positive impact on job autonomy and team cohesiveness but does not significantly affect individual work tension for followers working mostly in virtual work settings.Managing leadership has a significant negative effect on autonomy”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. (2021)
Managing leadership has a significant negative effect on autonomy.
“Enabling leadership has a reducing impact on teamwork tension and a positive impact on job autonomy and team cohesiveness but does not significantly affect individual work tension for followers working mostly in virtual work settings.Managing leadership has a significant negative effect on autonomy”
From Leadership and technostress: A systematic literature review (2025) · cites this paper as Bartsch et al. (2021)
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- Authors
- Bartsch, S., Weber, E., Büttgen, M., & Huber, A.
- Affiliations
- Ludwig-Maximilians-Universität München (DE)
- University of Hohenheim (DE)
- Venue
- Journal of Service Management
- Publisher
- Emerald
- Published
- 2020-08-12
- Volume
- 32
- Issue
- 1
- Pages
- 71-85
- ISSN
- 1757-5818 (ISSN-L)
- OpenAlex
- W3048636589
- Cited by
- 475
- References
- 63
- Citations by year
- 2026: 37 · 2025: 59 · 2024: 86 · 2023: 92 · 2022: 105 · 2021: 79 · 2020: 17
- FWCI
- 79.15
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Journal of service management (publishedVersion)
- Topics
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Employee Performance and Leadership
- Social Sciences › Psychology › Social Psychology › Team Dynamics and Performance
- Social Sciences › Business, Management and Accounting › Organizational Behavior and Human Resource Management › Corporate Management and Leadership
- Keywords
- leadership effectiveness, service employees, employee performance, principle of virtual work, remote work, COVID-19 pandemic, crisis management, digital transformation, task-oriented leadership, relationship-oriented leadership, employee autonomy, team cohesion, digital maturity, service sector
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