3. Transformational Leadership in a Digital Era

Using statistical software package tools like SPSS or R, that is.

An ancient Chinese allegory of Sai Weng Shi Ma (“Sai Weng loses his horse”) echoes this notion. The story revolves around a farmer and his father who resided near the border with barbarian territories. One day, the farmer’s horse, which held significant value as part of his property, escaped. However, after several weeks, the horse miraculously returned. Furthermore, the horse brought along additional horses from the barbarian territories, augmenting the farmer’s wealth. But when the farmer attempted to ride one of these wild horses, he fell and broke his leg, which severely limited his physical capacities. Subsequently, though, when the barbarians launched an attack on the borderland, the farmer’s injury exempted him from being drafted into the battle, enabling him and his father to evade death. These events were spontaneously judged by neighbors each time, but the farmer’s old father utilized his knowledge of Dào (i.e., The Right Way) to draw on a different perspective. He explained that everything is a combination of opposing forces such as Yin and Yang, light and shadow, and happiness and unhappiness. Nonetheless, because the capacity of human perception is limited, it is impossible to accurately predict the future consequences of a given event, leading to uncertainty in determining whether the event truly represents “good luck” or “bad luck.” This tale serves as a reminder that fortune and misfortune are essentially two sides of the same coin, with no objective and clear distinction between them at the time of occurrence.

This dual-process theory serves as a cornerstone for a number of psychological and behavioral sciences. For example, Nobel laureate Daniel Kahneman and his colleagues have conceptualized the bifurcated mechanism of information processing as the theoretical basis of two distinct modes of thought, which they call “System 1” and “System 2.” “System 1” embodies a rapid, unconscious, and semi-automatic mode of processing, while “System 2” represents a slower, more deliberate, and analytical mode. Their seminal contributions to behavioral economics, as evidenced in their body of work (e.g., Kahneman, 2003, 2012; Morewedge & Kahneman, 2010), underscore the profound implications of this theoretical framework.

It is important to distinguish self-efficacy from similar constructs such as self-esteem, self-concept, and self-confidence. Self-esteem refers to individuals’ sense of self-worth or the degree to which they value, approve of, appreciate, and like themselves (Blascovich & Tomaka, 1991). While self-efficacy is the belief in one’s capabilities to achieve a goal or an outcome, self-esteem represents a judgment of oneself as well as an attitude toward the self. Self-concept, on the other hand, is a more general term that includes beliefs about oneself and self-esteem but also includes knowledge about oneself (Baumeister, 2005). Self-confidence is similar to self-efficacy, but it is more general and less tied to specific situations.

University of Arizona professor Kory Floyd has been running a remarkable research initiative that explores biophysiological implications of supportive communication. For example, Floyd et al. (2007) discovered an inverse correlation between the extent of supportive communication in primary relationships and individuals’ resting heart rate as well as the surge of free cortisol increase in response to the acute stressors. These findings suggest that supportive communication may function as a protective shield against stressful situations. Similarly, Floyd et al. (2018) found that engagement in supportive communication is positively associated with improvements in plethora of immunobiological outcomes. Hesse et al. (2021) conclude, based on their meta-analysis, that the benefits of supportive communication extend across a broad spectrum of health domains, including cardiovascular, stress hormonal, stress reactivity, and mental health. All these discoveries underscore far-reaching implications of supportive communication in one’s health and well-being. Comparable findings are reported and discussed by Priem et al. (2010), Priem and Solomon (2015), and Veksler et al. (2020).

How Kunio Yonenaga, Koji Tanigawa, and Yasumitsu Sato—the three most recent presidents of Japan Shogi Association as of writing this book—have pursued the vision of digitalization of Shogi, or Japanese chess, is argued to provide an exemplary case of the leadership practices discussed here (see Iida et al., 2002; Schaeffer & Van den Herik, 2002). Yonenaga is noted for his aggressive research attempts into the potential of AI in collaboration with RIKEN, Japan’s leading research institute for basic and applied science, during the early 2000s. These attempts coincided with the rapid advancement and skyrocketing competitiveness of computer programs for Shogi, known as Shogi AI (Nakatani et al., 2018). Yonenaga even dared to face off against Shogi AI himself and produced Den-o-sen, an official event where the top Shogi AIs at the time compete against Kishi, professional human Shogi players. He also established a partnership with Dwango, an Internet media company, to launch a live streaming service for Shogi matches. Tanigawa and Sato built upon Yonenaga’s strategy and expanded the partnership with IT media companies, such as YouTube and Abema TV, and incorporated various digital technologies to make Shogi more “digitalized.” These proactive and enterprising approaches have been acknowledged by both Shogi fans and professional players (SlowNews, 2021). Taken together, it seems unquestionable that the exceptional leadership of Yonenaga, Tanigawa, and Sato has played a crucial role in the successful digital transformation of Shogi today.

For this study, the type of digital transformation (i.e., digitization vs. digitalization) was not distinguished, since it is not the main focus of the research and incorporating such a distinction would have overly complicated the analyses and discussions.

All respondents were Japanese citizens. Most of them were employees of Japanese companies, whereas a fraction (approx. 10%) of them were working at Japan offices of international/multinational companies.

Several measures were undertaken to ensure the data fidelity. First, attention checks were included at random places within all surveys. For example, one question specified that a particular response should be selected (“This is an attention check; please choose ‘strongly agree’ for this item.”) and the data provided by those who failed to follow the instructions were removed. Second, the cases where the time spent to complete the survey was either too short or too long (i.e., ±3SDs) were removed. Third, the IP address of every response was inspected to ensure the authenticity and uniqueness of the responses. For this study, no case was identified where the responses to both for-supervisor and for-employee surveys were submitted from the same IP address. Fourth, at the end of the wave-1 for-supervisor survey was included an invitation to a lottery to win 5,000 JPY (approximately $50). To be eligible for the lottery, supervisors were asked to provide their names and e-mail addresses. Those e-mail addresses were inspected by the personnel of the research service used in this study; none matched with the respondents’ e-mail addresses registered to the monitor panel of the service. Finally, out of those supervisors who provided their corporate address for the lottery, about 10% were randomly selected and contacted via e-mail to verify their identity.

This study represents part of a larger research project; as such, the respondents and supervisors provided data not used in this study at each wave (the questions tapping the focal constructs examined in this study represented about one-third to one-fifth of the entire questionnaire at a given wave).

Initially, an invitation message was sent to 1,000 individuals registered to the research service’s respondent panel, who matched the three inclusion criteria. Among those in the initial pool, 65 dropped at wave-1 either because their supervisor or the respondents themselves did not complete the survey. Additional 62 dropped across wave-2 through wave-4. The final sample included the data of both respondents and their supervisors completing all the surveys across four waves.

The age and gender of employees and supervisors, as well as the tenure of the dyad, were included in the model as control variables. However, the presence of these demographic variables did not alter the direction or statistical significance of the examined paths. The results reported in this chapter represent those obtained through the analyses that included the control variables.

The origin of this innate need to grasp and control the given circumstance is deemed to trace back to very early stages of the evolution of Homo sapiens. During the prehistoric era, humans were living in a world full of uncertainty and unpredictability. This environment, coupled with the primal instinct for survival, produced a strong selection pressure that favored the development of cognitive mechanisms designed to understand and predict the environment (Cosmides & Tooby, 2013). These mechanisms, which include pattern recognition, causal reasoning, and predictive modeling, played a pivotal role in our ancestors’ survival and eventual success as a species.

More specifically, comprehension of the environment is crucial for adaptive behavior, as it allows individuals to predict and respond effectively to potential threats and opportunities. For instance, recognizing the pattern of rustling leaves could signal the presence of a predator. Similarly, understanding the causal relationship between rainfall and plant growth could guide individuals to locate food sources. These cognitive abilities have been naturally selected over generations for their survival benefits and become ingrained in our psychological mechanisms. The need to maintain control over circumstances, on the other hand, is linked to the concept of agency, which refers to the perceived ability to influence one’s environment and outcomes. From an evolutionary perspective, having control over one’s circumstances can increase predictability and reduce uncertainty, enhancing their survival prospects (Barkow et al., 1995). For example, being able to control fire allowed early humans to protect themselves from predators, cook food, and survive in harsh climates. This sense of control not only improved their survival chances but also reduced anxiety and uncertainty about their environment. Over time, the desire for control became a fundamental part of human psychology that drives our actions and decisions.

Together, these contemplations elucidate the evolutionary root of our innate needs to comprehend the surrounding environment and maintain control over circumstances. These needs shape our cognitive mechanisms and continue to influence our behavior today (for reviews, see Barrett et al., 2002; Bolhuis et al., 2011; Confer et al., 2010).

Some studies suggest that, intriguingly, there is a substantial cerebral-neurological overlap between psychological and physiological pains; that is, people feel physically hurt when they recognize that they have made a failure (Eisenberger & Lieberman, 2004; Singer et al., 2009).

The differences in legal regulations and associated norms and values regarding firing employees across cultures should be noted. For example, in the U.S., the employment-at-will doctrine is prevalent, which allows employers to terminate employees at any time for any reason, barring illegal reasons such as discrimination (Befort & Budd, 2009). This provides U.S. employers with a high degree of flexibility in managing their workforce but can lead to job insecurity for employees.

In contrast, many European countries generally have stronger labor protections. In the U.K., for instance, employees who have been with a company for more than two years are protected against unfair dismissal, and employers must provide a valid reason for termination (Barmes, 2011). France and Germany have similar protections, with the added requirement of a social plan in France for mass layoffs, and in Germany, a works council must be consulted before terminations (Barnard, 2012).

Japan, on the other hand, has a tradition of lifetime employment for a significant portion of the workforce, particularly in large corporations. While this practice has been changing in recent years, it is still relatively difficult to fire employees, especially without their consent (Kato & Morishima, 2002).