Crisis-induced digital transformation: Does leadership matters to lead service employees effectively during the covid-19 pandemic? Nathani Bhavika Visiting Professor, PhD, Symbiosis Centre for Management Studies, Pune, bhavika.nathani04@gmail.com Online Published on 12 May, 2023. Abstract The COVID-19 pandemic has, other than the wellbeing concerns, caused a phenomenal social and financial contagion that has especially affected service sector hard. As the companies are taking preventive measures, a lot of employees in service sector need to work distantly to keep service organizations operating. With restricted writing on leadership and work the in virtual settings in the perspective of service sector, this research work intends to commentate on leadership effectualness concerning employees’ job performance in virtual environment induced by the COVID-19 pandemic. Relying on the input-process-outcome (IPO) framework, the present study examines the efficacy of leadership on job performance of the employees’ working in service sector interceded by work associated pressure, autonomy, and group cohesiveness. Additionally, this research delves moderating effects of the maturity of service provider in respect to digitalization. Data from 210 employees of the service sector who were abruptly forced to transition to a virtual work environment due to the COVID-19 epidemic have been collected in order to evaluate the model that has resulted. Structured equation modelling using partial least squares was used to examine the data (PLS-SEM). The findings showed that task- and relationship-oriented leadership behaviour is necessary for a leader to maintain the performance of service sector workers in a virtual work environment. Astonishingly, work-related tension had no effect on an individual’s effectiveness on the job, as seen by the study’s results on job autonomy and team cohesiveness. The study’s conclusions will serve as a guide for effective leadership in crisis situations when service personnel largely operate in virtual environments. This research study offers empirical information that might assist a company’s human resources department in creating policies and procedures. Additionally, it will assist managers in supporting staff members who are looking for efficient ways to assist struggling employees in relation to their performance on the team. This is a practical study project that shows how leadership affects employees’ job performance in the service sector in a virtual workplace environment during times of crisis. As a result, our research adds to the scant body of knowledge about the influence of leadership in service businesses that must operate in such circumstances. Top Keywords Autonomy, COVID-19, Crisis, Digital transformation, Job tension, Leadership, Remote work, Service employee, Team cohesiveness, Virtual teams, Virtual work environment, Work performance. Top |