Testing the Theory of Communication and Uncertainty Management in the Context of Digital Transformation with Transformational Leadership as a Moderator

Digital transformation provokes a great deal of uncertainty among employees. To gain insights into how employees manage the uncertainty driven by digital transformation and also how leaders can support them, this study has drawn on the theory of communication and uncertainty management (TCUM), which posits that the impact of uncertainty varies by how individuals appraise it and social support enhances positive appraisal. Based on those tenets, the current study advanced the following hypotheses: (a) uncertainty has direct and indirect negative effects on employees’ appraisal of digital transformation, self-efficacy, and job performance; (b) in contrast, direct supervisors’ transformational leadership has direct and indirect positive effects on appraisal, self-efficacy, and job performance; and also (c) transformational leadership moderates the impact of uncertainty. SEM with 4-wave time-separated data ( N = 873 employee-supervisor dyads in Japan) found support for these hypotheses. The obtained findings are discussed with reference to TCUM, transformational leadership, and other relevant literature.