Transformational Leadership and Employee Engagement: A Systematic Review in the Digital Age

Abstract

In an increasingly dynamic and competitive business environment, organizations must maintain a highly engaged workforce to enhance performance and adaptability. Although transformational leadership (TL) has been widely associated with positive employee outcomes, evidence regarding its influence on employee engagement (EE), particularly across different cultural contexts, remains fragmented. This study aims to systematically review the relationship between TL and EE and identify the key mechanisms that explain this relationship. A systematic literature review (SLR) was conducted on Scopus-indexed publications published between 2015 and 2025. A total of 81 articles were initially identified, and 19 studies met the inclusion criteria for detailed analysis. The selected studies were examined to identify patterns, mediating variables, and contextual factors influencing the TL–EE relationship. The findings indicate that TL consistently exerts a positive influence on EE, both directly and indirectly. Several mediating mechanisms were identified, including psychological empowerment, psychological safety, self-efficacy, trust in leaders, job satisfaction, and workplace digitalization. However, studies conducted in Indonesia produced mixed results, suggesting that cultural and organizational contexts may affect the strength and direction of the relationship. In conclusion, transformational leadership plays a significant role in enhancing employee engagement, while contextual factors may influence its effectiveness. These findings contribute to the leadership and organizational behavior literature and provide practical guidance for organizations seeking to strengthen workforce engagement and organizational adaptability in the digital era.