This document discusses a study conducted on leadership competencies needed to cope with challenges of the fourth industrial revolution in the Philippine airline industry. The study aimed to determine the levels of leadership competencies, success, and challenges faced by airline leaders in the 4IR, and examine if competencies and success differ based on leader characteristics. A conceptual framework and research methodology using surveys and statistical analysis are presented. Key findings include: 1) leadership competencies like problem-solving and conflict resolution are important for success but do not differ based on leader age; and 2) competencies have a significant relationship with challenges, but challenges do not directly impact success. The 4IR requires leaders to develop new skills to address technological changes and globalization challenges.

1. Leadership Competencies in Coping with the
Challenges of the Fourth Industrial Revolution:
Evidence from the Philippine Airline Industry
Presented by:
Edmond Paolo F. Garcia, Ph.D.
December 9, 2023

2. Why conduct the study?
• INDUSTRY 4.0
• The main concept in Industry 4.0 is the full use of advanced information technology and the rapid
machines’ development for the improvement of industry levels in coping with global challenges (Wang
et al., 2016).
• Business leaders need to respond to support the organization’s increase in technological capacity
(Schiuma, 2017).
• The new leader will need the competencies of effective communication to convey organizational
goals, mission, and vision (Tulasi et al., 2019).
• Essential elements determining the new leaders include competencies in organizational objectives,
people, change, mistakes and conflicts, communication, and innovation (Oberer et al., 2018).
• Senko (2018), also claims the importance of strong leadership within the airline industry in the highly
competitive commercial aviation in the era of industry 4.0.
There is the need of a new generation of leaders with competencies ranging from
basic business processes to information technologies.
(Dumitrescu et al., 2019)

3. Why conduct the study?
• Leadership for Industry 4.0
Leaders will face responsibilities to the disruptions brought about by the ongoing global trends
and forces in the era of the fourth industrial revolution. The challenges presented by the fourth
industrial revolution establish the need to understand the required leadership competencies.
The business environment
requires employment of new
leadership competencies
Ras et al., 2017
Leaders need to develop
competencies to effectively
manage costs
Russel Reynolds
Associates, Inc., 2008
organizations must develop a
leadership framework composed
of competencies
Alade & Windapo, 2019
There is the need to identify the implications of the
new revolution for the nation’s human development,
industrial strategies, leadership competencies, and the
adjustment of workforce skills in order to flourish in the
emerging technological landscape
Dadios et al., 2018

4. What were the levels of leadership competencies, leadership
success, and challenges of airline leaders in the Fourth Industrial
Revolution?
Is there a significant difference in leadership competencies and
leadership success across airline leaders’ characteristics?
What is the effect of the demographic profile of respondents on
leadership competency?
What is the effect of leadership competencies and leadership
success with leadership challenges as a mediating variable?
Statement of the Problem

5. Conceptual Framework
Figure 3. Conceptual framework on the mediating effect of Fourth Industrial Revolution
challenges on the leadership competencies and leadership success relationship
H1a
H1b
H1c
H2
H3 H4
H5

6. Methodology
Summary Table of Research Methodology
Statement of the
Problem / Objective
Research Design Sampling Data Gathering
Measurement/
Statistical Treatment
1. What were the
levels of leadership
competencies,
leadership success,
and challenges of
airline leaders in the
Fourth Industrial
Revolution?
Quantitative
Purposive Sampling
Full Enumeration
Survey Method
(Self-made questionnaire)
Descriptive statistics
(means, percentage,
standard deviation)
2. Is there a
significant difference
in leadership
competencies and
leadership success
across airline leaders’
characteristics?
Quantitative
Purposive Sampling
Full Enumeration
Survey Method
(Self-made questionnaire)
Inferential statistics
(independent T-test,
ANOVA, Pearson R)

7. Methodology
Summary Table of Research Methodology
Statement of the
Problem / Objective
Research Design Sampling Data Gathering
Measurement/
Statistical Treatment
3. What is the effect
of the demographic
profile of
respondents on
leadership
competency?
Quantitative
Purposive Sampling
Full Enumeration
Survey Method
(Self-made questionnaire)
Inferential statistics
(PLS-SEM, Mediation
Analysis)
4. What is the effect
of leadership
competencies and
leadership success
with leadership
challenges as a
mediating variable?
Quantitative
Purposive Sampling
Full Enumeration
Survey Method
(Self-made questionnaire)
Inferential statistics
(PLS-SEM, Mediation
Analysis,
Bootstrapping
Method)

8. The equation for estimating the relationship between leadership competency and leadership success is as
follows:
(1)
𝑌 = 𝑏0 + 𝑏1𝑃𝑆 + 𝑏2𝐼𝐶 + 𝑏3𝑊𝐸 + 𝑏4𝐸𝑇 + 𝑏5𝐶𝑅 + 𝑏6𝐷𝐶
+𝑏7𝑅𝐶 + 𝑏8𝑆𝐶 + 𝑏9𝐶𝐼 + 𝑏10𝐸𝐶 + 𝜀
Where:
Y = a predicted value of leadership success
𝑏0 = y-intercept, the value of y when x=0.
𝑏1 to 𝑏𝑝 = Change in y for each 1 increment change in the respective independent variable.

9. The equation for estimating the relationship between leadership competency and Fourth Industrial Revolution
challenges is as follows:
(2)
𝑀 = 𝑏0 + 𝑏1𝑃𝑆 + 𝑏2𝐼𝐶 + 𝑏3𝑊𝐸 + 𝑏4𝐸𝑇 + 𝑏5𝐶𝑅 + 𝑏6𝐷𝐶
+𝑏7𝑅𝐶 + 𝑏8𝑆𝐶 + 𝑏9𝐶𝐼 + 𝑏10𝐸𝐶 + 𝜀
Where:
M = predicted value of Fourth Industrial Revolution challenges
𝑏0 = y-intercept, the value of y when x=0.
𝑏1 to 𝑏𝑝 = regression coefficients

10. The equation for estimating the relationship between Fourth Industrial Revolution challenges and leadership
success:
(3)
𝑌 = 𝑏0 + 𝑏1𝑆𝐾𝐶 + 𝑏2𝐼𝐹𝐶 + 𝑏3𝐶𝐵𝐶 + 𝑏4𝑊𝑆𝐶 + 𝑏5𝑁𝑂𝑀 + 𝜀
Where:
Y = a predicted value of y (Fourth Industrial Revolution challenges)
𝑏0 = y-intercept, the value of y when x=0.
𝑏1 to 𝑏𝑝 = Change in y for each 1 increment change in the respective independent variable.

11. The equation for estimating the mediating effect of the Fourth Industrial Revolution challenges leadership
competency and leadership success:
(4)
𝑌 = 𝑏0 + 𝑏1𝑋 + 𝑏2𝑀 + 𝜀
Where:
Y = a predicted value of leadership success
𝑏0 = y-intercept, the value of y when x=0.
𝑏1 and 𝑏2 = Change in y for each 1 increment change in the respective independent
variable.
M = An x score; the mediating variable intended to predict a value of Y (leadership
success)
X = An x score; the independent variable intended to predict a value of Y
(leadership success)

13. Table 10
Competency Assessment of Leaders
Competency Requirement Mean Std. Deviation
Problem Solving 4.21 0.51
Intelligence 4.10 0.53
Workforce Enablement 4.12 0.55
Entrepreneurial Thinking 4.12 0.50
Conflict Resolution 4.42 0.49
Digital Competency 4.16 0.48
Research Competency 4.10 0.40
Sociocultural Competency 4.19 0.46
Creativity and Innovation 4.00 0.47
Ethical Competency 4.00 0.53

14. The data were put through an independent
samples one-way analysis of variance, and the
findings indicated that there is not a significant
difference (p > .05) between the levels of
leadership competences in the airline industry
across the four age categories of airline leaders.
This demonstrates that it is possible to achieve
this goal and that the leadership skills required of
airline leaders are consistent across all four age
groups.
This also demonstrates that the target is within
reach. This demonstrates that leadership
qualities may be learned via experience and
practice in the role that they are used in.

15. Table 13
Relationship of Leadership Competencies
and Leadership Challenges
Variables
Leadership
Challenges
Leadership
Competencies
Leadership Challenges Pearson Correlation 1 0.49
Sig. (2-tailed) .000
N 168 168
Leadership Competencies Pearson Correlation 0.49 1
Sig. (2-tailed) .000
N 168 168
This shows that the amount of
leadership skills possessed by leaders
tends to rise as they are exposed to
an increasing number of obstacles
associated with leadership.
By continuously confronting similar
obstacles in their many places of
employment, leaders can gain the
knowledge, abilities, and strategies
necessary to effectively handle the
problems that arise within a
company.

16. Relationship Between Leadership
Competencies and Challenges
Table 16
Effects of Leadership Competency With Challenges Indicators
Skill
Challenges
Infrastructure
Challenges
Cybersecurity
Challenges
Work
system
Challenges
New
Operating
Models
Leadership
Competency
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Problem Solving .101 .578 .003 .000 .070
Intelligence .575 .120 .054 .008 .002
Workforce
enablement
.004 .000 .000 .001 .000
Entrepreneurial
Thinking
.016 .000 .000 .000 .000
Conflict resolution .467 .023 .910 .405 .191
Digital .001 .000 .000 .000 .000
Research .362 .002 .051 .000 .000
Socio-cultural .636 .004 .917 .003 .002
Creativity and
innovation
.000 .000 .000 .000 .000
Ethical competency .000 .000 .000 .000 .000
Table 16 demonstrates that there is a strong
correlation (p < .05) between leadership competencies
and leadership challenges, which serves as the
mediation variable.
Leaders in a company typically gain new talents as
they progress through the levels of the company. The
leaders of business aviation will be able to refine their
abilities and guide their organization toward realizing its
mission with the assistance of innovations. The difficult
task of formulating effective strategies awaits those in
positions of leadership. Other leaders can learn how to
respond to problems that crop up in the workplace by
studying how they use these talents.

17. Table 19
Effects of Leadership Challenges With Success Indicators
Knowledge Expertise Agility
Problem-
solving
Collaboration &
Understanding
Leadership
Challenges
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Sig value
(p-value)
Skill Challenges .689 .240 .240 .943 .824
Infrastructure
Challenges
.708 .916 .978 .314 .650
Cybersecurity
Challenges
.904 .585 .527 .478 .057
Work system
Challenges
.555 .094 .008 .283 .978
New Operating
Models
.283 .736 .828 .580 .027
The relationship of leadership challenges to
leadership success as indicated in Table 19 reveals
no significant relationship since (p > .05).
Accordingly, Howell and Buckup (2016) pointed out
that this generation most know the need relative to
advancements that evolve across generations. The
Fourth Industrial Revolution brings about big
economic and social problems that will force
businesses and governments to come up with new
ways of doing things, new policies, and new goods.

18. Analysis of the Relationship between Leadership Competencies and
Leadership Success with the Fourth Industrial Revolution Challenges
Table 23
Fourth Industrial Revolution Challenges as Predictors of Leadership Success
Standardized Effects in Linear Equations
Predictor Estimate
Standard
Error t-value Pr > |t|
Problem Solving 0.11 0.01 17.75 .000
Intelligence 0.11 0.01 18.33 .000
Workforce Enablement 0.12 0.01 18.36 .000
Entrepreneurial Thinking 0.11 0.01 19.22 .000
Conflict Resolution 0.11 0.01 16.80 .000
Digital Competency 0.10 0.01 18.06 .000
Research Competency 0.08 0.00 17.74 .000
Sociocultural Competency 0.09 0.01 17.22 .000
Creativity and Innovation 0.10 0.01 18.57 .000
Ethical Competency 0.11 0.01 17.55 .000
The challenges that the Fourth Industrial Revolution has created
have made it abundantly clear that a leader's success can be increased by
their willingness to overcome the challenges that are put in their path.
Leaders are expected to be successful in addressing and resolving the
issues that the company is facing as a direct result of the Fourth
Industrial Revolution because of the challenges that they face as a result
of these barriers.

19. Table 32
Estimate Effects of Leadership Success with Leadership Competency
Standardized Effects in Linear Equations
Predictor Estimate
Standard
Error t Value Pr > |t|
Skills Challenges 0.17 0.01 18.06 .000
Infrastructure Challenges 0.19 0.01 19.29 .000
Cybersecurity Challenges 0.23 0.01 21.00 .000
Work Systems Challenges 0.16 0.01 17.56 .000
New Operating Models Challenges 0.20 0.01 18.05 .000
The results in Table 32 are the estimates of each predictor variable in the SEM model. Given
that all the p-values of each variable are less than .05, they are all significant predictor variables
for leadership success. The agile management of airline activities also involved the continuous
improvement of different operational parameters through effective monitoring and control of the
operational stages (Pineda, 2013). To effectively manage teams and groups and enhance
organizational productivity, executives needed agility.

20. Table 38
Sobel’s Test on Leadership Challenges
Fourth Industrial Revolution
Challenges Sobel Test Pr>|Z|
Skill challenges 0.89 .374
Infrastructure challenges -0.57 1.434
Cybersecurity challenges -0.33 1.256
Work system challenges 1.49 .136
New Operating Model -1.64 1.899
According to the findings, the fact that p > .05 gives more proof that the difficulties
brought about by the Fourth Industrial Revolution do not affect a leader's capability to
direct an organization toward the attainment of its goals.

21. • This study showed that there is no significant difference between leadership success and the respondents’ profile
where p-values are greater than the significant level of .05.
• On the contrary, the results reveal that there is a positive correlation and has significant relationship between
leadership competencies and leadership challenges p < .05.
• The statistical results on the relationship of leadership competencies to leadership challenges which served as the
mediation variable conveyed that there is a significant relationship, where p < .05
• Whereas, the relationship of leadership challenges to leadership success revealed no significant relationship since p >
.05
• The study used the SEM model to estimate and measure if all predictors are significant variables for each indicator.
The results indicate that all the p-values of each variable are less than .05,
• then problem-solving, intelligence, workforce enablement, entrepreneurial thinking, conflict resolution, digital,
research, sociocultural, creativity innovation, and ethical competency are all significant predictor variables for
leadership success.
Summary

22. • In the path analysis conducted, the results reveal both direct and indirect relationships among variables in a causal
model. Most of the p-values are greater than .05, indicating that the significance of the independent variables could
not be assessed directly.
• However, certain variables demonstrate a significant direct effect:
• skill challenges exhibit a significant effect when compared to sociocultural competency and creativity
competency.
• Infrastructure challenges display a significant effect compared to workforce enablement and creativity and
innovation.
• In the context of cybersecurity: workforce enablement, entrepreneurial thinking, and conflict resolution are
identified as variables that significantly impact Fourth Industrial Revolution challenges.
• Regarding the work system: problem-solving, entrepreneurial thinking, conflict resolution, digital competency, and
research competency are found to have a significant effect.
• Lastly, in the case of the new operating model: digital competency and creativity innovation are identified as
variables with significance.
• The challenges that come up when functioning as a mediator do not have any direct effect on the qualities of
leadership that are responsible for successful leadership.
• It was discovered that challenges related to skills do not play a significant role in the accomplishment of leadership
success

23. Conclusion
The following leadership skills are necessary in facing the 4IR Challenges:
• problem-solving ability
• Intelligence
• workforce enablement
• entrepreneurial thinking
• conflict resolution
• digital ability
• research ability
• sociocultural ability
• creativity
• innovation ability
• ethical ability

24. Between the four age groups and levels of education:
there are no appreciable disparities in the leadership competency levels.
The degrees of leadership competencies across gender, tenure, and jobs:
• showed substantial disparities.
• This suggests that regardless of the variation in the demographic profile, leadership competencies might be
acquired and enhanced.
The results indicate that the age and educational spectrum of the respondents have no significant influence on
leadership competencies.
However, the gender of the respondents has a significant influence on leadership competencies.
The findings revealed that work-related backgrounds such as the tenure and positions of the respondents have a
significant influence on leadership competency.
All the components of leadership competencies are significant predictors of leadership success. This implies that
leadership competency significantly influenced leadership success.

25. There are also elements of leadership competency that have a significant effect on the five challenges of
the Fourth Industrial Revolution without other intervening variables:
• sociocultural competency and creativity competency for skill challenges
• workforce enablement and creativity and innovation for infrastructure challenges
• workforce enablement, entrepreneurial thinking, and conflict resolution for cybersecurity challenges
• problem-solving, entrepreneurial thinking, conflict resolution, digital competency, and research
competency for work system challenges
• digital competency and creativity innovation for new operating model challenges

26. Recommendations
• Further evaluate leadership success regardless of the diverse demographic profile of the
respondents
• Further explore other factors affecting leadership success is necessary to ensure adaptability,
resilience, and sustainability in times of crisis.
• Leadership competencies could be enhanced by establishing new program designs for improvement
and adapting digitalization
• The airline industry could strengthen the overall structure of the company, the competency of the
leaders and other employees, and the entire operation of the industry.
• A structure for the development of leadership could incorporate other features that are both useful
and necessary.

27. Figure 8. Leadership development framework (Garcia, 2023)

28. Thank you.
Edmond Paolo F. Garcia, Ph.D.