How Empowering Leadership Drives Performance through Autonomous Strategic Control

Abstract

Main Objectives: This study investigates the relationship between empowering leadership (EL) and individual work performance (IWP) in urban digital start-ups, focusing on autonomous strategic control (ASC) as an indirect linking mechanism. ASC refers to employees’ capacity to plan, monitor, and adapt autonomous work actions while aligning discretion with organizational goals and resource constraints. Background Problem: Prior research on the EL–performance link shows mixed results, as autonomy does not consistently improve performance when employees lack self-regulation, role clarity, or resource support. Novelty: This study advances EL research by introducing ASC as a mechanism explaining how empowerment influences performance. It also extends Conservation of Resources (COR) Theory by conceptualizing ASC as a resource-conversion capacity enabling employees to organize, protect, and invest leader-provided resources in performance-relevant behaviors. Research Methods: A cross-sectional online survey was conducted with 350 full-time employees from seed, Series A, and Series B digital start-ups in Jakarta. Constructs were measured using five-point Likert scales, including 12 ASC items developed from COR Theory and literature on autonomy, self-regulation, strategic alignment, and adaptive behavior. Data analysis employed partial least squares structural equation modeling (PLS-SEM) in SmartPLS 4 with 5,000 bootstrap subsamples, following reliability and validity assessments. Findings and Results: EL was positively associated with ASC, and ASC with IWP. The direct EL–IWP link was not significant. The indirect effect through ASC was positive and significant, supporting an indirect-only mediation model. Conclusion: Empowerment enhances performance when employees regulate autonomy through planning, monitoring, alignment, and adaptation. Managers in digital start-ups should reinforce empowerment with clear goals, structured feedback, defined boundaries, coaching, and resource access to help employees use autonomy strategically and sustainably.