A Conceptual Framework for Studying Factors that Influence Digital Technology Adoption Among Manufacturing Sector: Leadership Effectiveness as a Mediating Variable

Abstract

Purpose: The objective of this study was to explore the current literature on the adoption of digital technology and emphasized the importance of leadership effectiveness in the E&E Manufacturing sector context. Theoretical framework: To examine how organizations will respond to introducing new technologies in manufacturing firms, this study established two mainstream management theories, the Technology Acceptance Model (TAM) and Diffusion of Innovation (DOI), to develop a conceptual framework. Design/methodology/approach: this study extensively reviewed the literature to identify the important factors influencing digital technologies adoption in the E&E manufacturing sector. Findings: This study sought to develop a conceptual framework within the context of E&E manufacturing companies and to identify the factors that influence the adoption of digital technology. This research indicates that leadership style and psychological traits appear to play a significant role in an organization's openness to new technologies. Research, Practical & Social implications: The study's findings may contribute to the manufacturing management practices in performing a more significant strategic role toward Industry Revolution 4.0 requirements. Originality/value: Considering the digital transformation, the leadership field needs more sensitive research in institutional and cultural contexts, focusing on how leadership effectiveness may mediate digital technologies adoption among organizations.