Assessing the impact of digital transformation capability for international market growth: the role of leadership support

Abstract

PurposeThis study aims to examine the impact of an organization’s digital transformation capability (DTC) on its dynamic capabilities and strategic depth, which, in turn, could impact the organization’s international market growth (IMG). This study also investigates the moderating role of leadership support (LES) in using the DTC.Design/methodology/approachThe study reviews various kinds of literature related to international marketing, dynamic capabilities, digital transformation, strategic marketing and LES. Following this, a dynamic capability view is adopted to develop a research model. This research model is later tested using partial least squares structure equation modeling with data from 385 respondents from different types of organizations.FindingsThe study demonstrates that an organization’s DTC significantly enhances its dynamic capabilities and strategic depth. LES is vital for effectively applying and leveraging DTCs since it influences the association between DTCs, competitive advantage and global marketing intelligence. The study also recognizes that strategic depth and dynamic capabilities contribute to IMG.Research limitations/implicationsThe study uncovers the impacts of DTCs, influencing IMG. The study also provides valuable insights regarding the role of leadership in effectively leveraging the organization’s DTCs. It suggests the organization’s management should invest in improving DTC.Originality/valueThis study contributes to the prevailing literature on DTC, leadership and IMG. The study highlights the importance of DTC and how it impacts more established capabilities and leads to IMG of the organization. Further, this study is also unique as it establishes the importance of LES in leveraging the maximum benefits of the DTC.