Digital transformation: A model of transformational leadership in an organisation

Background: Leaders play a crucial role in driving digital transformation (DT), with their leadership style either facilitating or hindering its successful implementation. Objectives: This article explores the direct and indirect relationships between transactional, transformational and digital leadership styles, and their impact on DT. Method: A quantitative approach was used to collect data from 302 managerial and non-managerial participants at a South African utility company via survey. Results: Analysis using IBM SPSS Amos 26 revealed that while transformational and transactional leadership styles indirectly influence DT, digital leadership has a direct and significant impact. Furthermore, digital culture and digital maturity emerged as critical factors, demonstrating strong positive effects on DT success. Conclusion: The study concludes that digital leadership, culture and maturity are key predictors of successful DT, while transformational and transactional leadership styles do not have a direct significant impact on DT outcomes. Contribution: This research provides valuable insights for information systems leaders on the leadership styles and organisational factors that best support DT, offering practical guidance for implementing effective strategies in digital environments. Keywords: digital transformation; quantitative method; leadership styles; digital leadership; transactional; transformational; maturity; culture.

BackgroundLeadership has emerged as a critical determinant of the performance and indeed the digital transformation of the healthcare system, especially in developing countries. The Health Sector Transformation Plan II and the Information Revolution Roadmap in the government of Ethiopia has emphasized leadership, governance, and digitalization; however, there has been little empirical evidence about leadership style.MethodsThis scoping study was conducted following PRISMA-ScR guidelines. Electronic databases and gray literature sources were searched for studies published between 2015 and 2024. Eleven empirical studies (2015–2024) on leadership and digital transformation of health in public health service in Ethiopia were identified for included. Study synthesis was carried out using the Full Range Leadership Model. Adaptive leadership and e-leadership were established as cross-cutting concepts for this study. Study quality was assessed through the Mixed Methods Appraisal Tool and Newcastle-Ottawa Scale.ResultsAmong the different leadership styles studied, transformational leadership was found to be the dominant style, and it was the one that was highly and consistently linked to the three variables: health workforce motivation, accountability, and service delivery performance. The transactional leadership style was moderately utilized to achieve short-term compliance by performance monitoring. Passive and laissez-faire leadership strategies were rarely used, although they were always associated with negative results. Adaptive leadership behaviors were an integral part of transformational and transactional leadership styles, especially when the leadership decentralization was practiced.ConclusionHybrid leadership models that are dominated by transformational leadership with digital leadership still emerging and having very limited capacity characterize Ethiopia's public health system. The institutionalization of adaptive and digital leadership is a must for the governance and leadership development frameworks to achieve a resilient, equitable, and digitally enabled primary healthcare in Ethiopia and other low- and middle-income countries.

Organisations of all types and sizes are having to implement rapid digital transformation and digital government programs in response to the ever-changing technology landscape and to ensure better digital services and outcomes for citizens. Leading digital transformation initiatives has grown increasingly complex, as leaders are often confronted with a plethora of demands that can be conflicting and, at times, difficult to determine and prioritise, especially if any aspect of the capability to transform is missing. Effective digital leadership is essential for digital transformation and digital government success. The alignment of the job role accountabilities and competencies of digital leaders underpins effective digital leadership within a government agency and across the public sector as a whole. This study seeks to understand the role of digital leaders and digital leadership in digital government transformation and the competencies required for digital leadership success. The study draws on established leadership theories – particularly shared leadership theory, to demonstrate that digital leadership is not a single job role or a one-person responsibility. In practice, digital leadership responsibilities are distributed amongst the different roles within the senior leadership structure of the organisations and between public agencies, particularly when it comes to scarce or technically specific roles. A qualitative research paradigm was adopted for this study to understand how digital leadership is undertaken in the public sector context and the competencies required of digital leaders to support agency and cross-government digital transformation initiatives. First, a scoping review of literature was conducted, and a conceptual framework was developed to provide clarity on the definition of digital leadership, theoretical foundations, the competencies required, “place” (position), and contributions of digital leaders. Building on the conceptual framework, a qualitative document analysis of the job descriptions (JDs) and curriculum vitae (CVs) of digital leaders was conducted to provide an enhanced digital leadership competency set for the public sector. Finally, a semi-structured interview of digital leaders in several public sector agencies was conducted, validating and extending the digital leadership framework as a shared (distributed) capability. This study is relevant because it synthesises existing knowledge on digital leadership and extends the knowledge domain by providing conceptual clarity on digital leadership competencies and contributions. On a practical note, the study provides actionable recommendations on how digital leadership job-role accountabilities can be aligned with digital leadership competencies to achieve digital government transformation outcomes in the public sector, at scale and at pace.

PurposeThis study aims to explore the factors that influence the development of big data analytics capabilities (BDAC) in organizations, an area that has received limited attention in the academic literature.Design/methodology/approachEmploying partial least squares structural equation modeling, this research scrutinizes the interconnections between various antecedents and BDAC. Notably, it examines the mediating roles of organizational culture (OC) and digital maturity (DM) in the nexus between managerial data orientation and BDAC.FindingsAnalysis indicates that OC and DM play crucial roles in enhancing the efficacy of managerial data orientation on BDAC. The sequential mediation by these factors underscores the importance of nurturing an appropriate OC and advancing DM to optimize the benefits of managerial data orientation towards BDAC.Practical implicationsThe findings bear significant implications for organizational practice. They underscore the necessity of enhancing managerial analytical skills and commitment to digital transformation. Furthermore, the study highlights the critical need for aligning OC with strategic objectives and the digital context. The formulation of a cultural strategy that advocates for a data-driven mindset and champions digital initiatives is essential for fostering BDAC development, thereby bolstering organizational performance and competitiveness in the big data era.Originality/valueThis study enriches the body of literature by illuminating the overlooked antecedents of BDAC. It extends the discourse on the human-centric aspects of digital transformation, offering insights into how managerial data orientation can be effectively translated into improved BDAC. This innovative angle deepens our comprehension of the strategies through which organizations can leverage big data technology for value creation and informed decision-making, emphasizing the pivotal role of OC and the requisite digital competencies and resources.

Digital transformation has impacted all areas of life, including human resources management. Studying digital maturity is relevant because it can help organizations adapt to change and improve human resources strategies for successful transformation. This study explored the relationship between digital maturity, transformation, and human resources management and how organizations can use digital technologies to increase maturity and opportunities and cope with obstacles. Complex analysis, synthesis, induction, deduction, and analogy methods were used as methodical tools to analyse literary sources, information, and communication technologies. The importance of digital maturity for human resources management practices and processes and the digital transformation process in management functions was explored. The drivers, challenges, and outcomes associated with digital transformation initiatives were identified, and the impact of digital maturity and transformation on stability was analysed. The study also examined the possible trade-offs between maintaining stability and promoting development through digital technologies. The importance of continuous learning, training, and skill development in human resources management was assessed to achieve and maintain digital maturity. A conceptual framework focused on the relationship between sustainability and development in the context of digital maturity and transformation in human resources management, providing a comprehensive understanding of these dynamics. The research can help manage digital transformation effectively, provide helpful information for academic and practical human resources management applications, and bring a new perspective to the balance between sustainability and development

PurposeIn the digital age, companies require leaders to foster digital transformation entrepreneurship, i.e. the organisational attitude and orientation of the creation of a new business or the development of an existing business by having at the core or embracing digital transformation as the continuous development and application of digital knowledge for companies' value creation. This paper identifies six critical competencies distinguishing the transformative leadership profile supporting enterprises' digital transformation development.Design/methodology/approachThe paper, through a critical literature review focussing on three research streams, i.e. wise, transformative and digital leadership, addresses the following research question: What competencies characterise a digital transformative leader promoting and encouraging digital transformation entrepreneurship? Methodologically, first, explorative analysis of the literature has been carried out exploring the role and relevance of leadership in driving companies' digital transformation. Second, focussing on the three leadership perspectives, wise, transformative and digital, the critical features distinguishing each view have been identified. A set of hypotheses has been formulated to develop a framework to profile a digital transformative leader. In the third stage, the framework of the digital transformative leadership compass has been developed.FindingsThe paper profiles the digital transformative leader, a critical figure in companies competing in the digital age to nurture digital transformation entrepreneurship. Six specific competencies are synthesised and proposed throughout the transformative leadership compass. It is presented as an interpretative framework helpful to understand what affects the organisational culture and behaviours driving digital transformation. The proposed model defines theoretical foundations to operationalise an assessment framework and developing empirical research about leadership characteristics hampering and enabling successful companies' digital transformation.Originality/valueThe study proposes a novel framework based upon a critical analysis of the leadership literature. Combining insights gathered from the literature review on transformative, wise and digital leadership, the need for nurturing a transformative digital leadership allowing enterprises to stay competitive and able to change and adapt to the scenario's evolution emerged. Accordingly, the paper defines the digital transformative leader as a leadership profile sustaining organisational and digital transformation. The transformative leadership compass is proposed as a model to outline the critical competencies distinguishing a digital transformative leader capable of driving continuous company innovation and specifically digital transformation entrepreneurship.

This study explores the critical role of leadership in enhancing the performance of accounts receivable (AR) teams within business-to-business (B2B) financial operations. It aims to examine how different leadership styles, particularly transformational, transactional, and digital leadership, influence AR team efficiency, financial decision-making, and overall financial sustainability. The research also investigates the challenges faced by financial leaders in adapting to digital transformation and managing virtual AR teams, while proposing actionable strategies for leadership improvement. A quantitative research design was employed, utilizing a structured survey distributed to financial professionals and AR managers in Metro Manila. Purposive sampling was applied to ensure respondents held relevant leadership or financial management positions. Descriptive statistics, weighted means, and One-Way ANOVA were used to analyze the data and determine the significance of leadership styles on AR performance. The findings revealed that transformational leadership had the most substantial positive impact on AR team performance, followed by digital leadership, while transactional leadership showed the least effectiveness. Digital transformation, including the adoption of AI and automation tools, was identified as a key enabler of improved financial decision-making and operational efficiency. However, resistance to change, cybersecurity concerns, and regulatory compliance were identified as major challenges for financial leaders. The study concludes that effective leadership is a critical driver of AR management success and financial sustainability. Organizations should prioritize leadership development programs, invest in digital transformation initiatives, encourage cross-functional collaboration, and strengthen credit risk management policies. These strategies will support financial leaders in overcoming operational challenges and achieving long-term financial growth. Keywords: Accounts Receivable Management, Leadership Styles, Digital Transformation, Financial Performance, B2B Operations

Digital transformation in municipalities is vital for improving service delivery, increasing operational efficiency and encouraging citizen participation. This study aims to determine the factors that determine the digital maturity levels of institutions and the effects of these factors by focusing on the digital transformation process of Sakarya and Kocaeli Metropolitan Municipalities. In this research, case study design was used to investigate digital maturity in an in-depth and holistic way in the institutional context and to analyze the case of metropolitan municipalities in a real-world context. Data on municipalities' digital initiatives, policies and online platforms were obtained from semi-structured interviews, documents and observation notes. Data were analyzed and interpreted using single-case and cross-case analysis techniques using MAXQDA qualitative analysis software. While both municipalities have made significant progress in their digital transformation efforts, there are significant gaps and areas for improvement. Research findings point to vital factors influencing digital maturity, including leadership commitment, organizational culture, technical infrastructure, data management and citizen engagement. Holistic and comprehensive models that evaluate various dimensions such as technological infrastructure, digital services, data management, and cyber security provide a suitable framework for understanding digital maturity components in municipalities. Each element, from appropriate technological infrastructure and data governance practices to user-friendly e-government services and competent workforce, is critical to raising digital maturity. Municipalities can overcome the complexities of digital transformation through comprehensive digital strategies, user-centered design, and collaboration with stakeholders.

Digital transformation in educational management has emerged as a major catalyst for systemic change across educational institutions. This study examines the role of digital transformation in driving managerial innovation, identifying implementation challenges, and assessing its influence on overall school quality. Employing a qualitative approach through an extensive literature review, the article synthesizes insights from ten reputable international journals relevant to the field of digital education transformation. The findings indicate that digitalization has stimulated a wide range of innovations, including the use of big data for performance evaluation, interactive platform-based learning models, and predictive analytics to support evidence-based policymaking. Moreover, digital transformation enhances transparency, accountability, and stakeholder engagement throughout the educational process. Despite these benefits, several persistent challenges continue to hinder its effective implementation, such as the digital divide, resistance stemming from organizational culture, limited digital literacy among educators, and concerns regarding data privacy and security. Nevertheless, schools that strategically integrate digital transformation demonstrate substantial improvements in managerial efficiency and educational quality. Such progress is largely influenced by adaptive digital leadership and an organizational culture that embraces continuous change. Strengthening digital infrastructure, providing ongoing professional development, and fostering cross-sector collaboration are therefore essential components for achieving sustainable digital transformation in education. This study offers important implications for policymakers, school leaders, and education practitioners seeking to design context-appropriate and long-term strategies for effective digital transformation. Keywords: Digital Transformation, Education Management, School Innovation, Education Quality, Digital Leadership.

The purpose of this paper is to investigate the concepts of digital transformation and digital maturity, and specifically how they are conceptualized and how they relate to each other, in order to develop insights, critical reflections, future research paths, and research questions. The methodology is based on the three elements: a structured review of scholarly literature where both concepts occur, an AI-based study of both concepts, and a qualitative study with input from 177 experts on digital transformation. Findings confirm the conceptual ambiguity of both concepts which has been noted in extant literature. This ambiguity makes it difficult to rely on – let alone generalize from – digital transformation research output. This paper suggests both the possibility to deduct, from literature, an alternative definition of digital transformation as the “change between different states of digital maturity”, and the possibility of further simplifications, reductions, and variations, of both concepts. The theoretical and practical rationale is that change is the smallest common denominator of digital transformation, and that digital maturity is easier to measure, largely as an effect of existing and established classic maturity model, concepts, and constructs (e.g., organizational culture, leadership, learning, upskilling, et cetera) being increasingly used in general digital maturity models, which may suggest that digital transformation is not very different from other organizational changes, which in turn could have theoretical and practical implications for how the concepts of digital transformation and digital maturity are understood, measured and, ultimately, managed. The paper also highlights possible misconceptions in literature, and suggests that the successive changes between states are non-linear, as opposed to linear, and multi-directional, as opposed to unidirectional. This paper predicts a decreased use of term digital as a qualifying prefix, and that suggests that effectiveness is a common term which encapsulates what digital maturity represents. Keywords - Digital transformation, Digital Maturity, Change Management, Strategy, Literature Review, Paper type - Research paper, Empirical, Conceptual

Introduction. Digital leadership must have the ability to adapt to changes in the technological environment. The rapid development of technology demands adjustments to changes that run quickly so that organizational goals can still be achieved. Digital leadership must be formed with the mindset and ability to solve problems and the ability to maintain relationships between members and between teams. This study aims to determine how digital leadership improves digital transformation in university organizational by analyzing student opinions. Study participants and methods. The present quantitative descriptive study samples were students from five faculty in Universitas Terbuka using purposive sampling. The data were gathered from a structured questionnaire survey of 403 respondents. The factor analysis was applied to bring out the Digital Leadership and Digital Transformation variables representing the attributes, and later, the causality between these variables was established using structural equation modelling (SEM). Results. The confirmatory factor analysis has shown that digital leadership was constructed by eight factors, namely digital literacy (0.740), digital vision (0.801), defence (0.820), presence (0.836), communication (0.849), adaptability (0.801), self-awareness (0.783), and cultural awareness (0.760). Digital transformation comprises five factors: strategy and governance (0.343), curriculum and method (0.447), assessment (0.478), self support and development (0.427), infrastructure and resources (0.461). Empirically, digital leadership significantly influences the digital transformation in university organizational with a coefficient value of 0.507 and an R square value of 0.325. Leaders with digital leadership are able to adapt to the rapid development of technology and changes in organizational behaviour. Digital leadership enables leaders to direct, lead and evaluate an organization's digital transformation process. Practical significance. This study examined the influence of Digital Leadership on Digital Transformation. Digital leadership is innovative leadership that supports the implementation of digital transformation in organizational culture to increase the university's competitive advantage. University leaders must have digital leadership skills, including digital literacy, digital vision, defence, presence, communication, adaptability, self-awareness, and cultural awareness. This capability is used by university leaders to execute all problems encountered in the digital transformation process. Finally, the next research recommendation is to provide a digital leadership module for university leaders. Future digital leadership research should also be linked to emotions, followers, gender, and organizational culture.

The purpose of this study was to examine the impact of transformational and transactional leadership styles on employee performance. The mediating role of organisational culture was also examined. This quantitative study utilised a survey approach to collect primary data from 165 respondents engaged in the private sector in Jakarta, Indonesia. The data was collected during the Covid 19 pandemic. Structural equation modelling using Smart Pls was used to analyse the data. The data analysis showed that only transformational leadership behaviour had a strong and significant impact on employees’ performance. However, the impact of transactional leadership on employee performance was not significant. In addition, the organisational culture had an indirect effect on employee’s performance. The practical implications suggest that leaders should adopt transformational leadership to inspire and motivate employees. Transformational leaders must develop the inner agility to resolve problems by being open-minded, flexible and adopt best practices. This study provided new insights from the theoretical perspective, and the findings were consistent with the transformational leadership model. From an originality perspective, this study found that organisational culture mediates the relationship between leadership styles on employee performance.

A vast number of enterprises struggle to adapt to the digital revolution. Despite substantial investment in digital initiatives and extensive academic research identifying drivers and barriers to digital transformation, the mechanisms by which these factors lead to digital maturity remain unclear. Our study investigates how digital transformation barriers (DTB) and drivers (DTD) lead to digital maturity (DM) and how a digital transformation strategy (DTS) mediates this link. To account for institutional factors, our research draws on survey data from German and Greek enterprises. To uncover direct, mediating, and moderating effects of these factors, we use partial least squares structural equation modeling (PLS-SEM). We found that a DTS improves DM by mediating this relationship. This highlights the critical role of DTS as a dynamic capability that converts DTD into DM. We also found that DTB have a direct negative impact on DM, which is not mitigated by DTS. This leads to the conclusion that barriers must be addressed directly, rather than solely as part of a strategy. The data did not reveal any moderating effect of firm size or location on the connection between DTS and DM. Our research advances the digital transformation literature by clarifying the roles of drivers, barriers, and strategy and offering practical insights for managers steering their enterprises' digital transformation journey.

PurposeThis study aims to investigate the impact of digital leadership (capabilities, experience, predictability and vision) and green organizational culture on firms' digital transformation and financial performance. Additionally, the research aims to evaluate the mediating role of digital transformation in the relationship between digital leadership and firms' financial performance.Design/methodology/approachA purposive sampling technique was employed to identify and select individuals with relevant expertise and experiences in the field of digital transformation. A total of 164 responses were collected, and the questionnaire was designed based on a five-point Likert-type scale. The data were analyzed using SmartPLS 4 (Statistical Software for Structural Equation Modeling).FindingsThe findings indicate that digital leadership capabilities, experience, predictability and vision do not directly impact firms' performance. However, there is an indirect influence on firms' performance through digital transformation. While both digital transformation and green organizational culture (GOC) positively influence firms' financial performance, GOC, leader predictability and leader vision positively influence digital transformation. The results confirm that digital transformation mediates the relationship between capabilities, experience, predictability and vision and firms' financial performance.Research limitations/implicationsThe study highlights that strategic capabilities can enhance value-added processes during digital transformation, contributing to sustainability in the digital era. Overall, this research significantly advances both theoretical understanding and practical applications in the context of digital leadership and its impact on firms. Limited digital transformation stages among Malaysian firms impact the research, with some entities cautious about data disclosure and having limited cooperation with researchers. Gathering data from diverse sources would have strengthened the findings and methodological rigor of this multilevel study. Despite these limitations, the research offers fresh insights into the role of GOC, different facets of digital leadership and their influence on digital transformation and financial performance. This enhances existing knowledge and challenges assumptions of the transformational leadership theory (TLT) framework.Practical implicationsThe study opens the door to further research into distinct leadership components and their effects in a similar context. By highlighting the positive influence of capabilities, experience, predictability and vision on digital transformation, it expands the theoretical and empirical scope in the realm of digital leadership. These findings encourage critical examination, refinement and evolution of TLT, providing insights for leaders and managers as they navigate digitalization, financial performance and digital leadership within organizations. In an era of digital transformation, leaders play a central role in building a psychologically safe environment and nurturing digitally skilled teams capable of managing technological changes. Leaders should possess the digital capabilities, experience, vision and predictability necessary to drive digital transformation, mitigate potential threats and adapt to the dynamic digital landscape.Social implicationsThese findings support government initiatives to accelerate digitalization and Industry 4.0 implementation. Collaboration between the government and private organizations is essential to create policies and practices that facilitate broad participation in digital transformation programs. Policymakers must adopt a proactive approach to address issues related to Internet accessibility, trade barriers, financing access and resource reallocation. These policies aim to ensure a high-quality and affordable digital infrastructure, cultivate trust in digital technologies and equip organizational leaders with the necessary digital skills.Originality/valueThis research provides valuable insights for practitioners to enhance firms' digital transformation. As a practical contribution, this study’s findings can inform how firms can better manage their key digital leadership resources and GOC to foster digital transformation and improve their financial performance.

The goal of this paper is to present contemporary developments in the field of digital maturity models. By conducting a systematic literature review finally 24 relevant studies including 22 different models were identified and various characteristics of different digital maturity models were extracted. Focus was placed on the dimensions used to measure digital maturity in different model approaches. Special light was shed on organizational culture and to what extent it is represented in the models. Among other things, the findings indicate, that dimensions applied in various models can be very different and that just a few models incorporate transformational in addition to digital capabilities. In particular, organizational culture as a dedicated dimension of digital maturity is represented already in a few models, which indicates the growing importance of culture as an enabler of digital transformation efforts. Beside a comprehensive overview of the most widely used dimensions measuring digital maturity, a synthesis of the most frequently addressed cultural attributes is presented in this paper as well. This review finally reveals that most of the existing models give an incomplete picture of digital maturity, that cultural attributes reflecting a digital culture are not integrated systematically, and that digital maturity models specific to the domain of services are clearly under-represented. It also clearly demonstrates that research about digital transformation maturity as a holistic concept is scarce and needs more attention by research in the future.