Digital transformation in organizations: the role of leadership in driving innovation

Abstract

This research explores the human side of digital transformation, addressing gaps in existing literature. The study analyzes the impact of digital transformational leadership on individual innovative work behavior, organizational innovation and organizational innovation capability through digital transformation considering top management mindfulness as a moderator. Utilizing a quantitative survey method and data from companies in university technology development zones, the model is tested on 290 employees at the individual level and 35 companies at the organization level. At the individual level, the results showed that there is a positive relationship between digital transformational leadership and digital transformation. Moreover, digital transformation mediates the positive relationship between digital transformational leadership and innovative work behavior. At the organization level, the results revealed the positive relationship between digital transformational leadership and digital transformation, moderated by top management mindfulness. The findings enhance the understanding of the role of leadership and top management in fostering digital transformation in organizations, offering insights for managers to improve innovation outcomes at the individual and organization level in the digital age.