Digital transformation in enterprises: Does leaders' digital literacy matter?

Ope Destrian and Sudarma

International Journal of Information Systems and Change Management, 2024, vol. 14, issue 2, 121-145

Abstract: The current body of literature has emphasised the importance of digital transformation in small and medium-sized enterprises (SMEs). Unfortunately, not much concern has been laid on how SMEs undertake digital transformation. This study examines how the digital transformation of SMEs will be affected by leaders' digital literacy (LDG). Applying survey data from 277 SMEs in Indonesia, this paper evaluates a moderated mediation paradigm. The empirical outcomes show that LDG affects digital transformation through digital-technology utilisation (DTU). Furthermore, leaders' characters (e.g., age, educational degree, and gender) further influence the association between DTU and LDG. This work is among initial endeavours to assess the digital transformation among SMEs in a developing country such as Indonesia. Outcomes like digital transformation and DTU have not yet been surveyed in existing publications on digital literacy.

Keywords: Indonesia; SMEs; small and medium-sized enterprises; leader's characteristics; digital literacy; digital transformation; digital technology use. (search for similar items in EconPapers)
Date: 2024
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