The Mediating Effect of IT-Enabled Dynamic Capabilities and Organizational Readiness on the Relationship Between Transformational Leadership and Digital Business Model Innovation: Evidence From Indonesia Incumbent Firms

Deon Montasser, Ruslan Prijadi and Tengku Ezni Balqiah

SAGE Open, 2023, vol. 13, issue 2, 21582440231181588

Abstract: The outbreak of the coronavirus disease 2019 (COVID-19) has triggered the massive adoption of digital products and services in Indonesia, forcing established organizations to accelerate digital transformation and adaptation of their digital enabled business model to stay relevant. This article investigates how established firms achieve digital business model innovation (DBMI) and the role of transformational leadership (TL) as a key antecedent. Based on the cross-sectional survey data from 124 public listed firms in Indonesia, this study reveals that established firms in the uncertainty’s situation require Transformational Leadership, and TL indirectly influence DBMI through organizational readiness and ITeDC. We also found that despite the direct impact of organizational readiness on DBMI, partial mediation through IteDC can be a plausible mechanism. We contribute to the business model literature by offering a more integrated view of the antecedents concerning established firms’ DBMI.

Keywords: DBMI; established companies; IT-enabled dynamic capabilities; organizational readiness; transformational leadership (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:2:p:21582440231181588

DOI: 10.1177/21582440231181588

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