The Role of Social Capital and Shared Leadership in the Digital Transformation and Firm Performance

Dai Duc Ho

SAGE Open, 2025, vol. 15, issue 3, 21582440251347340

Abstract: This research endeavors to investigate the influence of Social Capital and Shared Leadership on both Digital Transformation and Firm Performance, as well as the impact of Digital Transformation on Firm Performance. A survey encompassing 111 Small and Medium-sized Enterprises (SMEs) situated in the Mekong Delta region of Vietnam was conducted. Utilizing Structural Equation Modeling (SEM) analysis, the study examined various facets of leadership style, including task orientation, relationship orientation, representative orientation, and participation in advancing the digital transformation endeavor. Results indicate that a task-oriented leadership approach has a detrimental effect on digital transformation. Conversely, social capital and shared leadership positively correlate with digital transformation and subsequently enhance firm performance. Noteworthy findings include the observation that while the influence of social capital on digital transformation lacks statistical significance, it plays a constructive regulatory role in mediating the relationship between digital transformation and Firm Performance, as well as in the association between shared leadership and firm performance. The study underscores the imperative for SMEs to capitalize on social capital and cultivate leadership styles conducive to fostering digital transformation, thereby augmenting Firm Performance.

Keywords: social capital; shared leadership; digital transformation; firm performance; SMEs (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:15:y:2025:i:3:p:21582440251347340

DOI: 10.1177/21582440251347340

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