The Role of Digital Leadership, Digital Capability, and Organizational Capability toward Digital Transformation Competencies and Competitive Advantage

Muhammad Andryogo Wibowo and Mira Maulida ()
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Muhammad Andryogo Wibowo: Swiss German University, The Prominence Tower Alam Sutera
Mira Maulida: Swiss German University, The Prominence Tower Alam Sutera

A chapter in Proceedings of the 5th International Conference on Global Innovation and Trends in Economy 2024 (INCOGITE 2024), 2024, pp 801-814 from Springer

Abstract: Abstract In the wake of the disruptive era, digital technologies are causing wide- spread disruption across industries, particularly among small-medium-sized businesses. This research aims to find the digital leadership impact towards digital transformation competencies and competitive advantage through digital capability and organizational capability. Empirical data were collected from 205 respondents from SME businesses in Indonesia. Descriptive statistics and the structural equation model (SEM) were used to examine the data. According to our study, digital leadership plays a critical role in fostering digital transformation competencies and giving an organization’s digital capabilities the competitive edge they need to succeed. It includes things like the ability to spot new digital opportunities, adapt to digital transformations, acquire cutting-edge digital technologies, and create ground-breaking new products built on top of those technologies. We also find that: (1) digital leadership directly impacts digital capability and organizational capability, but it does not impact digital transformation competencies, and competitive advantage, (2) digital capability impacts digital trans- formation competencies and competitive advantage, and (3) digital transformation competencies impact competitive advantage directly. However, organizational capability does not impact digital transformation competencies or competitive advantage.

Keywords: Digital Leadership; Digital Capability; Organizational Capability; Digital Transformation Competencies; Competitive Advantage (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-585-0_55

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