The Role of Leadership in Digital Transformation: A Review and Suggestions for Future Research

Abstract

Digital transformation (DT) through the advance and use of diverse digital technologies (e.g. big data, business analytics, mobile applications, internet of things, digital platforms) has assumed great importance for organizations. Digitalization efforts by organizations in different industries have become even more prominent by recent crises and disruptions such as the Covid-19 pandemic. Simultaneously, digitalization also increase complexity for managers regarding the initiation of multiple changes in and around organizations including work processes, working arrangements and stakeholder alignment. Despite these developments, we have only limited knowledge about what role leaders play in these processes in generating positive impact including sustainable organizational performance, enhanced innovation and creativity, or industrial and social improvements. Although certain leadership concepts and approaches have been associated with DT, so far, no research has discussed these leadership orientations in a comprehensive manner or argued how they can be adopted by managers to connect digital capabilities to organizational value creation and strategic outcomes. Furthermore, only a small number of studies have attempted to assess the leadership challenges relevant in DT processes and how these challenges can be managed or eliminated. To address these gaps, through a review of the existing literature, this study seeks to build an overall understanding of the impact of leadership on the success of complex digital transformations. A set of suggestions are made as possible avenues for future research, clarifying the emergence of multiple and nuanced roles leaders play in DT and what new skills and responsibilities managers should assume in guiding the organization towards desired digitalization goals.