Digital Leadership Competency to Enhance Digital Transformation

The importance of leadership is increasingly recognized in relation to digital transformation. Therefore, middle management and top management must have the competencies required to lead such a transformation. The purpose of this paper is to investigate the relationship between the digital leader competencies as set out by the European e-competence framework (e-CF) and the digital transformation of organizations. Also, the relationship between digital leadership competency (DLC) and IT capability is examined. An empirical investigation is presented based on a sample of 433 respondents, analyzed using PLS-SEM. The results strongly support our hypotheses. DLC has a strong impact on organizational digital transformation. A post-hoc analysis showed this is predominantly the case for the e-CF competencies of business plan development, architecture design, and innovating while business change management and governance do not seem to affect organizational digital transformation. This is the first empirical study to conceptualize, operationalize and validate the concept of DLC, based on the e-competence framework, and its impact on digital transformation. These findings have significant implications for researchers and practitioners working on the transformation toward a digital organization.