Transformational Leadership in the Era of Digital Transformation

Abstract

Digital transformation is reshaping organizations worldwide by altering business models, operations, and customer engagement; it creates opportunities in efficiency, data-driven decision-making, and innovation, but also introduces challenges such as skill gaps, resistance to change, and cybersecurity risks. This study integrates Transformational Leadership Theory, Dynamic Capabilities Theory, and Strategic Agility to examine how leadership enables and sustains digital transformation, with a focus on how the core behaviors of transformational leadership; idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration; foster adaptability and innovation. The analysis finds that transformational leaders bridge the gap between technological potential and human capability: they accelerate digital adoption, promote continuous learning, encourage innovation, and build organizational resilience, allowing firms to navigate rapid technological and market change. The study concludes that transformational leadership is a critical enabler of successful digital transformation; theoretically, it links leadership and digital transformation scholarship, and practically, it offers guidance for developing leadership competencies that strengthen employee capabilities, support innovation, and drive agile strategic responses in digitally dynamic environments.