Navigating the digital transformation path: The role of digital leadership and technological capability through the dynamic capability model

Abstract

This article explored the impact of digital transformation on enterprise performance and considered how digital leadership can employ an enterprise’s technological capabilities to improve efficiency. Also, digital culture was moderate in unveiling technological changes. The dynamic capability theory was employed to develop the theoretical model. The study employed a quantitative approach to the investigation. In total, 459 questionnaires spanning the different manufacturing enterprises in Ghana were collected from managers. These questionnaires were validated and analyzed using the structural equation model of SmartPLS4. The findings indicate that digital leadership and technological capability had a favorable relationship with digital transformation. Similarly, digital transformation had a significant nexus with enterprise performance. Additionally, digital transformation established a partial mediating effect on enterprise performance. The study’s findings demonstrated that digital culture directly moderates the relationship between digital leadership and digital transformation. Accordingly, the theoretical implication of the research affirms the dynamic capability model and literature gaps on digital transformation, digital leadership, digital culture, and technological capabilities. With the ever-increasing speed of technologies and changing consumer dynamics, the outcome of the investigation serves as a policy assistant to governments, policy makers, and managers in their strategic decision-making processes (R2-Q4).