Driving SME Growth Through Digital Leadership: Exploring Tenure and Transformation Dynamics

The main objective of this study is to investigate the role of digital leadership in the sustainability of SMEs. Furthermore, this study examines the mediating role of digital transformation between digital leadership and SME sustainability and the moderating role of leadership tenure on the relationship between digital leadership and digital transformation. This research provides a unique perspective by exploring these connections within the context of developing countries by considering Malaysia as a case study. We employed the structural equation modeling (SEM) technique to analyze the 368 respondents’ data. The study results found a positive relationship between digital leadership and SMEs’ sustainability. Furthermore, it also revealed the positive and significant mediating role of digital transformation between digital leadership and SME sustainability. Examining mediating and moderating factors provided valuable insights for SMEs and policymakers alike. Research findings contribute to both theoretical understanding and practical applications.