The effect of digital leadership on SMEs’ digital transformation: the roles of digital culture and innovation

Purpose In this digital era, small and medium enterprises (SMEs) need proactive leaders with the abilities and skills for innovation, implementation of digital culture and adoption of digital technologies. Therefore, this study aims to highlight the influence of digital leadership on digital transformation. Moreover, it determines the mediating role of digital culture and innovation in the relationship between digital leadership and digital transformation. Design/methodology/approach The data were gathered from top- and middle-level employees of 404 services-oriented SMEs in Jordan and analyzed with AMOS. Findings The results highlighted that digital leadership can positively influence digital culture, innovation and digital transformation. Moreover, the relationship between digital leadership and digital transformation is significantly mediated by digital culture and innovation. Research limitations/implications The study has focused only on the service-oriented SMEs in Jordan but future studies may consider the MNEs. Moreover, it has considered digital culture and innovation as mediators and expand the model by investigating the mediating role of strategic agility. Practical implications The findings of the study can be useful for managers or policymakers of services-oriented SMEs aiming to initiate digital transformation. They can emphasize on digital leadership, digital culture and innovation to digitally transform themselves. Originality/value The study is the first to determine the antecedents of digital transformation in service-based SMEs. It has developed a comprehensive framework based on digital leadership and digital culture that can help SMEs digitally transform themselves.