The Impact of Transformational Leadership on Enterprise Digital Transformation Effectiveness: The Mediating Role of Employees' Digital Skills

The study was conducted to assess the role of transformational leadership in enhancing the effectiveness of digital transformation among small and medium-sized enterprises (SMEs) in an emerging market context. A cross-sectional survey was carried out with 90 SMEs across various industries in Vietnam. Data was analyzed by SmartPLS 3. The findings reveal that the dimensions of transformational leadership—namely idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration—positively influence the effectiveness of digital transformation through the digital skills of employees. This study provides important theoretical and practical contributions to the field of digital transformation in emerging markets.