Evaluating the Impact of Digital Strategy, Culture, and Information Technology Capability on Digital Transformation: The Moderating Role of Leadership

Abstract In today’s fast-paced and ever-evolving business environment, organizations, particularly large enterprises, must continuously adapt and innovate to remain competitive. As Egypt pursues digital transformation as a key driver of economic and organizational growth, enterprises in the ICT sector play a pivotal role in this transition. To successfully execute digital transformation, organizations must develop some organizational capabilities including robust strategies, cultivate a strong digital culture, and enhance IT capabilities. All while leveraging effective leadership to guide these efforts. This research aims to investigate the impact of organizational capabilities, digital strategy formulation, cultural values, and IT business capability, on digital transformation execution, with a specific focus on the moderating role of digital leadership. This research adopts a quantitative methodology, utilizing a non-probabilistic sampling technique through convenience and snowball sampling methods. The sample consists of 308 employees from top, middle, and first-line management positions within ICT sector organizations. Hypotheses are tested using appropriate statistical techniques. The findings reveal that organizational factors, including strategy formulation, cultural values, and IT business capability, have a positive impact on digital transformation execution within these organizations. Furthermore, leadership characteristics are found to positively moderate the relationship between the organization capabilities and Digital Transformation except for IT business capability, which operates independently of leadership and shows no moderating effect. Keywords: ICT, Large Enterprises, organizational capabilities, Digital strategy, Digital Culture, IT Capability, Digital Leadership, Digital Transformation