Harnessing Intellectual Capital, Digital Leadership, and Dynamic Capabilities to Reorchestrate Change in Digital Transformation

ABSTRACT Digital transformation has become a critical imperative for organizations seeking to maintain competitiveness and resilience in rapidly evolving digital environments. This study aims to examine the influence of digital leadership and intellectual capital on digital transformation through the mediating role of dynamic capabilities. Specifically, it investigates the extent to which digital leadership and intellectual capital, with its human, structural, and relational components, contribute to the development of dynamic capabilities and, in turn, support digital transformation efforts. The study is based on survey data collected from 214 respondents across organizations actively engaged in digital transformation initiatives, using a non‐random sampling approach. A quantitative analysis was employed to test the proposed relationships among digital leadership, intellectual capital, dynamic capabilities, and digital transformation. The results indicate that digital leadership has a significant positive effect on both dynamic capabilities and digital transformation. Indeed, intellectual capital components significantly enhance dynamic capabilities. However, only human capital demonstrates a direct positive effect on digital transformation, while structural and relational capital do not. The direct relationship between dynamic capabilities and digital transformation is not supported. Nevertheless, dynamic capabilities significantly mediate the relationship between digital leadership and digital transformation, as well as between intellectual capital and digital transformation. These findings underscore the pivotal role of digital leadership in driving digital transformation and highlight the strategic importance of intellectual capital in strengthening dynamic capabilities. The study offers theoretical and managerial implications for enhancing organizational adaptability, resilience, and long‐term competitiveness in digitally turbulent environments.