Redefining impactful business management: digital transformational leadership and transforming capability as drivers of innovation in the digital era

In the digital era, innovation depends not only on technology adoption but also on leadership that renews business models and creates commercial value. While leadership is widely recognized as a driver of innovation, the most effective leadership style for digital transformation remains under explored. This study examines digital transformational leadership (DTL) in Indonesia’s private hospital sector, where digital transformation is reshaping service delivery and competitiveness. DTL is conceptualized through seven archetypes that enable leaders to leverage digital opportunities, foster innovation-oriented cultures, and build external networks. The study investigates how DTL enhances digital transforming capability (DTC), defined as an organization’s ability to navigate digital ecosystems, redesign structures, and increase digital maturity, thereby enabling adaptive business models and improving both technical innovation performance (TIP) and commercial innovation performance (CIP). Using a quantitative approach, data were collected through a structured survey of 157 private hospitals in Indonesia and analyzed using structural equation modeling. The results reveal significant positive relationships among all constructs, demonstrating that stronger DTC leads to higher innovation performance. This study contributes to organizational and strategic management literature by explaining how leadership-driven digital transformation strengthens organizational capabilities and promotes multidimensional innovation performance in the digital era.

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Publication Details

Journal
Cogent Business & Management
Published
2026-06-19
DOI
https://doi.org/10.1080/23311975.2026.2684125
Primary Topic
Educational Leadership and Innovation
Type
article
Field-Weighted Citation Impact
0.00
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article

Redefining impactful business management: digital transformational leadership and transforming capability as drivers of innovation in the digital era

Elok Savitri Pusparini, Ida Zuraida, Avanti Fontana
Cogent Business & Management
Educational Leadership and Innovation
article

Redefining impactful business management: digital transformational leadership and transforming capability as drivers of innovation in the digital era

Elok Savitri Pusparini, Ida Zuraida, Avanti Fontana
article en

Abstract

In the digital era, innovation depends not only on technology adoption but also on leadership that renews business models and creates commercial value. While leadership is widely recognized as a driver of innovation, the most effective leadership style for digital transformation remains under explored. This study examines digital transformational leadership (DTL) in Indonesia’s private hospital sector, where digital transformation is reshaping service delivery and competitiveness. DTL is conceptualized through seven archetypes that enable leaders to leverage digital opportunities, foster innovation-oriented cultures, and build external networks. The study investigates how DTL enhances digital transforming capability (DTC), defined as an organization’s ability to navigate digital ecosystems, redesign structures, and increase digital maturity, thereby enabling adaptive business models and improving both technical innovation performance (TIP) and commercial innovation performance (CIP). Using a quantitative approach, data were collected through a structured survey of 157 private hospitals in Indonesia and analyzed using structural equation modeling. The results reveal significant positive relationships among all constructs, demonstrating that stronger DTC leads to higher innovation performance. This study contributes to organizational and strategic management literature by explaining how leadership-driven digital transformation strengthens organizational capabilities and promotes multidimensional innovation performance in the digital era.

Cogent Business & ManagementVol. 13(1)
University of Indonesia (ID)
Industry, innovation and infrastructure
Openalex Percentile: Top 3%
Educational Leadership and Innovation
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