Impact of Digital Leadership on Digital Transformation Readiness in MSMEs: A Review

The contemporary business environment is characterised by unprecedented volatility, uncertainty, complexity, and ambiguity (VUCA), making digital transformation readiness a strategic imperative for Micro, Small, and Medium Enterprises (MSMEs) that constitute over 90% of all businesses globally and employ approximately 60–70% of the workforce. This conceptual review paper examines the impact of digital leadership on digital transformation readiness in MSMEs, with particular focus on Nigeria and Kano State. The main aim is to synthesise existing theoretical and empirical evidence and develop an integrated conceptual framework positioning the three dimensions of digital leadership digital vision and strategic foresight, technological enablement and dynamic capabilities, and innovation facilitation and empowerment as antecedents of digital transformation readiness comprising technological readiness, organisational readiness, and environmental readiness. The study adopted a systematic conceptual review design following adapted PRISMA guidelines, searching eight academic databases (Scopus, Web of Science, Google Scholar, EBSCOhost, Emerald Insight, ScienceDirect, JSTOR, and ProQuest) for the period January 2015 to December 2025. The review integrated dynamic capabilities theory (Teece, 2007), transformational leadership theory (Bass & Avolio, 1994), and technology-organisation-environment (TOE) framework (Tornatzky & Fleischer, 1990) into a unified framework adapted to Nigerian and Kano contexts. Policymakers (SMEDAN, Kano State Enterprise Development Agency) should design training addressing all three dimensions and address infrastructural deficits through solar-powered digital hubs. Development organisations should reallocate resources toward innovation empowerment given high failure rates. The framework offers eighteen testable propositions to guide future empirical research in resource-constrained environments.