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Digital transformation in enterprises: Does leaders' digital literacy matter?

Author

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  • Ope Destrian
  • Sudarma

Abstract

The current body of literature has emphasised the importance of digital transformation in small and medium-sized enterprises (SMEs). Unfortunately, not much concern has been laid on how SMEs undertake digital transformation. This study examines how the digital transformation of SMEs will be affected by leaders' digital literacy (LDG). Applying survey data from 277 SMEs in Indonesia, this paper evaluates a moderated mediation paradigm. The empirical outcomes show that LDG affects digital transformation through digital-technology utilisation (DTU). Furthermore, leaders' characters (e.g., age, educational degree, and gender) further influence the association between DTU and LDG. This work is among initial endeavours to assess the digital transformation among SMEs in a developing country such as Indonesia. Outcomes like digital transformation and DTU have not yet been surveyed in existing publications on digital literacy.

Suggested Citation

  • Ope Destrian & Sudarma, 2024. "Digital transformation in enterprises: Does leaders' digital literacy matter?," International Journal of Information Systems and Change Management, Inderscience Enterprises Ltd, vol. 14(2), pages 121-145.
    • Handle: RePEc:ids:ijiscm:v:14:y:2024:i:2:p:121-145
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