Digital Leadership Capabilities for successful Digital Transformation- Cultural perspective : How do digital leaders' experiences and perspectives on the capabilities needed for successful digital transformation in tech firms differ across different cultu

University essay from Jönköping University

Abstract: Introduction: Digital transformation has had a significant impact on the way businesses operate and interact with their clients. The advent of digital technologies has brought about unprecedented changes in customer behavior, necessitating continuous adaptation and transformation to maintain competitiveness. Effective leadership is crucial in selecting appropriate technologies based on the business model and making timely decisions. However, it is important to recognize that leadership is influenced by cultural and situational contingencies, and neglecting these factors can result in an incomplete understanding of leadership and its effectiveness. Purpose: The purpose of this thesis is to investigate whether digital leadership capabilities vary across cultures and, if so, how specific cultures might influence these capabilities. By examining the impact of culture on digital leadership, this study aims to contribute valuable insights to the existing literature on digital transformation and leadership. Methodology: The research is qualitative & has a mixed approach (deductive & Inductive) & employs a relativism ontology & social constructionism epistemology. It is an explorative multi-case study, focusing on leaders in Sweden and India to investigate digital leadership capabilities for digital transformation in different cultural contexts. The data is purposively collected through semi-structured interviews & analyzed using thematic analysis technique. Analysis: The analysis of digital leadership capabilities in Sweden and India revealed that both countries recognize the importance of digital transformation for maintaining business competitiveness. While there are similarities in the findings, Indian leaders prioritize cost savings, safety, and quality of life improvements, whereas Swedish leaders emphasize agility, operational efficiency, and continuous learning. However, both cases underscore the necessity of having a clear vision and strategy, competent individuals, and effective communication to achieve successful digital transformation. Furthermore, employee engagement and empowerment, along with training and development opportunities, play critical roles in driving digital transformation. Discussion: Based on the research findings, it can be concluded that digital leadership capabilities are generally agreed upon across different cultures, with culture not being a prominent factor influencing the process. Digital transformation is a global trend that has emerged in response to the evolving technological landscape, and the capabilities required for digital leadership are generally consistent across cultures. Therefore, digital leaders in both Sweden and India need to possess the same essential digital leadership capabilities, albeit with potentially different approaches in accomplishing goals. The overarching capabilities of vision clarity and communication, digital strategy, employee engagement, digital governance, and digital literacy remain important in both contexts. The findings of this study has practical implications for organizations seeking to implement successful digital transformation initiatives. Conclusion: In conclusion, this study provides practical implications for organizations and leaders managing digital transformation within diverse cultural contexts & also for academic researchers. It highlights the importance of developing effective digital transformation strategies tailored to specific cultural contexts, thus increasing the likelihood of achieving successful digital transformation outcomes.

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