STRATEGIC ORIENTATION: PERSPECTIVE OF DIGITAL LEADERSHIP AND INNOVATION
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Abstract
Recent research on leadership underscores digital leadership has a role to play in encouraging innovation within MSMEs. However, a gap persists in the previous research the presence and influence of digital leadership. To address this, our study integrates the resource-based approach and social information processing theory for explore how digital entrepreneurial orientation shapes the relationship between digital leadership and exploratory innovation. Through phased data collection from 200 employees and 20 leaders, our results indicate that (a) digital leadership positively influences exploratory innovation, and (b) digital entrepreneurial orientation serves as a mediator in this relationship. This research not only advances the field of organizational digitalization but also deepens the understanding of how digital leadership connects to exploratory innovation. The findings offer significant theoretical contributions to the field of leadership studies and practical recommendations for industry practitioners.
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W. Wahyudi, J. Heridiansyah, M. Kusumawati, S. W. Setiyanti, and A. Indriastuti, “STRATEGIC ORIENTATION: PERSPECTIVE OF DIGITAL LEADERSHIP AND INNOVATION”, JURNAL EDUCATION AND DEVELOPMENT, vol. 14, no. 2, pp. 439-452, May 2026.
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References
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Bhuian, S. N., Menguc, B., & Bell, S. J. (2005). Just entrepreneurial enough: The moderating effect of entrepreneurship on the relationship between market orientation and performance. Journal of Business Research, 58(1 SPEC.ISS), 9–17. https://doi.org/10.1016/S0148-2963(03)00074-2
Borowska, G. (2019). Digital leadership for digital transformation. Współczesna Gospodarka, 10(3), 11–19. https://doi.org/10.4258/hir.2019.25.4.350
Chang, Y. Y., Hodgkinson, I., Hughes, P., & Chang, C. Y. (2019). The mediation between participative leadership and employee exploratory innovation: Examining intermediate knowledge mechanisms. Leadership and Organization Development Journal, 40(3), 334–355. https://doi.org/10.1108/LODJ-07-2018-0245
Chen, J. X., Sharma, P., Zhan, W., & Liu, L. (2019). Demystifying the impact of CEO transformational leadership on firm performance: Interactive roles of exploratory innovation and environmental uncertainty. Journal of Business Research, 96(2018), 85–96. https://doi.org/10.1016/j.jbusres.2018.10.061
Cortellazzo, L., Bruni, E., & Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10(AUG), 1938–1958. https://doi.org/10.3389/fpsyg.2019.01938
Covin, J. G., & Slevin, D. P. (1991). A Conceptual Model of Entrepreneurship as Firm Behavior. Entrepreneurship Theory and Practice, 16(1), 7–26. https://doi.org/10.1177/104225879101600102
De Waal, B., Van Outvorst, F., & Ravesteyn, P. (2016). Digital Leadership : The Objective - Subjective Dichotomy of Technology Revisited. ECMLG 2016 - Proceedings of the 12th European Conference on Management, (November), 52–61.
Denicolai, S., Zucchella, A., & Magnani, G. (2021). Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths. Technological Forecasting and Social Change, 166(2021), 120650.
Gfrerer, A. E., Rademacher, L., & Dobler, S. (2021). Digital Needs Diversity: Innovation and Digital Leadership from a Female Managers’ Perspective. Management for Professionals, Part F457, 335–349. https://doi.org/10.1007/978-3-030-69380-0_19
Gong, L., Liu, Z., Rong, Y., & Fu, L. (2021). Inclusive leadership, ambidextrous innovation and organizational performance: the moderating role of environment uncertainty. Leadership and Organization Development Journal, 42(5), 783–801. https://doi.org/10.1108/LODJ-06-2020-0253
Hambrick, D. C. (2007). Upper echelons theory: An update. Academy of Management Review, 32(2), 334–343. https://doi.org/10.5465/AMR.2007.24345254
Hambrick, D. C., & Mason, P. A. (1984). Upper Echelons: The Organization as a Reflection of Its Top Managers. Academy of Management Review, 9(2), 193–206. https://doi.org/10.5465/amr.1984.4277628
Hesse, A. (2018). Digitalization and leadership – How experienced leaders interpret daily realities in a digital world. Proceedings of the Annual Hawaii International Conference on System Sciences, 2018-Janua, 1854–1863. Hawaii, HS: University of Hawaii. https://doi.org/10.24251/hicss.2018.234
Imran, F., Shahzad, K., Butt, A., & Kantola, J. (2020). Leadership Competencies for Digital Transformation: Evidence from Multiple Cases. In S. Latifi (Ed.), Advances in Intelligent Systems and Computing (pp. 81–87). New York: Springer International Publishing. https://doi.org/10.1007/978-3-030-50791-6_11
Isichei, E. E., Emmanuel Agbaeze, K., & Odiba, M. O. (2020). Entrepreneurial orientation and performance in SMEs. International Journal of Emerging Markets, 15(6), 1219–1241. https://doi.org/10.1108/ijoem-08-2019-0671
Kane, G., Anh, N., Phillips, J., & Garth, A. (2019). How digital leadership is(n’t) different. MIT Sloan Management Review, 60, 34–39. https://doi.org/10.1016/j.biocon.2016.08.030
Karimi, J., & Walter, Z. (2015). The role of dynamic capabilities in responding to digital disruption: A factor-based study of the newspaper industry. Journal of Management Information Systems, 32(1), 39–81. https://doi.org/10.1080/07421222.2015.1029380
Kollmann, T., & Stöckmann, C. (2014). Filling the entrepreneurial orientation-performance gap: The mediating effects of exploratory and exploitative innovations. Entrepreneurship: Theory and Practice, 38(5), 1001–1026. https://doi.org/10.1111/j.1540-6520.2012.00530.x
Larjovuori, R. L., Bordi, L., & Heikkilä-Tammi, K. (2018). Leadership in the digital business transformation. ACM International Conference Proceeding Series, 212–221. New York: MindTrek Conference. https://doi.org/10.1145/3275116.3275122
Lei, H., Ha, A. T. L., & Le, P. B. (2019). How ethical leadership cultivates radical and incremental innovation: the mediating role of tacit and explicit knowledge sharing. Journal of Business and Industrial Marketing, 35(5), 849–862. https://doi.org/10.1108/JBIM-05-2019-0180
Liu, C. H. S., & Lee, T. (2019). The multilevel effects of transformational leadership on entrepreneurial orientation and service innovation. International Journal of Hospitality Management, 82, 278–286. https://doi.org/10.1016/j.ijhm.2018.10.006
Lu, Y., & Ramamurthy, K. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS Quarterly: Management Information Systems, 35(4), 931–954. https://doi.org/10.2307/41409967
Lumpkin, G. T., & Dess, G. G. (2001). Linking two dimensions of entrepreneurial orientation to firm performance: The moderating role of environment and industry life cycle. Journal of Business Venturing, 16(5), 429–451. https://doi.org/10.1016/S0883-9026(00)00048-3
Mazzei, M. J., & Noble, D. (2017). Big data dreams: A framework for corporate strategy. Business Horizons, 60(3), 405–414. https://doi.org/10.1016/j.bushor.2017.01.010
McAlister, L. (2016). Rigor versus method imperialism. Journal of the Academy of Marketing Science, 44(5), 565–567. https://doi.org/10.1007/s11747-016-0489-2
McCarthy, P., Sammon, D., & Alhassan, I. (2021). Digital Transformation Leadership Characteristics: A Literature Analysis. Journal of Decision Systems, 32(1), 79–109. https://doi.org/10.1080/12460125.2021.1908934
Mehmood, M. S., Jian, Z., Akram, U., Akram, Z., & Tanveer, Y. (2022). Entrepreneurial leadership and team creativity: the roles of team psychological safety and knowledge sharing. Personnel Review, 51(9), 2404–2425. https://doi.org/10.1108/PR-07-2020-0517
Mihardjo, L., Sasmoko, S., Alamsyah, F., & Djap, E. (2019). Dynamic capability: The effect of digital leadership on fostering innovation capability based on market orientation. Management Science Letters, 9(10), 1633–1644. https://doi.org/10.5267/j.msl.2019.5.024
Mihardjo, L. W. W., Sasmoko, Alamsjah, F., & Elidjen. (2019). Digital leadership impacts on developing dynamic capability and strategic alliance based on market orientation. Polish Journal of Management Studies, 19(2), 285–297. https://doi.org/10.17512/pjms.2019.19.2.24
Miller, D. (1983). The Correlates of Entrepreneurship in Three Types of Firms. Management Science, Vol. 29, pp. 770–791. https://doi.org/10.1287/mnsc.29.7.770
Nadkarni, S., & Prügl, R. (2021). Digital transformation: a review, synthesis and opportunities for future research. Management Review Quarterly, 71(2), 233–341. https://doi.org/10.1007/s11301-020-00185-7
Neely, B. H., Lovelace, J. B., Cowen, A. P., & Hiller, N. J. (2020). Metacritiques of Upper Echelons Theory: Verdicts and Recommendations for Future Research. Journal of Management, 46(6), 1029–1062. https://doi.org/10.1177/0149206320908640
Nguyen, M. A. T., Lei, H., Vu, K. D., & Le, P. B. (2019). The role of cognitive proximity on supply chain collaboration for radical and incremental innovation: a study of a transition economy. Journal of Business and Industrial Marketing, 34(3), 591–604. https://doi.org/10.1108/JBIM-07-2017-0163
Oberer, B., & Erkollar, A. (2018). Leadership 4.0: Digital Leaders in the Age of Industry 4.0. International Journal of Organizational Leadership, 7(4), 404–412. https://doi.org/10.33844/ijol.2018.60332
Ou, A. Y., Tsui, A. S., Kinicki, A. J., Waldman, D. A., Xiao, Z., & Song, L. J. (2014). Humble Chief Executive Officers’ Connections to Top Management Team Integration and Middle Managers’ Responses. Administrative Science Quarterly, 59(1), 34–72. https://doi.org/10.1177/0001839213520131
P. Zhu. (2015). Digital Master: Debunk the Myths of Enterprise Digital Maturity. Lulu Publishing Services, 2015. Morrisville, NC: Lulu Publishing Services.
Pasaribu, F., Bulan, T. R. N., Muzakir, & Pratama, K. (2021). Impact of strategic leadership and organizational innovation on the strategic management: Mediational role of it capability. Polish Journal of Management Studies, 24(2), 354–369. https://doi.org/10.17512/pjms.2021.24.2.22
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