Leadership Styles and Organizational Readiness in the Era of Digital Transformation: A Narrative Review

Authors

  • Ferry Siswadhi Sekolah Tinggi Ilmu Ekonomi Sakti Alam Kerinci
  • Kasman Karimi Universitas Bung Hatta
  • Moh Kurdi Universitas Wiraraja
  • Endang Widyastuti Universitas Wiraraja
  • Fransiska Agustina Koesmariadi Universitas KH Abdul Chalim Mojokerto

DOI:

https://doi.org/10.61978/novatio.v3i3.1027

Keywords:

Leadership Styles, Digital Transformation Readiness, Transformational Leadership, Agile Leadership, Inclusive Leadership, Ethical Leadership, Organizational Change

Abstract

Digital transformation is now a strategic necessity for organizations across various sectors. This review explores how different leadership styles—transformational, agile, servant, inclusive, and ethical—affect organizational readiness to adopt digital technologies. Using systematic review methods and bibliometric analysis, studies from major databases such as Scopus, Web of Science, and Google Scholar were analyzed to identify patterns and key findings. Inclusion criteria emphasized peer-reviewed research published between 2010 and 2025, encompassing diverse sectors and global contexts. Findings show that transformational leadership improves innovation and agility, agile leadership accelerates technology adoption, servant and inclusive leadership increase employee engagement and reduce resistance, while ethical leadership strengthens trust, fairness, and sustainability. Organizational readiness is also shaped by systemic factors such as regulations, culture, and resources. Developing countries often face challenges due to limited infrastructure, while developed countries benefit from stronger policy and technological support. These dynamics underscore the interdependence of leadership and systemic environments in shaping digital outcomes. In conclusion, leadership styles are decisive in shaping digital readiness, but their effects differ by sector and region. Policy support, leadership training, and organizational reforms are needed to overcome barriers and achieve inclusive digital transformation. Future research should focus on long-term impacts, contextual variations, and integrative leadership frameworks to ensure sustainable and inclusive digital transformation.

References

Abbu, H., Khan, S., Mugge, P., & Gudergan, G. (2025). Building digital-ready leaders: development and validation of the human-centric digital leadership scale. Digital, 5(1), 7. https://doi.org/10.3390/digital5010007 DOI: https://doi.org/10.3390/digital5010007

Aburub, A., & Khanfar, F. (2025). The impact of job security factors on sustainable competitive advantage: the mediating role of employee retention – an empirical study of private hospitals in Riyadh, Saudi Arabia. International Journal of Innovative Research and Scientific Studies, 8(2), 2065-2078. https://doi.org/10.53894/ijirss.v8i2.5635 DOI: https://doi.org/10.53894/ijirss.v8i2.5635

Al-Mannaei, M., AlSaffar, G., & A'ali, E. (2022). Leadership styles during the digital transformation era., 26-40. https://doi.org/10.4018/978-1-6684-5864-8.ch002 DOI: https://doi.org/10.4018/978-1-6684-5864-8.ch002

Antonopoulou, H., Halkiopoulos, C., Barlou, O., & Beligiannis, G. (2019). Transition from educational leadership to e-leadership: a data analysis report from TEI of Western Greece. International Journal of Learning Teaching and Educational Research, 18(9), 238-255. https://doi.org/10.26803/ijlter.18.9.13 DOI: https://doi.org/10.26803/ijlter.18.9.13

Antonopoulou, H., Matzavinou, P., Γιαννούκου, Ι., & Halkiopoulos, C. (2025). Teachers’ digital leadership and competencies in primary education: a cross-sectional behavioral study. Education Sciences, 15(2), 215. https://doi.org/10.3390/educsci15020215 DOI: https://doi.org/10.3390/educsci15020215

Aristovnik, A., Murko, E., Kristl, N., & Ravšelj, D. (2025). Disruptive technology capabilities in local governments: an empirical study. Information Polity. https://doi.org/10.1177/15701255251321682 DOI: https://doi.org/10.1177/15701255251321682

Banerjee, K., & S., U. (2020). Creating the catapult effect for the talent in the era of digital abundance., 155-173. https://doi.org/10.4018/978-1-7998-4861-5.ch007 DOI: https://doi.org/10.4018/978-1-7998-4861-5.ch007

Batırlık, S., Gençer, Y., & Akküçük, U. (2022). Global virtual team leadership scale (GVTLS) development in multinational companies. Sustainability, 14(2), 1038. https://doi.org/10.3390/su14021038 DOI: https://doi.org/10.3390/su14021038

Benchea, L., & Ilie, A. (2023). Preparing for a new world of work: leadership styles reconfigured in the digital age. European Journal of Interdisciplinary Studies, 15(1), 135-143. https://doi.org/10.24818/ejis.2023.10 DOI: https://doi.org/10.24818/ejis.2023.10

Bian, X., & Wang, B. (2024). Enabling innovative governance: ethical leadership and dynamic capabilities in government digital transformation. Business Ethics and Leadership, 8(4), 186-200. https://doi.org/10.61093/bel.8(4).186-200.2024 DOI: https://doi.org/10.61093/bel.8(4).186-200.2024

Bygstad, B., Aanby, H., & Iden, J. (2017). Leading digital transformation: the Scandinavian way., 1-14. https://doi.org/10.1007/978-3-319-64695-4_1 DOI: https://doi.org/10.1007/978-3-319-64695-4_1

Candrasa, L., Cahyadi, L., Cahyadi, W., & Cen, C. (2024). Change management strategies: building organizational resilience in the digital era. Journal of Ecohumanism, 3(7), 4125-4135. https://doi.org/10.62754/joe.v3i7.4534 DOI: https://doi.org/10.62754/joe.v3i7.4534

Carvalho, A., Alves, H., & Leitão, J. (2022). What research tells us about leadership styles, digital transformation and performance in state higher education? International Journal of Educational Management, 36(2), 218-232. https://doi.org/10.1108/ijem-11-2020-0514 DOI: https://doi.org/10.1108/IJEM-11-2020-0514

Chang, C., & Octoyuda, E. (2024). Driving digital transformation: how transformational leadership bridges learning agility and digital technology adoption in MSMEs. Emerging Science Journal, 8(4), 1583-1601. https://doi.org/10.28991/esj-2024-08-04-020 DOI: https://doi.org/10.28991/ESJ-2024-08-04-020

Chavalala, M., Bag, S., Pretorius, J., & Rahman, M. (2022). A multi-method study on the barriers of the blockchain technology application in the cold supply chains. Journal of Enterprise Information Management, 37(2), 745-776. https://doi.org/10.1108/jeim-06-2022-0209 DOI: https://doi.org/10.1108/JEIM-06-2022-0209

Díaz-Garcia, V., Montero, A., Rodríguez-Sánchez, J., & Gallego-Losada, R. (2023). Managing digital transformation: a case study in a higher education institution. Electronics, 12(11), 2522. https://doi.org/10.3390/electronics12112522 DOI: https://doi.org/10.3390/electronics12112522

Dióssy, K., Losonci, D., Aranyossy, M., & Demeter, K. (2025). The role of leadership in digital transformation – a paradox way to improve operational performance. Journal of Manufacturing Technology Management, 36(9), 88-113. https://doi.org/10.1108/jmtm-07-2024-0386 DOI: https://doi.org/10.1108/JMTM-07-2024-0386

Donaldson, L. (2020). Safer care: shaping the future., 53-66. https://doi.org/10.1007/978-3-030-59403-9_5 DOI: https://doi.org/10.1007/978-3-030-59403-9_5

Eger, L., & Žižka, M. (2024). Industry 4.0, digital transformation and human resource management: emerging themes and research trends in the context of the Visegrad countries. Oeconomia Copernicana, 15(3), 1021-1065. https://doi.org/10.24136/oc.3034 DOI: https://doi.org/10.24136/oc.3034

Esenyel, V. (2024). Evolving leadership theories: integrating contemporary theories for VUCA realities. Administrative Sciences, 14(11), 270. https://doi.org/10.3390/admsci14110270 DOI: https://doi.org/10.3390/admsci14110270

Frota, L., Chitiga, M., & Mazenda, A. (2024). Revealing factors influencing digital transformation in South Africa's social security organisations. Journal of Public Affairs, 25(1). https://doi.org/10.1002/pa.70006 DOI: https://doi.org/10.1002/pa.70006

Gierlich-Joas, M. (2021). Identifying and overcoming future challenges in leadership: the role of IS in facilitating empowerment., 537-553. https://doi.org/10.1007/978-3-030-86800-0_38 DOI: https://doi.org/10.1007/978-3-030-86800-0_38

Guțu, I., Medeleanu, C., & Asiminei, R. (2024). The limits of learning engagement and academic leadership within the higher education digitalization process ‐ analysis by using PLS SEM. Plos One, 19(11), e0306079. https://doi.org/10.1371/journal.pone.0306079 DOI: https://doi.org/10.1371/journal.pone.0306079

Habsi, N., Luo, M., & Zighan, S. (2022). A systematic literature review exploring the impact of digitalisation on leadership towards a new style of leadership. International Journal of Business Innovation and Research, 29(2), 169. https://doi.org/10.1504/ijbir.2022.126031 DOI: https://doi.org/10.1504/IJBIR.2022.126031

Hargitai, D., & Bencsik, A. (2023). The role of leadership in digital learning organizations. Emerging Science Journal, 7, 111-124. https://doi.org/10.28991/esj-2023-sied2-09 DOI: https://doi.org/10.28991/ESJ-2023-SIED2-09

Henderikx, M., & Stoffers, J. (2022). An exploratory literature study into digital transformation and leadership: toward future-proof middle managers. Sustainability, 14(2), 687. https://doi.org/10.3390/su14020687 DOI: https://doi.org/10.3390/su14020687

Imaniyati, N., Ramdhany, M., Rasto, R., Nurjanah, S., Solihah, P., & Susilawati, A. (2024). Neuroscience intervention for implementing digital transformation and organizational health completed with literature review, bibliometrics, and experiments. Indonesian Journal of Science and Technology, 9(2), 287-336. https://doi.org/10.17509/ijost.v9i2.67763 DOI: https://doi.org/10.17509/ijost.v9i2.67763

Kyambade, M., & Namatovu, A. (2024). Transforming the public service via digital leadership in Uganda. International Journal of Public Leadership, 21(1), 37-53. https://doi.org/10.1108/ijpl-07-2024-0080 DOI: https://doi.org/10.1108/IJPL-07-2024-0080

Lamrhary, M., & Slaoui, S. (2025). Leadership in the AI era., 305-330. https://doi.org/10.4018/979-8-3373-1005-3.ch012 DOI: https://doi.org/10.4018/979-8-3373-1005-3.ch012

Louw, H., Mynhardt, R., & Lubbe, S. (2024). A self-determined learning approach: enhancing workplace adaptability for overcoming inequality. Business Ethics and Leadership, 8(3), 290-304. https://doi.org/10.61093/bel.8(3).290-304.2024 DOI: https://doi.org/10.61093/bel.8(3).290-304.2024

Ly, B. (2023). The interplay of digital transformational leadership, organizational agility, and digital transformation. Journal of the Knowledge Economy, 15(1), 4408-4427. https://doi.org/10.1007/s13132-023-01377-8 DOI: https://doi.org/10.1007/s13132-023-01377-8

Machado, A., Sacavém, A., Santos, J., & Sousa, M. (2025). Leadership approaches to digital transformation., 39-56. https://doi.org/10.4018/979-8-3693-7630-0.ch002 DOI: https://doi.org/10.4018/979-8-3693-7630-0.ch002

Malik, M., Raziq, M., Sarwar, N., & Tariq, A. (2024). Digital leadership, business model innovation and organizational change: role of leader in steering digital transformation. Benchmarking an International Journal, 32(5), 1632-1662. https://doi.org/10.1108/bij-04-2023-0283 DOI: https://doi.org/10.1108/BIJ-04-2023-0283

Marlia, M., Fahmy, R., Lukito, H., & Games, D. (2025). An exploratory study on effective leadership and change management in the transformation of Indonesian public universities towards world-class university status. Sustainability, 17(3), 1300. https://doi.org/10.3390/su17031300 DOI: https://doi.org/10.3390/su17031300

Mendy, J., & AlGhanem, N. (2024). Financialisation strategy of digital transformation: towards a people-centric, sustaining network leadership framework in an Arabic energy context. Journal of Strategy and Management. https://doi.org/10.1108/jsma-06-2023-0146 DOI: https://doi.org/10.1108/JSMA-06-2023-0146

Mustapha, I., Ali, M., Khan, N., & Sikandar, H. (2023). The impact of industry 4.0 on innovative organisations, a thematic review using the PRISMA statement 2020. International Journal of Interactive Mobile Technologies (iJIM), 17(09), 88-105. https://doi.org/10.3991/ijim.v17i09.39465 DOI: https://doi.org/10.3991/ijim.v17i09.39465

Nguyen, H., Tran, Q., Nguyen, T., Bui, D., Nguyễn, C., To, X., … & Vu, T. (2025). From work motivation to innovative behavior of employees in enterprises. Edelweiss Applied Science and Technology, 9(4), 907-920. https://doi.org/10.55214/25768484.v9i4.6129 DOI: https://doi.org/10.55214/25768484.v9i4.6129

Niţă, V., & Guțu, I. (2023). The role of leadership and digital transformation in higher education students’ work engagement. International Journal of Environmental Research and Public Health, 20(6), 5124. https://doi.org/10.3390/ijerph20065124 DOI: https://doi.org/10.3390/ijerph20065124

Saleh, R., Durugbo, C., & Almahamid, S. (2023). What makes innovation ambidexterity manageable: a systematic review, multi-level model and future challenges. Review of Managerial Science, 17(8), 3013-3056. https://doi.org/10.1007/s11846-023-00659-4 DOI: https://doi.org/10.1007/s11846-023-00659-4

Santarsiero, F., Carlucci, D., Lerro, A., & Schiuma, G. (2024). Navigating digital transformation and business model innovation in the tourism sector: challenges opportunities, and leadership styles. Measuring Business Excellence, 28(3/4), 426-438. https://doi.org/10.1108/mbe-09-2023-0137 DOI: https://doi.org/10.1108/MBE-09-2023-0137

Sibassaha, J., Pea-Assounga, J., & Bambi, P. (2025). Influence of digital transformation on employee innovative behavior: roles of challenging appraisal, organizational culture support, and transformational leadership style. Frontiers in Psychology, 16. https://doi.org/10.3389/fpsyg.2025.1532977 DOI: https://doi.org/10.3389/fpsyg.2025.1532977

Winasis, S., Djumarno, D., Riyanto, S., & Ariyanto, E. (2021). The effect of transformational leadership climate on employee engagement during digital transformation in Indonesian banking industry. International Journal of Data and Network Science, 91-96. https://doi.org/10.5267/j.ijdns.2021.3.001 DOI: https://doi.org/10.5267/j.ijdns.2021.3.001

Zulu, S., & Khosrowshahi, F. (2021). A taxonomy of digital leadership in the construction industry. Construction Management and Economics, 39(7), 565-578. https://doi.org/10.1080/01446193.2021.1930080 DOI: https://doi.org/10.1080/01446193.2021.1930080

Downloads

Published

2025-07-31

How to Cite

Siswadhi, F., Karimi, K., Kurdi, M., Widyastuti, E., & Koesmariadi, F. A. (2025). Leadership Styles and Organizational Readiness in the Era of Digital Transformation: A Narrative Review. Novatio : Journal of Management Technology and Innovation , 3(3), 144–158. https://doi.org/10.61978/novatio.v3i3.1027

Issue

Section

Articles