The Impact Of Transformational Leadership On Sustainable Digital Transformation: Exploring The Mediating Role Of Organizational Culture In Jordanian SMES

Abstract

This paper examines the mediating effect of organizational culture (OC) in the relationship between transformational leadership (TLS) and sustainable digital transformation (DT) in small and medium-sized enterprises (SMEs) in Jordan. It looks at the extent to which transformational leadership drives innovation and technology adoption through cultural change that encourages long-term resilience, adaptability and responsible business practice. The quantitative approach, through a 5-point Likert scale questionnaire was used as a self-administered to obtain of 368 SME‟s Jordanian Managers from different sectors. We further included measures of TLS, OC, and DT while controlling for variables at the demographic level of analysis (i.e., gender, managerial experience, and industry type). Data were analyzed using with SMARTPLS4 by Structural Equation Modeling (SEM). CFA established reliability and validity of the constructs, and path analysis the proposed hypotheses. The findings indicate that TLS has a direct and indirect effect on DT mediated by OC. In fact, by creating a goal-directed and innovation-supportive environment, transformational leadership not only enables the introduction of digital technologies but also the inclusion of sustainability into organizations. OC plays a critical role in connecting leadership processes with sustainable digital results. The findings offer some useful implications for policy makers and organization policy designers who intend to support the SME’s sustainable innovation and digital competitiveness. In addition, our research contributes to the more general literature on leadership, culture, and technology adoption, by placing digital transformation in the sustainability context and connecting it with the worldwide Sustainable Development Goals (SDGs).