The effect of leadership styles on digital transformation
DOI:
https://doi.org/10.14267/VEZTUD.2023.10.01Keywords:
leadership styles, task-oriented leader, relationship-oriented leader, digital transformation, strategyAbstract
The latest industrial revolution is transforming the business world and prompting many companies to embrace digital transformation. In digital transformation, a company implements changes in their organisational operation (e.g., strategy, organisation, technology) to support the corporate institutionalisation of digital solutions. Based on the literature, management style is a key factor in companies' transformation. This research examines the impact of leadership styles on digital transformation using data from the company surveys of the Competitiveness Research Center. The authors found that the digital transformation of Hungarian manufacturing companies has two pillars: the digital transformation strategy and the digital transformation activities. The characteristics of the task-oriented and relationship-oriented leadership styles appear mixed: one focuses on goals and implementation, and the other on performance and people. Both leadership styles have a significant positive impact on the digital transformation strategy; however, only the goals and implementation-focused style has a positive effect on activities.
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