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Navigating the digital transformation path: The role of digital leadership and technological capability through the dynamic capability model Cover

Navigating the digital transformation path: The role of digital leadership and technological capability through the dynamic capability model

Management & Marketing
Volume 20 (2025): Issue 3 (September 2025)
By: ,  ,   and    
Open Access
|Sep 2025
Figures & tables

Figures & Tables

Figure 1

Conceptual model.

Source: Author s contribution.

Table 1

Demographic profile of respondents.

Demographic variableFrequencyPercentage
Gender
Male23852
Female22148
Age (in years)
≤25418.93
26–3520344.23
36–4513729.85
46–555111.11
Above 55275.88
Education
HND5612.20
Bachelors26257.08
Masters11925.93
PhD224.79
Working experience
Less than 57015.25
5–1026357.30
11–159420.48
16–20286.10
Above 2040.87
Position
Top6614.38
Middle19542.48
Junior16335.51
Front liner357.63

Source: Authors’ own compilation.

Table 2

Item loadings, CR, CA average, and variance extracted.

ConstructItemLoadingsCRCAAVEVIF
Digital cultureDIGIC10.7960.9290.8970.7671.746
DIGIC20.8752.545
DIGIC30.9024.179
DIGIC40.9244.543
Digital leadershipDIGIL10.9050.9520.9370.8004.026
DIGIL20.9114.663
DIGIL30.9154.400
DIGIL40.8933.723
DIGIL50.8452.719
Digital transformationDIGIT10.8130.9190.8880.6942.459
DIGIT20.8643.064
DIGIT30.9103.436
DIGIT40.8252.247
DIGIT50.7441.650
Enterprise performanceENTP10.8570.9500.9340.7913.019
ENTP20.9154.444
ENTP30.8973.536
ENTP40.8963.522
ENTP50.8813.235
Technological capabilityTECH10.8710.9520.9360.7972.756
TECH20.8813.469
TECH30.8923.532
TECH40.9234.613
TECH50.8973.788

Source: Authors’ own compilation.

Table 3

Fornell–Larcker Criterion, R2, and Q2.

ConstructsDIGICDIGILDIGITOPTECH R 2 Adjusted R 2 Q 2
DIGIC 0.876
DIGIL0.696 0.894
DIGIT0.8390.779 0.833 0.8120.8100.547
ENTP0.6700.8680.766 0.889 0.5860.5850.460
TECH0.8680.6860.8180.637 0.893 0.4700.4690.369

DIGIC – Digital Culture; DIGIL – Digital leadership; DIGIT – Digital Transformation; OP – Firm Performance; TECH – Technological Capability. The bold figure is the square root of the average variance extract, indicating that a construct self correlation should be high than as compare with other constructs.

Source: Authors’ own compilation.

Table 4

Cross loadings.

DIGICDIGILDIGITENTPTECH
DIGIC1 0.796 0.5610.7350.5860.701
DIGIC2 0.875 0.6220.7260.5910.763
DIGIC3 0.902 0.6160.7080.5860.767
DIGIC4 0.924 0.6330.7630.5820.805
DIGIL10.640 0.905 0.7180.8350.642
DIGIL20.620 0.911 0.6840.8250.612
DIGIL30.635 0.915 0.7050.8320.610
DIGIL40.581 0.893 0.6380.7420.567
DIGIL50.627 0.845 0.7300.6460.628
DIGIT10.6320.549 0.813 0.5630.569
DIGIT20.6870.653 0.864 0.6500.611
DIGIT30.7540.752 0.910 0.7660.735
DIGIT40.6490.711 0.825 0.6770.605
DIGIT50.7650.555 0.744 0.5050.882
ENTP10.5890.6840.634 0.857 0.542
ENTP20.5680.7580.691 0.915 0.561
ENTP30.5940.7390.679 0.897 0.543
ENTP40.6200.8420.694 0.896 0.585
ENTP50.6090.8310.703 0.881 0.601
TECH10.8640.6390.7330.602 0.871
TECH20.6900.5340.6830.493 0.881
TECH30.7300.6200.7300.564 0.892
TECH40.7980.6230.7500.595 0.923
TECH50.7850.6370.7520.583 0.897

DIGIC – Digital Culture; DIGIL – Digital leadership; DIGIT – Digital Transformation; ENTP – Firm Performance; TECH – Technological Capability. The cross-loadings that arise when an indicator s outer loading on the nexus construct exceeds the aggregate of its cross-loadings and affiliations with all other constructs.

Source: Authors’ own compilation.

Table 5

HTMT evaluation.

ConstructsDIGICDIGILDIGITENTPTECH
DIGIC
DIGIL0.757
DIGIT0.8000.847
ENTP0.7320.7260.834
TECH0.8450.7290.6960.679

DIGIC – Digital Culture; DIGIL – Digital leadership; DIGIT – Digital Transformation; ENTP – Firm Performance; TECH – Technological Capability.

Source: Authors’ own compilation.

Table 6

Direct effect and moderation effect.

PathBetaStd. dev. T-statistics P-valueConfidence intervalConclusion
H1DIGIL → DIGIT0.3400.0467.3250.000[0.196; 0.350]Accepted
H2DIGIL → TECH0.6860.03320.700.000[0.618; 0.748]Accepted
H3TECH → DIGIT0.2530.0574.4630.000[0.197; 0.396]Accepted
H4DIGIT → ENTP0.7660.02629.6730.000[0.713; 0.815]Accepted
H5DIGIC → DIGIT0.3820.0497.7840.000[0.258; 0.440]Accepted
H5aDIGIL* DIGIC → DIGIT0.1470.0216.9190.000[0.099; 0.182]Accepted

DIGIC – Digital Culture; DIGIL – Digital leadership; DIGIT – Digital Transformation; ENTP – Firm Performance; TECH – Technological Capability.

Source: Authors’ own compilation.

Table 7

Mediating effect and specific indirect effects.

PathImpact of IV on M (a)Impact of M on D (b)DI (c′)Indirect impact (a × b)Total impact (c = c′ + a × b)VAFDecision
DIGIL → TECH → DIGIT0.6860.2530.3400.1730.51333.7%Partial mediation
Beta Std. dev. T -stats P -value
DIGIC → DIGIT → ENTP0.2710.0377.2960.000Accepted
DIGIL → DIGIT → ENTP0.2110.0336.3000.000Accepted
TECH → DIGIT → ENTP0.2210.0366.1240.000Accepted

DIGIC – Digital Culture; DIGIL – Digital leadership; ENTP – Firm Performance; DIGIT – Digital Transformation, IV – independent variable; M – mediator, D – dependent variable; DI – direct impact; VAF – Variance accounted for.

Source: Authors’ own compilation.

Figure 2

Structural model: Direct and indirect paths.

Source: Source: Author's own compilation from SMartpls4.

DOI: https://doi.org/10.2478/mmcks-2025-0011 | Journal eISSN: 2069-8887 (formerly 1842-0206) | Journal ISSN: 1842-0206
Journal RSS Feed
Language: English
Page range: 48 - 64
Submitted on: May 31, 2025
Accepted on: Sep 9, 2025
Published on: Sep 30, 2025
Published by: Society for Business Excellence
In partnership with: Paradigm Publishing Services
Keywords:
Digital leadership,
Digital transformation,
Digital culture,
Technological capability,
Dynamic capability theory
JEL:
M10,
O31,
O32
Related subjects:
Business and economics,
Business management,
Marketing, sales, customer relations,
Management, organization, corporate governance,
Business development, change management, cooperation,
Entrepreneurship

© 2025 Kwabena Nsiah Takyi, Chovancová Miloslava, George Yaw Bludo, Sabog Aloysius, published by Society for Business Excellence
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Volume 20 (2025): Issue 3 (September 2025)
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