The role of leadership in establishing a digital culture as a catalyst for digital transformation

Abstract

In an increasingly digital business landscape, organisations are obligated to embark on digital transformation journeys to remain competitive while meeting evolving customer expectations. Ninety percent of digital transformation initiatives intended to improve performance end in failure. This study therefore explores the critical role of leadership and organisational culture in shaping the pace and effectiveness of digital transformation initiatives. The study employed qualitative research methods in which data was collected through semi-structured interviews and analysed through thematic analysis. The research was conducted with 13 individuals within the South African banking sector who are either leaders of digital transformation initiatives or play a role in its execution. The research findings reveal that leaders must enhance their skills to enable a collaborative and adaptable environment where digital transformation is allowed to thrive. The study puts forward key recommendations around the competencies leaders require to lead these digital transformation initiatives, as well as cultural characteristics and practices which should be embedded in these organisations. The study then concludes by offering implications for both academic research and practice, before offering recommendations for future research.