The influence of digital transformation on leadership in state-owned enterprises

Abstract

The world is evolving or to a large extend has evolved into a digital age that requires organisations to re-evaluate their strategies, business models, systems, process and competences to adapt in a changing business environment. Public organisations (which include SOEs) are facing disruption to their core tasks due to new developments, but they are slow to react and it is questioned if these organisations are flexible enough to survive these new developments in the market. This study explores the leadership environment, the leadership roles and the leadership skills in SOEs in the context of digital transformation. Thirteen qualitative, in-depth, semistructured interviews were conducted with executive leaders in South African stateowned enterprises (SOEs) to collect research data for analysis. The study found that the SOE business environment as it pertains to strategy, business models, culture, processes and structure will undergo significant change in a digitally transformed environment and further identifies the role that leaders must play as well as the skills they must attain for a digitally transformed business environment. Key findings from the study was summarised in a conceptual framework of digital leadership that may enable SOE leaders to prepare for and lead in a digitally transformed business environment.