Do Generative Leadership and Digital Literacy of Executive Management Help Flourishing Micro and Small Business Digital Maturity?

Abstract

Today, every firm and organization must digitally transform in order to survive and deal with increasing competition and dynamic market conditions. Digital transformation is not easy to achieve, and many factors play an important role in the successful digital transformation of firms. Leaders' leadership styles and characteristics play a crucial role in digital transformation. This study examines the effects of generative leadership and digital literacy of executive management on the digital maturity of micro and small firms based on the Upper Echelons Theory. Sub-dimensions of digital maturity are also considered and searched to provide a more detailed analysis. The research utilized a survey method and was conducted with 121 upper, middle, and first-line managers of 93 micro and small-size firms operating in the Marmara Region of Turkey. Frequency, factor, regression, and validity and reliability analyses through the SPSS package program were used. The results are two folds. First, generative leadership and digital literacy of executive management help flourish digital maturity when searched independently. Second, the study results indicate that the digital literacy of executive managers has a mediating effect on the relationship between generative leadership and digital maturity. Furthermore, the study proves the mediating effect on digital maturity's technological, strategic, and cultural maturity subdimensions. With these findings in micro and small businesses, the study comprehensively contributes to the current knowledge in this domain.

Cultivating Sustainability: The Role of Generative Leadership, Green Passion, and Green Work Behavior in Pakistan’s Tourism Industry

“…Data for all the variables were collected using self-administrated standardized questionnaires adapted from existing studies. For measuring GL, the scale was adapted from the research of Alma [68]. It was 27 items with a 5-point Likert scale.…”

Building Micro-Foundations for Digital Transformation: A Moderated Mediation Model of the Interplay between Digital Literacy and Digital Transformation

“…In the digital transformation era, digital literacy (DL) is crucial for leaders to comprehend and proficiently utilize digital technologies, playing a key role in organizational success. The proficiency of senior executives and managers in navigating digital environments significantly affects an organization's ability to leverage a wide range of technological innovations [22,77].…”

“…The potential moderating role of top management team (TMT) behavioral integration in these relationships has not been thoroughly investigated. This oversight neglects important insights into how digital literacy not only prepares organizations for digital transformation, but also, when combined with digital readiness and effective TMT dynamics, propels successful digital transformation initiatives [22].…”

“…Understanding this concept is essential for grasping the employees' role in the digital transformation process and the use of enterprise systems. The study by Çallı et al [22] in the Marmara Region of Turkey explored how generative leadership and digital literacy in executive management impact digital maturity. They found that the digital literacy of executive management acts as a mediator in the connection between generative leadership and digital maturity.…”