The Effects of Transformational and Adaptive Leadership on Dynamic Capabilities: Digital Transformation Projects

Leadership must be leveraged at the management level to develop the capabilities needed to succeed in digital transformation projects, where complications arise due to technological novelty and environmental dynamics. Transformational leadership (TRL) and adaptive leadership (ADL) are proposed as successful approaches for managing changing behaviors and faster adaptation to new circumstances. Survey results demonstrate the positive influence of TRL on the three project dynamic capabilities. However, its impact on adaptive capability is weak. An interview study was conducted to explore the link between ADL and adaptive capability, providing an additional understanding of insignificant effects on innovative and absorptive capabilities.