The Impact of Strategic Flexibility and Digital Leadership on Digital Transformation and Exploratory Innovation with the Mediation Role of Digital Entrepreneurial Orientation

The advent of novel technologies in the digital age has brought about a transformation in the contemporary business environment and provided an opportunity for innovation. As a result, organizations must adapt to these changes to ensure their survival. Consequently, this study aims to assess the impact of strategic flexibility and digital leadership on digital transformation and exploratory innovation with the mediating role of digital entrepreneurship orientation.

The current research is an applied research in terms of its purpose and a descriptive-survey research in terms of its method. The statistical population of the research comprises 180 active companies located in the science and technology park and growth and innovation centers of West Azarbaijan province, and using Morgan's table, 123 companies were selected as a sample and the questionnaires were distributed and completed in a non-random way. In order to analyze the data, SPS 26 and SmartPLS 4 software were used.

The results of hypothesis test confirmed the direct impact of digital leadership and strategic flexibility on digital transformation and exploratory innovation. Additionally, the effect of digital leadership through digital entrepreneurship orientation on exploratory innovation was confirmed.

The achievement of success in digital transformation is directly contingent on the qualities and competencies of an organization’s leaders. Leaders play a pivotal role in establishing the prerequisites for a culture of innovation and enduring change within the organization, thereby ensuring its success and longevity amidst the current era of digital transformation. The deployment of digital technologies alone is insufficient to guide an organization towards its objectives; it is the digital leadership that serves as the catalyst and trailblazer of digital transformation.