Transformational Leadership and Digital Transformation: Bridging Strategy and Culture in the Era of Industry 5.0

Shankar Subramanian Iyer; Brinitha Raji; Sangeeta Malhotra

doi:10.55047/transekonomika.v6i2.1164

Authors

Shankar Subramanian Iyer* Faculty of Business, Westford University College, Sharjah, United Arab Emirates https://orcid.org/0000-0003-0598-9543
Brinitha Raji Global Business Studies, DKP, Dubai, United Arab Emirates https://orcid.org/0000-0002-8633-0099
Sangeeta Malhotra PWC Academy, Dubai, United Arab Emirates https://orcid.org/0000-0003-1030-5716

DOI:

https://doi.org/10.55047/transekonomika.v6i2.1164

Keywords:

Digital Transformation, Industry 5.0, Organizational Culture, Transformational Leadership

Abstract

Background: Digital transformation initiatives frequently fail despite substantial investments, with success rates remaining below 30% across industries.

Objectives: This study investigated the critical determinants of successful digital transformation in Industry 5.0 contexts by integrating five theoretical frameworks to examine four key constructs: Transformational Leadership Attributes, Strategic Alignment and Vision, Organizational Culture for Innovation, and Human-Centric Design and Employee Readiness.

Methods: Employing a qualitative, interpretivist multiple-case design, the study drew upon 18 semi-structured interviews conducted across three case entities, each featuring C-level executives and senior managers as informants. Analytical procedures followed Braun and Clarke’s six-stage framework for thematic analysis, applied to the transcribed corpus.

Findings: Five overarching themes emerged: (1) Visionary Leadership as the Catalyst for Transformation, (2) Strategic Alignment and Agility, (3) Culture as the Foundation for Innovation, (4) Human-Centric Design and Employee Empowerment, and (5) Technology as an Enabler.

Conclusion: This study provided the first qualitative, cross-national empirical evidence integrating all four determinants simultaneously in Industry 5.0 contexts, demonstrating that successful digital transformation requires synchronized orchestration of leadership vision, strategic agility, cultural readiness, and human-centric technology integration. The findings offer actionable insights for organizations navigating the industry 4.0 to 5.0 transition.

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