Industry 4.0 brings a new challenge for incumbent firms to anticipate new business model offered by emerging entries. The digital transformation is required by incumbent to develop innovation on product and service business model based on customer experience orientation. To support this transformation, strong digital leader is important to assure the development of this transformation. The study on the role of digital leadership on business model innovation and customer experience has not been explored, significantly, Hence, this research aims at assessing the role of digital leadership, whether it directly or indirectly influences the customer experience orientation in developing business model innovation. This study was conducted through survey to 88 senior leader respondents from Indonesia telecommunication firms, in which Smart-PLS application was used to analyze the data. The result show that digital leadership had direct and indirect impacts on customer experience orientation in developing business model innovation. The practical implications of these findings are recommended for the senior leader of management of telecommunications industries in Indonesia to strengthen digital leadership capability in conjunction with the development of business model innovation and customer experience orientation. Further research can be explored by expanding the sample, industry, statistical application and longitudinal study.
Due to market changes in the digital era, we argue that innovation based on dynamic capability is accelerated when aligned with market orientation. Digital leadership will significantly enable sensing market changes, seizing opportunities, and reconfiguring organizations. Previous studies on digital leadership, dynamic capability, and innovation management focus mainly on constructs, benefits, and implications. However, a study on the role of digital leadership based on dynamic capability in fostering innovation and the impact of market orientation have not been thoroughly explored, which is the aim of this study, taking market orientation as a moderating variable. Employing a quantitative methodology, data were collected through online questionnaires, distributed through email and messaging applications to a purposive sample of 88 senior managers of Indonesian telecommunication firms. The results reveal that digital leadership based on dynamic capability impacts directly and indirectly on developing innovation. Market orientation also plays an important role in accelerating innovation. Due to limitations in terms of research model, sample size, and time, further research using larger samples in other industries and countries should be undertaken.
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