The Influence of Digital Leadership on Innovation Management Based on Dynamic Capability: Market Orientation as a Moderator

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. © 2019 by the authors; licensee Growing Science, Canada.