Digital Leadership Impacts on Developing Dynamic Capability and Strategic Alliance Based on Market Orientation

In-depth study on the role of leadership, particularly digital leadership on the creation of strategic alliances and dynamic capabilities have not been explored. Hence, this paper examines the roles of digital leadership in developing strategic alliance and dynamic capability based on the market orientation. It is put forward that digital leadership behaviors have a stronger influence on the development of strategic alliance in order to drive dynamic capabilities based on market orientation. A quantitative method was used, comprising 88 senior leaders of Indonesian telecommunication companies. Purposive sampling method was used with the Smart PLS statistical tool. The findings confirm the direct and indirect significant effects between digital leadership and the development of strategic alliance and dynamic capabilities based on market orientation. The study has practical implications to take priority in developing digital leadership to enforce the transformation. The limitations of the study are identified to be the sample, time and statistical tool used, hence longitudinal study is suggested in the future with a more extended sample quantity and time frame. © 2019, Czestochowa University of Technology. All rights reserved.