The Role of Digital Leadership on Operational Performance through Logistics Digitalization and Adaptability

Abstract

The shifts in the international business world limit companies to using digital technology to improve their performance and competitiveness. This paper will examine digital leadership impact on operational performance based on logistics digitalization and flexibility in medium and large manufacturing organizations in Jordan. One of the main aspects of digital leadership allows organizations to develop efficient strategies, distribute resources properly, and establish internal cooperation and external alliances. The research has issued 120 questionnaires to the middle and top managers in different functions of the manufacturing company. The questionnaire was drafted through a five-point Likert scale and was administered offline and online by a Google Form link. The analysis of data was done using Partial Least Squares – Structural Equation Modeling (PLS-SEM) to analyze the outer model and inner model. The findings show that digital leadership influences the digitalization of logistics and flexibility greatly, yet it does not do so directly on operational performance. Rather, digital leadership influences the operational performance through the mediation of adaptability and the interaction of logistics digitalization and adaptability. Digitalization of logistics is a significant factor in improving flexibility, which will eventually translate into an overall change in the operational performance. These results prove that the digitalization of logistics does not only enhance the rate of information exchange and transparency but also reinforces the company to respond to market dynamics. The practical consequences of this study are that manufacturing ones will have to continuously develop digital leadership competencies that facilitate the investments of digital technologies, enhance an adaptive organizational culture, and create the synergy of internal and external functions. To scholars, the study has a conceptual contribution to explaining the mediating role of digital leadership, logistics digitalization, adaptability and operational performance in the age of digital transformation.