Volume 30, Number 3, 2025

Navigating the Digital Era: How Digital Transformational Leadership Enhances MSMEs' Financial Success

Bonifasius Hamonangan Tambunan

 
^{Faculty of Economics and Business, Universitas HKBP Nommensen, North Sumatra, Indonesia
bonifasius.tambunan@uhn.ac.id}
 

ABSTRACT

The advent of digital technology has revolutionized the business ecosystem, particularly for MSMEs. Digital transformation significantly impacts MSMEs' operations, necessitating leaders to promote technology integration to achieve financial success. This study employs a quantitative methodology by examining and analyzing distributed questionnaires (n = 178) to assess the impact of digital transformational leadership on financial performance, with digital technology adoption as a mediator. The findings reveal that digital transformational leadership and technology adoption positively and significantly affect MSMEs' financial performance. Additionally, the study highlights the crucial role of digital technology adoption in mediating the relationship between digital transformational leadership and financial performance. Our research provides deeper insights into how digital transformational leadership and technology adoption influence MSMEs' financial outcomes. The results provide valuable insights into the correlation among leadership style, digital technology adoption, and financial performance enhancement in MSMEs.

JEL Classifications: G00, M00, M12, O330

Keywords: digital transformational leadership, digital technology adoption, financial performance, MSMEs, digital transformation

Cite this article: 

Tambunan, BH, 2025,  Navigating the Digital Era: How Digital Transformational Leadership Enhances MSMEs' Financial Success,  International Journal of Business , 30(3), 002.  https://doi.org/10.55802/IJB.030(3).002