The Relationship Between Digital Leadership and Innovation with the Role of Organizational Learning

Abstract

The study investigates how digital leadership influences, in theory, the innovative work behaviors, with organizational learning acting as a learning mediator, in small and medium enterprises in Tripoli, Libya. In an age of technological transformation, businesses are increasingly dependent on digital capabilities and agile leadership styles to gain competitivity. The study was carried out on 435 employees, data collected via a structured questionnaire; and the SEM was used in the analysis. The findings confirmed a positive and significant relationship between digital leadership and innovative work behavior. Further, it was observed that organizational learning also mediates the relationship between digital leadership and innovative work behavior, thereby suggesting that it is strategically important for realizing innovation. Some of the phenomena observed pave a path to SMEs requiring investment along two major fronts: digital leadership development and the creation of learning-oriented organizational cultures. The research extends the digital transformation literature by contextualizing it within an emerging market economy. There are limitations due to time-bound data in the study applicable to the South Asian region; hence, it may interest future researchers to delve into cross-sectoral and cultural dynamics. The study gives some relevant insights to academicians, policy-makers, and organizational leaders interested in fostering innovation capacity through effective digital leadership and learning mechanisms.