Leading In Digital Age: How Digital Orientation Shapes the Impact of Transformational Leadership on Quality of Organizational Decision Making

Abstract Book of the 8th International Conference on New Trends in Management, Business and Economics

Year: 2026

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Leading In Digital Age: How Digital Orientation Shapes the Impact of Transformational Leadership on Quality of Organizational Decision Making

Yousif Maghdid

ABSTRACT:

While transformational leadership is recognized to impact organizational outcomes, its effectiveness in the digital era remains under unexplored. This study demonstrates how digital orientation moderates the relationship between transformational leadership and quality of organizational decision making. Utilizing survey data from 400 “managers, directors, head of department and team leaders across banks in Erbil City in the Kurdistan region of Iraq (KRI). The study examines its hypotheses through regression-based analysis – Structural Equation Modeling (SEM) using the AMOS software). The findings cue that a strong digital orientation amplifies the positive impact of transformational leadership (TL) on quality of organizational decision making. The results further indicate that transformational leadership (TL) exerts a significantly greater influence in digital oriented banks. This study contributes to leadership theory and provides practical implications for organizations striving to enhance the quality of organizational decision making in the context of digital transformation.

Keywords: Leadership effectiveness; Administrative behaviors; Decision effectiveness; Corporate governance; Digital transformation