Paper Type

Complete

Abstract

Digital transformation effectiveness remains unevenly distributed across firms, suggesting that technological investment alone is insufficient. This study examines how distinct dimensions of paradoxical leadership shape digital transformation effectiveness in SMEs. Drawing on paradox theory, we treat digital transformation as an inherently tension-laden process and examine four paradoxical leadership dimensions—conforming to and shaping environmental forces, maintaining stability and flexibility, balancing short-term efficiency with long-term development, and focusing on shareholders and stakeholders—as independent predictors. Digital transformation effectiveness is operationalized as a reflective–formative construct comprising product, process, and business model innovation. Analyzing survey data from 220 SME executives in Taiwan via PLS-SEM, all four dimensions demonstrated significant positive effects, with environmental integration and temporal balancing emerging as relatively stronger predictors. Findings advance paradox theory and offer actionable insights for SME leaders navigating complex digital change.

Paper Number

1382

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Aug 15th, 12:00 AM

When Leaders Embrace Tensions: How Paradoxical Leadership Shape Transformation Effectiveness

Digital transformation effectiveness remains unevenly distributed across firms, suggesting that technological investment alone is insufficient. This study examines how distinct dimensions of paradoxical leadership shape digital transformation effectiveness in SMEs. Drawing on paradox theory, we treat digital transformation as an inherently tension-laden process and examine four paradoxical leadership dimensions—conforming to and shaping environmental forces, maintaining stability and flexibility, balancing short-term efficiency with long-term development, and focusing on shareholders and stakeholders—as independent predictors. Digital transformation effectiveness is operationalized as a reflective–formative construct comprising product, process, and business model innovation. Analyzing survey data from 220 SME executives in Taiwan via PLS-SEM, all four dimensions demonstrated significant positive effects, with environmental integration and temporal balancing emerging as relatively stronger predictors. Findings advance paradox theory and offer actionable insights for SME leaders navigating complex digital change.

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