The Impact of Digital Transformation on Organizational Leadership Strategies: A Narrative Literature Review

Abstract

Digital transformation (DT) has become a defining feature of organizational strategy in the twenty‑first century, reshaping how value is created, delivered, and sustained. Contemporary research increasingly emphasizes leadership as a central determinant of transformation success, moving beyond earlier technology‑centric approaches. This narrative literature review examines how DT has reshaped organizational leadership strategies, driving a shift from hierarchical, command‑and‑control models toward agile, collaborative, and data‑driven approaches. Drawing on multidisciplinary literature from business administration, leadership studies, information systems, and organizational behavior, the review synthesizes key leadership competencies required in the digital era and explores the cultural, structural, and ethical challenges leaders face during transformation. The analysis indicates that DT is fundamentally a human‑centered process in which leaders act as sense‑makers, culture‑builders, and ethical stewards rather than mere technology adopters. The paper concludes by outlining implications for theory and practice and future research directions related to AI‑augmented leadership and accountability in digitally mediated decision‑making.