The Impact of Digital Transformational Leadership on Investment Decisions: The Mediating Role of Digital Transformation
DOI:
https://doi.org/10.63556/tisej.2026.1825Keywords:
Digital Transformational Leadership, Digital Transformation, Investment DecisionsAbstract
The success of digital transformation depends on the extent to which an organization adopts this process as a legitimate change compatible with its own structure. Within the framework of new corporate theory, leadership is considered an element integrated with organizational values and beliefs, and therefore, leadership also needs to be transformed at the strategic level in parallel with digitalizing structures. Digital transformation has become a strategic factor affecting not only operational processes but also investment decisions. In this context, digital transformation leadership contributes to the shaping of investment decisions based on digitalization by creating a rationality that directs transformation within the organization. This study examines the relationship between digital transformation leadership and investment decisions and aims to test whether digital transformation plays a mediating role in this relationship.
The research model was tested using partial least squares structural equation modeling (PLS-SEM) with the SmartPLS software package. The study sample consists of 112 senior managers working in companies operating in the service and manufacturing sectors in Istanbul, Turkey. The findings of analysis show that digital transformation leadership is positively correlated with both digital transformation perception and investment decisions. Furthermore, the findings reveal that digital transformation perception is positively correlated with investment decisions and plays a partial mediating role in the relationship between digital transformation leadership and investment decisions. In this context, the results demonstrate that not only investing in technology but also adopting transformational leadership approaches is important for increasing the impact of digitalization on decision-making processes.
References
Abdul Kareem, A. A., Fayed, Z. T., Rady, S., Amin El-Regaily, S., ve Nema, B. M. (2023). Factors influencing investment decisions in financial investment companies. Systems, 11(3), 146. ; https://doi.org/10.3390/systems11030146
Abuzaid, A. N., Al-Ma’aitah, N., Al-Haraisa, Y. E., ve Al-Tarawneh, K. I. (2019). Examining the impact of transformational leadership on the strategic decision effectiveness of Jordanian microfinance companies. International Review of Management and Marketing, 9(2), 76–83. https://doi.org/10.32479/irmm.7562
Alakaş, E. Ö. (2024). Digital transformational leadership and organizational agility in digital transformation: Structural equation modelling of the moderating effects of digital culture and digital strategy. Journal of High Technology Management Research, 35(2), 100517. https://doi.org/10.1016/j.hitech.2024.100517
AlNuaimi, K. B. ve Singh, K. S. (2022). Mastering digital transformation: The nexus between leadership, agility, and digital strategy. Journal of Business Research, 145, 636–648. https://doi.org/10.1016/j.jbusres.2022.03.038
Bagozzi, R. P. ve Y. Yi. 1988. On the Evaluation of Structural Equation Models. Journal of the Academy of Marketing Science 16 (1): 74–94. https://doi.org/10.1007/BF02723327
Bass, B. M. (1985). Leadership and performance beyond expectations. Free Press.
Bass, B. M. (1999). Two decades of research and development in transformational leadership. European Journal of Work and Organizational Psychology, 8(1), 9–32. https://doi.org/10.1080/135943299398410
Bass, B. M., ve Avolio, B. J. (1990). Developing transformational leadership: 1992 and beyond. Journal of European Industrial Training, 14(5), 21–27. https://doi.org/10.1108/03090599010135122
Bennis, W. (2013). Leadership in a Digital World: Embracing Transparency and Adaptive Capacity. MIS Quarterly, 37(2), 635–636.
Bey G. (2024). Prospects And Rısks of Dıgıtal Transformatıon of Investment Processes In The Modern Economy. Moscow Economıc Journal. (10), 358-368.
https://doi.org/10.55186/2413046X_2024_9_10_416
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A. ve Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471–482. https://doi.org/10.25300/MISQ/2013/37:2.3
Bialowolski, P. ve Weziak-Bialowolska, D. (2014). External factors affecting investment decisions of companies. Economics: The Open-Access, Open-Assessment E-Journal, 8(2014-11), 1–21. https://doi.org/10.5018/economics-ejournal.ja.2014-11
Bilgiseven, E. B. (2024). Transformational and digital leadership for digital transformation in the digital age. E. B. Bilgiseven (Ed.), Transformational and digital Leadership for digital transformation in the digital age içinde (ss. 56–79). IGI Global. https://doi.org/10.4018/979-8-3693-3466-9.ch004
Boussaidi, A. ve Korbi, K. (2025). The role of transformational leadership in promoting digital transformation through employee engagement in public administration. International Journal of Public Leadership, 21(4), 285-311. https://doi.org/10.1108/IJPL-08-2024-0091
Burns, J. M. (1978). Leadership. Harper ve Row.
Chen, Y. S. ve Chang, C. H. (2013). The determinants of green product development performance: Green dynamic capabilities, green transformational leadership, and green creativity. Journal of business ethics, 116, 107-119. https://doi.org/10.1007/s10551-012-1452-x
Chen, Y., Pan, X., Liu, P. and Vanhaverbeke, W. (2024), “How does digital transformation empower knowledge creation? Evidence from Chinese manufacturing enterprises”, Journal of Innovation and Knowledge, Vol. 9 No. 2, 100481, https://doi.org/10.1016/j.jik.2024.100481
Chen, Z., Wang, Y. ve Park, J. (2026). Research on the impact of digital transformational leadership on digital innovation performance. Scientific Reports, 16, 4992. https://doi.org/10.1038/s41598-025-34966-5
Chin, W. W. (2010). How to write up and report PLS analyses. In E. V. Vinzi, W. W. Chin, J. Henseler, ve H. Wang (Eds.). Handbook of partial least squares: Concepts, methods and applications (s. 655–690). Berlin: Springer. https://doi.org/10.1007/978-3-540-32827-8_29
Cortellazzo, L., Bruni, E. ve Zampieri, R. (2019). The role of leadership in a digitalized world: A review. Frontiers in Psychology, 10, 1938. https://doi.org/10.3389/fpsyg.2019.01938
Dixit, A. ve Pindyck, R. (1994). Investment under uncertainty. Princeton University Press.
Eski, H. (2006). Mühendislik Ekonomisi, Ankara: Gazi Kitabevi
Fazzari, S. M., Hubbard, R. G., ve Petersen, B. C. (1988). Financing constraints and corporate investment. American Economic Review, 78(2), 141–195. https://www.jstor.org/stable/2534426
Fornell, C. ve Larcker, D.F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of marketing research, 18, 39-50 https://doi.org/10.1177/002224378101800104.
Gong, C. ve Ribiere, V. (2023). A historical outline of digital transformation. In Digital transformation in healthcare in post-Covid-19 times (pp. 3-25). Academic Press.
Hair, J. F., Risher, J. J., Sarstedt, M. ve Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European business review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Henseler, J., Ringle, C. M. ve Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the academy of marketing science, 43, 115-135. https://doi.org/10.1007/s11747-014-0403-8
Ilvonen, I., Thalmann, S., Manhart, M. and Sillaber, C. (2018), “Reconciling digital transformation and knowledge protection: a research agenda”, Knowledge Management Research and Practice, Vol. 16 No. 2, pp. 235-244. doi: 10.1080/14778238.2018.1445427
Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D. ve Buckley, N. (2019). Accelerating digital innovation inside and out: Agile teams, ecosystems, and ethics. MIT Sloan Management Review and Deloitte Insights, 60(4), 1-11. Erişim adresi: https://sloanreview.mit.edu/digital2019
Kludacz-Alessandri, M., Hawrysz, L., Żak, K. ve Zhang, W. (2025). The impact of digital transformational leadership on digital intensity among primary healthcare entities: a moderated mediation model. BMC Health Services Research, 25, 117. https://doi.org/10.1186/s12913-025-12283-x,
Kurniawan, W., ve Soediantono, D. (2022). The role of digital transformation and leadership style on financial performance of defense industries. Journal of Industrial Engineering ve Management Research, 3(3), 111–119. https://doi.org/10.7777/jiemar.v3i3.291
Kurt, M. (2023). İşletmelerin yatırım kararları üzerinde çalışma sermayesi yönetiminin etkisi. Muhasebe Enstitüsü Dergisi, (69), 57–66. https://doi.org/10.26650/med.1270970
Li, S., Yang, Z. ve Tian, Y. (2024). Unexpected consequence of enterprise digital transformation on financial investments. Journal of Corporate Accounting ve Finance, 35(2), 121-134. https://doi.org/10.1002/jcaf.22674
Ly, B. (2024). The interplay of digital transformational leadership, organizational agility, and digital transformation. Journal of the Knowledge Economy, 15(1), 4408-4427. https://doi.org/10.1007/s13132-023-01377-8
Marben, T. R. (2022). Transformational leadership, capital budgeting, and investment decisions: A qualitative study (Doktora tezi). Capella University. Erişim adresi:
Müller, S. D., Konzag, H., Nielsen, J. A. ve Sandholt, H. B. (2024). Digital transformation leadership competencies: A contingency approach. International Journal of Information Management, 75, 102734. https://doi.org/10.1016/j.ijinfomgt.2023.102734
Myers, S. C., ve Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187–221. https://doi.org/10.1016/0304-405X(84)90023-0
Nadeem, A., Abedin, B., Cerpa, N. ve Chew, E. (2018). Digital transformation ve digital business strategy in electronic commerce-the role of organizational capabilities. Journal of theoretical and applied electronic commerce research, 13(2), 1-8. https://doi.org/10.4067/S0718-18762018000200101
Nitzl, C., Roldan, J. L. ve Cepeda, G. (2016). Mediation analysis in partial least squares path modeling: Helping researchers discuss more sophisticated models. Industrial management and data systems, 116(9), 1849-1864. https://doi.org/10.1108/IMDS-07-2015-0302
Nunnally, J. C., ve Bernstein, I. H. (1994). Psychometric theory (3rd ed.). New York, NY: McGraw-Hill.
Odai, L. A., Xiao, Y., Korankye, B., ve Ahakwa, I. (2025). Navigating digital transformation: the critical role of knowledge sharing and digital transformational leadership in boosting innovation capability in Sub-Saharan Africa. Business Process Management Journal, 32 (2): 653–678.
https://doi.org/10.1108/BPMJ-01-2025-0120
Ogunlusi, O. E. ve Obademi, O. (2021). The Impact of behavioural finance on investment decision-making: A study of selected investment banks in Nigeria. Global Business Review, 22(6), 1345-1361.
https://doi.org/10.1177/0972150919851388
Olan, F., Arakpogun, E. O., Suklan, J., Nakpodia, F., Damij, N., ve Jayawickrama, U. (2022). Artificial intelligence and knowledge sharing: Contributing factors to organizational performance. Journal of Business Research, 145, 605-615. https://doi.org/10.1016/j.jbusres.2022.03.008
Ordu, A., ve Nayır, F. (2021). Dijital liderlik nedir? Bir tanım önerisi. e-Uluslararası Eğitim Araştırmaları Dergisi, 12(3), 68–81. https://doi.org/10.19160/e-ijer.946094
Philip, J. (2021). Viewing digital transformation through the lens of transformational leadership. Journal of Organizational Computing and Electronic Commerce, 31(2), 114–129.
https://doi.org/10.1080/10919392.2021.1911573
Podsakoff, P. M., MacKenzie, S. B. ve Bommer, W. H. (1996). Transformational leader behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citize. Journal of management, 22(2), 259-298.
https://doi.org/10.1177/014920639602200204
Rigdon, E. E. (2012). Rethinking partial least squares path modeling: In praise of simple methods. Long range planning, 45(5-6), 341-358. https://doi.org/10.1016/j.lrp.2012.09.010
Sacavém, A., de Bem Machado, A., dos Santos, J. R., Palma-Moreira, A., Belchior-Rocha, H. ve Au-Yong-Oliveira, M. (2025). Leading in the digital age: The role of leadership in organizational digital transformation. Administrative Sciences, 15(2), 43. https://doi.org/10.3390/admsci15020043
Sarstedt, M., Hair, J. F., Pick, M., Liengaard, B. D., Radomir, L. ve Ringle, C. M. (2022). Progress in partial least squares structural equation modeling use in marketing research in the last decade. Psychology and Marketing, 39(5), 1035-1064. https://doi.org/10.1002/mar.21640
Sarstedt, M., Ringle, C. M. ve Hair, J. F. (2021). Partial least squares structural equation modeling. In Handbook of market research (pp. 587-632). Cham: Springer International Publishing.
Scott, W. R. (2014). Institutions and organizations: Ideas, interests, and identities (4th ed.). SAGE Publications.
Sebastian, I. M., Ross, J. W., Beath, C., Mocker, M., Moloney, K. G. ve Fonstad, N. O. (2017). How big old companies navigate digital transformation. MIS Quarterly Executive, 16(3), 197–213. Erişim Linki: https://publikationen.reutlingen-university.de/frontdoor/deliver/index/docId/1501/file/1501.pdf
Shmueli, G., Ray, S., Estrada, J. M. V. ve Chatla, S. B. (2016). The elephant in the room: Predictive performance of PLS models. Journal of business Research, 69(10), 4552-4564. https://doi.org/10.1016/j.jbusres.2016.03.049
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J. H., Ting, H., Vaithilingam, S., ve Ringle, C. M. (2019). Predictive model assessment in PLS-SEM: guidelines for using PLSpredict. European journal of marketing, 53(11), 2322-2347. https://doi.org/10.1108/EJM-02-2019-0189
Stachová, K., Stacho, Z., Cagáňová, D., ve Stareček, A. (2020). Use of digital technologies for intensifying knowledge sharing. Applied Sciences, 10(12), 4281. https://doi.org/10.3390/app10124281
Suchman, M. C. (1995). Managing legitimacy: Strategic and institutional approaches. Academy of Management Review, 20(3), 571–610. https://doi.org/10.5465/amr.1995.9508080331
Sun, Y. (2024), “Digital transformation and corporates’ green technology innovation performance–the mediating role of knowledge sharing”, Finance Research Letters, Vol. 62, PA, 105105, https://doi.org/10.1016/j.frl.2024.105105
Sürücü, L., Yıkılmaz, İ. ve Maşlakçı, A. (2022). Dijital liderlik: Bir ölçek uyarlama çalışması. Abant Sosyal Bilimler Dergisi, 22(3), 1038–1050. https://doi.org/10.11616/asbi.1099012
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N. ve Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of business research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j. jsis.2019.01.003
Wang, B., Rau, P. L. P. ve Yuan, T. (2023). Measuring user competence in using artificial intelligence: validity and reliability of artificial intelligence literacy scale. Behaviour and information technology, 42(9), 1324-1337. https://doi.org/10.1080/0144929X.2022.2072768
Westerman, G., Bonnet, D. ve McAfee, A. (2014). Leading digital: Turning technology into business transformation. Harvard Business Review Press.
Wilson, M. L., Huggins-Manley, A. C., Ritzhaupt, A. D. ve Ruggles, K. (2023). Development of the abbreviated technology anxiety scale (ATAS). Behavior Research Methods, 55(1), 185-199. https://doi.org/10.3758/s13428-022-01820-9
Wong, K. K. K. (2019). Mastering partial least squares structural equation modeling (PLS-Sem) with Smartpls in 38 Hours. IUniverse.
Wu, M. ve Pea-Assounga, J. B. B. (2022). Assessing the relationship between internet banking and investment decision through sustainability and competitive advantage: evidence from Congolese banks. Frontiers in Psychology, 13, 869646. https://doi.org/10.3389/fpsyg.2022.869646
Yang, X. (2024). Digital Transformation and Innovation Investments. Advances in Economics and Management Research, 10(1), 307-307.
https://madison-proceedings.com/index.php/aemr/article/download/2406/2424
Yang, Z., Dong, M., Guo, H. and Peng, W. (2024), Empowering resilience through digital transformation intentions: synergizing knowledge sharing and transformational leadership amid COVID-19, Journal of Organizational Change Management, 38(1), 59-81, doi:10.1108/JOCM-07-2023-0303.
Yılgör, A. G. ve Yücel, E. (2008). Sermaye bütçelemesi kararları: Mersin ve Adana illerinde bir uygulama. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 17(2), 449–464.
Zhai, H., Yang, F., Gao, F., Sindakis, S. ve Showkat, G. (2024). Digital transformation and over investment: Exploring the role of rational decision-making and resource surplus in the knowledge economy. Journal of the Knowledge Economy, 15(3), 14103-14134. https://doi.org/10.1007/s13132-023-01569-2
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2026 Third Sector Social Economic Review

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.




