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Digital Leadership in the 21st Century: Adapting To Technological Changes

Le Hang Luu

National University

LED 680: Leadership Research

Professor: Julia L Buchana

November 12, 2023

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Digital Leadership in the 21st Century: Adapting To Technological Changes

Digital leadership comprises strategies, skills, and abilities required for directing and

leading in an innovative digital and technology-oriented environment. It involves using

technology as an advantage to derive institutional change, encourage invention and innovation,

and achieve organizational objectives. The critical elements of digital leadership include vision

thinking, technological literacy, and the ability to control the power of new technology, fostering

organizational success (Prince, 2018). The evolution of technology has changed the business

landscape, making it vital to have digital leadership. Thus, businesses need solid digital

leadership to adapt and modify company strategies and survive the new digital era. Digital

leaders utilize and improve the company's digital assets to meet business goals and effectively

lead the digital business transformation.

Regarding skills and viewpoints, digital leaders differ from traditional leaders.

Unfortunately, many businesses fail to recognize digital leaders' importance, resulting in subpar

work and irreversible mistakes (Aruazo et al., 2021). This leadership compels organizations to

remain relevant, sustainable, and competitive. In the realm where digital transformation is

unpredictable, leaders need to embrace and use technological advancements to stay ahead of the

curve. This is instrumental in managing current affairs and foreseeing and preparing for future

technological innovations.

Research shows a positive correlation between digital leadership and leadership

outcomes, expressed as high performance and satisfaction levels and high levels of execution of

digital leadership (Antonopoulou et al.,2021). The steady advancement of innovation has

changed how organizations work, disrupting traditional commerce models and redefining the

role of leadership. Innovative changes, such as AI, big data, the Internet of Things (IoT), and

robotization, have impacted how leaders make choices, communicate, and strategize(Vertesy,
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2017). These changes have a monstrous effect on leadership approaches, team dynamics, and

organizational structures, emphasizing the need for leaders to adjust and enhance in this

energetic environment.

Evolution of technological changes and digital leadership

The 21st century has witnessed a rapid evolution of technology, fostering a new era of

leadership. Empirical research stated that there is evidence to suggest that the 21st-century

technological revolution is a very complicated and flexible process that might unfold in one of

three ways, contingent upon the development of a digital society and the uptake of artificial

intelligence. In contemporary Russia, DE intellectualization is most likely to occur, and there are

already indications of it. Due to a lack of marketing backing, it predicts a low degree of

development for the digital society and a low level of consumer interest in artificial intelligence.

Investment flows will, therefore, be diverted in favor of intellectual technologies that are

conventionally revolutionary rather than offering entirely new opportunities (Popkova et al.,

2020).

This global network has altered how businesses operate and how leaders navigate

decisions. It has facilitated unparalleled connectivity, providing access to unlimited information

while ushering in modes of operating businesses. In addition, mobile technology has accelerated

constant connectivity, and leaders can conduct business virtually regardless of the geographical

connection. Furthermore, a study found that mobile-aided indexing (MAI) permits information

sharing across all departments and subunits; SMEs considered it beneficial. Managers of SMEs

believe that integrated MAI is essential for coordinating departments or sub-units to get valuable

data for their decisions. The study's second objective is to examine the moderating role of cloud
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computing in the relationship between management accounting data and decision-making

(Khaliq et al., 2021).

With the development of artificial general intelligence, the Fourth Industrial Revolution

—which would enable the simultaneous, real-time, customized handling of numerous tasks—

could arrive in the middle of the twenty-first century (Tien, 2020). The impact of these

technological leaps on leadership practice and leaders have adapted to these changes by

embracing new communication methods and decision-making tools that surpass geographical

boundaries. Leaders have adopted digital platforms to maintain cohesion and productivity by

increasing flexibility to promote inclusivity and agility. Organizations foster innovation by

promoting digital literacy in their workforces and reshaping business models. As a result, leaders

must be more skilled as their roles and expectations have shifted to demanding acute

responsibility. They must possess a hybrid skillset that combines traditional, agile, servant, and

digital leadership, which employs a strategic vision that leverages technology for long-term

growth.

Remote Leadership and Virtual Workforce

The evolution towards remote jobs and management has redefined leadership in the 21st

century. Since technology allows members to communicate and collaborate across organizations,

time zones, geographic locations, and cultural barriers, virtual teams have emerged as a crucial

context for leadership. They now play a significant role in worldwide work (Schmidt, 2014). It

presents benefits and challenges that impact team dynamics and productivity. Communication

barriers and varying time zones can lead to misunderstandings and decreased collaboration.

Empirical research via a study confirms that many virtual project teams for improved

performance prefer Shared leadership instead of formal team leadership.

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Nevertheless, team leaders must be more equipped to recognize shared leadership

potential or assume shared leadership responsibilities. We demonstrate that team leaders often

need to pay more attention to the ability of their team members to lead themselves based on an

analysis of 96 software development teams spread across multiple countries. Consequently, these

leaders monopolize the power to make decisions and give their team members too little freedom

to accomplish their jobs. Unknowingly endangering the performance of virtual teams, these

leaders hinder their team members from reaching their full potential (Hoegl & Murthel, 2016).

In contrast, the benefits of remote leadership are vast, like flexibility in work schedule and access

to a diverse, globally talented workforce, which improves sustainability. Furthermore, the

business has reduced operational costs and increased customer satisfaction because of work-life

balance. A virtual work team's success depends partly on its members' faith in the leader since

the leader's demeanor and physical attributes greatly influence this trust, boosting organizational

effectiveness (Flavian et al., 2019).

The strategies for effective remote leadership include clear and concise communication

by establishing regular check-ins that help bridge the physical gap in the workforce. Establishing

trust among team members is vital in virtual teams as it helps get tasks done before the deadline

and provides solutions whenever there is a problem. Setting clear goals and expectations is also

essential for ensuring roles and responsibilities are well defined and having transparent metrics

for success in the team.

Remote work critically affects team dynamics, primarily through the absence of a

physical radius of the workforce. This hinders natural relationships and decreases collaboration.

However, by determined efforts to create virtual spaces for interaction and collaboration, trusted

relationships between employees can be nurtured remotely. A thick line exists between
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productivity and burnout caused by invading the space of personal lives. This is because remote

work challenges a healthy life-work balance due to differences in time and scheduled tasks.

Technology Adoption and Innovation

Technological innovation is the bridge to success in modern days, and leaders are

responsible for steering institutions through complexity. They are the visionaries shaping a

strategic map for technological change by advocating the integration of new technologies and

fostering experimental activities. A study concluded that alto-centric leadership is necessary for

digital transformation, and the rise of artificial intelligence presents intriguing opportunities to

rethink what it means to be a leader in a world that is becoming increasingly digitalized. Soft

skills like empathy, humility, integrity, and compassion are also becoming more and more

critical, as we know the power of digital technology (Henderikx & Stoffers, 2022). Furthermore,

digital leaders take the critical responsibility of risk management associated with technological

advancements. New features like AI can be beneficial but disruptive, if not limited, because it

has the power to drive businesses through a strike of losses. This balance ensures that innovation

aligns with the institution's objectives while managing challenges.

There are real-life examples of successful technology adoptions under the guidance of

skilled digital leaders. A study confirmed that Universities in Jordan adopted cloud-computing

systems under practical guidance and turned out to be a success whereby their systems

performed better. The study bridged the knowledge gap regarding the incomplete causal chains

between technological, organizational, and environmental factors contributing to cloud

computing adoption. Additionally, it explores the role of novel methodological approaches that

capture the characteristics of IT investment decisions, such as the utilization of cloud computing
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methods (Masa'deh, 2015). This case study shed light on the positive outcomes of technological

adoptions on institutional performance and efficiency.

Several factors influence the successful adoption of technology in the organization. They

include employee contribution, training, and capital costs. Empirical research revealed that the

firm's and the owners' features and specific business aspects are essential in understanding the

obstacles to implementing digital innovation. Additionally, during the COVID-19 epidemic,

businesses with more significant revenue and sales primarily incorporated digital technologies

into their operations (Trinugroho et al., 2021). However, when digital leaders prioritize guiding

employees through the adoption process by offering training, there is success in technology

adoption.

Moreover, aligning with organizational goals is essential when integrating new

technology. Digital leaders evaluate the relevance of new technology, ensuring it will help meet

the organization's goals. This will foster efficiency and sustainability in organizations.

Cybersecurity and Ethical Implications

Addressing ethical decision-making in digital leadership is critical in organizations.

Moral decision-making regarding innovation adoption, information security, and artificial

intelligence deployment is a top priority in digital authority. Advanced leaders confront ethical

predicaments around data use, customer privacy, and inherent bias in calculations. The duty of

leaders to guarantee fair and ethical deployment of AI is fundamental to avoid potential social

and ethical consequences.

A study revealed that this includes advancements in digital technology that have

theoretically altered how marketing is implemented, particularly in business-to-business (B2B)

settings where stakeholder alignment depends heavily on communication. Several talks about
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moral leadership in the digital economy have shed light on how to deal with the complexity that

has grown in a world where markets are both physically and proximally linked, which has

resulted in improper marketing techniques (Lin et al., 2020).In addition, corporate social

responsibility (CSR) in the use of innovation is exceptionally vital. Advanced leaders must

integrate moral contemplations into their innovation methodologies, focusing on sustainability,

reasonable trade, and ethical sourcing. Maintaining capable practices in innovation procurement

becomes an essential aspect of digital leadership, guaranteeing that the impact on society and the

environment is ethically considered.

Cybersecurity management is challenging for leaders in a world where threats demand

evolving strategies for threat assessment. One of the issues facing the sector is cybersecurity, and

leaders and the private sector should collaborate to guarantee that these vital infrastructures are

sufficiently safeguarded while promoting the full development of new technologies in an area

that has comparatively lagged behind others in embracing the new "4.0 world" (Zarzuela. 2021).

Digital leaders are, therefore, tasked with promoting awareness to their inferiors about

cybersecurity measures. This sets up a workforce that actively works towards maintaining

healthy and safe technological practices.

Furthermore, leadership and accountability work hand in hand while enforcing ethical

standards in technology innovation. Integrating ethics into organizational policies becomes a

vital step for leaders. They must ensure ethical policies are followed and have profound

consequences for failing to adhere to them. Explicit attention to ethical considerations will

ensure that broad human benefit is welcomed and not swamped by technological exclusivity as

technology tools and mental capacities become more deeply integrated (Sullivan et al., 2018).
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These measures create a culture whereby technological development is supported, and ethical

practices are prioritized.

Managing Digital Transformation: Leadership Strategies, Change Management, and

Organizational Impact

Digital leaders with a compelling vision tend to articulate the objectives and direction,

making strategic planning critical. The three primary components of digital transformation—

employee digital skills, technology investments, and digital transformation strategies—are

advantageous for small and medium-sized enterprises (SMEs) and can enhance performance

while preserving sustainable growth (Teng et al., 2022). Successful leaders communicate their

vision, the guiding light that ensues commitment to organizational change and adoption.

To maintain sustainability, leaders must leverage technological changes by adopting agile

and servant leadership practices. Empirical research revealed that while change management has

a minor effect on businesses' commitment to green development, it directly improves digital

maturity and commercial success (Irimas & Mitev, 2020). Adaptability and flexibility in altered

management ensure a smoother transition during digital transformation. Communication and

stakeholder engagement play a crucial part in successful change management. Leaders

communicate changes reliably and comprehensively, engaging all partners within the change

process. Partner engagement guarantees negligible resistance and cultivates a sense of ownership

and support in the change process.

Technological advancements bring organizational shifts whereby behaviors, beliefs, and

values change to support digitalization. There are two patterns: the Disruptive digital

transformation pattern, defined by a few significant digital steps that imply a disruptive and

radical change in the company system, and the Sustaining digital transformation pattern. It is
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characterized by the pervasive role of lean culture with small and horizontal digital changes,

involvement of people, and willingness to maintain continuous process improvement (Rossini et

al., 2021). Organizational structure experiences adjustments in response to digital change. Chains

of command, work processes, and cross-functional collaborations are reshaped, reacting to

integrating new technologies and methodologies. This often results in more agile and

interconnected structures, fostering innovation and collaboration.

Conclusion
In exploring digital leadership, this literature review has highlighted different imperative

aspects for understanding and embracing the challenges and opportunities of the digital age.

Summary of critical discoveries and lessons from the literature. Throughout this research, the

importance of digital leadership within the 21st-century business landscape emerged as a

consistent theme. Ever-evolving innovative change, from the rise of the Web to the speeding up

of artificial intelligence, has fundamentally reshaped how leaders work and organizations

operate. Managing remote groups, driving innovative development, and tending to ethical

contemplations have all developed as critical regions of digital leadership. In addition, digital

transformation and change management strategies have proven fundamental in forming

organizational culture and structure.

Research gaps and ranges for future investigation in digital leadership. However, this

comprehensive examination also reveals gaps and regions for future exploration. Even though

there is a significant establishment within the existing literature, there are still areas of digital

leadership that deserve further study. For illustration, the complexities of AI in leadership

decision-making or the long-term impact of remote working on organizational culture and

worker well-being remain promising ranges of research. Moreover, the ethical implications of
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quickly evolving technologies and their applications in various businesses merit advanced

investigation.

Looking forward, the part of digital leadership will proceed to advance and adjust in

response to innovative progressions. As developing technologies shape our world, the part of

leaders in exploring complex digital landscapes becomes progressively pivotal. The capacity to

use innovative innovations ethically and deliberately will be the trademark of effective advanced

administration. Digital leaders must adjust flexibility and vision in the future, viably managing

change while maintaining a critical course toward future innovations. Leadership in the digital

age will require a combination of traditional leadership abilities with a sharp understanding of

innovation and its ethical suggestions. Advanced leaders will be crucial in driving a culture of

innovation, grasping change, and making flexible organizational structures that can withstand

future disruption.
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