Technology-enabled leadership and performance enhancement outcomes: an empirical investigation from the dynamic capabilities perspective

Abstract

Purpose This paper aims to examine the role of technology-enabled leadership (TEL) in achieving performance-enhancement outcomes. This empirical investigation is from a dynamic capabilities perspective. Design/methodology/approach A conceptual framework presents a general model with an overarching dynamic capabilities theory. The research model defines key variables – macroeconomic turbulence (MET), TEL, analytics-based responsiveness (ABR), knowledge-driven innovation (KDI) and performance enhancement outcomes (PEOs). Empirical tests of eight hypotheses are conducted using an original survey instrument based on the respondents (n = 203). Findings In response to MET, TEL is crucial in implementing ABR in strategic planning aspects and KDI in operational dimensions. In turn, ABR and KDI are key mediating variables that achieve a desirable level of PEOs. Research limitations/implications Despite the limitations associated with survey-based research, the findings suggest robust analytical results. For example, the alternative model suggests that MET negatively moderates the positive impact of TEL on ABR, while KDI positively moderates the positive impact of ABR on PEOs. Practical implications Outstanding firms demonstrate both TEL and data-savvy decision-making processes. Knowledge-intensive innovation allows firms to achieve multiple performance outcomes that help firms survive and thrive in challenging market environments. Social implications There has been a growing concern about how firms use customers’ data in choosing their business practices. Customers are concerned about privacy and data security issues if firms misuse the data while pursuing profit-based goals. However, this empirical investigation confirms that business analytics improve firm performance (e.g. firm productivity enhancements), ultimately benefiting the customers. Providing relevant data to firms has potentially positively enhanced customer services and thus benefits societal well-being. Originality/value Using an original survey instrument, this research empirically tests a research model that defines the complex paths between TEL and competitive performance outcomes.