The Role of Leadership Style in Digital Transformation: The Mediating Effect of Organizational Culture and Structure (Case Study: Companies in the Information Technology and Digital Banking Sectors)

Akbari, Arezo; Zolfaqarzadeh, MohammadMahdi; Fayyazi, Marjan

doi:10.22034/jhcad.2025.236466

The Role of Leadership Style in Digital Transformation: The Mediating Effect of Organizational Culture and Structure (Case Study: Companies in the Information Technology and Digital Banking Sectors)

Document Type : Original Article

Authors

Arezo Akbari ¹

MohammadMahdi Zolfaqarzadeh ²

marjan Fayyazi ³

¹ Master of Science, Human Resource Management, Performance and Productivity, Faculty of Public Administration and Organizational Sciences, University of Tehran, Tehran, Iran

² Associate Prof, Department of Public Policy and Administration, Faculty of Public Administration and Organizational Sciences, University of Tehran, Tehran, Iran

³ .

10.22034/jhcad.2025.236466

Abstract

Perpose: This study examines the role of leadership style in digital transformation, emphasizing the mediating role of organizational culture and organizational structure.
Methodology: Using a quantitative approach and structural equation modeling, the present study analyzed the relationships between leadership variables, organizational culture, organizational structure, and digital transformation, and analyzed data from 121 questionnaires distributed among senior managers of banking and IT companies.
Findings: The research findings show that leadership style has a direct and significant effect on organizational structure (β=0.719) and organizational culture (β=0.727). Also, the relationship between leadership style and digital transformation was significant with an impact coefficient of (β=0.230). In addition, organizational culture also has a positive and significant effect on digital transformation.
Conclusion: Information technology and digital banking provide a new framework for understanding the interactions of these factors. Using structural equation modeling to analyze data collected from 121 senior executives, it provides a novel approach to identifying leadership patterns that are effective in driving digital transformation. It also emphasizes designing flexible structures and fostering a culture of continuous learning as key factors, providing practical solutions for organizations to accelerate digital innovation.

Keywords

Leadership style

digital transformation

organizational culture

organizational structure

digital banking