Participative Leadership as a Catalyst for Digital Transformation: Building Digital Organizational Culture and Identity

Abstract

This study explores the critical role of participative leadership in shaping digital organizational culture (DOC) and its subsequent impact on digital organizational identity (DOI), with a specific focus on the Saudi telecommunications sector and its alignment with Vision 2030. Using a quantitative research design, the study investigates the direct influence of participative leadership on DOC and DOI, as well as the mediating role of DOC in this relationship. Data were collected through a structured survey distributed to 317 employees across three major Saudi telecommunications organizations, focusing on perceptions of leadership practices, cultural integration, and digital identity. A cross-sectional approach was employed, and structural equation modeling (SEM) was used to analyze direct, indirect, and mediating relationships. Findings reveal that participative leadership fosters trust, collaboration, and inclusivity, which significantly contribute to building a robust DOC. This culture promotes technological integration, continuous learning, and innovation, aligning employee behaviors with organizational technological goals and enhancing DOI. The results also underscore the transformative potential of DOC as a mediating variable that bridges leadership strategies with organizational identity, highlighting the synergistic effects of leadership and culture in driving organizational success. By contextualizing these relationships within Saudi Arabia’s digital transformation agenda, the research provides actionable insights for leveraging leadership and culture to achieve Vision 2030 objectives, including fostering innovation, developing digital infrastructure, and enhancing competitiveness. These findings contribute to existing literature on leadership, culture, and identity in digital transformation, offering a strategic framework for organizations seeking to adapt and excel in the digital age.