Fostering Digital Transformation in MSMEs: The Role of Leadership, Culture, and the Mitigation of Technostress

Gunawan, Djohan (2025) Fostering Digital Transformation in MSMEs: The Role of Leadership, Culture, and the Mitigation of Technostress. Review of Integrative Business and Economics Research (RIBER), 14 (4). pp. 206-222. ISSN 2304-1013

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Abstract

Investigating the components of digital transformation (DT) in the micro, small and medium enterprise (MSME) sector is the aim of this study. Despite the topic's obvious importance, this empirical investigation is still somewhat limited. This study aims to investigate how technostress inhibitors (TI), digital leadership (DL), and innovative culture (IC) may together stimulate involvement for greater digital innovation (DI) to close that gap. This quantitative study tested a novel conceptual model using survey data from Indonesia’s MSME business. The data from the 320 valid responses was analyzed using partial least squares structural equation modelling. The result showed that DL and IC positively affected DI. Techno-work engagement (TE) is a mediator in the relationship of innovation, culture, and leadership. TI played a significant moderating role in relationships related to engagement, leadership, and culture. The study's findings highlight significant issues regarding how organizational support development and leadership style could help DT in the MSME sector. While seeking DI through job engagement, leaders need to demonstrate a commitment to long-term resource allocation to avoid any negative effects of digital stress. The study suggests that organizational support can enhance digital transformation (DT) in the MSME market, potentially leading to improved consumer experiences. With the assistance, MSME managers will be able to promote societal and economic growth.

Item Type:	Article
Creators:	Gunawan, Djohan
Contributors:
Keywords:	Digital innovation; Digital leadership; Innovative culture; Technostress inhibitor
Subjects:	600 Technology (Applied Sciences) > 650 Management and Public Relations > 658 General management (Risk Management, Profit and Loss, Logistics) > 658.4 Executive Management
Sustainable Development Goals:	Goal 08. Promote sustained, inclusive and sustainable economic growth, full and productive employment and work for all Goal 09. Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation
Divisions:	Faculty of Business > Master of Technology Management
Date Deposited:	31 Aug 2026 07:57
URI:	https://kc.umn.ac.id/id/eprint/49401

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