Abstract

Digital transformation (DT) is reshaping organizations by integrating advanced technologies into business operations. This transformative process, however, extends beyond technology adoption and significantly alters organizational culture, structures, and employee roles. Leadership plays a pivotal role in steering these transitions, influencing employee behavior and organizational outcomes. This study explores two leadership dimensions crucial for navigating DT: DT -oriented leadership, which focuses on guiding technical change and innovation, and people-oriented leadership, which emphasizes empathy, trust, and employee support during periods of uncertainty. DT-oriented leadership is instrumental in fostering cognitive trust by clearly articulating digital strategies and aligning organizational objectives with technological trends. However, an overemphasis on technical leadership may lead to emotional and cognitive resistance among employees, leading to affective, cognitive, and behavioral resistance to change. This study broadens the understanding of how both DT-oriented and people-oriented leadership styles influence employee trust, reduce resistance, and promote innovative performance during DT. By combining addressing both dimensions, organizations can successfully navigate the complexities of DT, ensuring both technological advancement and employee engagement.