THE IMPACT OF LEADERSHIP CAPACITY ON THE STRATEGY ORIENTATION OF DIGITAL TRANSFORMATION IN TOURISM ENTERPRISES

Abstract

The digital transformation strategy orientation is the first element in the digital transformation readiness assessment framework implemented by the Ministry of Planning and Investment in collaboration with The USAID Linkages for Small and Medium Enterprises (USAID LinkSME). The study aims at analyzing the impact of leadership capacity on the strategic orientation of digital transformation in tourism businesses. Empirical research data was collected through a survey of 113 leaders of tourism businesses in Da Nang city. The test result using the linear structural model SEM shows that the strategic direction of digital transformation, especially the perception of the trend of digital transformation, is the most influenced by the quality of the leader. The degree of integrating digital transformation into the strategy, the level of investment on digital transformation, and the degree of application of information technology and digital technology of the enterprises are all influenced by the skills and knowledge of the leaders.