Examining the Role of Transformational and Transactional Leadership in Driving Digital Transformation in Saudi Healthcare

Abstract

Starting with the healthcare systems across the globe, digital transformation is a strategic focus, more so in Saudi Arabia as the country rapidly progress through Vision 2030. Leadership is a significant driver of this transformation, however the conceptual knowledge on the impact of various leadership styles in digital adoption from the health organizations perspective is scarce. This is a conceptual paper examining the roles of transformational and transactional leadership in influencing digital transformation within Saudi’s healthcare system. Based on extant leadership theories and digital transformation literature, this paper puts forward a conceptual model on how such leadership styles either facilitate or inhibit digital readiness, innovation capability, system adoption and organizational change. In turn, transformational leadership encourages digital transformation by establishing vision, employee enablement, knowledge sharing and innovation-facilitative cultures. In comparison, transactional leadership adds up through role clarity, performance monitoring and compliance with standards and procedures. The paper finds that both leadership styles are synergistic, and when combined they can enhance the digital transformation of Saudi healthcare institutions. Policy implications and theoretical contributions are considered, providing direction to policy makers and future empirical inquiries.