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ISSN 2067-3310, E-ISSN 2067-7669 

Vol. 18, No. 1 (2024), pp. 74-81 

 

74 
 

TRANSFORMATION OF MANAGERIAL LEADERSHIP QUALITIES 

UNDER THE INFLUENCE OF BUSINESS DIGITALIZATION 

 

A. ISHCHUK 

 

Andrii Ishchuk 

Vasyl' Stus Donetsk National University, Vinnytsia, Ukraine 

https://orcid.org/0000-0002-2557-3265, E-mail: a.ishchuk@donnu.edu.ua 

 

Abstract: The paper deals with identifying the directions and content of 

transformational changes in the leadership qualities of a manager under the influence of 

business digitalization. The paper aims to formulate and disclose scientific, theoretical, and 

methodological provisions for changing the qualities of a leader in the era of business 

digitalization. This study is based on observing how managers' leadership qualities are formed 

and developed in the context of digitalization at both global and micro levels. Identified are 

the differences between the characteristics of "traditional" and "digital" leaders based on 

historical and comparative analysis. A set of "traditional" leadership qualities allows for 

operational guidance and management of the company's future development based on the 

extrapolation of existing trends. Moreover, possession of the qualities of digital leaders enables 

multidimensional strategic management. The findings emphasize the importance of digital 

leadership at both macro and micro levels. The study shows the transformation of leadership 

and leadership qualities at different levels of economic management, which complements the 

existing scientific theories of leadership. To promote digital leadership at the macro level, the 

government is responsible for introducing digital technologies in administration, providing 

citizens with convenient tools for accessing administrative services. It was established that 

Ukraine is among the leading countries introducing digital technologies at the macro level. At 

the level of business management within companies, leadership in the digital era acquires 

specific characteristics compared to its traditional forms. In particular, the transition from 

individual to shared leadership leads to changes in organizational structures and management 

styles. 

Keywords: digitalization, digital transformation, traditional leadership, digital 

leadership, leader, leadership qualities 

 

INTRODUCTION 

Current digitalization processes encompass all business activities, including company 

management. The digitization technologies that facilitate digital transformation are driving 

organizations towards new ways of working. (Gorensek & Kohont, 2019). Digitalization 

increases the individual productivity of company employees, improves the speed and quality 

of work performance, and has a positive impact on work motivation (Benitez et al., 2022). 

The process of digitalization demands managers at various levels of management to 

exhibit a distinct level of thinking, expertise, and competence. On the one hand, managers are 

implementing digital technologies across all areas of the organization, transforming the three 

basic components of business: customer experience, operational processes, and business 

https://orcid.org/0000-0002-2557-3265
mailto:a.ishchuk@donnu.edu.ua


Andrii ISHCHUK 

 

75 
 

models (Westerman et al., 2011). On the other hand, business digitalization demands strong 

leadership capable of implementing changes, possessing a vision of goals and various possible 

paths to achieve them – digital leadership. 

In the context of digitalization and digital transformation, digital leadership means the 

strategic use of a company's digital assets to achieve its business goals (Kubaraieva, 2022). The 

essence of digital leadership is multifaceted and is considered by various researchers from 

different perspectives. Thus, from the perspective of its impact on organisational innovation, 

digital leadership is defined as the process required to develop and sustain an innovative culture 

by rapidly bringing ideas to life through flexible IT and business architectures (Tanniru, 2018). 

In addition, the concept of digital leadership is explained as a management model to 

successfully and sustainably manage digital transformations (Troilo, 2021). In this study, it is 

pertinent to emphasize the distinctive nature of defining digital leadership as a combination of 

leadership qualities and the need to apply them: digital leadership is a concept that combines 

three blocks that digital leaders must fulfill – they must have (or learn) digital thinking and 

digital skills and combine these two elements for digital implementation to realize a common 

digital vision (Henselle, 2020). The leadership qualities inherent in digital leaders themselves 

are characterized as a set of personal, professional, social, and communicative traits and 

abilities that ensure effective management and stable relationships between the leader and the 

personnel (Prochan, 2022). Furthermore, it is noted that the individual-personal and socio-

psychological characteristics of a leader as a personality influence the group and lead to the 

achievement of goals (Yahodnikova, 2009, Romanovsky, 2017), as well as affect the 

organizational resilience of companies (Üstgörül & Akkaya, 2023). 

The article is dedicated to identifying the directions and content of transformational 

changes in managerial leadership qualities under the influence of business digitalization. The 

purpose of the article is to formulate and disclose scientific-theoretical and methodological 

provisions regarding the change of leader qualities in the era of business digitalization. The 

implementation of the research goal is carried out based on the classification and comparison 

of leadership qualities of managers in the conditions of traditional and digital leadership. 

The advantage of this study is that the identification of transformations in the forms of 

leadership and leadership qualities of managers under the influence of digitalization helps to 

understand what competencies, skills, and attributes are inherent in modern managers and are 

currently important for the implementation of their powers, as well as in what ways they should 

be acquired and developed. Since digitalization is a complex phenomenon that is observed in 

all fields of social activity, it is appropriate to consider the specified transformational processes 

at the macro- and micro-levels separately and in relationship, which, in our opinion, is lacking 

in previous scientific works. 

 

METHOD 

The scientific method of classification was used as the basis for solving any scientific 

problem and is used to generalize knowledge. The classification of managerial leadership 

qualities as the subject of this research involves their arrangement and sorting according to 

certain characteristics. A review of literary sources revealed various approaches to studying the 

qualities of traditional and digital leaders. Some authors list leadership qualities without 

focusing on their classification. Other authors group leadership qualities into certain categories 



TRANSFORMATION OF MANAGERIAL LEADERSHIP QUALITIES UNDER THE 

INFLUENCE OF BUSINESS DIGITALIZATION 

 

76 
 

based on classification criteria. In our study, it is necessary to group the qualities of leaders so 

that we can further investigate the differences in the process of their transformation under the 

influence of digitalization, namely, to highlight the qualities of "traditional" and "digital" 

leaders. 

By using historical analysis, the changes in styles and qualities of leaders during the 

implementation of digital technologies were observed. Comparative analysis was used to 

identify differences between the characteristics of "traditional" and "digital" leaders. 

 

RESULTS 

Digitalization provides opportunities for society and businesses to reach a higher level 

of socio-economic development. Ukraine is one of the leading countries in terms of the fastest 

implementation of digital technologies in state and local administration. Since 2015, 

transparency in fiscal policy has been ensured through the Prozorro electronic procurement 

system and the E-data web portal for the use of public funds. To increase government 

transparency and streamline administration, the Ministry of Digital Transformation was 

established in Ukraine in 2019. When implementing the presidential program "State in a 

Smartphone," the ministry launched and continuously expanded the digital application Diia, 

which allows Ukrainians to receive administrative services and documents from the 

government online.  

Since 2020, there has been the position of Chief Digital Transformation Officer 

(CDTO) in state and regional authorities in Ukraine. Digital leaders in the regions are involved 

in implementing national digitalization projects (digital education, digital services, internet 

development) and initiating and shaping regional digitalization policies, the main task of which 

is to create a community among digitizers in territorial communities. In the absence of 

administrative levers of influence, a digital leader must possess certain qualities to set a good 

example for territorial communities, coordinate them, set the pace, and encourage change. This 

position should be held by a person with an analytical mindset, legal competencies (as the 

implementation of the regulatory framework at the local level is part of their duties), and 

managerial skills (ability to build a strong team, manage business processes, personnel, etc.) 

(Gurska, 2022).  

For businesses, Ukraine has introduced the Diia.City platform, which, based on 

favorable legal and tax conditions such as a single 5% corporate income tax rate, simplified 

reporting requirements, and easier access for foreign employees, attracts IT companies to the 

country. In the future, the state plans to expand digital leadership through the implementation 

of company development programs in such areas as: 

 Training IT specialists and encouraging investment in educational programs for digital 

transformation; 

 Stimulating the creation of data accumulation and processing centres; 

 Creating conditions for the post-war return of companies to Ukraine and the restoration 

of digitally destroyed infrastructure; 

 Legal, financial, and market support for start-ups.  



Andrii ISHCHUK 

 

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The level of technological advancement in Ukraine compared to other countries across 

the globe is characterized by its position in international rankings. Over the past 5 years, the 

following dynamics of digital development indicators have been observed (Table 1). 

 

Table 1 

Indicators of Ukraine's digital development according to international rankings (2019-2023) 

International index 2019 2020 2021 2022 2023 

Network Readiness Index 67 

(121)* 

64 

(134) 

53 

(130) 

50 

(131) 

43 

(134) 

ICT Development Index (%) 22.9** not 

calculated 

not 

calculated 

not 

calculated 

80.8 

World Digital Competitiveness Ranking  60 58 54 N/A N/A 

Global Innovation Index 47 

(129) 

45 

(131) 

49 

(132) 

57 

(132) 

55 

(132) 

* In parentheses is the total number of ranked countries 

**Data for the year 2017 

Source: Portulans Institute 

 

The Network Readiness Index characterizes the level of development of information 

and communication technologies (ICT) in countries worldwide and reflects how digitalization 

penetrates the economic and social spheres of life. Ukraine's ranking in this indicator improves 

annually. The ICT Development Index reflects the accessibility of ICT for population use. The 

percentage value of this indicator in Ukraine in 2023 increased almost fourfold compared to 

2017 (during the period from 2018 to 2022, this index was not calculated). The value of the 

World Digital Competitiveness Ranking indicator for Ukraine also improved until 2021 (later, 

due to the Russian-Ukrainian war, Ukraine was temporarily excluded from the ranking due to 

lack of information). The strengthening of Ukraine's position in this ranking occurred primarily 

due to indicators characterizing the level of technological education in the country. 

Expert analysts from McKinsey consulting company (Smet et al., 2023), speaking about 

leadership in the digital age, primarily note that its characteristics depend on the transformation 

of the organizational philosophy of modern companies. Management structures designed to 

satisfy the financial interests of a limited group of owners are becoming less relevant. New 

organizational architectures are emerging that are focused on creating value for multiple 

stakeholders and include networks of self-directed teams. Such models of organizational 

culture anticipate more open and collaborative work and require a change in leadership styles 

and ways, as well as leadership qualities. There is a shift from individual leaders to leadership 

teams in organizational management. As a result, leaders need to rethink their purpose and the 

way they work. The authors provide five vectors of change in leadership qualities: 

 The leader should go beyond the confines of managerial functions, acquire a forward-

looking vision for the company, and develop it in this direction. 

 The leader should fully unleash the human potential in the organization by working to 

create an environment of belonging and psychological security. 



TRANSFORMATION OF MANAGERIAL LEADERSHIP QUALITIES UNDER THE 

INFLUENCE OF BUSINESS DIGITALIZATION 

 

78 
 

 The leader should abandon administrative-command leadership using hierarchical 

structures to communicate and receive management information in favor of creating a 

network of self-managed teams based on dialogue and cooperation. 

 The leader should discontinue the practice of strict adherence to plans, thus creating a 

favorable environment for experimentation, research, learning, and creativity. 

 The leader should refrain from constantly seeking to increase competitive advantages 

and market share, instead focusing on creating additional value for customers and other 

stakeholders, constantly improving their business models and ecosystems (Smet et al., 

2023). 

The importance of collaborating in running a business is demonstrated by a survey of 

top executives conducted by Harvard Business Review Analytic Services (2017). It was found 

that organizations whose leadership implemented the practice of collective leadership were 

more successful than those whose leaders did not support this idea. Such a form of leadership 

is directly associated with the digital revolution. The advantages of collective leadership 

include greater productivity and increased employee motivation through involvement in a 

common cause, and in many cases, it is a way for companies to survive in dynamic 

environments. The research also points out limitations and obstacles to the implementation of 

collective leadership: reluctance of managers, lack of strategic vision, risk aversion, fear of 

losing total control over processes, and lack of cooperation between departments. 

The example of the Ukrainian IT company Railsware demonstrates how collective 

leadership is practically implemented within an organization (Lazor, 2023). Team leadership 

means that decisions are not made by a single manager, but the entire team is involved and 

motivated to achieve high-quality results. The company moves away from hierarchical 

structures of subordination; instead of functional departments, project-based mini-teams are 

created, consisting of necessary experts, allowing for comprehensive problem-solving based 

on continuous exchange of information, activity, creativity, and initiative of participants. The 

advantages of collective leadership in the company include: 

 Openness and transparency of leadership to receive feedback when discussing issues; 

 Communication between departments, availability of work information on internal 

information resources; 

 Clear goal setting, task allocation, and role distribution; 

 Maximum automation of document flow, communication, and other secondary 

processes; 

 Discussion of ideas and proposals beyond the main project tasks (Lazor, 2023). 

Since leadership can be divided into "traditional" and "digital", the qualities of a modern 

business leader can be classified accordingly to have a better understanding of how to increase 

management efficiency. The differences between the qualities of a digital and traditional leader 

are as follows. 

 

 

 

 

 



Andrii ISHCHUK 

 

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Table 2 

Transformation of leadership qualities from a traditional to a digital leader 

Traditional leader Digital leader 

Performance-oriented (product quality, 

profit, competitiveness, etc.) 

Creates value for all stakeholders and 

develops organizational culture 

Adheres to the business plan Builds a business model 

Supervises employees Develops talent 

Uses digital technologies as an auxiliary 

tool in management 

Digital technologies are an integral part of 

the management process 

Focuses on goals Analyses interim results 

Limited to achieving a specific planned 

result 

Has a strategic vision of the company's 

development 

Focused on overall management, functional 

management delegates down the hierarchy 

A multidisciplinary, flexible leader 

Applies individual leadership Participates in shared leadership 

Source: Westerman G. et.al. (2014), Yucebalkan B. (2018), Smet et.al.(2023) 

 

Along with the differences shown in Table 2, it should be noted that digital leadership 

emerged from traditional leadership and is its logical and historical continuation. Therefore, 

there are also common qualities of traditional and digital leadership. In particular, it concerns 

the psychological properties of the individual (volitional qualities, responsibility, 

determination, flexibility of thinking), communication and professional competence, and group 

interaction skills that are developed and improved in the course of professional activity (Kozak, 

2019).  

 

CONCLUSIONS 

The findings demonstrate that leadership in the digital age is important at both macro 

and micro levels. Thus, this study shows the transformation of leadership and leadership 

qualities at different levels of economic management, which complemented the existing 

scientific leadership theories. It is established that in order to promote digital leadership at the 

macro level, the government is responsible for introducing digital technologies in 

administration, providing citizens with convenient tools for accessing administrative services. 

It was established that Ukraine is one of the leading countries introducing digital technologies 

at the macro level. Consequently, the state can avoid difficulties during the pandemic and 

quickly set up public administration systems to work under quarantine restrictions, as well as 

to prevent the collapse of public administration during the ongoing full-scale war when regular 

missile and cyber attacks are jeopardizing the Ukrainian state and local institutions. At the 

micro level, the government is demonstrating digital leadership by implementing programs to 

attract companies and stimulate the development of the IT sector. Reasonable state policy in 

the field of digital environment regulation can bring the country to a significantly higher level 

of socio-economic development. The current trends in digital transformation are positive, as 

evidenced by the growing penetration of information and communication technologies in 



TRANSFORMATION OF MANAGERIAL LEADERSHIP QUALITIES UNDER THE 

INFLUENCE OF BUSINESS DIGITALIZATION 

 

80 
 

public life. The main task is to attract investment to the country and create conditions for the 

digital transformation of companies, including their business processes and management. 

The study evidences that at the level of business management within companies, 

leadership in the context of digitalisation acquires specific characteristics compared to its 

traditional forms. The transition from individual to shared leadership provides benefits to all 

internal and external stakeholders of companies. At the same time, digital leaders have certain 

personal qualities who, unlike traditional leaders, have a strategic vision of the company, focus 

on the interests of business process participants and the environment, create an organizational 

culture, and develop talent. At the same time, leaders in the digital era still possess a set of 

traditional personal social and psychological qualities and professional competencies that allow 

them to communicate freely in a group, delegate authority, take responsibility and risks, and 

make final management decisions. 

The question of the degree of transformation of personal-psychological and 

professional-competent qualities of a manager under the influence of the digitalization process 

remains debatable. The set of modern leadership qualities requires a more detailed 

classification, as well as an empirical analysis of the manifestation of their individual groups 

in the management of organisations, which forms the subject of further scientific research. 

 

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