Leadership and digital platforms: building sustainable advantage in emerging markets

Purpose This study investigates how digital transformational leadership moderates and digital knowledge acquisition mediates the relationship between digital platform capability and sustainable competitive advantage in emerging market manufacturing SMEs. It theoretically extends dynamic capabilities and practically guides resource-constrained firms in digitalization. Design/methodology/approach The authors collected data from 385 manufacturing SMEs in an emerging market using a time-lagged research design. A research model was developed to test the proposed relationships through quantitative analysis. Findings The empirical results show that digital platform capability positively affects sustainable competitive advantage through digital knowledge acquisition as a critical mediating mechanism. Furthermore, digital transformational leadership significantly moderates both the relationship between digital platform capability and knowledge acquisition and the overall mediation pathway. Practical implications The study suggests that manufacturing SMEs should develop digital platform capabilities alongside digital transformational leadership to achieve sustainable competitive advantage. Managers and policy-makers must prioritize leadership training and digital infrastructure to overcome environmental volatility. Moreover, leveraging digital knowledge acquisition as a mediating mechanism can enhance innovation performance and competitive positioning in digitalized business landscapes. Originality/value This study contributes to the literature by elucidating how leadership approaches can maximize digital capabilities in resource-constrained environments. Additionally, by revealing the mediating role of knowledge acquisition and the moderating effects of transformational leadership, this study enriches the research on dynamic capabilities theory in the context of digital transformation in emerging markets.