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The purpose of this research is to investigate the effects of transformational leadership & digital literacy of leaders on innovation capacity of organization while considering mediating effect of organizational culture for innovation. The data were collected from the sample of manufacturing SME’s leaders and employees using a structural equation modeling (SEM) technique. The study finds that transformational leadership & digital literacy positively influence the innovation capability. Nevertheless, organizational culture for innovation was determined to mediate this relationship and to enhance diverse effects of transformational leadership & digital literacy on innovation outcomes. These observations focus the need for refining organizational culture that supports creativity and innovation, and enhancing leadership skills and digital literacy of leaders for organizational innovation. This study adds to existing literature on leadership, digital literacy, organizational culture & innovation capability, providing guidance for managers and policymakers about the research issues so as to enhance innovation efforts within their organizations toward desired success.
Liaqat et al. (Sat,) studied this question.
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