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Leveraging digital transformation leadership and customer agility to enhance SME performance in the Riau Islands, Indonesia

Author

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  • Edy Yulianto Putra

    (Universitas Trisakti)

  • Yolanda Masnita

    (Universitas Trisakti)

  • Husna Leila Yusran

    (Universitas Trisakti)

  • Ratih Anggraini

    (Universitas Internasional Batam)

Abstract

This study investigates the impact of digital transformation leadership and customer agility on the performance of small and medium-sized enterprises (SMEs) in the Riau Islands, Indonesia. SMEs are pivotal to economic growth, yet they often face challenges in adapting to rapidly changing market conditions. Employing a sustainable development theory framework, the research explores how effective leadership in digital transformation and an agile approach to customer engagement can drive better performance outcomes. Findings reveal that while customer agility does not significantly correlate with SME performance, strong digital transformation leadership and well-implemented digital strategies initiatives are play crucial roles in enhancing operational effectiveness and performance. Study result highlights the necessity for SMEs to focus on cultivating innovative leadership that embraces digitization and developing strategies that respond swiftly to evolving customer needs. This research underscores the importance of integrating digital practices as a core component of sustainability efforts within SMEs. Ultimately, embracing effective digital transformation leadership is essential for SMEs seeking to thrive in increasingly competitive environments. The study recommends that future research should examine additional factors that may influence the performance of SMEs, providing a broader understanding of the dynamics at work in this critical sector. Key Words:Digital, Leadership, Customer, Agility, Performance

Suggested Citation

  • Edy Yulianto Putra & Yolanda Masnita & Husna Leila Yusran & Ratih Anggraini, 2025. "Leveraging digital transformation leadership and customer agility to enhance SME performance in the Riau Islands, Indonesia," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 7(2), pages 219-231, April.
    • Handle: RePEc:adi:ijbess:v:7:y:2025:i:2:p:219-231
    DOI: 10.36096/ijbes.v7i2.844
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