IDEAS home Printed from https://ideas.repec.org/a/eee/teinso/v83y2025ics0160791x2500154x.html

Talent management during digital transformation: Role of transformational leadership and resistance to change

Author

Listed:
  • Mahroof, Jawad
  • Rafi, Dr Arslan
  • Ahmad, Dr Ayaz

Abstract

As service sector organizations in developing countries transform to digital workplaces, understanding the role of talent management in this process has become crucial. This study aims to explore the impact of talent management on digital transformation. Furthermore, this study examines the mediating role of resistance to change and moderating role of transformational leadership in the transformation process. Utilizing the New Institutional Theory as a theoretical framework, the data was collected using 5-point Likert scale from 357 respondents using purposive sampling. The respondents were working in services sector of Pakistan including telecommunication, banking and IT industry. The study employed Structural Equation Modelling (SEM) for path analysis using SMART PLS 4.0. The findings revealed that talent management significantly impacts digital transformation. Furthermore, transformational leadership plays a moderating role in the process and there is no mediating impact of resistance to change on digital transformation. The study is unique as it focuses on the digital transformation process of developing countries as compared to developed countries where the technological infrastructure and resources are more advanced. This research underscores the tailored need of digital transformation in developing countries where talent management and transformational leadership can navigate digital transformation despite resource constraints. The limitations of this research include data collection from Pakistan only which could be enhanced by future research in other countries. Another limitation is that data was not collected from top management whose perspective on digital transformation could be different from middle and lower managers and staff and carries vital significance. Furthermore, data collection was done from three industries in services sector which could be improved by adding more industries in future.

Suggested Citation

  • Mahroof, Jawad & Rafi, Dr Arslan & Ahmad, Dr Ayaz, 2025. "Talent management during digital transformation: Role of transformational leadership and resistance to change," Technology in Society, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x2500154x
    DOI: 10.1016/j.techsoc.2025.102964
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0160791X2500154X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.techsoc.2025.102964?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Li, Huanli & Wu, Yun & Cao, Dongmei & Wang, Yichuan, 2021. "Organizational mindfulness towards digital transformation as a prerequisite of information processing capability to achieve market agility," Journal of Business Research, Elsevier, vol. 122(C), pages 700-712.
    2. Parminder Varma & Shivinder Nijjer & Kiran Sood & Simon Grima & Ramona Rupeika-Apoga, 2022. "Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry," Risks, MDPI, vol. 10(10), pages 1-17, September.
    3. Plekhanov, Dmitry & Franke, Henrik & Netland, Torbjørn H., 2023. "Digital transformation: A review and research agenda," European Management Journal, Elsevier, vol. 41(6), pages 821-844.
    4. Jushan Bai & Serena Ng, 2005. "Tests for Skewness, Kurtosis, and Normality for Time Series Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 23, pages 49-60, January.
    5. Sascha Kraus & Paul Jones & Norbert Kailer & Alexandra Weinmann & Nuria Chaparro-Banegas & Norat Roig-Tierno, 2021. "Digital Transformation: An Overview of the Current State of the Art of Research," SAGE Open, , vol. 11(3), pages 21582440211, September.
    6. Weber, Ellen & Büttgen, Marion & Bartsch, Silke, 2022. "How to take employees on the digital transformation journey: An experimental study on complementary leadership behaviors in managing organizational change," Journal of Business Research, Elsevier, vol. 143(C), pages 225-238.
    7. Jonas Soluk & Nadine Kammerlander, 2021. "Digital transformation in family-owned Mittelstand firms: A dynamic capabilities perspective," European Journal of Information Systems, Taylor & Francis Journals, vol. 30(6), pages 676-711, November.
    8. Schiuma, Giovanni & Santarsiero, Francesco & Carlucci, Daniela & Jarrar, Yasar, 2024. "Transformative leadership competencies for organizational digital transformation," Business Horizons, Elsevier, vol. 67(4), pages 425-437.
    9. Vera Barinova & Sylvie Rochhia & Stepan Zemtsov, 2022. "Attracting highly skilled migrants to the Russian regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 147-173, February.
    10. Salvadorinho, Juliana & Ferreira, Carlos & Teixeira, Leonor, 2024. "A technology-based framework to foster the lean human resource 4.0 and prevent the great resignation: The talent management lift," Technology in Society, Elsevier, vol. 77(C).
    11. Nasiri, Mina & Ukko, Juhani & Saunila, Minna & Rantala, Tero, 2020. "Managing the digital supply chain: The role of smart technologies," Technovation, Elsevier, vol. 96.
    12. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    13. Montero Guerra, José Manuel & Danvila-del-Valle, Ignacio & Méndez Suárez, Mariano, 2023. "The impact of digital transformation on talent management," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    14. Matthess, Marcel & Kunkel, Stefanie, 2020. "Structural change and digitalization in developing countries: Conceptually linking the two transformations," Technology in Society, Elsevier, vol. 63(C).
    15. Verhoef, Peter C. & Broekhuizen, Thijs & Bart, Yakov & Bhattacharya, Abhi & Qi Dong, John & Fabian, Nicolai & Haenlein, Michael, 2021. "Digital transformation: A multidisciplinary reflection and research agenda," Journal of Business Research, Elsevier, vol. 122(C), pages 889-901.
    16. Riham Al Aina & Tarik Atan, 2020. "The Impact of Implementing Talent Management Practices on Sustainable Organizational Performance," Sustainability, MDPI, vol. 12(20), pages 1-21, October.
    17. Pal, Paul, 2022. "The adoption of waves of digital technology as antecedents of digital transformation by financial services institutions," Journal of Digital Banking, Henry Stewart Publications, vol. 7(1), pages 70-91, June.
    18. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
    19. Meena, Abhilasha & Dhir, Sanjay & Sushil, Sushil, 2024. "Coopetition, strategy, and business performance in the era of digital transformation using a multi-method approach: Some research implications for strategy and operations management," International Journal of Production Economics, Elsevier, vol. 270(C).
    20. Porfírio, José António & Carrilho, Tiago & Felício, José Augusto & Jardim, Jacinto, 2021. "Leadership characteristics and digital transformation," Journal of Business Research, Elsevier, vol. 124(C), pages 610-619.
    21. Bianca Sousa & João J.M. Ferreira & Shital Jayantilal & Marina Dabic, 2024. "Global talent management – talents, mobility and global experiences – a systematic literature review," Journal of Global Mobility, Emerald Group Publishing Limited, vol. 12(3), pages 444-501, March.
    22. Budhi Haryanto & Anastasia Riani Suprapti & Asep Taufik & Rakotoarisoa Maminirina Fenitra, 2022. "Moderating role of transformational leadership in the relationship between work conflict and employee performance," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2105578-210, December.
    23. Raquel Escortell & Asier Baquero & Beatriz Delgado, 2020. "The impact of transformational leadership on the job satisfaction of internal employees and outsourced workers," Cogent Business & Management, Taylor & Francis Journals, vol. 7(1), pages 1837460-183, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Bilal & Zhao Xicang & Wu Jiying & Jan Muhammad Sohu & Sadaf Akhtar & Muhammad Iatzaz Ul Hassan, 2025. "Digital Transformation and SME Innovation: A Comprehensive Analysis of Mediating and Moderating Effects," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 1153-1182, March.
    2. Singh, Shiwangi & Sharma, Meenakshi & Dhir, Sanjay, 2021. "Modeling the effects of digital transformation in Indian manufacturing industry," Technology in Society, Elsevier, vol. 67(C).
    3. Simone Bevilacqua & Jana Masárová & Francesco Antonio Perotti & Alberto Ferraris, 2025. "Enhancing top managers' leadership with artificial intelligence: insights from a systematic literature review," Review of Managerial Science, Springer, vol. 19(9), pages 2899-2935, September.
    4. Titov Sergei & Trachuk Arkady & Linder Natalya & RD Pathak & Danny Samson & Zafar Husain & S Sushil, 2023. "Digital transformation enablers in high-tech and low-tech companies: A comparative analysis," Australian Journal of Management, Australian School of Business, vol. 48(4), pages 801-843, November.
    5. Pinto, Marcelo Rezende & Salume, Paula Karina & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "The path to digital maturity: A cluster analysis of the retail industry in an emerging economy," Technology in Society, Elsevier, vol. 72(C).
    6. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    7. Jiabao Lin & Minyi Mao, 2024. "How does digital transformation affect sustainable innovation performance? The pivotal roles of digital technology‐business alignment and environmental uncertainty," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3163-3181, August.
    8. Xiao Han & Menghan Zhang & Yixuan Hu & Yuan Huang, 2022. "Study on the Digital Transformation Capability of Cost Consultation Enterprises Based on Maturity Model," Sustainability, MDPI, vol. 14(16), pages 1-18, August.
    9. AlNuaimi, Bader K. & Kumar Singh, Sanjay & Ren, Shuang & Budhwar, Pawan & Vorobyev, Dmitriy, 2022. "Mastering digital transformation: The nexus between leadership, agility, and digital strategy," Journal of Business Research, Elsevier, vol. 145(C), pages 636-648.
    10. Zhou, Qiwei & Huang, Ran & Mao, Jih-Yu, 2025. "A serial mediation effect of digital transformation on employee performance: An ability-motivation-opportunity framework and employee unlearning," Journal of Business Research, Elsevier, vol. 201(C).
    11. Guo, Bin & Zhang, Jiale & Tan, Ziyan, 2024. "Firm digitalization as strategic response: An integrated model based on the awareness-motivation-capability (AMC) framework," Technological Forecasting and Social Change, Elsevier, vol. 205(C).
    12. Bora Ly, 2024. "The Interplay of Digital Transformational Leadership, Organizational Agility, and Digital Transformation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 4408-4427, March.
    13. Merín-Rodrigáñez, Joan & Dasí, Àngels & Alegre, Joaquín & Hughes, Mathew, 2025. "Dynamic managerial capabilities for digital transformation in innovative SMEs: What are the effects on new product development performance?," Journal of Business Research, Elsevier, vol. 201(C).
    14. Wang, Lu & Chen, Lifeng & Zhong, Shengyang & Zhou, Qunmi, 2025. "How executive green perception affect high-quality growth: Evidence from Chinese listed companies," International Review of Financial Analysis, Elsevier, vol. 108(PB).
    15. Li, Min & Liu, Na & Kou, Aiju & Chen, Wenchuan, 2023. "Customer concentration and digital transformation," International Review of Financial Analysis, Elsevier, vol. 89(C).
    16. Sun, Xiaoyan & Han, Jie & Işık, Cem, 2025. "Can digital transformation be a “powerful tool” to curb corporate tax avoidance? Mechanism analysis and policy implications based on Chinese data," International Review of Economics & Finance, Elsevier, vol. 102(C).
    17. Xin Tan & Jinfang Jiao & Ming Jiang & Ming Chen & Wenpeng Wang & Yijun Sun, 2024. "Digital Policy, Green Innovation, and Digital-Intelligent Transformation of Companies," Sustainability, MDPI, vol. 16(16), pages 1-23, August.
    18. Qiao, Penghua & Zhao, Yuying & Fung, Anna & Fung, Hung-Gay, 2025. "How digital leadership guides ESG sustainability," Research in International Business and Finance, Elsevier, vol. 73(PB).
    19. Zhang, Juan & Miao, Xiaoming & Shang, Tiantian, 2025. "Impact mechanism of digital transformation on supply chain resilience," Finance Research Letters, Elsevier, vol. 76(C).
    20. Torrent-Sellens, Joan, 2024. "Digital transition, data-and-tasks crowd-based economy, and the shared social progress: Unveiling a new political economy from a European perspective," Technology in Society, Elsevier, vol. 79(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:teinso:v:83:y:2025:i:c:s0160791x2500154x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/technology-in-society .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.