Influence of Individual-level Entrepreneurial Orientation Towards Digital Competence: Moderating Impact of Technical Competence of Middle Managers

Successful Digital Transformation (DT) essentially needs to address workforce transformation where organizations are expected to address fundamental elements of their employees (Eden et al., 2018). Resistance to transformation program, which may trigger within the company and from its own employees, if not addressed carefully (Gresov et al., 1993). Further lack of cognitive awareness may prevent large and incumbent organizations from fully engaging with its digitalization program given existing and legacy practices, organizational structures, architectures, procedures were deep rooted during pre-digital phase (Hanelt et al., 2021). As a result, many organizations are trying to reposition themselves with an organization-wide DT program involving a well-structured digital strategy, business model, organization structure and next generation IT infrastructure (Verhoef et al., 2021). However less than 30% have been successful with DT initiatives while estimated 70% failures were found mainly due to complex organizational change efforts where people are involved (McKinsey, 2018; Neves et al., 2018). Recent research revealed that leadership and employees are the key for the overall success of DT (Canterino et al., 2020; Weber et al., 2022). Innovative and disruptive changes associated with DT program make leadership and employees a demanding and complex task to accomplish (Cortellazzo et al., 2019). While adapting to a dynamic market environment, leaders and employees of organizations are expected to play different and competing roles to deal with behavioral complexity inherited in DT program (Lawrence et al., 2009). Even though digital technologies play a major role in its transformation program, the success or failure will heavily depend on employees’ competencies, skills, attitude, and mindset (Gilbert, 2006; Tripsas M & Gavetti G, 2000; Zimmer M P, 2020). Dynamic and competitive market environments will demand leaders and employees to develop and implement a well thought out, debated and structured digital strategy to enhance the organization performance (Matt et al., 2016). Leaders must simultaneously deal with employees who closely engage and work with digital technologies to understand its use cases for internal efficiency improvements and external market development (Cascio & Montealegre, 2016). Leaders should also identify and understand their subordinates who are employees responsible for the execution of many of these activities and their strengths and weaknesses to have a plan to get their maximum contribution for the successful implementation (McClanahan, 2020). There is evidence from existing research on both senior and middle managers and their need to have a strategic influence towards the business transformation, particularly in the digital era where organizations are actively engaging with many digital initiatives (Alexiev et al., 2010; Balogun & Johnson, 2005). Competent employees and managers can use their knowledge and experience in their organizational context and their colleagues, subordinates, and superiors to influence those around them to adopt organizational changes (Buchanan, 2008; Fairhurst, 2008; Pye & Pettigrew, 2005; Rouleau & Balogun, 2011).&nbsp