One position, three roles: CEOs driving digital transformation in SMEs

What the paper says

Purpose This paper explores the roles of chief executive officers (CEOs) and their unique characteristics, behaviors, and actions in small and medium-sized enterprises (SMEs) on their digital transformation (DT) path, building on the concepts of strategic leadership. Because CEOs are often the sole decision-makers in SMEs, they are responsible for providing orientation regarding the digital strategic direction. Design/methodology/approach A qualitative research approach based on in-depth interviews with 21 CEOs in German SMEs was applied. Findings The study identifies three key roles of CEOs in DT: (1) the digital mastermind, who understands the necessity of digitalization and building on experiences and competences for DT; (2) the digital trailblazer, who determines the overall setting for DT; and (3) the digital transformentor, who leads employees along the path of DT. These roles are not mutually exclusive but rather complementary and must be leveraged simultaneously. Research limitations/implications The results of the study may be geographically biased. However, they contribute to strategic leadership theory by proposing a framework for better understanding the decisive impact of CEOs in DT in SMEs. Practical implications The study outlines concrete actions within the three roles of CEOs that practitioners can apply to manage DT. Originality/value DT in SMEs is a relevant research topic because it impacts growth, innovation, and competitiveness. Yet, how to manage DT, particularly from a CEO’s perspective, remains underexplored. This research paper helps fill this gap by offering new insights based on strategic leadership theory.