Impact of Digital Leadership and Resilience on Women’s Business Success

Impact of Digital Leadership and Resilience on Women’s Business Success

Nurul Izzati Ahmad Hisni¹, Nurul Nadia Abd Aziz¹*, Noor Affeeda Ramli¹, Muhammad Zahran Abd Rahman²

¹Faculty of Business and Management, University technology MARA Pahang (Raub Campus), Raub, Pahang, Malaysia

²Faculty of Business and Management, University Teknologi MARA Pahang (Jengka Campus), Jengka, Pahang, Malaysia

*Corresponding author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010212

Received: 09 January 2025; Accepted: 13 January 2025; Published: 13 February 2025

ABSTRACT

This study investigates how digital leadership and resilience impact the success of women-owned micro enterprises in Malaysia. These businesses often face challenges in accessing important technology, financing, and networking opportunities. A conceptual approach was used to develop a model that connects digital leadership, resilience, and business success by collecting data from women entrepreneurs in Malaysia. The results are expected to demonstrate digital leadership and resilience as keys to achieving business success. Resilience is also hypothesised to act as a mediator towards the relationship between digital leadership and business success, highlighting its importance for women-owned small enterprises to overcome various challenges. The findings hope to contribute to academic knowledge, industry practices, and policy-making by denoting how digital leadership and resilience can improve the success of women-owned micro enterprises. Overall, this research provides valuable insights into strengthening these businesses in a competitive digital economy.

Keywords— Business success, digital leadership, entrepreneurial resilience, Transformational Leadership Theory, women-owned micro enterprises

INTRODUCTION

Rapid advancement in digital technology has transformed the way businesses are conducted, prompting companies to constantly innovate and adapt. In this dynamic business landscape, leadership styles are essential in ensuring a company’s success. One leadership style becoming more prevalent is digital leadership, which combines conventional leadership frameworks with the requirements of the technology-driven era. Nevertheless, there is a gap in comprehensive studies on how digital leadership influences business success especially through the perspective of the Transformational Leadership Theory.

Transformational leadership, acknowledged for fostering employee engagement to reach superior results and initiate significant transformations, is an effective approach for understanding how digital leadership can lead to business success. Transformation-driven leaders in technological times are expected to foster creativity, adaptability, and promote visionary strategies, which are crucial for navigating contemporary challenges.

One of the key elements in this relationship is entrepreneurial resilience, which is the capacity of business owners to recover and adapt to obstacles. The COVID-19 pandemic has challenged this adaptability, especially among female business owners in Malaysia.  Women entrepreneurs face notable obstacles, such as managing both domestic and professional roles, as well as insufficient connections and financial resources [1], [2], [3]. Entrepreneurial resilience can improve the impact of digital-driven leadership by uphold organizational steadiness and explore new prospects despite exceptional difficulties, such as the COVID-19 pandemic. However, the role of entrepreneurial resilience in the relationship between digital leadership and business success has received limited research attention, especially in the context of women entrepreneurs in Malaysia.

Therefore, this study aims to respond to this deficiency by investigating how digital leadership, which is based on the theory of transformational leadership, influences business success among women entrepreneurs in Malaysia. It places a particular focus on the role of entrepreneurial resilience as a mediator especially amidst the difficulties imposed by the global health crisis. By understanding this relationship, the study hopes to offer meaningful perspectives for women entrepreneurs in Malaysia who wish to thrive in the technology-driven era.

LITERATURE REVIEW

A. Digital Leadership and Business Success

The impact of digital leadership on women’s business success is a growing research focus, that highlights the unique challenges and opportunities faced by women-owned businesses in the digital age. As organizations increasingly adopt digital tools, the role of effective leadership becomes essential for overseeing these evolutions.

Digital leadership is defined as the ability to utilize technological tools to foster transformative growth. According to [4], digital leadership plays a crucial role in developing business model innovation and improving customer satisfaction in the context of the fourth industrial revolution [4]. This is particularly relevant for women entrepreneurs who often face difficulties in gaining access to support systems that can facilitate their business growth. The ability of women leaders to adopt digital technologies effectively can enhance their competitive advantage and drive business success [5]. Furthermore, the dynamic capability theory suggests that digital leadership capabilities are essential for fostering innovation and improving performance, which is critical for new ventures led by women [5].

The leadership styles adopted by women entrepreneurs also significantly influence their business outcomes. [6] argue that women tend to adopt more transformational and charismatic leadership styles, which are associated with higher levels of employee engagement and satisfaction [6]. This aligns with the findings of [7], who suggest that women business owners often embody authentic servant leadership qualities, characterized by compassion and a commitment to the growth of their teams [7]. Such leadership styles can create a supportive organizational culture that empowers employees and enhances overall business performance.

Moreover, the organizational context in which women operate can either facilitate or hinder their success. [8] emphasizes the importance of entrepreneurial leadership in driving digital transformation and achieving business success, particularly in uncertain economic conditions [8]. This highlights the need for women leaders to cultivate resilience and adaptability in their leadership approach. Additionally, the research by [9] indicates that effective digital leadership can significantly impact employee satisfaction and performance, which are crucial for the success of women-led businesses in competitive markets [9].

The role of digital leadership in promoting diversity and inclusion within organizations is another critical aspect of its impact on women’s business success. [10] discusses how the digital age presents opportunities to close the “Gender Leadership Gap” by fostering diverse leadership teams that can drive innovation and business growth [10]. This is particularly relevant in traditionally male-dominated industries, where women leaders can leverage digital technologies to challenge the status quo and create more inclusive business environments.

The discussion hence suggests that there is uncertainty in the findings regarding the impact of digital leadership on business performance. Furthermore, there is a notable scarcity of empirical research focused specifically on women entrepreneurs. This gap in the literature underscores the necessity for additional studies to explore the effects of digital leadership on the success of women-owned businesses, particularly within the Malaysian context. Such investigations are essential to ascertain whether digital leadership exerts a positive or negative influence on the performance of enterprises led by women.

B. Entrepreneurial Resilience and Business Success

Entrepreneurial resilience has emerged as a vital construct in understanding business success, particularly in the face of challenges and uncertainties. Entrepreneurial resilience is often characterized as the ability of entrepreneurs to adapt, recover, and thrive in adverse conditions. [11] posits that a leader’s entrepreneurial resilience significantly predicts the performance of new hotels in Yogyakarta, suggesting that resilient leaders are better equipped to navigate the complexities of the hospitality industry [11]. This aligns with the findings of [12], who emphasize the moderating role of resilience in the relationship between self-efficacy and entrepreneurial success among disadvantaged entrepreneurs. Their research indicates that resilience enhances the positive effects of self-efficacy on entrepreneurial intentions, ultimately contributing to greater business success [12].

The importance of resilience is further underscored in the context of disaster-prone areas, where [13] identifies various factors that contribute to entrepreneurial resilience, suggesting that resilience is essential for sustaining business operations in challenging environments [13]. This is supported by [14], who highlight the significance of perseverance and consistency of interest as key components of resilience that influence entrepreneurial career success [14]. Their findings suggest that grit, a characteristic closely related to resilience, is crucial for overcoming obstacles and achieving long-term success in entrepreneurship.

In the context of crises, such as the COVID-19 pandemic, [15] highlight that resilient entrepreneurs are better positioned to adapt their business models and innovate in response to changing circumstances [15]. This adaptability is essential for small businesses aiming to survive and thrive in uncertain environments. Furthermore, [16] discuss the long-term impact of disaster loans on small businesses, noting that resilience is a critical factor in recovery and growth following crises [16].

In summary, entrepreneurial resilience helps women entrepreneurs overcome stereotypes and discrimination, balance work and personal life, build a strong support network, and adopt innovative approaches in problem-solving. These factors are keys towards long-lasting business success for women entrepreneurs, enabling them to navigate market changes, take advantage of favourable conditions, and ensure long-term business growth and success. Additionally, entrepreneurial resilience allows women entrepreneurs to stay flexible, adapt to change, and keep moving forward, which is crucial for their continued success in the business world.

C. The Mediating Effect of Entrepreneurial Resilience

Entrepreneurial resilience defined as the capacity of entrepreneurs to adapt, recover, and thrive in the face of challenges, entrepreneurial resilience plays a vital role in navigating the complexities of the business environment. Several studies have established a link between entrepreneurial resilience and performance outcomes. [17] found that entrepreneurial resilience significantly mediates the relationship between entrepreneurial competency and sustainable performance among Saudi entrepreneurs [17]. Their findings suggest that relevant competencies enhance resilience, which in turn facilitates the achievement of organizational sustainability. This aligns with the broader literature indicating that resilient behaviors are essential for navigating challenges and achieving long-term success in entrepreneurship.

Moreover, [18] explored the role of entrepreneurial resilience during the COVID-19 pandemic, demonstrating that resilience mediates the relationship between entrepreneurial mindfulness and organizational resilience in Chinese SMEs [18]. This study underscores the importance of resilience in fostering adaptability and innovation during crises, reinforcing the notion that resilient entrepreneurs are better equipped to handle adverse conditions.

In short, digital leadership is essential to the success of enterprises; however, the role of entrepreneurs’ resilience cannot be ignored. Entrepreneurs with high resilience are able to overcome challenges and make better use of digital technologies, leading to increased innovation, efficiency, and ultimately enterprise success. Subsequently, the Transformational Leadership Theory helps to explain how resilience mediates the connection between digital leadership and business success, with resilient entrepreneurs better prepared to handle challenges and seize opportunities.

CONCEPTUAL MODEL AND RESEARCH PROPOSITIONS

This study aims to explore how digital leadership and entrepreneurial resilience help businesses succeed, with a particular focus on women-owned small enterprises in Malaysia. The findings hope to offer useful insights for both academics and business practitioners [19]. The theoretical foundation of this investigation is based on the Transformational Leadership Theory, which examines three main elements: digital leadership (independent variable), entrepreneurial resilience (mediator), and business success (dependent variable). The proposed model is shown in Figure 1.

Fig. 1 Conceptual Model

Figure 1 emphasises the two key factors that drive business success: digital leadership and entrepreneurial resilience. The proposition that women entrepreneurs who successfully utilize digital leadership are associated with business success is supported by the notion that effective digital leadership enhances adaptability, innovation, and collaboration within organizations. Research indicates that women entrepreneurs who develop digital competencies can leverage technology to improve performance and reach wider audiences, thereby driving business growth [14]. For instance, studies show that women often adopt relational leadership styles that foster strong team dynamics, which are crucial in digital contexts. Additionally, resilience plays a significant role, as resilient women entrepreneurs are better equipped to navigate challenges and uncertainties, further contributing to their success. Overall, the integration of digital leadership skills empowers women entrepreneurs to thrive in competitive environments, leading to enhanced business outcomes. Therefore, it is hypothesised that there is a significant relationship between digital leadership and business success. The first proposition is thus proposed:

Proposition 1: Women entrepreneurs who are successful in using digital leadership will be associated  with business success.

Past literature consistently advocates that entrepreneurial resilience is an important component impacting various aspects of business success. Resilient entrepreneurs possess the ability to adapt to changing circumstances, recover from setbacks, and leverage challenges as opportunities for growth. For instance, [20] emphasizes that strong stakeholder relationships can provide essential support and resources during crises, thereby enhancing organizational resilience and fostering long-term success [20]. Similarly, [21] highlight the critical role of resilience in ensuring business sustainability during crises, noting that leaders’ resilience is vital for protecting employment and maintaining liquidity [21]. Furthermore, research by [22] indicates that resilience is both a consequence and an antecedent of entrepreneurial action, suggesting a reciprocal relationship that reinforces business success [22]. Therefore, the following proposition is proposed:

Proposition 2: Entrepreneurial resilience capability in  facing business challenges will be  associated with business success.

The proposition that entrepreneurial resilience will mediate the relationship between digital leadership and business success is grounded in the understanding that both digital leadership and resilience are critical factors in navigating the complexities of the modern business environment. Specifically, entrepreneurial resilience is positively related to business success, as it enables entrepreneurs to adapt to challenges, recover from setbacks, and leverage opportunities for growth, ultimately enhancing their performance. Concurrently, digital leadership is positively related to business success, as it encompasses the ability to effectively utilize technology, foster innovation, and create a collaborative organizational culture. By mediating the relationship between digital leadership and business success, entrepreneurial resilience acts as a crucial mechanism through which effective digital leadership translates into improved business outcomes. This suggests that female entrepreneurs possessing advanced digital leadership can foster resilience, which in turn improves their business performance. Hence, the following proposition is proposed:

Proposition 3: Entrepreneurial resilience will mediate the relationship between digital leadership and business success. Specifically, (a) entrepreneurial resilience is positively related to business success; and (b) digital leadership is positively related to business success.

IMPLICATIONS FOR PRACTITIONERS AND FUTURE RESEARCH

This study is expected to add to the existing knowledge of how digital leadership and entrepreneurial resilience affect business success. This can offer academics with an in-depth understanding of the factors that contribute to the success of women entrepreneurs. The findings also serve as the basis for further research in the areas of digital leadership, entrepreneurial resilience, and business success, particularly in the context of women entrepreneurs.

Furthermore, this study can also benefit industry professionals. Women entrepreneurs can utilise the findings to improve their digital leadership skills and build resilience in their businesses. For example, they can focus on using digital technology to improve business operations and address challenges more effectively. Industry experts can also create training programs that focus on digital skills and resilience building to help women entrepreneurs achieve more success.

Finally, the findings of this study can prompt efforts to devise policies that support women entrepreneurs. Policymakers will gain a better understanding of the challenges faced by women entrepreneurs and thus work to reduce these barriers through various measures, such as by improving internet access and technology in rural areas.

CONCLUSION

This study aims to explore the importance of strong digital leadership towards the success of women-owned small enterprises. It is hypothesised that women entrepreneurs who use technology and digital strategies effectively are more likely to succeed. The research also looks at the possible positive relationship between being resilient and business success. It is believed that highly resilient women entrepreneurs with better capability to cope with challenges and recover from failure are likely to be more successful. Conversely, this study postulates the link between resilience with digital leadership and business success. This suggests that good digital leadership helps build resilience, which in turn improves business success.

Overall, the study hopes to provide valuable insights into how digital leadership and resilience can help women-owned small enterprises in Malaysia thrive. By understanding and applying digital leadership principles and building strong resilience, women entrepreneurs can overcome obstacles and achieve greater success in their businesses.

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