The Role of Digital Leadership in Managing ERP Transformation Challenges in Mining Contractor Companies
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This study examines the role of digital leadership in managing Enterprise Resource Planning (ERP) transformation challenges in mining contractor companies. In the era of digital transformation, organizations are required to integrate advanced technologies to enhance competitiveness and operational efficiency. However, ERP implementation often faces significant obstacles, including resistance to change, limited digital competencies, and misalignment of organizational culture. Therefore, effective digital leadership is essential to align technology adoption with organizational strategy and to foster a supportive digital culture. The objective of this research is to analyze the influence of digital leadership on competitive performance, as well as to investigate the mediating roles of digital culture and affective commitment in the context of ERP transformation. This study employs a quantitative approach, using survey data collected from 143 employees involved in ERP implementation within mining contractor companies. The data were analyzed using Structural Equation Modeling (SEM) with SmartPLS to examine both direct and indirect relationships among variables. The results indicate that digital leadership has a significant positive effect on competitive performance, both directly and indirectly through digital culture and affective commitment. Digital culture was found to be the strongest mediating variable, highlighting its critical role in enhancing organizational performance. In conclusion, successful ERP transformation is not solely dependent on technology but also on leadership capability, organizational culture, and employee commitment, which collectively drive sustainable competitive advantage.
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