Document Type : Research Paper

Authors

• Mehrdad Mehrkam ¹
• zakieh nasimi ²

¹ Graduated with a PhD in Production and Operations Management Allameh Tabataba’i University, Tehran, Iran Corresponding Author: mehrdad.mehrkam@guest.ut.ac.ir

² Master's student, Strategic Human Resource Management, University of Tehran, Tehran, Iran

Abstract

 
 
Taxation is one of the vital aspects of development in countries and plays an essential role in advancing the economic progress of countries. For this reason, different countries of the world implement comprehensive plans to improve and transform their tax systems. This study was conducted with the aim of evaluating the leadership style of managers on digital transformation among senior and middle managers of the country's tax affairs organization.A random sample of 44 expert managers was selected. This study used Smart-PLS software for data analysis and was conducted in the summer of 1402. The findings of the study showed that the leadership style of the managers and the digital transformation strategy have an impact on the digital transformation of the tax organization. In other words, it was found that the digital transformation strategy significantly mediates the relationship between managers' leadership style and digital transformation, not a moderating role. In addition, the results showed that managers' leadership style and digital transformation strategy have the greatest impact on digital transformation. have The obtained findings have shown that the proposed hypotheses are acceptable.

Introduction

In today's global landscape, digital transformation is paramount for organizational success. Even government bodies are revamping their tax systems to adapt to evolving environments. However, challenges like skill shortages and resource constraints impede progress. Nonetheless, integrating digital transformation technologies offers numerous benefits, such as enhanced transparency and innovation. Failing to keep up with technological advancements can lead to organizational obsolescence. Thus, thriving in competitive markets requires adeptness in digital transformation, innovation, and emerging technologies, supported by robust implementation strategies.

Literature Review

Digital transformation, as a managerial strategy, revolutionizes organizational operations and processes through the integration of digital technologies. These changes encompass the overhaul of products, business procedures, sales avenues, value chains, and business models. Beyond internal and external organizational shifts, digital transformation extends to establishing a distinct market presence both presently and in the future. Embracing this transformation necessitates the organization's agility in adopting new technologies and implementing comprehensive measures. However, digital transformation initiatives must transcend mere technological integration and instead prioritize process re-engineering and alignment among technology, processes, and personnel. Effective leadership and adept change management capabilities are also crucial components in this transformative journey.
2-1- The relationship between digital transformation and the leadership style of managers:
Digital transformation, as an organizational shift towards digital institutional frameworks, hinges on the legitimacy of the organization's belief system. Managers are pivotal in driving the success of this transformation; through strategic programs and effective leadership, they steer organizations toward digital evolution. The leadership style adopted by managers holds significant sway in this process, with studies indicating that a transformational leadership approach yields positive impacts on both organizational innovation and performance. Consequently, the text proposes a hypothesis asserting that managers' leadership style exerts a positive and noteworthy influence on digital transformation.
2-2- The relationship between digital transformation and digital transformation strategy:
Amidst the era of digital transformation, the significance of a well-crafted strategy for managing institutional change is underscored. Digital transformation is characterized as a dynamic and ongoing process necessitating a thorough reassessment of operations, strategy, leadership capabilities, innovation, and business models. In this context, the formulation of a digital strategy, encompassing both corporate and business strategies, emerges as a primary driver of success in digital transformation endeavors. Consequently, a hypothesis is posited, asserting that the digital transformation strategy exerts a positive and substantial impact on digital transformation outcomes.
2-3- The relationship between managers' leadership style and digital transformation strategy:
This text emphasizes the crucial role of the Chief Digital Officer (CDO) in operationalizing digital strategy and ensuring its alignment with the company's mission and goals. Ineffective implementation of digital strategy by senior managers and employees hinders reaping benefits from digital transformation. Successful utilization of digital transformation requires organizations to develop robust digital strategies and drive digital transformation efforts under senior executives' leadership. The text presents a hypothesis asserting that managers' leadership style significantly and positively affects digital transformation strategy.
2-4- Digital transformation strategy mediation:
The text highlights the significance of a well-designed and efficiently executed digital transformation strategy in guiding organizational digital transformations. Additionally, it proposes a hypothesis suggesting that the digital transformation strategy serves as a mediator in the relationship between managers' leadership style and the organization's digital transformation.
2-5- Moderation of digital transformation strategy:
The text defines digital strategy as a series of strategic IT and information systems actions directed by managerial decisions regarding the utilization of current infrastructure. It suggests that even if managers excel in handling risk and uncertainty, if their actions don't align with existing strategies, digital transformation might not yield desired outcomes. Consequently, the text hypothesizes that the digital transformation strategy moderates the relationship between managers' leadership style and the organization's digital transformation.

Methodology

Type of Research: This research is applied and descriptive-survey in nature, aimed at examining the relationship between managers' leadership style and digital transformation.
Population and Sample: The statistical population includes 50 middle and senior managers of the country's tax affairs organization. Based on Morgan's table, 44 managers with sufficient knowledge of digital transformation processes were selected as the sample. Simple random sampling was used to select the managers.
Data Collection Tools: Data were collected through semi-structured interviews and questionnaires. The interviews aimed to identify the managers' level of knowledge about digital transformation and the existing challenges. The questionnaires included both closed and open-ended questions and assessed various aspects of leadership style and digital transformation strategy.
Findings: The results indicated that the level of familiarity of managers with digital transformation concepts varies, and this difference depends on factors such as work experience and managerial role.
Data Analysis Method: For data analysis, structural equation modeling using Partial Least Squares (PLS) was employed. This method includes two models: the measurement model (examining the relationship between observable and latent variables) and the structural model (investigating the relationships among latent variables).

Results

This study emphasizes the dual nature of digital transformation, presenting both challenges and opportunities for organizations, including government bodies like tax authorities. The implementation of the taxpayer system serves as a successful example of digitalizing tax processes, demonstrating how technology can improve efficiency and transparency while minimizing redundancy. The role of managers in driving digitalization is crucial, requiring adept leadership and strategic approaches. Furthermore, the study highlights the digital transformation strategy's pivotal role as a mediator between managers' leadership style and organizational digital transformation. However, the finding that the strategy does not moderate this relationship suggests a nuanced perspective influenced by research context and environmental factors. Overall, the text underscores the importance of digital transformation for organizational success, advocating for strategic planning, effective leadership, and prudent technological adoption.
Figure 1. Conceptual model




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Leadership style of managers








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5.conclsion
According to the statistical results, one of the factors that influence the digital transformation is the leadership style of managers. Organizational managers directly influence digital transformation; Therefore, managers should provide the necessary platform for moving towards digitalization for the employees and the organization so that the organization can move in this direction.
As the statistical results showed, digital transformation strategy has an impact on digital transformation. When organizations are going to move towards digitalization, they must abandon their traditional processes and change them to modern ones; Therefore, in order to do this correctly, the strategy of the organization needs to be changed and designed according to the new goals of the organization, which is digitization, so that the organization can move in the right direction. In the absence of a suitable strategy, the organization will deviate from its path and digitization will not happen.
Finally, we used a cross-sectional research design while the discussion of digital transformation and digitalization happens over time; Therefore, it is suggested to use a time study to examine the growth of digital transformation implementation and capture the lessons learned over time.
Keywords: Managers' Leadership Style, Digital Transformation, Digital Transformation Strategy, Tax Affairs Organization.
 
 
 

Keywords

• Managers' leadership style
• digital transformation
• digital transformation strategy
• tax affairs organization

Main Subjects

• Management approaches in the field of smart