Linking E-Leadership To Digital Adoption In Smes: The Role Of Digital Orientation And Fear Of Failure

Abstract

In the context of increasing digital transformation, this study investigates the influence of e-leadership on digital technology adoption by examining the mediating role of digital orientation and the moderating effect of fear of failure. Drawing on the Technology–Organization–Environment (TOE) framework and Diffusion of Innovation (DOI) theory, a research model was developed and tested using data collected from 284 employees working in Vietnamese small and medium-sized enterprises (SMEs). Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to assess the hypothesized relationships. The results indicate that e-leadership positively influences digital technology adoption, both directly and indirectly through digital orientation. Moreover, fear of failure was found to negatively moderate the relationship between e-leadership and technology adoption, but not the relationship between digital orientation and technology adoption. These findings highlight the critical role of digital leadership and individual digital commitment in facilitating adoption, while also emphasizing the need to address psychological barriers. The study offers theoretical contributions by integrating the TOE and DOI frameworks and provides practical insights for organizations navigating digital transformation.